Compass Minerals International (CMP) AI Stock Analysis

• Market Cap: $894.42M
• Dividend Yield: 1.61%
• Average Volume (3M): 667.74K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.99
• Revenue Growth: 5.81%
• EPS Growth: -78.45%
• Country: US
• Employees: 2,000
• Sector: Basic Materials
• Sector Strength: 72
• Industry: Industrial Materials
• EPS (TTM): 0.63
• Shares Outstanding: 41,620,520
• 10 Day Avg. Volume: 538,642
• 30 Day Avg. Volume: 667,736
• PEG Ratio: -0.23
• Price to Book (P/B): 3.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -36.88
• Enterprise Value/Market Cap: 2.06
• Enterprise Value/Revenue: 0.53
• Enterprise Value/Gross Profit: 11.62
• Enterprise Value/Ebitda: 16.00
• 1Y Price Target: $21.00
• Price Target Upside: -2.28% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 54 Neutral
• Price Target: $22.50 ▲(4.70%Upside)

Compass Minerals International's overall stock score is primarily impacted by its financial performance challenges, including negative profitability and high leverage. While technical indicators show bullish momentum, the overbought conditions suggest caution. The company's strategic financial maneuvers and positive earnings call sentiment provide some optimism, but significant risks remain.

Positive Factors

Earnings Potential

Cold weather positions the company well for better earnings later in F2025 and perhaps in F2026 as inventories are depleted due to higher demand for salt.

Financial Performance

Compass' balance sheet and cash flow look to be improving as it works down inventories, which could raise its cash flow and deliver positive free cash flow in 2025.

Market Position

The analyst raised the investment rating on Compass Minerals from Neutral to Overweight, suggesting confidence in future performance and valuation.

Negative Factors

Dividend Policy

Compass cut its dividend significantly and eventually eliminated it entirely, which may concern income-focused investors.

Legal and Regulatory Issues

The company was fined by the SEC for misleading investors and was subsequently sued, which may impact its reputation and financial standing.

Operational Challenges

The company's Q1 EBITDA significantly missed consensus expectations, indicating operational challenges.

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 through the production and sale of its core products: salt and plant nutrition products. The Salt segment primarily earns income from the sale of de-icing salt used by municipalities for road safety during winter months, as well as consumer and industrial salts used in food processing, water conditioning, and other industrial applications. The Plant Nutrition segment focuses on specialty plant nutrition products, including sulfate of potash, which are sold to agricultural customers aiming to improve crop yield and quality. The company's earnings are bolstered by long-term supply contracts and strategic partnerships with local governments, agricultural cooperatives, and industrial clients, which help ensure a steady demand for its products. Additionally, Compass Minerals benefits from its cost-effective mining and production processes, which contribute to maintaining a competitive edge in the market.

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

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

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

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.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Dec 2020	Dec 2019
Income Statement
Total Revenue	1.12B	1.20B	1.24B	1.49B	1.09B
Gross Profit	195.00M	233.90M	198.00M	336.80M	232.50M
EBITDA	-13.70M	90.70M	39.40M	153.00M	245.60M
Net Income	-206.10M	15.50M	-36.70M	59.50M	60.80M
Balance Sheet
Total Assets	1.64B	1.82B	1.64B	2.44B	2.37B
Cash, Cash Equivalents and Short-Term Investments	20.20M	38.70M	46.10M	34.70M	27.00M
Total Debt	917.50M	805.30M	947.60M	1.42B	1.36B
Total Liabilities	1.32B	1.30B	1.39B	1.91B	1.83B
Stockholders Equity	316.60M	517.20M	257.00M	529.60M	540.20M
Cash Flow
Free Cash Flow	-99.80M	-48.30M	23.80M	61.50M	93.90M
Operating Cash Flow	14.40M	101.10M	120.50M	159.60M	190.70M
Investing Cash Flow	-116.10M	-173.00M	-80.00M	-100.40M	-99.60M
Financing Cash Flow	83.10M	64.00M	-14.30M	-50.50M	-85.90M

Compass Minerals International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.49
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 21.49 is above the 20-day moving average (MA) of 21.30, above the 50-day MA of 20.25, and above the 200-day MA of 14.23, indicating a bullish trend. The MACD of 0.45 indicates Positive momentum. The RSI at 57.40 is Neutral, neither overbought nor oversold. The STOCH value of 40.48 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
UAMY	57 Neutral	$424.00M	―	-4.38%	―	105.14%	84.95%
GSM	55 Neutral	$886.47M	27.86	-7.29%	1.14%	-4.98%	-192.96%
CMP	54 Neutral	$894.42M	―	-46.32%	1.61%	5.81%	-78.45%
LZM	48 Neutral	$387.69M	―	-814.96%	―	―	―
Sector *	44 Neutral	AU$1.51B	-6.04	-41.37%	3.90%	-3.45%	-43.04%
TMC	42 Neutral	$3.06B	―	-667.42%	―	―	-3.49%
IPX	35 Underperform	$1.16B	―	-40.55%	―	―	-15.85%

Compass Minerals International Corporate Events

Compass Minerals Announces Leadership Change with New Interim Counsel

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.

The most recent analyst rating on (CMP) stock is a Hold with a $18.00 price target. To see the full list of analyst forecasts on Compass Minerals International stock, see the CMP Stock Forecast page.

Compass Minerals Completes $650M Senior Notes Offering

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.

The most recent analyst rating on (CMP) stock is a Hold with a $18.00 price target. To see the full list of analyst forecasts on Compass Minerals International stock, see the CMP Stock Forecast page.

Compass Minerals Announces $650 Million Senior Notes Offering

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.

The most recent analyst rating on (CMP) stock is a Hold with a $18.00 price target. To see the full list of analyst forecasts on Compass Minerals International stock, see the CMP Stock Forecast page.