tiprankstipranks
Trending News
More News >
Compass Minerals Intl (CMP)
:CMP
Advertisement

Compass Minerals International (CMP) AI Stock Analysis

Compare
525 Followers

Top Page

CMP

Compass Minerals International

(NYSE:CMP)

Rating:48Neutral
Price Target:
$19.00
▲(0.37% Upside)
Compass Minerals International's overall stock score reflects significant financial challenges, including negative profitability and high leverage. While recent earnings improvements and strategic refinancing provide some optimism, technical indicators and valuation remain weak. Legal proceedings add further uncertainty, necessitating cautious optimism.
Positive Factors
Earnings
FQ3 EBITDA was ~$41M, which beat consensus/BMO of $38/$36M.
Financial Guidance
Raising target price back to $20 following stabilization and $15M FY guidance increase.
Operational Efficiency
The company continues to work on optimizing headcount and costs, indicating efforts to improve operational efficiency.
Negative Factors
Market Conditions
Bid season results muted as our earlier work suggested - a good not great result for the rock salt market this year.
Pricing Strategy
It's unclear if ~2-4% gross rock salt price increases provide clear margin expansion.
Tariff Risks
There is a concern about tariff protection strategy, indicating potential risk if the tariff dynamic worsens.

Compass Minerals International (CMP) vs. SPDR S&P 500 ETF (SPY)

Compass Minerals International Business Overview & Revenue Model

Company DescriptionCompass 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 MoneyCompass Minerals generates revenue primarily through the sale of its products in the Salt and Plant Nutrition segments. The Salt segment, which includes highway de-icing salt, industrial salt, and consumer salt, is a significant contributor to the company's revenue, particularly during winter months when demand for de-icing products peaks. The Plant Nutrition segment earns revenue from the sale of specialty fertilizers, which are marketed to agricultural producers looking to optimize crop yields. The company also benefits from strategic partnerships with agricultural and industrial customers, allowing it to secure long-term contracts and stable revenue streams. Additionally, the company invests in operational efficiencies and cost management strategies to enhance its profit margins and overall financial performance.

Compass Minerals International Earnings Call Summary

Earnings Call Date:Aug 11, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Dec 02, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant improvements in revenue, operating income, and adjusted EBITDA across the board, with strategic refinancing and cost management contributing to a positive outlook. However, challenges remain with pricing pressures in the Salt business and rising distribution costs in Plant Nutrition. Overall, the company is on a positive trajectory but needs to address specific cost challenges.
Q3-2025 Updates
Positive Updates
Improvement in Plant Nutrition Business
The Plant Nutrition business saw strong sales volumes and lower production costs, resulting in improved per unit operating earnings and adjusted EBITDA.
Decreased Production Costs in Salt Business
Production costs in the Salt business decreased by 2%, leading to improved segment operating earnings and adjusted EBITDA on a per ton basis.
Successful Refinancing
The company completed a refinancing exercise to improve financial flexibility, enhance liquidity, and extend maturity profile.
Revenue and Operating Income Growth
Consolidated revenue increased by 6% year-over-year to $215 million, and operating income improved to $15.9 million from $5.9 million last year.
Reduction in Net Loss
Consolidated net loss reduced from $43.6 million to $17 million year-over-year.
Increase in Adjusted EBITDA
Adjusted EBITDA increased by 25% to $41 million, compared to $32.8 million a year ago.
Negative Updates
Decreased Pricing in Salt Business
Pricing in the Salt business was down 1% year-over-year, with net revenue per ton decreasing by 1% to $75.
Higher Distribution Costs in Plant Nutrition
Distribution costs per ton in the Plant Nutrition business increased by 10%.
Potential Higher KCl Costs
The company expects higher KCl prices going into the next year, impacting Plant Nutrition costs.
Company Guidance
During Compass Minerals' Third Quarter Fiscal 2025 Earnings Call, guidance was provided highlighting several key metrics. The company reported a consolidated revenue of $215 million, marking a 6% year-over-year increase. Operating income improved significantly to $15.9 million from $5.9 million in the previous year. The company's consolidated net loss was reduced to $17 million, compared to a $43.6 million loss last year. Adjusted EBITDA rose by 25% to $41 million. In the Salt business, revenue reached $166 million, with pricing slightly down by 1% to approximately $108 per ton, while volumes increased by 4%. The Plant Nutrition segment saw a 15% revenue increase to $45 million, despite a 5% decline in pricing. The company also improved its financial flexibility with a refinancing that enhanced its liquidity, leaving them with $388 million in liquidity at quarter-end. Looking forward, Compass Minerals increased its adjusted EBITDA guidance to $193 million for the year, up from a previous midpoint of $188 million.

Compass Minerals International Financial Statement Overview

Summary
Compass Minerals International faces significant financial challenges, with declining revenues and negative profitability metrics. High leverage and reduced cash flow generation further emphasize the need for strategic improvements. The company must focus on stabilizing its operations to enhance both profitability and financial health.
Income Statement
42
Neutral
Compass Minerals International has faced significant challenges in its recent performance with a negative TTM net income and declining revenue. The company's TTM gross profit margin is 17.4%, which reflects a decrease from previous years. The net profit margin has turned negative, indicating issues with profitability. Additionally, the EBIT and EBITDA margins are negative, implying operational difficulties.
Balance Sheet
50
Neutral
The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage with a ratio of 2.90. This could pose risks if earnings do not improve. The equity ratio is 19.3%, suggesting moderate financial stability. Return on equity is negative due to the net losses, highlighting the need for improved profitability.
Cash Flow
35
Negative
The cash flow statement shows negative free cash flow growth, with a decline from the previous year. The operating cash flow to net income ratio is concerning due to negative net income. The company needs to enhance its cash generation capabilities to improve financial flexibility.
BreakdownDec 2024Dec 2023Dec 2022Dec 2020Dec 2019
Income Statement
Total Revenue1.12B1.20B1.24B1.49B1.09B
Gross Profit195.00M233.90M198.00M336.80M232.50M
EBITDA-13.70M90.70M39.40M153.00M245.60M
Net Income-206.10M15.50M-36.70M59.50M60.80M
Balance Sheet
Total Assets1.64B1.82B1.64B2.44B2.37B
Cash, Cash Equivalents and Short-Term Investments20.20M38.70M46.10M34.70M27.00M
Total Debt917.50M805.30M947.60M1.42B1.36B
Total Liabilities1.32B1.30B1.39B1.91B1.83B
Stockholders Equity316.60M517.20M257.00M529.60M540.20M
Cash Flow
Free Cash Flow-99.80M-48.30M23.80M61.50M93.90M
Operating Cash Flow14.40M101.10M120.50M159.60M190.70M
Investing Cash Flow-116.10M-173.00M-80.00M-100.40M-99.60M
Financing Cash Flow83.10M64.00M-14.30M-50.50M-85.90M

Compass Minerals International Technical Analysis

Technical Analysis Sentiment
Negative
Last Price18.93
Price Trends
50DMA
20.36
Negative
100DMA
18.55
Positive
200DMA
15.22
Positive
Market Momentum
MACD
-0.33
Positive
RSI
41.17
Neutral
STOCH
28.21
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CMP, the sentiment is Negative. The current price of 18.93 is below the 20-day moving average (MA) of 19.50, below the 50-day MA of 20.36, and above the 200-day MA of 15.22, indicating a neutral trend. The MACD of -0.33 indicates Positive momentum. The RSI at 41.17 is Neutral, neither overbought nor oversold. The STOCH value of 28.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CMP.

Compass Minerals International Risk Analysis

Compass Minerals International disclosed 7 risk factors in its most recent earnings report. Compass Minerals International reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Compass Minerals International Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
$583.89M-3.27%178.66%82.83%
61
Neutral
$10.20B6.090.72%2.93%3.45%-36.02%
50
Neutral
$780.10M27.86-12.38%1.31%-8.59%-256.43%
48
Neutral
$794.17M-40.17%1.61%7.27%27.35%
44
Neutral
$354.46M-814.96%
42
Neutral
$2.18B-364.03%-9.91%
35
Underperform
$1.45B-40.55%-15.85%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CMP
Compass Minerals International
18.93
10.98
138.11%
GSM
Ferroglobe
4.15
-0.08
-1.89%
UAMY
United States Antimony
4.31
3.59
498.61%
TMC
TMC the metals company Inc.
5.67
4.78
537.08%
LZM
Lifezone Metals
4.25
-1.70
-28.57%
IPX
Iperionx Ltd. ADR
47.82
29.80
165.37%

Compass Minerals International Corporate Events

Legal Proceedings
Compass Minerals Settlement Preliminarily Approved by Court
Negative
Aug 28, 2025

On August 15, 2025, the United States District Court for the District of Kansas preliminarily approved a settlement of stockholder derivative actions against Compass Minerals International, Inc. The actions alleged breaches of fiduciary duties and other misconduct by company officers and board members from 2017 to 2022, impacting the company’s stock price and leading to SEC charges and a related federal securities class action. The court will hold a hearing on October 14, 2025, to determine the fairness of the settlement.

Executive/Board Changes
Compass Minerals Announces Leadership Change with New Interim Counsel
Neutral
Jun 27, 2025

On June 26, 2025, Mary L. Frontczak stepped down from her role as Chief Legal and Administrative Officer and Corporate Secretary at Compass Minerals International. James D. Hughes has taken over the responsibilities as General Counsel and Corporate Secretary on an interim basis, indicating a shift in the company’s leadership structure.

Private Placements and FinancingBusiness Operations and Strategy
Compass Minerals Completes $650M Senior Notes Offering
Positive
Jun 16, 2025

On June 16, 2025, Compass Minerals International, Inc. completed a private offering of $650 million in senior notes due 2030, with an interest rate of 8.000%. The proceeds are being used to repay existing credit agreements, redeem $350 million of senior notes due 2027, and for general corporate purposes. This move is part of a broader financial strategy, including an amendment to its credit agreement, which stabilizes revolving commitments and permits the issuance of these notes. The transaction is expected to strengthen Compass Minerals’ financial position by managing debt and providing additional liquidity.

Private Placements and FinancingBusiness Operations and Strategy
Compass Minerals Announces $650 Million Senior Notes Offering
Positive
Jun 3, 2025

On June 3, 2025, Compass Minerals announced the pricing of a $650 million offering of senior notes due 2030, with the sale expected to close around June 16, 2025. The proceeds will be used to repay existing debt, redeem $350 million of senior notes due 2027, and for general corporate purposes. Concurrently, the company plans to amend its senior secured credit agreement to adjust financial covenants and revolving commitments. This strategic financial maneuver aims to optimize the company’s debt structure and enhance its financial flexibility.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 29, 2025