📊 CMP Key Takeaways
Is Compass Minerals International Inc. (CMP) a Good Investment?
Compass Minerals demonstrates solid revenue growth (11.3% YoY) and exceptional free cash flow generation ($119.4M, 14.1% margin), but elevated leverage (Debt/Equity 2.60x) with weak interest coverage (2.8x) creates material downside risk for this cyclical commodity business. The high-leverage capital structure appears unsustainable unless returns improve or debt is meaningfully reduced.
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.
Compass Minerals International Inc. Key Strengths (CMP)
- Strong revenue growth of 11.3% YoY demonstrates market demand and pricing strength
- Exceptional free cash flow generation ($119.4M) significantly exceeds net income, indicating high-quality earnings and strong operating discipline
- Solid liquidity position with current ratio of 2.06x and quick ratio of 1.34x provides near-term flexibility
- Operating margin of 10.9% is reasonable for commodity mining sector
- Operating cash flow of $160.4M provides meaningful debt service capacity
- 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
- Dangerously high leverage with Debt/Equity ratio of 2.60x ($713M debt vs. $274.2M equity) is concerning for cyclical industry
- Interest coverage ratio of 2.8x is weak and provides insufficient cushion if operating income declines during market downturns
- Net profit margin of only 3.7% and ROE of 11.4% are insufficient returns relative to debt burden, suggesting limited financial flexibility
- Commodity exposure creates earnings volatility and cyclical revenue risk that could severely impair ability to service debt
- High leverage limits financial flexibility for capital allocation, growth investment, or weathering industry downturns
- 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
- Interest coverage ratio trend and operating income stability
- Free cash flow conversion to debt reduction vs. shareholder distributions
- Revenue and operating margin trends in upcoming quarters relative to commodity price cycles
- Gross margin trends indicating pricing power and cost pressures
- Return on invested capital (ROIC) vs. weighted average cost of capital (WACC)
- 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 2.06x 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 |
|---|---|---|---|
| Q2 2026 | $453.2M | $12.7M | $0.30 |
| 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 |
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 Grade of C from Claude (B) and ChatGPT (C) with 77% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CMP's key strengths?
Claude: Strong revenue growth of 11.3% YoY demonstrates market demand and pricing strength. Exceptional free cash flow generation ($119.4M) significantly exceeds net income, indicating high-quality earnings and strong operating discipline. 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: Dangerously high leverage with Debt/Equity ratio of 2.60x ($713M debt vs. $274.2M equity) is concerning for cyclical industry. Interest coverage ratio of 2.8x is weak and provides insufficient cushion if operating income declines during market downturns. 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 $849.3M.
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 $0.73.
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 grade reflects both perspectives for balanced insights.
What is CMP's fundamental grade?
Based on our AI fundamental analysis in June 2026, Compass Minerals International Inc. has a C grade with 77% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is CMP stock overvalued or undervalued?
Valuation metrics for CMP: ROE of 11.4% (sector avg: 14%), net margin of 3.7% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is CMP's AI grade for 2026?
Our dual AI analysis gives Compass Minerals International Inc. a combined C grade 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 $160.4M, with capital expenditures of $41.0M. FCF margin is 14.1%.
How does CMP compare to other Materials stocks?
Vs Materials sector averages: Net margin 3.7% (avg: 10%), ROE 11.4% (avg: 14%), current ratio 2.06 (avg: 1.6).
Is Compass Minerals International Inc. carrying too much debt?
CMP has a debt-to-equity ratio of 2.60x, which is above the Materials sector average of 0.6x. However, the current ratio of 2.06 suggests adequate short-term liquidity.