Compass Minerals International Inc (NYSE: CMP)

Sector: Basic Materials Industry: Other Industrial Metals & Mining CIK: 0001227654
Market Cap 960.52 Mn
P/B 4.10
P/E -12.04
P/S 0.77
ROIC (Qtr) 4.19
Div Yield % 0.00
Rev 1y % (Qtr) 8.96
Total Debt (Qtr) 847.70 Mn
Debt/Equity (Qtr) 3.62

About

Compass Minerals International, Inc., often recognized by its stock symbol CMP, is a prominent player in the essential minerals industry. The company specializes in delivering safe and reliable products to customers and communities, with operations segmented into three primary areas: Salt, Plant Nutrition, and Other Businesses. The Salt segment, which contributes approximately 84% of the company's total sales, is the backbone of Compass Minerals' operations. This segment involves the production and marketing of a variety of salt products, including...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 59.70M provide 7.56x coverage of short-term debt 7.90M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 197.70M provides strong 19.38x coverage of stock compensation 10.20M, indicating sustainable incentive practices.
  • Strong operating cash flow of 197.70M provides 1.74x coverage of SG&A expenses 113.30M, showing efficient operational cost management.
  • Robust free cash flow of 128M exceeds capital expenditure of 69.70M by 1.84x, indicating strong organic growth funding capability.
  • Operating cash flow of 197.70M provides solid 0.74x coverage of current liabilities 265.60M, showing strong operational health.

Bear case

  • Operating cash flow of 197.70M barely covers its investment activities of (50M), with a coverage ratio of -3.95, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • With cash reserves of 59.70M against inventory of 312M, the 0.19 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
  • Operating earnings of 14.80M show weak coverage of depreciation charges of 103.20M, with a 0.14 ratio indicating high capital intensity and potential reinvestment needs.
  • High depreciation of 103.20M relative to operating cash flow of 197.70M, which is 0.52x suggests significant maintenance capital requirements affecting free cash flow.
  • Free cash flow of 128M represents just -1.32x of debt issuance (96.80M), suggesting concerning reliance on leverage rather than internal cash generation for growth.

Segments Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer comparison

Companies in the Other Industrial Metals & Mining
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 BHP BHP Group Ltd 162.30 Bn 17.99 3.17 -
2 TECK Teck Resources Ltd 24.54 Bn 27.27 3.23 3.67 Bn
3 MP MP Materials Corp. / DE 10.73 Bn -91.17 46.08 1.00 Bn
4 SKE Skeena Resources Ltd 3.07 Bn -36.58 0.00 0.04 Bn
5 MTRN MATERION Corp 2.85 Bn 87.35 2.45 0.53 Bn
6 VZLA Vizsla Silver Corp. 2.28 Bn -205.10 0.00 0.00 Bn
7 SGML Sigma Lithium Corp 1.76 Bn -65.03 15.16 0.12 Bn
8 ALM Almonty Industries Inc. 1.65 Bn -145.44 82.20 0.14 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.13 3.13
EV to Cash from Ops. EV/CFO 8.71 -51.74
EV to Debt EV to Debt 2.03 863.55
EV to EBIT EV/EBIT 116.33 -27.66
EV to EBITDA EV/EBITDA 13.40 566.13
EV to Free Cash Flow [EV/FCF] EV/FCF 13.45 -24.46
EV to Market Cap EV to Market Cap 1.79 0.59
EV to Revenue EV/Rev 1.38 42.69
Price to Book Value [P/B] P/B 4.10 10.60
Price to Earnings [P/E] P/E -12.04 -35.19
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 -16.20
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 3.46
Dividend per Basic Share Div per Share (Qtr) 0.00 0.08
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 -0.53
Interest Coverage Int. cover (Qtr) 0.22 51.59
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 38.97 -444.92
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 195.54 3,116.99
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 -0.80
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 116.92 -69.51
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 1,188.98 20.12
EBIT Growth (1y) % EBIT 1y % (Qtr) 112.47 -24.32
EBT Growth (1y) % EBT 1y % (Qtr) 71.47 -92.39
EPS Growth (1y) % EPS 1y % (Qtr) 61.72 -31.76
FCF Growth (1y) % FCF 1y % (Qtr) 228.26 -5,473.04
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -2.21 9.09
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.82 0.13
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 0.22 5.35
Current Ratio Curr Ratio (Qtr) 2.15 6.87
Debt to Equity Ratio Debt/Equity (Qtr) 3.62 0.74
Interest Cover Ratio Int Coverage (Qtr) 0.22 51.59
Times Interest Earned Times Interest Earned (Qtr) 0.22 51.59
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 9.50 -684.18
EBIT Margin % EBIT Margin % (Qtr) 1.19 -696.12
EBT Margin % EBT Margin % (Qtr) -4.32 -788.27
Gross Margin % Gross Margin % (Qtr) 15.30 11.29
Net Profit Margin % Net Margin % (Qtr) -6.40 -790.78