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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 (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.