COMPASS MINERALS INTERNATION (CMP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CMP - US20451N1019 - Common Stock
25.55 USD
-0.35 (-1.35%)
We assign a fundamental rating of 3 out of 10 to CMP. CMP was compared to 154 industry peers in the Metals & Mining industry. CMP has a bad profitability rating. Also its financial health evaluation is rather negative. CMP is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- CMP had negative earnings in the past year.
- CMP had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: CMP reported negative net income in multiple 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 -5.25%, CMP is doing worse than 62.99% of the companies in the same industry.
- CMP has a worse Return On Equity (-34.09%) than 75.32% of its industry peers.
- With a decent Return On Invested Capital value of 4.98%, CMP is doing good in the industry, outperforming 61.04% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for CMP is significantly below the industry average of 10.32%.
- The 3 year average ROIC (4.38%) for CMP is below the current ROIC(4.98%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.25% | ||
| ROE | -34.09% | ||
| ROIC | 4.98% |
ROA(3y)-5.66%
ROA(5y)-3.16%
ROE(3y)-32.1%
ROE(5y)-18.04%
ROIC(3y)4.38%
ROIC(5y)3.94%
1.3 Margins
- The Operating Margin of CMP (6.35%) is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of CMP has declined.
- CMP's Gross Margin of 15.33% is in line compared to the rest of the industry. CMP outperforms 50.00% of its industry peers.
- In the last couple of years the Gross Margin of CMP has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.35% | ||
| PM (TTM) | N/A | ||
| GM | 15.33% |
OM growth 3Y22.58%
OM growth 5Y-10.09%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.04%
GM growth 5Y-6.48%
2. Health
2.1 Basic Checks
- CMP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- CMP has more shares outstanding than it did 1 year ago.
- CMP has more shares outstanding than it did 5 years ago.
- CMP has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.66, we must say that CMP is in the distress zone and has some risk of bankruptcy.
- With a Altman-Z score value of 1.66, CMP is not doing good in the industry: 76.62% of the companies in the same industry are doing better.
- The Debt to FCF ratio of CMP is 6.62, which is on the high side as it means it would take CMP, 6.62 years of fcf income to pay off all of its debts.
- CMP has a better Debt to FCF ratio (6.62) than 65.58% of its industry peers.
- CMP has a Debt/Equity ratio of 3.59. This is a high value indicating a heavy dependency on external financing.
- CMP's Debt to Equity ratio of 3.59 is on the low side compared to the rest of the industry. CMP is outperformed by 92.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.59 | ||
| Debt/FCF | 6.62 | ||
| Altman-Z | 1.66 |
ROIC/WACC0.47
WACC10.48%
2.3 Liquidity
- A Current Ratio of 2.15 indicates that CMP has no problem at all paying its short term obligations.
- CMP's Current ratio of 2.15 is in line compared to the rest of the industry. CMP outperforms 45.45% of its industry peers.
- CMP has a Quick Ratio of 2.15. This is a bad value and indicates that CMP is not financially healthy enough and could expect problems in meeting its short term obligations.
- CMP has a Quick ratio of 0.98. This is in the lower half of the industry: CMP underperforms 68.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.15 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
- CMP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -100.00%.
- The Revenue for CMP has decreased by -14.75% in the past year. This is quite bad
- The Revenue has been growing slightly by 2.77% on average over the past years.
EPS 1Y (TTM)-100%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%77.92%
Revenue 1Y (TTM)-14.75%
Revenue growth 3Y-0.01%
Revenue growth 5Y2.77%
Sales Q2Q%8.96%
3.2 Future
- The Earnings Per Share is expected to grow by 43.68% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 1.38% on average over the next years.
EPS Next Y253.08%
EPS Next 2Y102.33%
EPS Next 3Y76.67%
EPS Next 5Y43.68%
Revenue Next Year-0.4%
Revenue Next 2Y0.72%
Revenue Next 3Y1.98%
Revenue Next 5Y1.38%
3.3 Evolution
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- CMP reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- CMP is valuated quite expensively with a Price/Forward Earnings ratio of 34.77.
- CMP's Price/Forward Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, CMP is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 34.77 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CMP is valued cheaper than 84.42% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, CMP is valued cheaply inside the industry as 99.35% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.32 | ||
| EV/EBITDA | 10.25 |
4.3 Compensation for Growth
- CMP's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- CMP's earnings are expected to grow with 76.67% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y102.33%
EPS Next 3Y76.67%
5. Dividend
5.1 Amount
- CMP has a Yearly Dividend Yield of 2.38%.
- Compared to an average industry Dividend Yield of 1.02, CMP pays a better dividend. On top of this CMP pays more dividend than 87.66% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, CMP pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
5.2 History
- CMP has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y102.33%
EPS Next 3Y76.67%
COMPASS MINERALS INTERNATION / CMP FAQ
Can you provide the ChartMill fundamental rating for COMPASS MINERALS INTERNATION?
ChartMill assigns a fundamental rating of 3 / 10 to CMP.
What is the valuation status for CMP stock?
ChartMill assigns a valuation rating of 5 / 10 to COMPASS MINERALS INTERNATION (CMP). This can be considered as Fairly Valued.
Can you provide the profitability details for COMPASS MINERALS INTERNATION?
COMPASS MINERALS INTERNATION (CMP) has a profitability rating of 3 / 10.
Can you provide the dividend sustainability for CMP stock?
The dividend rating of COMPASS MINERALS INTERNATION (CMP) is 4 / 10 and the dividend payout ratio is 0%.