Compass Minerals International (CMP) Stock Analysis & Winston Score

Compass Minerals mines and sells salt and other minerals used in everyday life. Its biggest product is rock salt, which cities and towns buy to melt ice on roads during winter storms. The company also sells specialty fertilizers to farmers and operates one of the largest underground salt mines in the world, located in Goderich, Ontario, Canada. Compass Minerals makes money by selling these products directly to government agencies, retailers, and agricultural customers across North America and the United Kingdom. Its Goderich mine and a large salt operation in Lyons, Kansas give it a cost advantage because rock salt is heavy and expensive to ship, so nearby customers tend to stick with local suppliers. However, the company's revenue swings significantly depending on how harsh winters are each year, and its low returns on invested capital suggest it has struggled to consistently earn strong profits above its cost of doing business.