Compass Minerals International, Inc. Fundamental Analysis (NYSE: CMP)
Compass Minerals International, Inc. Fundamental Analysis (NYSE: CMP)
Compass Minerals International, Inc. (NYSE: CMP) shows weak financial fundamentals with a PE ratio of 62.59, profit margin of 1.42%, and ROE of 7.13%. The company generates $1.3B in annual revenue with strong year-over-year growth of 11.32%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 36.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CMP's fundamental strength across five key dimensions:
Efficiency Score
WeakCMP struggles to generate sufficient returns from assets.
Valuation Score
ModerateCMP shows balanced valuation metrics.
Growth Score
ExcellentCMP delivers strong and consistent growth momentum.
Financial Health Score
ModerateCMP shows balanced financial health with some risks.
Profitability Score
WeakCMP struggles to sustain strong margins.
Key Financial Metrics
Is CMP Expensive or Cheap?
P/E Ratio
CMP trades at 62.59 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, CMP's PEG of 0.06 indicates potential undervaluation.
Price to Book
The market values Compass Minerals International, Inc. at 4.42 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 2.32 times EBITDA. This is generally considered low.
How Well Does CMP Make Money?
Net Profit Margin
For every $100 in sales, Compass Minerals International, Inc. keeps $1.42 as profit after all expenses.
Operating Margin
Core operations generate 8.94 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.13 in profit for every $100 of shareholder equity.
ROA
Compass Minerals International, Inc. generates $1.36 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Compass Minerals International, Inc. produces operating cash flow of $314.15M, showing steady but balanced cash generation.
Free Cash Flow
Compass Minerals International, Inc. generates strong free cash flow of $195.96M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.67 in free cash annually.
FCF Yield
CMP converts 17.37% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
62.59
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.06
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.42
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.89
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.76
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.01
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How CMP Stacks Against Its Sector Peers
| Metric | CMP Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 62.59 | 27.43 | Worse (Expensive) |
| ROE | 7.13% | 1114.00% | Weak |
| Net Margin | 1.42% | -1386.00% (disorted) | Weak |
| Debt/Equity | 2.76 | 0.74 | Weak (High Leverage) |
| Current Ratio | 2.01 | 3.30 | Strong Liquidity |
| ROA | 1.36% | 476740.00% | Weak |
CMP outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Compass Minerals International, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
0.27%
Industry Style: Cyclical, Commodity, Value
GrowingEPS CAGR
-202.44%
Industry Style: Cyclical, Commodity, Value
DecliningFCF CAGR
-8.59%
Industry Style: Cyclical, Commodity, Value
Declining