COMPASS MINERALS INTERNATION (CMP)
US20451N1019 - Common Stock
Overall CMP gets a fundamental rating of 3 out of 10. We evaluated CMP against 155 industry peers in the Metals & Mining industry. Both the profitability and financial health of CMP have multiple concerns. CMP has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year CMP was profitable.
CMP had a positive operating cash flow in the past year.
CMP had positive earnings in 4 of the past 5 years.
Each year in the past 5 years CMP had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -3.33%, CMP is in line with its industry, outperforming 43.87% of the companies in the same industry.
With a Return On Equity value of -13.07%, CMP is not doing good in the industry: 69.03% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 3.49%, CMP is in line with its industry, outperforming 58.06% of the companies in the same industry.
CMP had an Average Return On Invested Capital over the past 3 years of 3.53%. This is significantly below the industry average of 9.16%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.33% | ||
| ROE | -13.07% | ||
| ROIC | 3.49% |
ROA(3y)0.68%
ROA(5y)1.47%
ROE(3y)3.02%
ROE(5y)6.65%
ROIC(3y)3.53%
ROIC(5y)3.93%
1.3 Margins
CMP's Profit Margin has declined in the last couple of years.
CMP's Operating Margin of 5.92% is in line compared to the rest of the industry. CMP outperforms 58.71% of its industry peers.
CMP's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 19.64%, CMP perfoms like the industry average, outperforming 58.71% of the companies in the same industry.
In the last couple of years the Gross Margin of CMP has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.92% | ||
| PM (TTM) | N/A | ||
| GM | 19.64% |
OM growth 3Y-15.31%
OM growth 5Y-10.86%
PM growth 3Y-38.86%
PM growth 5Y-16.42%
GM growth 3Y-3.23%
GM growth 5Y-4.1%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CMP is destroying value.
The number of shares outstanding for CMP has been increased compared to 1 year ago.
CMP has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, CMP has an improved debt to assets ratio.
2.2 Solvency
CMP has an Altman-Z score of 1.42. This is a bad value and indicates that CMP is not financially healthy and even has some risk of bankruptcy.
CMP's Altman-Z score of 1.42 is on the low side compared to the rest of the industry. CMP is outperformed by 62.58% of its industry peers.
CMP has a Debt/Equity ratio of 1.98. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.98, CMP is doing worse than 93.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.98 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.42 |
ROIC/WACC0.43
WACC8.07%
2.3 Liquidity
CMP has a Current Ratio of 3.07. This indicates that CMP is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.07, CMP is in the better half of the industry, outperforming 60.65% of the companies in the same industry.
A Quick Ratio of 1.15 indicates that CMP should not have too much problems paying its short term obligations.
CMP has a Quick ratio of 1.15. This is in the lower half of the industry: CMP underperforms 60.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.07 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
CMP shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.88%.
CMP shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -44.62% yearly.
Looking at the last year, CMP shows a decrease in Revenue. The Revenue has decreased by -5.61% in the last year.
The Revenue has been decreasing by -2.46% on average over the past years.
EPS 1Y (TTM)-5.88%
EPS 3Y-58.41%
EPS 5Y-44.62%
EPS growth Q2Q600%
Revenue 1Y (TTM)-5.61%
Revenue growth 3Y3.55%
Revenue growth 5Y-2.46%
Revenue growth Q2Q-3.04%
3.2 Future
CMP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 92.39% yearly.
Based on estimates for the next years, CMP will show a small growth in Revenue. The Revenue will grow by 1.22% on average per year.
EPS Next Y59.58%
EPS Next 2Y165.89%
EPS Next 3Y136.4%
EPS Next 5Y92.39%
Revenue Next Year0.41%
Revenue Next 2Y2.61%
Revenue Next 3Y2.47%
Revenue Next 5Y1.22%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 82.56 indicates a quite expensive valuation of CMP.
Compared to the rest of the industry, the Price/Earnings ratio of CMP is on the same level as its industry peers.
CMP's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.20.
With a Price/Forward Earnings ratio of 18.68, CMP is valued on the expensive side.
63.87% of the companies in the same industry are more expensive than CMP, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CMP to the average of the S&P500 Index (21.60), we can say CMP is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 82.56 | ||
| Fwd PE | 18.68 |
4.2 Price Multiples
68.39% of the companies in the same industry are more expensive than CMP, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.32 |
4.3 Compensation for Growth
CMP's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CMP's earnings are expected to grow with 136.40% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.39
PEG (5Y)N/A
EPS Next 2Y165.89%
EPS Next 3Y136.4%
5. Dividend
5.1 Amount
CMP has a Yearly Dividend Yield of 4.41%, which is a nice return.
The stock price of CMP dropped by -42.66% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
CMP's Dividend Yield is rather good when compared to the industry average which is at 2.87. CMP pays more dividend than 92.90% of the companies in the same industry.
CMP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.41% |
5.2 History
The dividend of CMP decreases each year by -25.53%.
CMP has been paying a dividend for at least 10 years, so it has a reliable track record.
CMP has decreased its dividend recently.
Dividend Growth(5Y)-25.53%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
The earnings of CMP are negative and hence is the payout ratio. CMP will probably not be able to sustain this dividend level.
DP-41.6%
EPS Next 2Y165.89%
EPS Next 3Y136.4%
COMPASS MINERALS INTERNATION
NYSE:CMP (4/23/2024, 7:04:00 PM)
After market: 13.21 0 (0%)13.21
-0.03 (-0.23%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap545.71M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.41% |
Dividend Growth(5Y)
DP
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 82.56 | ||
| Fwd PE | 18.68 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.39
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.33% | ||
| ROE | -13.07% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.92% | ||
| PM (TTM) | N/A | ||
| GM | 19.64% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.98 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.07 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-5.88%
EPS 3Y-58.41%
EPS 5Y
EPS growth Q2Q
EPS Next Y59.58%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-5.61%
Revenue growth 3Y3.55%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
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