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 (NYSE: CMP  ) 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

PotashCorp

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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