NYSE:CMP

Stock Analysis Report

Compass Minerals International

Executive Summary

Compass Minerals International, Inc., produces and sells salt, and specialty plant nutrition and chemical products primarily in the United States, Canada, Brazil, and the United Kingdom.


Snowflake Analysis

Established dividend payer with reasonable growth potential.


Similar Companies

Share Price & News

How has Compass Minerals International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CMP's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-9.5%

CMP

1.0%

US Metals and Mining

7.2%

US Market


1 Year Return

-33.3%

CMP

-28.5%

US Metals and Mining

-10.4%

US Market

Return vs Industry: CMP underperformed the US Metals and Mining industry which returned -28.5% over the past year.

Return vs Market: CMP underperformed the US Market which returned -10.4% over the past year.


Shareholder returns

CMPIndustryMarket
7 Day-9.5%1.0%7.2%
30 Day-33.0%-17.6%-12.6%
90 Day-40.0%-32.2%-19.4%
1 Year-29.6%-33.3%-26.4%-28.5%-8.5%-10.4%
3 Year-38.5%-47.0%-24.5%-28.8%15.8%8.3%
5 Year-51.8%-61.2%-3.6%-11.5%35.8%21.0%

Price Volatility Vs. Market

How volatile is Compass Minerals International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Compass Minerals International undervalued compared to its fair value and its price relative to the market?

28.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CMP ($36.57) is trading below our estimate of fair value ($51.16)

Significantly Below Fair Value: CMP is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CMP is poor value based on its PE Ratio (20.2x) compared to the Metals and Mining industry average (8.4x).

PE vs Market: CMP is poor value based on its PE Ratio (20.2x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: CMP is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: CMP is overvalued based on its PB Ratio (2.3x) compared to the US Metals and Mining industry average (1.1x).


Next Steps

Future Growth

How is Compass Minerals International forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

27.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CMP's forecast earnings growth (27.2% per year) is above the savings rate (1.7%).

Earnings vs Market: CMP's earnings (27.2% per year) are forecast to grow faster than the US market (12.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CMP's revenue (3.5% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: CMP's revenue (3.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CMP's Return on Equity is forecast to be high in 3 years time (25.9%)


Next Steps

Past Performance

How has Compass Minerals International performed over the past 5 years?

-33.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CMP has high quality earnings.

Growing Profit Margin: CMP's current net profit margins (4.1%) are lower than last year (4.6%).


Past Earnings Growth Analysis

Earnings Trend: CMP's earnings have declined by -33.8% per year over the past 5 years.

Accelerating Growth: CMP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CMP had negative earnings growth (-10.1%) over the past year, making it difficult to compare to the Metals and Mining industry average (-26.9%).


Return on Equity

High ROE: CMP's Return on Equity (11.8%) is considered low.


Next Steps

Financial Health

How is Compass Minerals International's financial position?


Financial Position Analysis

Short Term Liabilities: CMP's short term assets ($785.0M) exceed its short term liabilities ($295.9M).

Long Term Liabilities: CMP's short term assets ($785.0M) do not cover its long term liabilities ($1.6B).


Debt to Equity History and Analysis

Debt Level: CMP's debt to equity ratio (267.4%) is considered high.

Reducing Debt: CMP's debt to equity ratio has increased from 95.8% to 267.4% over the past 5 years.

Debt Coverage: CMP's debt is not well covered by operating cash flow (11.3%).

Interest Coverage: CMP's interest payments on its debt are not well covered by EBIT (2.4x coverage).


Balance Sheet

Inventory Level: CMP has a high level of physical assets or inventory.

Debt Coverage by Assets: CMP's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

What is Compass Minerals International's current dividend yield, its reliability and sustainability?

7.88%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CMP's dividend (7.88%) is higher than the bottom 25% of dividend payers in the US market (1.95%).

High Dividend: CMP's dividend (7.88%) is in the top 25% of dividend payers in the US market (5.4%)


Stability and Growth of Payments

Stable Dividend: CMP's dividends per share have been stable in the past 10 years.

Growing Dividend: CMP's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (158.9%), CMP's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CMP's dividends in 3 years are forecast to be covered by earnings (73.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.2yrs

Average management tenure


CEO

Kevin Crutchfield (58yo)

0.83

Tenure

Mr. Kevin S. Crutchfield is President, Chief Executive Officer and Director at Compass Minerals International, Inc. since May 7, 2019. Mr. Crutchfield served as a Chief Executive Officer at Contura Energy, ...


Leadership Team

NamePositionTenureCompensationOwnership
James Standen
Chief Financial Officer2.58yrsUS$1.35m0.023% $284.4k
S. Griffith
Chief Commercial Officer3.58yrsUS$1.39m0.0056% $69.9k
Kevin Crutchfield
President0.83yrno data0.0059% $73.1k
George Schuller
Chief Operations Officer0.42yrno datano data
Robert Fisher
Vice President of Information Technology Services (ITS)1.42yrsno datano data
Mary Frontczak
Chief Legal & Administrative Officer and Corporate Secretaryno datano datano data
Theresa Womble
Director of Investor Relations & Assistant Treasurer5.67yrsno datano data
Rick Axthelm
Vice President of Communications & Corporate Affairsno datano datano data
Chris Heywood
Head of Sales & Logistics - UK5yrsno datano data
John Craft
VP & Corporate Controller1.83yrsUS$493.12kno data

2.2yrs

Average Tenure

53.5yo

Average Age

Experienced Management: CMP's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kevin Crutchfield
President0.83yrno data0.0059% $73.1k
Joseph Reece
Independent Director1yrno data0.0029% $36.6k
Allan Rothwell
Independent Director14yrsUS$211.93k0.031% $384.5k
David D'Antoni
Independent Director15.25yrsUS$277.54k0.029% $353.2k
Paul Williams
Independent Director10.67yrsUS$216.24kno data
Lori Walker
Independent Director4.67yrsUS$200.58k0.0021% $25.7k
Richard Grant
Independent Non-Executive Chairman1.25yrsUS$2.63m0.081% $1.0m
Eric Ford
Independent Director8.58yrsUS$185.83k0.025% $315.6k
Amy Yoder
Independent Director7.83yrsUS$197.69k0.0045% $56.0k
Valdemar Fischer
Independent Director3yrsUS$182.39k0.0059% $73.1k

6.3yrs

Average Tenure

60yo

Average Age

Experienced Board: CMP's board of directors are considered experienced (6.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CMP insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Compass Minerals International, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Compass Minerals International, Inc.
  • Ticker: CMP
  • Exchange: NYSE
  • Founded: 1993
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: US$1.239b
  • Shares outstanding: 33.89m
  • Website: https://www.compassminerals.com

Number of Employees


Location

  • Compass Minerals International, Inc.
  • 9900 West 109th Street
  • Suite 100
  • Overland Park
  • Kansas
  • 66210
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CMPNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 2003
CM8DB (Deutsche Boerse AG)YesCommon StockDEEURDec 2003

Biography

Compass Minerals International, Inc., produces and sells salt, and specialty plant nutrition and chemical products primarily in the United States, Canada, Brazil, and the United Kingdom. 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 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 brand, as well as specialty plant nutrition solution-based products and chemical solutions. 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 01:00
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.