After reviewing our outlook for Compass Minerals, we downgrade our economic moat rating to narrow from wide. Our $25 fair value estimate remains unchanged. We were already embedding our narrow moat rating impact when we updated our fair value estimate on March 25.
Compass holds a portfolio of cost-advantaged assets, including the Ontario rock salt mine and brine operations at the Great Salt Lake in Utah.
Compass' salt operations could see lower profitability if management's cost-saving plan doesn't translate into profit restoration.
|
Metric
|
CMP
|
SQM
|
NTR
|
|---|---|---|---|
Price/Earnings (Normalized) | 55.89 | 6.54 | 8.93 |
Price/Book Value | 1.15 | 2.37 | 1.04 |
Price/Sales | 0.44 | 1.75 | 0.90 |
Price/Cash Flow | 3.80 | — | 5.74 |
|
Metric
|
CMP
|
SQM
|
NTR
|
|---|---|---|---|
Quick Ratio | 1.01 | 1.68 | 0.52 |
Current Ratio | 3.07 | 2.50 | 1.17 |
Interest Coverage | 0.01 | 22.44 | 3.51 |
|
Metric
|
CMP
|
SQM
|
NTR
|
|---|---|---|---|
Return on Assets (Normalized) | 1.28% | 18.60% | 4.08% |
Return on Equity (Normalized) | 4.54% | 39.48% | 8.70% |
Return on Invested Capital (Normalized) | 4.88% | 23.58% | 6.88% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
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