Compass Minerals International, Inc. produces and markets salt, sulfate of potash specialty fertilizer (SOP), plant micronutrients, and magnesium chloride primarily in North America and the United Kingdom. Its Salt segment mines, produces, processes, distributes, and markets sodium chloride and magnesium chloride for use in highway and consumer deicing, dust control, water conditioning, consumer and industrial food preparation, and agricultural and industrial applications; and purchases potassium chloride and calcium chloride to sell as finished products or to blend with sodium chloride to produce specialty products. This segment offers rock salt, mechanically evaporated and solar evaporated salt, and brine and flake magnesium chloride products to producers of intermediate chemical products used in the production of vinyls and other chemicals, and pulp and paper, as well as water treatment and other industrial uses. The company’s Plant Nutrition segment provides SOP, which is used as an ingredient in specialty fertilizer blends for chloride-sensitive crops and turfs under the Protassium+ brand name; and develops and distributes micronutrient products under the Wolf Trax brand. This segment serves growers and fertilizer distributors worldwide. The company also produces and markets consumer deicing and water conditioning products, ingredients used in consumer and commercial food preparation, and other mineral-based products for consumer, agricultural, and industrial applications; and offers records management services to businesses located in the United Kingdom. It operates rock salt mines in Goderich, Ontario, Canada; Cote Blanche, Louisiana, the United States; and Winsford, Cheshire, the United Kingdom. The company was formerly known as Salt Holdings Corporation and changed its name to Compass Minerals International, Inc. in December 2003. Compass Minerals International, Inc. was founded in 1993 and is headquartered in Overland Park, Kansas.
(Summary) (Company) (Chart)
1 November 2015
1yr Target $88.88
Payout Ratio 36.82%
1yr Cap Gain 9.40%
1yr Tot Return 12.64%
EPS (ttm) $7.17
EPS next yr $5.57
EPS next 5yr 17.44%
1yr Potential $97.14
Market Cap $2.74 Bil
Revenues $1.25 Bil
Earnings $240.50 Mil
Profit Margin 19.20%
1yr EarnGR 65.97%
3yr EarnGR 12.97%
5yr EarnGR 5.53%
1yr DivGR 10.09%
3yr DivGR 9.95%
5yr DivGR 11.06%
Quick Ratio 2.50
Current Ratio 4.10
Compass Minerals International encompasses two business segments - Salt and Plant Nutrition. Each business is #1 in the following segments:
Compass Minerals’ Salt Segment mines, produces, processes and distributes sodium chloride and magnesium chloride in North America and the U.K. The segment’s largest business is highway deicing, which primarily sells bulk rock salt to states, provinces, counties, municipalities and road maintenance contractors for ice control on public roadways. The highway deicing product line also includes flake and liquid magnesium chloride used for deicing and dust control; treated rock salt treated for deicing in very low temperatures; and rock salt for the chlor-alkali industry.
The salt segment also includes consumer and industrial product lines, which includes pure sodium chloride and blended products containing magnesium chloride, calcium chloride and potassium chloride for applications such as consumer and professional deicing, water conditioning, culinary salt, animal nutrition, swimming pool minerals, and thousands of industrial applications.
Compass Minerals’ Plant Nutrition Segment produces sulfate of potash fertilizer that provides essential potassium and sulfate crop nutrients and increases the quality and yield of high-value specialty crops such as fruits, vegetables, and tree nuts. SOP also improves the durability of turf grass used in public areas and golf courses.
Compass Minerals also manufactures leading edge, research-proven micronutrient and secondary plant nutrition products under the Wolf Trax® brand. Wolf Trax products include DDP Nutrients and PROTINUS Seed Nutrition.
Wolf Trax DDP Nutrients have been recognized by fertilizer retailers and growers around the world as doing a better job of delivering important micronutrients and secondary nutrients to crops than traditional granular fertilizers.
Many DDP Nutrients can also coat seed, mix with liquid fertilizer or disperse in foliar applications. The Wolf Trax DDP formulation is available for zinc, boron, magnesium, manganese, iron, copper and calcium. PROTINUS Seed Nutrition includes both zinc and manganese for faster, more even emergence and longer, stronger root growth.
Compass Minerals’ domestic sales of SOP are concentrated in the Western and Southeastern U.S. and exports to Latin America, Japan, Australia, and New Zealand.
This is another example of the type of company that belongs in my portfolio. Compass Minerals produces products that are constantly in demand and they are #1 in each of their markets. The company has a very nice dividend that is in excess of three percent which is growing at about ten percent per year. The level of its quick and current ratios will also ensure that the dividend can easily be paid in the quarters and years ahead. In addition, it's payout ratio is only about 36% so there's plenty of room for future increases at the current level or even higher.
The company has a low P/E ratio, a low PEG, and a low beta ensuring an excellent possibility for future share price growth with relatively little volatility of an expected upward growth path. Finally, a profit margin in excess of 19% provides a buffer against future competition.
I feel that a company that dates itself all the way back to 1844 understands its markets and is a real solid company. It's the kind of company that represents a solid addition to my portfolio. I'll be starting a position in Compass Minerals in the very near future with the intention of holding on to that company and building up that position for years.