Undervalued Compass Minerals Can Overcome Challenges
The wide-moat salt producer has seen operational hiccups and the departure of its CEO, but production is unaffected and we expect a rebound.
Seth Goldstein: At Morningstar, we are always excited to highlight wide-moat, undervalued names, and Compass Minerals is one such opportunity.
Compass Minerals' wide moat comes from its low-cost salt production at the Goderich mine in Ontario. The mine's unique geology includes 100-foot thick seams, which are 3 to 4 times the size of most other salt mines. This allows Compass to mine its salt at a lower cost than its competitors, a dynamic that will persist many years into the future.
Seth Goldstein does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.