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A Wide-Moat Firm Trading at a Meaningful Discount

We see significant upside for Compass Minerals.


Seth Goldstein: Wide-moat companies rarely trade at a meaningful discount and with near-term valuation catalysts, but Compass Minerals is one such opportunity.

Compass Minerals' wide moat comes from its low-cost Goderich mine in Ontario. The mine's unique geology features 100-foot-thick salt seams, which are 3 to 4 times the size of most other mines. This allows Compass to mine its salt at a lower cost than competitors, an advantage that will persist decades 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.