CMP Stock Intrinsic Value – Compass Minerals Facing SEC Charges for Misleading Investors about World’s Largest Underground Salt Mine Operations
December 27, 2023
🌧️Trending News
Compass Minerals International ($NYSE:CMP) faces a major challenge with the Securities and Exchange Commission (SEC) charging the company with misleading investors about its activities at the world’s largest underground salt mine. Compass Minerals International is a publicly-traded producer and marketer of essential minerals, occurring naturally in the environment and used in multiple industries for various applications. The SEC alleges that Compass Minerals International knowingly provided misleading information to investors regarding the timing and profitability of its operations at the Cote Blanche mine in Louisiana, the world’s largest underground salt mine. The SEC further claims that Compass Minerals International made false or misleading statements about the mine’s production and financial performance.
These charges by the SEC come at a difficult time for Compass Minerals International, as it has struggled to return to profitability in recent years. Despite the allegations, Compass Minerals International has maintained that it has acted in compliance with all applicable laws and regulations and will vigorously defend itself against the SEC’s charges. It remains to be seen how this will affect Compass Minerals International’s reputation and standing among investors going forward.
Market Price
Tuesday saw a modest 1.2% increase in COMPASS MINERALS INTERNATIONAL stock, opening at $26.4 and closing at $26.7. The SEC has alleged that COMPASS MINERALS INTERNATIONAL failed to disclose certain information about safety violations and environmental damages at the mine, resulting in the stock prices being artificially inflated. The SEC has stated that the company could face hefty fines if found guilty, which would not only be costly but also damage investors’ trust in the company. As of now, COMPASS MINERALS INTERNATIONAL is yet to respond to the SEC’s charges, and it remains to be seen what effect this will have on the company’s stock prices in the coming days. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for CMP. More…
| Total Revenues | Net Income | Net Margin |
| 1.2k | 15.5 | 1.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for CMP. More…
| Operations | Investing | Financing |
| 101.1 | -173 | 64 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for CMP. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.82k | 1.3k | 13.04 |
Key Ratios Snapshot
Some of the financial key ratios for CMP are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -4.3% | -17.4% | 7.3% |
| FCF Margin | ROE | ROA |
| -4.0% | 10.3% | 3.0% |
Analysis – CMP Stock Intrinsic Value
At GoodWhale, we have analyzed the financials of COMPASS MINERALS INTERNATIONAL, and our proprietary Valuation Line indicates that the fair value of their share should be around $24.8. However, the current trading price of the share is $26.7, indicating that it is overvalued by 7.7%. Our analysis suggests that investors should be cautious when investing in COMPASS MINERALS INTERNATIONAL at this time. More…
Peers
The competition among Compass Minerals International Inc and its competitors is fierce. Ecograf Ltd, Green Battery Minerals Inc, and Lepidico Ltd are all trying to get a piece of the market share. Each company is trying to differentiate themselves from the others in order to gain an advantage. Compass Minerals International Inc has been able to stay ahead of the competition by constantly innovating and expanding its product line.
– Ecograf Ltd ($ASX:EGR)
Eograf Ltd is a publicly traded company with a market capitalization of 168.88 million as of 2022. The company has a return on equity of -7.82%. Eograf Ltd is engaged in the business of providing ecological consulting services. The company’s services include environmental impact assessments, environmental permitting, environmental due diligence, and environmental auditing.
– Green Battery Minerals Inc ($TSXV:GEM)
Battery Minerals Inc is a U.S.-based company engaged in the business of exploring, developing and mining for battery minerals, including graphite. The company’s primary focus is on the development of its Montepuez graphite project in Mozambique.
– Lepidico Ltd ($ASX:LPD)
Lepidico Ltd is a lithium exploration and development company. The company has a market capitalization of 137.48 million as of 2022 and a return on equity of -6.76%. The company’s primary focus is on the development of the L-Max® process, which is a hydrometallurgical process for the production of lithium from lepidolite.
Summary
Compass Minerals International (COMP) is facing charges from the U.S. Securities and Exchange Commission (SEC) for allegedly misleading investors about its operations at the largest underground salt mine in the world. The SEC alleges that COMP failed to disclose to investors that its production and extraction of salt from the mine was below internal estimates. As a result, investors in the company were unaware of the risks involved with their investment. This case serves as an important reminder of the need for investors to conduct thorough research before making any investments, and of the potential risks of investing in a company that may not be disclosing all necessary information.
