Compass Minerals International produces and markets salt, sulfate of potash specialty fertilizer (SOP), plant micronutrients, and magnesium chloride primarily in North America and the United Kingdom. The company was founded in 1993 and is based in Overland Park, Kansas.
CMP Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Compass Minerals International Inc. To summarize, we found that Compass Minerals International Inc ranked in the 45th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for CMP, they are:
The business' balance sheet suggests that 39% of the company's capital is sourced from debt; this is greater than 66.43% of the free cash flow producing stocks we're observing.
Compass Minerals International Inc's effective tax rate, as measured by taxes paid relative to net income, is at 13 -- greater than 51.89% of US stocks with positive free cash flow.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than 50.05% of stocks in its sector (Basic Materials).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Compass Minerals International Inc? See CBT, ARLP, RPM, CCR, and FSI.
Last June, around the time when investor pessimism with regard to Compass Minerals (CMP) had reached a crescendo, I wrote an article analyzing whether its competitive advantage had survived the prior years of damage and assessing its near-term outlook. I came to the conclusion that "the sustainable competitive advantage commanded...
Laurentian Research on Seeking Alpha | August 26, 2020
Compass Minerals (NYSE: CMP), a leading global provider of essential minerals, will release its second-quarter 2020 financial results Tuesday, Aug. 4, after the markets close. The company’s president and CEO, Kevin Crutchfield, and CFO, Jamie Standen, will discuss these results on a conference call on Wednesday, Aug. 5, at 10 a.m. ET.