📊 CMP Key Takeaways
Is Compass Minerals International Inc. (CMP) a Good Investment?
Compass Minerals exhibits fundamental deterioration despite revenue growth, with negative operating cash flow (-$37M), severely stressed liquidity (1.1x interest coverage), and a dangerously high debt-to-equity ratio of 3.39x threatening financial stability. The company's thin net margins (4.7%), poor asset efficiency (1.2% ROA), and negative free cash flow (-$59.8M) indicate it cannot service its $883.6M debt load from operations, creating acute solvency risk.
Compass Minerals shows improving top-line and net income growth, but the quality of that growth is weak given negative operating cash flow and deeply negative free cash flow in the latest period. The balance sheet remains highly leveraged, with debt far exceeding equity and interest coverage near 1x, leaving limited room for operational volatility despite acceptable near-term liquidity.
Why Buy Compass Minerals International Inc. Stock? CMP Key Strengths
- Revenue growth of 11.3% YoY demonstrates top-line expansion in core mining operations
- Strong current ratio of 2.59x and quick ratio of 1.53x provide near-term liquidity buffer
- Net income increased 61.3% YoY suggesting improved profitability from higher volumes or pricing
- Revenue grew 11.3% year over year, indicating solid demand recovery or pricing support
- Net income increased 61.3% year over year, showing near-term earnings improvement
- Current ratio of 2.59x and quick ratio of 1.53x suggest manageable short-term liquidity
CMP Stock Risks: Compass Minerals International Inc. Investment Risks
- Critical interest coverage ratio of 1.1x indicates minimal cushion to cover debt service obligations
- Negative operating cash flow of -$37M and free cash flow of -$59.8M show the business cannot generate cash to fund operations or debt reduction
- Debt-to-equity ratio of 3.39x represents unsustainable leverage with $883.6M debt against only $260.5M equity
- Poor asset efficiency (1.2% ROA) and low net margins (4.7%) limit earnings power relative to asset base
- 21 Form 4 insider filings in 90 days may signal management activity during distress
- Operating cash flow of negative $37.0M and free cash flow of negative $59.8M indicate weak cash conversion
- Debt-to-equity of 3.39x and long-term debt of $883.6M create substantial balance-sheet risk
- Interest coverage of 1.1x leaves very little cushion if earnings soften or rates remain elevated
Key Metrics to Watch
- Operating cash flow trend - must return to positive to validate business sustainability
- Interest coverage ratio - needs to improve above 2.5x minimum safety threshold
- Debt-to-equity ratio - trajectory toward deleveraging below 2.0x
- Free cash flow conversion - critical for debt service capability
- Operating cash flow and free cash flow trend
- Interest coverage and net leverage reduction
Compass Minerals International Inc. (CMP) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.59x current ratio provides a solid financial cushion.
CMP Profit Margin, ROE & Profitability Analysis
CMP vs Materials Sector: How Compass Minerals International Inc. Compares
How Compass Minerals International Inc. compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Compass Minerals International Inc. Stock Overvalued? CMP Valuation Analysis 2026
Based on fundamental analysis, Compass Minerals International Inc. shows some fundamental concerns relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Compass Minerals International Inc. Balance Sheet: CMP Debt, Cash & Liquidity
CMP Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Compass Minerals International Inc.'s revenue has declined by 17% over the 5-year period, indicating business contraction. The most recent EPS of $-0.63 indicates the company is currently unprofitable.
CMP Revenue Growth, EPS Growth & YoY Performance
CMP Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $307.2M | $18.6M | $0.43 |
| Q3 2025 | $202.9M | -$17.0M | $-0.41 |
| Q2 2025 | $364.0M | -$32.0M | $-0.77 |
| Q1 2025 | $307.2M | -$23.6M | $-0.57 |
| Q3 2024 | $202.9M | $14.5M | $0.35 |
| Q2 2024 | $364.0M | -$21.6M | $-0.53 |
| Q1 2024 | $341.7M | -$300.0K | $-0.01 |
| Q3 2023 | $207.6M | -$7.9M | $-0.23 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Compass Minerals International Inc. Dividends, Buybacks & Capital Allocation
CMP SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Compass Minerals International Inc. (CIK: 0001227654)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CMP
What is the AI rating for CMP?
Compass Minerals International Inc. (CMP) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (SELL) with 84% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CMP's key strengths?
Claude: Revenue growth of 11.3% YoY demonstrates top-line expansion in core mining operations. Strong current ratio of 2.59x and quick ratio of 1.53x provide near-term liquidity buffer. ChatGPT: Revenue grew 11.3% year over year, indicating solid demand recovery or pricing support. Net income increased 61.3% year over year, showing near-term earnings improvement.
What are the risks of investing in CMP?
Claude: Critical interest coverage ratio of 1.1x indicates minimal cushion to cover debt service obligations. Negative operating cash flow of -$37M and free cash flow of -$59.8M show the business cannot generate cash to fund operations or debt reduction. ChatGPT: Operating cash flow of negative $37.0M and free cash flow of negative $59.8M indicate weak cash conversion. Debt-to-equity of 3.39x and long-term debt of $883.6M create substantial balance-sheet risk.
What is CMP's revenue and growth?
Compass Minerals International Inc. reported revenue of $396.1M.
Does CMP pay dividends?
Compass Minerals International Inc. does not currently pay dividends.
Where can I find CMP SEC filings?
Official SEC filings for Compass Minerals International Inc. (CIK: 0001227654) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CMP's EPS?
Compass Minerals International Inc. has a diluted EPS of $0.43.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is CMP a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Compass Minerals International Inc. has a SELL rating with 84% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is CMP stock overvalued or undervalued?
Valuation metrics for CMP: ROE of 7.1% (sector avg: 14%), net margin of 4.7% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy CMP stock in 2026?
Our dual AI analysis gives Compass Minerals International Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is CMP's free cash flow?
Compass Minerals International Inc.'s operating cash flow is $-37.0M, with capital expenditures of $22.8M. FCF margin is -15.1%.
How does CMP compare to other Materials stocks?
Vs Materials sector averages: Net margin 4.7% (avg: 10%), ROE 7.1% (avg: 14%), current ratio 2.59 (avg: 1.6).
Is Compass Minerals International Inc. carrying too much debt?
CMP has a debt-to-equity ratio of 3.39x, which is above the Materials sector average of 0.6x. However, the current ratio of 2.59 suggests adequate short-term liquidity.