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.

Rewards

Earnings are forecast to grow 26.83% per year

Earnings grew by 338% over the past year

Pays a high and reliable dividend of 4.84%

Risk Analysis

Interest payments are not well covered by earnings

Dividend of 4.84% is not well covered by earnings



Snowflake Analysis

Established dividend payer with reasonable growth potential.


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Mosaic

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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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.2%

CMP

-3.9%

US Metals and Mining

-1.3%

US Market


1 Year Return

17.3%

CMP

7.7%

US Metals and Mining

22.0%

US Market

Return vs Industry: CMP exceeded the US Metals and Mining industry which returned 17.5% over the past year.

Return vs Market: CMP underperformed the US Market which returned 24.2% over the past year.


Shareholder returns

CMPIndustryMarket
7 Day-2.2%-3.9%-1.3%
30 Day-3.8%-5.5%1.8%
90 Day2.3%4.5%9.3%
1 Year23.9%17.3%10.9%7.7%24.6%22.0%
3 Year-18.5%-29.5%-1.7%-7.0%49.2%39.6%
5 Year-17.6%-33.4%32.4%22.1%77.9%58.3%

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?

34.91x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CMP ($59.45) is trading above our estimate of fair value ($36.77)

Significantly Below Fair Value: CMP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CMP is poor value based on its PE Ratio (35.6x) compared to the Metals and Mining industry average (11.4x).

PE vs Market: CMP is poor value based on its PE Ratio (35.6x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: CMP is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: CMP is overvalued based on its PB Ratio (4.4x) compared to the US Metals and Mining industry average (1.6x).


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?

27.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CMP's forecast earnings growth (26.8% per year) is above the savings rate (1.7%).

Earnings vs Market: CMP's earnings (26.8% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: CMP's revenue (5.1% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: CMP's revenue (5.1% 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 (29.8%)


Next Steps

Past Performance

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

-32.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CMP has high quality earnings.

Growing Profit Margin: CMP's current net profit margins (3.8%) are higher than last year (0.9%).


Past Earnings Growth Analysis

Earnings Trend: CMP's earnings have declined by -32.9% per year over the past 5 years.

Accelerating Growth: CMP's earnings growth over the past year (338%) exceeds its 5-year average (-32.9% per year).

Earnings vs Industry: CMP earnings growth over the past year (338%) exceeded the Metals and Mining industry -7.6%.


Return on Equity

High ROE: CMP's Return on Equity (12.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Compass Minerals International's financial position?


Financial Position Analysis

Short Term Liabilities: CMP's short term assets ($695.4M) exceed its short term liabilities ($277.9M).

Long Term Liabilities: CMP's short term assets ($695.4M) do not cover its long term liabilities ($1.6B).


Debt to Equity History and Analysis

Debt Level: CMP's debt to equity ratio (306.7%) is considered high.

Reducing Debt: CMP's debt to equity ratio has increased from 101.8% to 306.7% over the past 5 years.

Debt Coverage: CMP's debt is not well covered by operating cash flow (8.3%).

Interest Coverage: CMP's interest payments on its debt are not well covered by EBIT (2.1x 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 0.5x debt).


Next Steps

Dividend

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

4.95%

Current Dividend Yield


Dividend Yield vs Market

company4.9%marketbottom25%1.4%markettop25%3.7%industryaverage2.6%forecastin3Years5.2%

Current dividend yield vs market & industry

Notable Dividend: CMP's dividend (4.84%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: CMP's dividend (4.84%) is in the top 25% of dividend payers in the US market (3.66%)


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 (172.7%), 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 (61.4% payout ratio).


Next Steps

Management

What is the CEO of Compass Minerals International's salary, the management and board of directors tenure and is there insider trading?

1.3yrs

Average management tenure


CEO

Kevin Crutchfield (58yo)

0.7yrs

Tenure

0

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, ...


Management Age and Tenure

1.3yrs

Average Tenure

55yo

Average Age

Experienced Management: CMP's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

6.1yrs

Average Tenure

60yo

Average Age

Experienced Board: CMP's board of directors are considered experienced (6.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$98,92019 Aug 19
Kevin Crutchfield
EntityIndividual
Role
Chief Executive Officer
President
Shares2,000
Max PriceUS$49.46
BuyUS$18,15318 Jun 19
Richard Grant
EntityIndividual
Role
Chairman of the Board
Independent Non-Executive Chairman
Shares330
Max PriceUS$55.01
BuyUS$53,51013 May 19
Joseph Reece
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$53.51
BuyUS$36,54713 May 19
Lori Walker
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares700
Max PriceUS$52.21
BuyUS$104,40013 May 19
Valdemar Fischer
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$52.20
BuyUS$36,01913 May 19
James Standen
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares692
Max PriceUS$52.05
BuyUS$105,08028 Mar 19
Richard Grant
EntityIndividual
Role
Chairman of the Board
Independent Non-Executive Chairman
Shares2,000
Max PriceUS$52.54
BuyUS$16,45819 Mar 19
Richard Grant
EntityIndividual
Role
Chairman of the Board
Independent Non-Executive Chairman
Shares305
Max PriceUS$53.96

Ownership Breakdown

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


Management Team

  • Kevin Crutchfield (58yo)

    President

    • Tenure: 0.7yrs
  • George Schuller (55yo)

    Chief Operations Officer

    • Tenure: 0.5yrs
  • Mary Frontczak

    Chief Legal Officer & Corporate Secretary

    • Tenure: 0.2yrs
  • Theresa Womble

    Director of Investor Relations & Assistant Treasurer

    • Tenure: 5.6yrs
  • Jamie Standen (43yo)

    Chief Financial Officer

    • Tenure: 2.4yrs
    • Compensation: US$1.35m
  • Chris Heywood

    Head of Sales & Logistics - UK

    • Tenure: 4.9yrs
  • Brad Griffith (51yo)

    Chief Commercial Officer

    • Tenure: 3.4yrs
    • Compensation: US$1.39m
  • Robert Fisher

    Vice President of Information Technology Services (ITS)

    • Tenure: 1.3yrs
  • Angela Jones (55yo)

    Chief People Officer

    • Tenure: 1.3yrs
  • Rick Axthelm

    Vice President of Communications & Corporate Affairs


    Board Members

    • Joe Reece (57yo)

      Independent Director

      • Tenure: 0.8yrs
    • Allan Rothwell (71yo)

      Independent Director

      • Tenure: 13.8yrs
      • Compensation: US$175.00k
    • David D'Antoni (74yo)

      Independent Director

      • Tenure: 15.2yrs
      • Compensation: US$172.53k
    • Paul Williams (59yo)

      Independent Director

      • Tenure: 10.6yrs
      • Compensation: US$185.00k
    • Lori Walker (61yo)

      Independent Director

      • Tenure: 4.6yrs
      • Compensation: US$190.00k
    • Kevin Crutchfield (58yo)

      President

      • Tenure: 0.7yrs
    • Richard Grant (72yo)

      Independent Non-Executive Chairman

      • Tenure: 1.2yrs
      • Compensation: US$207.50k
    • Eric Ford (64yo)

      Independent Director

      • Tenure: 8.4yrs
      • Compensation: US$177.50k
    • Amy Yoder (52yo)

      Independent Director

      • Tenure: 7.7yrs
      • Compensation: US$177.47k
    • Valdemar Fischer (55yo)

      Independent Director

      • Tenure: 2.9yrs
      • Compensation: US$162.22k

    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$1.994b
    • Shares outstanding: 33.88m
    • 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 Analysis2020/01/25 00:10
    End of Day Share Price2020/01/24 00:00
    Earnings2019/09/30
    Annual Earnings2018/12/31


    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.