As retail investors weigh their options, the recent performance of Compass Minerals International (CMP) may prompt a shift towards Vizsla (VZLA), especially given CMP's current challenges, including a net income of
15.2M and a 200-day moving average of
15.48. With institutional ownership at a high of 94.70%, the stock's appeal could be waning, making it essential for investors to monitor any potential pivot in sentiment.
Primary Takeaways
By examining the key indicators of Compass Minerals and Vizsla, you can assess how market fluctuations impact their stock prices. This analysis can help determine if combining these companies in a portfolio could reduce overall market risk. Additionally, consider using pair trading strategies, where you take a long position in Vizsla while shorting Compass Minerals. For further insights, explore our
pair correlation module.
Now, let’s look at asset performance. The asset utilization ratio shows how much revenue a company generates for every dollar of assets. Compass Minerals has an asset utilization ratio of 66.27%, meaning it earns $0.66 for each dollar of assets. A rising ratio indicates improved efficiency in using its assets for operations.
Investment perspective, in general, refers to a viewpoint or opinion regarding investment opportunity in Compass Minerals. It encompasses the assessment of an investment's potential risks and rewards, and expectations for its
performance over time. Several factors influence the investment perspective on Compass Minerals, including investment goals, risk tolerance, time horizon, market conditions, and research and analysis. Investors have varying goals, such as capital preservation, income generation, or long-term growth. Risk tolerance plays a significant role in shaping an investor's perspective, with some being more risk-averse and others willing to take on higher risks for potential returns.
How important is Compass Minerals's Liquidity
Compass Minerals
financial leverage refers to using borrowed capital as a funding source to finance Compass Minerals International ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Compass Minerals financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Compass Minerals' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Compass Minerals' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Compass Minerals's total debt and its cash.
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
Total Debt Breakdown
Let me now analyze Compass Minerals total debt. Based on the latest financial disclosure, Compass Minerals International has a Total Debt of 805.3
M. This is 61.02% lower than that of the Metals & Mining sector and significantly higher than that of the
Materials industry. The total debt for all United States stocks is 84.85% higher than that of Compass Minerals.
As for Vizsla Resources we see total debt of 3.68
M, which is much higher than that of the Materials
| CMP | 805.3 Million | 99.55 |
| Sector | 0.0 | 0.0 |
| VZLA | 3.68 Million | 0.45 |
In the world of investing, the saying "the grass is always greener on the other side" often rings true, especially when retail investors consider shifting their focus. As Compass Minerals (CMP) struggles with a current ratio of 2.53X and an operating margin of just 0.01%, some investors may be tempted to pivot to Vizsla (VZLA), which is gaining traction in the mining sector. With a market capitalization of $512.13 million and a recent net income of $15.5 million, CMP's financials present a mixed bag, especially against a backdrop of declining quarterly revenue growth of 0.25. Investors should keep a close eye on these dynamics, as the potential for a shift in sentiment could significantly impact stock performance in the coming months..
Compass showing record of lower volatility
Compass Minerals International has recently posted a Sortino Ratio of 0.03, reflecting a limited ability to manage downside risk compared to its returns. This suggests that while the stock has shown some stability, investors should remain cautious, as there are signs it may face further declines. Although the company has a history of lower volatility, current market conditions require careful monitoring for potential investors.
The stock exhibits above-average downside volatility, which can help investors gauge market timing. By using volatility indicators, traders can assess Compass Minerals' risk against broader market fluctuations during both rising and falling trends.
Increased volatility in bear markets can negatively affect the stock price, causing stress for investors as they watch their investments drop in value, often leading them to adjust their portfolios.Investing in Compass Minerals International stock presents a mixed bag of opportunities and risks. With a current market value hovering around
12.39, the stock shows potential for growth, especially with an estimated upside price of
17.5. However, the overall analyst consensus leans towards a "Buy," indicating that while there are uncertainties, many believe the stock could perform well in the long run. The varying target prices, ranging from a low of
8.13 to a high of
54.58, suggest that investors should proceed with caution and conduct thorough research before making any commitments. As the fiscal year ends in September, keeping an eye on upcoming earnings reports could provide further clarity on the stock's trajectory..
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Nico Santiago is a PR Contributor to Macroaxis Editorial Board. Nico is a relatively new author here at Macroaxis and he likes to work on advertising and sponsored content and marketing for the company. Nico spends most of his time surfing when the weather is nice and he spends the rest of the year writing for various blogs and companies, as he works on his upcoming books, The Rise of the Financial Machines and Time Series Modelling with AI.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Nico Santiago do not own shares of Compass Minerals International. Please refer to our
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