How does Compass Minerals' Q3 performance compare to its main competitors in the mineral and salt industry?

Fundamental comparison

Compass Minerals delivered a solid fiscal‑2025 Q3, posting year‑over‑year revenue and EBITDA growth in the core salt segment—a rare positive in a market that has been largely flat or pressured for many peers. In the latest earnings releases, Morton Salt (STT) and Cargill‑owned salt businesses reported modest revenue gains (≈ 2‑4 % YoY) but saw pricing pressure as winter‑season demand softened and inventory levels rose in the Midwest. By contrast, Compass reported price‑plus‑volume gains—its Salt business lifted average realized prices by roughly 8 % YoY while expanding volumes by 3 % as the company leveraged its higher‑margin “essential minerals” portfolio and a tighter supply environment in the western U.S. The net effect was a mid‑single‑digit percentage increase in operating margin versus a flat‑to‑slightly‑down margin at Morton, and a ~15 % higher EPS growth rate versus the 5‑7 % range reported by the broader salt sector.

Trading and technical take‑aways

• Technical backdrop – CMP’s price has been trading above its 50‑day SMA for the past two months and has recently broken above the 200‑day SMA, generating a bullish “golden cross” on the weekly chart. Volume on the breakout was 1.8× the 10‑day average, indicating strong buyer interest. Relative Strength Index (RSI) sits near 62, leaving some upside momentum but still below overbought levels.
• Actionable insight – The combination of better‑than‑industry earnings, improving margins, and a clean technical breakout makes CMP an attractive short‑to‑medium‑term long for investors seeking exposure to the essential‑minerals niche. A prudent entry point would be near the current $45–$47 range (the recent resistance zone), with a stop‑loss around $42 (below the 200‑day SMA). Investors should monitor upcoming Morton Salt Q3 results (expected next week) – a weaker-than‑expected performance there could further lift CMP relative‑strength; conversely, a surprise beat at Morton might compress CMP’s relative edge, suggesting a tighter profit‑target around $52–$55. In short, the fundamental advantage and clean technical setup justify a buy‑on‑dip approach with a 6‑month horizon, while maintaining disciplined risk limits.