Compass Minerals International (CMP) AI Stock Analysis

• Market Cap: $1.05B
• Dividend Yield: N/A
• Average Volume (3M): 383.52K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.91
• Revenue Growth: 11.32%
• EPS Growth: 61.60%
• Country: US
• Employees: 2,000
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 0.43
• Shares Outstanding: 41,841,850
• 10 Day Avg. Volume: 431,526
• 30 Day Avg. Volume: 383,517
• PEG Ratio: 0.16
• Price to Book (P/B): 3.43
• Price to Sales (P/S): 0.65
• P/FCF Ratio: 6.27
• Enterprise Value/Market Cap: 1.85
• Enterprise Value/Revenue: 1.56
• Enterprise Value/Gross Profit: 10.18
• Enterprise Value/Ebitda: 16.45
• 1Y Price Target: $22.67
• Price Target Upside: -13.77% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: $26.00 ▼(-1.10% Downside)

The score is held back mainly by weak financial performance (net losses and high leverage), partially offset by improving cash-flow trends and positive earnings-call momentum (debt and cost reductions with higher EBITDA guidance). Technicals are supportive with the stock above key moving averages, but overbought indicators add near-term risk, and valuation is constrained by negative earnings.

Positive Factors

Improving Cash Generation

Consistent free cash flow improvement and strong operating cash relative to net income provide durable financial flexibility. This supports capex funding, debt repayment, and operational resilience through cycles, reducing need for dilutive financing and enabling strategic reinvestment.

Operational and Cost Discipline

Material EBITDA recovery alongside meaningful SG&A cuts indicates management is executing efficiency and margin-restoration initiatives. These structural improvements can sustainably lift cash flow and profitability if maintained, accelerating deleveraging and reinvestment capacity over the next several quarters.

Stable, Essential Market Position

Compass operates in essential, non-discretionary markets (road deicing, industrial salt, crop nutrition). Diverse end-markets and distributor relationships provide structural revenue stability and recurring demand across seasons and geographies, anchoring long-term cash flow predictability.

Negative Factors

High Financial Leverage

Very high leverage materially increases interest and refinancing risk, constrains strategic flexibility, and raises vulnerability to demand shocks. Over the medium term this limits capital allocation options and forces prioritization of debt service over growth or shareholder returns.

Persistent Profitability Shortfall

Ongoing net losses and subpar gross margins indicate structural cost or pricing pressures. Without sustained margin expansion, the company will struggle to generate equity returns, build reserves, or fully capitalize on operational improvements, leaving recovery fragile.

Volume and Pricing Headwinds in Salt

Guided volume declines and weaker deicing pricing point to sustained demand and pricing pressure in the core Salt segment. Reduced volumes and lower realized prices compress segment margins and cash flow, challenging the sustainability of recent profitability gains if trends persist.

Compass Minerals International Business Overview & Revenue Model

Company Description

Compass Minerals International, Inc., produces and sells essential minerals primarily in the United States, Canada, Brazil, the United Kingdom, and internationally. It operates through three segments: Salt, Plant Nutrition North America, and Plant Nutrition South America. The Salt segment offers sodium chloride and magnesium chloride, including rock salt, mechanically and solar evaporated salt, and brine and flake magnesium chloride products; and purchases potassium chloride and calcium chloride to sell as finished products or to blend with salt to produce specialty products. This segment provides products for use as a deicer for roadways, consumer, and professional use; as an ingredient in chemical production; for water treatment, human, and animal nutrition; and for various other consumer and industrial uses, as well as records management services. The Plant Nutrition North America segment offers sulfate of potash specialty fertilizers in various grades, including agricultural products that are used in broadcast spreaders, direct application, and liquid fertilizer solutions; turf products used by the turf and ornamental markets, as well as for blends used on golf course greens; organic products under the Protassium+ brand; and micronutrient products under the Wolf Trax and other brands. This segment provides its products to distributors and retailers of crop inputs, as well as growers. The Plant Nutrition South America segment offers various specialty plant nutrients and supplements; water and wastewater treatment chemicals for cleaning, decontaminating, and purifying water; and process chemicals for industrial use. The company was formerly known as Salt Holdings Corporation and changed its name to Compass Minerals International, Inc. in December 2003. Compass Minerals International, Inc. was founded in 1993 and is headquartered in Overland Park, Kansas.

How the Company Makes Money

Compass Minerals generates revenue primarily through the sale of its salt and plant nutrition products. The Salt segment contributes a significant portion of the company's earnings, particularly through the sale of deicing salt during winter months, which is essential for road safety in colder climates. Additionally, the company earns revenue from its industrial and consumer salt products. The Plant Nutrition segment provides another key revenue stream, with sales of specialty fertilizers and other nutrients aimed at improving agricultural productivity. Partnerships with agricultural distributors and retailers enhance market access for its plant nutrition products. Furthermore, the company's focus on efficiency and cost management, along with strategic pricing, supports its profitability and revenue generation efforts.

Compass Minerals International Financial Statement Overview

Summary

Financials are pressured by weak profitability and leverage despite some cash-flow improvement. The income statement shows negative net income and a low gross margin (15.3%), while the balance sheet is highly levered (debt-to-equity 3.85, negative ROE). Cash flow is a relative bright spot with free cash flow growth (+9.22%) and solid operating cash generation versus net income.

Income Statement

Compass Minerals International shows a mixed performance in its income statement. The company experienced a slight revenue growth of 1.53% in the latest year, but it has struggled with profitability, as evidenced by a negative net income of $79.8 million. The gross profit margin is relatively low at 15.3%, indicating challenges in cost management. The EBIT and EBITDA margins have improved compared to the previous year, but the company still faces significant profitability issues.

Balance Sheet

The balance sheet reveals high leverage with a debt-to-equity ratio of 3.85, which poses a risk in terms of financial stability. The equity ratio is low, reflecting a heavy reliance on debt financing. Return on equity is negative, indicating that the company is not generating sufficient returns for its shareholders. Overall, the balance sheet suggests financial vulnerability due to high debt levels.

Cash Flow

Cash flow analysis shows some positive trends, with a 9.22% growth in free cash flow. The operating cash flow to net income ratio is strong, indicating good cash generation relative to net income. However, the free cash flow to net income ratio is negative, reflecting challenges in converting profits into free cash flow. Despite these issues, the company has improved its cash flow position compared to previous years.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.24B	1.24B	1.12B	1.20B	1.24B	836.60M
Gross Profit	190.70M	190.70M	195.00M	233.90M	198.00M	171.70M
EBITDA	118.00M	118.00M	-13.70M	90.70M	39.40M	173.40M
Net Income	-79.80M	-79.80M	-206.10M	15.50M	-36.70M	-213.30M
Balance Sheet
Total Assets	1.54B	1.54B	1.64B	1.82B	1.64B	1.63B
Cash, Cash Equivalents and Short-Term Investments	59.70M	59.70M	20.20M	38.70M	46.10M	18.10M
Total Debt	901.60M	901.60M	917.50M	805.30M	947.60M	1.00B
Total Liabilities	1.30B	1.30B	1.32B	1.30B	1.39B	1.34B
Stockholders Equity	234.10M	234.10M	316.60M	517.20M	257.00M	293.10M
Cash Flow
Free Cash Flow	128.00M	128.00M	-99.80M	-48.30M	23.80M	90.90M
Operating Cash Flow	197.70M	197.70M	14.40M	101.10M	120.50M	162.70M
Investing Cash Flow	-50.00M	-50.00M	-116.10M	-173.00M	-80.00M	276.20M
Financing Cash Flow	-108.30M	-108.30M	83.10M	64.00M	-14.30M	-439.60M

Compass Minerals International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CMP, the sentiment is Positive. The current price of 26.29 is above the 20-day moving average (MA) of 24.08, above the 50-day MA of 21.09, and above the 200-day MA of 19.30, indicating a bullish trend. The MACD of 1.42 indicates Negative momentum. The RSI at 68.79 is Neutral, neither overbought nor oversold. The STOCH value of 71.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CMP.

Compass Minerals International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
NEXA	61 Neutral	$1.68B	-108.00	-1.64%	1.14%	7.92%	91.83%
UAMY	60 Neutral	$1.10B	-235.37	-10.59%	―	240.12%	0.98%
GSM	55 Neutral	$910.73M	-6.96	-16.00%	1.17%	-16.89%	-403.77%
CMP	54 Neutral	$1.05B	-13.71	-28.98%	―	11.32%	61.60%
ABAT	53 Neutral	$506.88M	―	-58.41%	―	821.40%	44.70%

Compass Minerals International Corporate Events

Compass Minerals wins preliminary approval of derivative settlement

On October 24, 2025, Compass Minerals International, acting as a nominal defendant, entered into a stipulation to settle two stockholder derivative lawsuits in the U.S. District Court for the District of Kansas that alleged certain current and former directors and officers breached fiduciary duties between February 8, 2023, and March 25, 2024, by causing the company to issue misleading disclosures about safety testing and contract prospects for its magnesium chloride-based aerial fire retardants. On December 10, 2025, the court granted preliminary approval for the settlement, which, if finally approved at a February 20, 2026 hearing, will dismiss the actions with prejudice, require Compass to adopt and maintain specified corporate governance reforms, and provide for $850,000 in legal fees to be paid by the company’s insurers and potential service awards to the two plaintiffs, underscoring both the governance implications for Compass and the absence of direct monetary recovery for shareholders.

The most recent analyst rating on (CMP) stock is a Hold with a $19.00 price target. To see the full list of analyst forecasts on Compass Minerals International stock, see the CMP Stock Forecast page.

Compass Minerals refreshes board with four new directors

On December 18, 2025, Compass Minerals expanded its board of directors from eight to 12 members as part of a board refreshment initiative, appointing four new directors—Russell Ball, Denise Merle, Mark Roberts and David Safran—each to serve until the 2026 annual meeting while assigning them to key committees including Audit, Compensation, Nominating and Corporate Governance, Environmental, Health, Safety and Sustainability, and a newly created Capital Allocation and Technical Committee. The reshaped board is intended to bolster expertise in mining, industrial operations, salt and plant nutrition, and corporate governance to support the company’s back-to-basics strategy and operational efficiency goals, while several existing directors, including representatives of major shareholder Koch Minerals & Trading and long-serving director Lori Walker, will not stand for reelection at the 2026 meeting, and chair Joe Reece is expected to transition off the board by or before the 2027 annual meeting as the board size is gradually reduced back to eight members.

The most recent analyst rating on (CMP) stock is a Hold with a $19.50 price target. To see the full list of analyst forecasts on Compass Minerals International stock, see the CMP Stock Forecast page.