While the current volatility in the weather patterns across North America generally mild, it may change in February. I do agree that the most important current concern is the proper functioning of the mines during seasonal uncertainties regarding climate change.
This company has 1.34B in debt with debt to equity (D/E) ratio of 252.3 . This implies that the firm may be unable to create cash to meet all of its financial commitments. The firm has Current Ratio of 2.5 demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Compass Minerals income statement, its balance sheet, and the statement of cash flows. Potential Compass Minerals investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Compass Minerals investors may use each financial statement separately, they are all related. The changes in Compass Minerals's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Compass Minerals's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Compass Minerals
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Compass Minerals performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Compass Minerals shares is the value that is considered the true value of the share. If
the intrinsic value of Compass is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Compass Minerals. Please read more on our
fundamental analysis page.
How effective is Compass Minerals in utilizing its assets?
Compass Minerals International reports assets on its Balance Sheet. It represents the amount of Compass resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Compass Minerals aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Diversified Metals & Mining space. To get a better handle on how balance sheet or income statements item affect Compass volatility, please check the breakdown of all its
fundamentals.
Are Compass Minerals Earnings Expected to grow?
The
future earnings power of Compass Minerals involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Compass Minerals factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Compass Minerals
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Compass
expected earnings.
And What about dividends?
A dividend is the distribution of a portion of Compass Minerals earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Compass Minerals dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Compass one year expected dividend income is about USD0.35 per share.
At this time, Compass Minerals'
Dividend Yield is relatively stable compared to the past year. As of 04/23/2024,
Dividend Paid And Capex Coverage Ratio is likely to grow to 131.41, while
Dividends Paid is likely to drop slightly above 23.7
M.
Investing in dividend-paying stocks, such as Compass Minerals International is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Compass Minerals must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Compass Minerals. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
Compass Minerals Gross Profit
Compass Minerals Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Compass Minerals previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Compass Minerals Gross Profit growth over the last 10 years. Please check Compass Minerals'
gross profit and other
fundamental indicators for more details.
Breaking it down
Compass Minerals has beta of 1.46. As market goes up, the company is expected to significantly outperform it. However, if the market returns are negative, Compass Minerals will likely underperform. Compass Minerals International shows
Risk Adjusted Performance of
(0.26) and Mean Deviation of 2.06. The recent decline in stock price could raise concerns from investors as the firm closed today at a share price of 42.895 on 464310.000 in volume. The company directors and management have failed to build on market volatilities in December. However, diversifying your overall positions with Compass Minerals International may protect your principal portfolio during upcoming market swings. The stock standard deviation of daily returns for 60 days (very short) investing horizon is currently 2.5878. The current volatility is consistent with the ongoing market swings in December 2018 as well as with Compass Minerals unsystematic, company specific events. Compass Minerals preserves 33.85m of shares outstanding. Compass Minerals is selling for 43.60. This is 2.16 percent increase. Day Low was 42.895. Compass Minerals Depreciation Amortization and Accretion is increasing. However, the currently reported value of Depreciation Amortization and Accretion (59,861,943) has decreased by 17.72 percent as compared to the last year. Moreover, Compass Minerals Share Based Compensation is increasing. However, the currently reported value of Share Based Compensation (5,019,298) has decreased by 9.38 percent as compared to the last year.
Given all of the above analysis, my current recommendation is a Hold. However, if price goes down to below $40, I would advise to buy and hold.
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Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management.
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