Why Compass Minerals Is Poised to Bounce Back
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, salt and fertilizer producer Compass Minerals International has earned a respected four-star ranking.
With that in mind, let's take a closer look at Compass and see what CAPS investors are saying about the stock right now.
Compass facts
Headquarters (founded) | Overland Park, Kan. (1993) |
Market Cap | $2.4 billion |
Industry | Diversified metals and mining |
Trailing-12-Month Revenue | $1.0 billion |
Management | CEO Francis Malecha CFO Rodney Underdown |
Return on Equity (average, past 3 years) | 31% |
Cash/Debt | $175.5 million / $481.3 million |
Dividend Yield | 2.4% |
Competitors |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 96% of the 791 members who have rated Compass believe the stock will outperform the S&P 500 going forward.
Just yesterday, one of those bulls, TMFTailwind, tapped Compass as a particularly timely bargain opportunity:
HUGE sell-off after news of the potash cartel model falling apart. My initial reaction is that the market's reaction is way overdone. Sulfate of potash accounts for only about 25% of CMP's revenue and about 33% of profits. The rest of its business is rock salt and it essentially performs like an stable, growing annuity. A ~25% drop implies that the potash segment of the business is essentially worthless in the future. I disagree.
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The article Why Compass Minerals Is Poised to Bounce Back originally appeared on Fool.com.
Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool owns shares of Compass Minerals. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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