DCF Tool

CMP

Compass Minerals International Inc – Potash, Soda, and Borate Mineral Mining
Compass Minerals is a leading provider of essential minerals focused on safely delivering where and when it matters to help solve nature's challenges for customers and communities. Its salt products help keep roadways safe during winter weather and are used in numerous other consumer, industrial and agricultural applications. Its plant nutrition business manufactures an innovative and diverse portfolio of products that improve the quality and yield of crops, while supporting sustainable agriculture. Additionally, its specialty chemical business serves the water treatment industry and other industrial processes. The company operates 21 production and packaging facilities with more than 3,000 personnel throughout the U.S., Canada, Brazil and the U.K.
Analysis Results
Intrinsic Value $168.08
Latest Price $44.41
Relative Value 74% undervalued
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Cash Flow (Millions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 13.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.5%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 13.3%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2021 232 216
2022 263 227
2023 298 239
2024 337 252
2025 382 266
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 7030 million. This corresponds to a present value of 4540 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1200 million. Adding in the terminal value gives a total present value of 5740 million.

There are presently 34.2 million outstanding shares, so the intrinsic value per share is 168.08.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 756,300,000
Current Cash 10,600,000
Current Liabilities 296,700,000
Current Debt 10,000,000
Non-Cash Working Capital (NCWC) 459,000,000
Change in NCWC -47,500,000
EBIT 103,000,000
Tax Provision 1,900,000
Depreciation and Amortization 137,900,000
Capital Expenditure -84,900,000
Unlevered Free Cash Flow 104,102,247
Current Assets 785,000,000
Current Cash 34,700,000
Current Liabilities 295,900,000
Current Debt 52,100,000
Non-Cash Working Capital (NCWC) 506,500,000
Change in NCWC 52,100,000
EBIT 164,300,000
Tax Provision 22,100,000
Depreciation and Amortization 137,900,000
Capital Expenditure -98,100,000
Unlevered Free Cash Flow 213,280,023
Current Assets 721,200,000
Current Cash 27,000,000
Current Liabilities 283,300,000
Current Debt 43,500,000
Non-Cash Working Capital (NCWC) 454,400,000
Change in NCWC -10,600,000
EBIT 131,300,000
Tax Provision 8,800,000
Depreciation and Amortization 136,900,000
Capital Expenditure -96,800,000
Unlevered Free Cash Flow 145,910,309
Current Assets 737,500,000
Current Cash 36,600,000
Current Liabilities 268,000,000
Current Debt 32,100,000
Non-Cash Working Capital (NCWC) 465,000,000
Change in NCWC 69,200,000
EBIT 160,000,000
Tax Provision 60,000,000
Depreciation and Amortization 122,200,000
Capital Expenditure -114,100,000
Unlevered Free Cash Flow 143,823,855
Current Assets 715,000,000
Current Cash 77,400,000
Current Liabilities 372,000,000
Current Debt 130,200,000
Non-Cash Working Capital (NCWC) 395,800,000
Change in NCWC 107,800,000
EBIT 173,200,000
Tax Provision 34,600,000
Depreciation and Amortization 90,300,000
Capital Expenditure -182,200,000
Unlevered Free Cash Flow 158,726,355
Current Assets 512,300,000
Current Cash 58,400,000
Current Liabilities 170,800,000
Current Debt 4,900,000
Non-Cash Working Capital (NCWC) 288,000,000
Change in NCWC 85,900,000
EBIT 221,400,000
Tax Provision 55,300,000
Depreciation and Amortization 78,300,000
Capital Expenditure -217,600,000
Unlevered Free Cash Flow 110,921,118
Current Assets 702,700,000
Current Cash 266,800,000
Current Liabilities 237,700,000
Current Debt 3,900,000
Non-Cash Working Capital (NCWC) 202,100,000
Change in NCWC 38,000,000
EBIT 311,000,000
Tax Provision 73,900,000
Depreciation and Amortization 78,000,000
Capital Expenditure -125,200,000
Unlevered Free Cash Flow 223,037,491
Current Assets 577,400,000
Current Cash 159,600,000
Current Liabilities 257,600,000
Current Debt 3,900,000
Non-Cash Working Capital (NCWC) 164,100,000
Change in NCWC -47,300,000
EBIT 185,600,000
Tax Provision 43,300,000
Depreciation and Amortization 73,000,000
Capital Expenditure -122,700,000
Unlevered Free Cash Flow 42,439,862
Current Assets 506,900,000
Current Cash 100,100,000
Current Liabilities 199,300,000
Current Debt 3,900,000
Non-Cash Working Capital (NCWC) 211,400,000
Change in NCWC -3,300,000
EBIT 133,200,000
Tax Provision 22,400,000
Depreciation and Amortization 64,500,000
Capital Expenditure -130,900,000
Unlevered Free Cash Flow 36,692,452

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