Compass Minerals Intl Inc Common Stock (CMP)

FairStock Score: 54/100 — MIXED

Key Financials

Strengths

• Generates $93 million in annual free cash flow (8.6% yield on market cap)
• Revenue growth of 28.9% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($5) with negative 449% margin of safety—limited downside protection
• High leverage at 2.65x debt-to-equity increases financial risk and interest expense burden
• Altman Z-Score of 1.1 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Compass Minerals Intl Inc Common Stock is a micro-cap basic materials company valued at $1.1 billion. Revenue stands at $1.3 billion. From a quality standpoint, Compass shows distressed Altman Z-Score of 1.1 warrants caution and modest 3% ROE. On valuation, the stock is commanding a steep 174.6x multiple, with trades far above its Graham Number ($5) with no margin of safety. Growth dynamics show revenue growing at 28.9% and profit growth of 178.8%. Our composite FairStock Score of 54/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Compass's 29% revenue growth trajectory could accelerate as it captures additional market share in the basic materials sector. With $93 million in annual free cash flow (8.6% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 175x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer