Compass Minerals International (CMP) AI Stock Analysis

• Market Cap: $794.59M
• Dividend Yield: 1.61%
• Average Volume (3M): 418.80K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.92
• Revenue Growth: 7.27%
• EPS Growth: 27.35%
• Country: US
• Employees: 2,000
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): -0.39
• Shares Outstanding: 41,688,656
• 10 Day Avg. Volume: 416,089
• 30 Day Avg. Volume: 418,798
• PEG Ratio: <0.01
• Price to Book (P/B): 1.57
• Price to Sales (P/S): 0.44
• P/FCF Ratio: -4.97
• Enterprise Value/Market Cap: 2.02
• Enterprise Value/Revenue: 1.48
• Enterprise Value/Gross Profit: 10.13
• Enterprise Value/Ebitda: 34.53
• 1Y Price Target: $19.00
• Price Target Upside: 0.69% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2

• Rating: 46 Neutral
• Price Target: $18.00 ▼(-4.61% Downside)

Compass Minerals International's overall stock score reflects significant financial challenges, with negative profitability and high leverage being the most critical factors. While the earnings call provided some positive developments, such as improved liquidity and operational metrics, the technical analysis and valuation remain weak, contributing to a lower overall score.

Positive Factors

Revenue Growth

The 6% year-over-year revenue growth indicates a positive trend in sales, suggesting effective strategies in expanding market reach and product demand.

Improved Liquidity

Refinancing efforts have enhanced liquidity, providing the company with greater financial flexibility to manage operations and invest in growth opportunities.

Leadership Change

The appointment of a new HR leader with a focus on transformative work and employee engagement can improve organizational culture and operational efficiency.

Negative Factors

High Leverage

High leverage poses risks to financial stability, potentially limiting the company's ability to invest in growth and manage economic downturns effectively.

Negative Profitability

Negative profitability metrics indicate ongoing operational challenges, which could hinder long-term growth and shareholder value creation if not addressed.

Rising Distribution Costs

Increasing distribution costs can erode margins and profitability, necessitating cost control measures to maintain competitive pricing and financial health.

Compass Minerals International Business Overview & Revenue Model

Company Description

Compass Minerals International (CMP) is a leading global provider of essential minerals, primarily focused on the production of salt and specialty fertilizers. The company operates in two main segments: Salt and Plant Nutrition. CMP's Salt segment supplies a variety of salt products for de-icing highways, as well as for industrial applications and consumer use. The Plant Nutrition segment offers a range of specialty fertilizers designed to enhance agricultural productivity and soil health. With operations in North America and the UK, Compass Minerals plays a crucial role in supporting food production and infrastructure through its high-quality mineral products.

How the Company Makes Money

Compass 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 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	Dec 2024	Dec 2023	Dec 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: 18.87
• 50DMA: Negative
• 100DMA: Negative
• 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 18.87 is above the 20-day moving average (MA) of 18.58, below the 50-day MA of 19.50, and above the 200-day MA of 15.51, indicating a neutral trend. The MACD of -0.29 indicates Negative momentum. The RSI at 53.47 is Neutral, neither overbought nor oversold. The STOCH value of 65.52 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	66 Neutral	858.61M	-701.11	-2.35%	―	178.66%	82.83%
GSM	50 Neutral	821.15M	-7.71	-12.87%	1.28%	-8.59%	-256.43%
CMP	46 Neutral	$794.59M	―	-40.17%	1.61%	7.27%	27.35%
LZM	44 Neutral	430.58M	-1.14	-51.71%	―	―	―
TMC	42 Neutral	2.50B	-17.55	―	―	―	-9.91%
IPX	35 Underperform	1.55B	-43.79	―	―	―	-15.85%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Compass Minerals International Corporate Events

Compass Minerals Settlement Preliminarily Approved by Court

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.

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.

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.

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.