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CMP Stock Analysis - COMPASS MINERALS INTERNATIONAL INC AI Rating

CMP NYSE Mining & Quarrying of Nonmetallic Minerals (No Fuels) DE CIK: 0001227654
Recently Updated • Analysis: Mar 22, 2026 • SEC Data: 2025-12-31
AI Rating
SELL
85% Confidence

📊 CMP Key Takeaways

Revenue: $396.1M
Net Margin: 4.7%
Free Cash Flow: $-59.8M
Current Ratio: 2.59x
Debt/Equity: 3.39x
EPS: $0.43
AI Rating: SELL with 85% confidence

Investment Thesis

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.

CMP 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

CMP 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

Key Metrics to Watch

CMP Financial Metrics

Revenue
$396.1M
Net Income
$18.6M
EPS (Diluted)
$0.43
Free Cash Flow
$-59.8M
Total Assets
$1.5B
Cash Position
$46.7M

💡 AI Analyst Insight

Strong liquidity with a 2.59x current ratio provides a solid financial cushion.

CMP Profitability Ratios

Gross Margin 16.0%
Operating Margin 9.2%
Net Margin 4.7%
ROE 7.1%
ROA 1.2%
FCF Margin -15.1%

CMP vs Default Sector

How COMPASS MINERALS INTERNATIONAL INC compares to Default sector averages

Net Margin
CMP 4.7%
vs
Sector Avg 12.0%
CMP Sector
ROE
CMP 7.1%
vs
Sector Avg 15.0%
CMP Sector
Current Ratio
CMP 2.6x
vs
Sector Avg 1.8x
CMP Sector
Debt/Equity
CMP 3.4x
vs
Sector Avg 0.7x
CMP Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

CMP Balance Sheet & Liquidity

Current Ratio
2.59x
Quick Ratio
1.53x
Debt/Equity
3.39x
Debt/Assets
0.0%
Interest Coverage
1.11x
Long-term Debt
$883.6M

CMP 5-Year Financial Trend

CMP 5-year financial data: Year 2020: Revenue $1.5B, Net Income $68.8M, EPS $2.02. Year 2022: Revenue $1.2B, Net Income $34.0M, EPS $0.99. Year 2023: Revenue $1.2B, Net Income -$214.4M, EPS $-6.32. Year 2024: Revenue $1.2B, Net Income -$21.1M, EPS $-0.63. Year 2025: Revenue $1.2B, Net Income $10.5M, EPS N/A.
Revenue
Net Income
EPS (right axis)

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 Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-15.1%
Free cash flow / Revenue

CMP Quarterly Performance

Quarterly financial performance data for COMPASS MINERALS INTERNATIONAL INC including revenue, net income, and earnings per share.
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.

CMP Capital Allocation

Operating Cash Flow
-$37.0M
Cash generated from operations
Capital Expenditures
$22.8M
Investment in assets
Dividends
None
No dividend program

CMP SEC Filings

Access official SEC EDGAR filings for COMPASS MINERALS INTERNATIONAL INC (CIK: 0001227654)

📋 Recent SEC Filings

Date Form Document Action
Mar 10, 2026 8-K cmp-20260305.htm View →
Mar 9, 2026 4 xslF345X05/wk-form4_1773095270.xml View →
Mar 9, 2026 4 xslF345X05/wk-form4_1773094734.xml View →
Mar 9, 2026 4 xslF345X05/wk-form4_1773094496.xml View →
Mar 9, 2026 4 xslF345X05/wk-form4_1773094211.xml View →

Frequently Asked Questions about CMP

What is the AI rating for CMP?

COMPASS MINERALS INTERNATIONAL INC (CMP) has an AI rating of SELL with 85% confidence, based on fundamental analysis of SEC EDGAR filings.

What are CMP's 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.

What are the risks of investing in CMP?

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.

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?

Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 22, 2026 | Data as of: 2025-12-31 | Powered by Claude AI