Cove Street Capital Thinks Compass Minerals International (CMP) is Absurdly Inexpensive

Investment management company Cove Street Capital recently released its “Small Cap Value Fund” second quarter 2022 investor letter. A copy of the same can be downloaded here. At the end of the second quarter, the fund returned -13.70% compared to -17.20% for the Russell 2000 Index and -15.28% for the Russell 2000 Value Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

In the second quarter investor letter, Cove Street Capital discussed stocks like Compass Minerals International, Inc. (NYSE:CMP). Headquartered in Overland Park, Kansas, Compass Minerals International, Inc. (NYSE:CMP) is a producer and distributor of essential minerals. On August 26, 2022, Compass Minerals International, Inc. (NYSE:CMP) stock closed at $42.45 per share. One-month return of Compass Minerals International, Inc. (NYSE:CMP) was 14.02%, and its shares lost 36.29% of their value over the last 52 weeks. Compass Minerals International, Inc. (NYSE:CMP) has a market capitalization of $1.45 billion.

Here is what Cove Street Capital specifically said about Compass Minerals International, Inc. (NYSE:CMP):

“Compass Minerals International, Inc. (NYSE:CMP) also seems to be a similar pattern as VSAT. They are the company in the portfolio that has been most effected by “inflation” – fuel and transport costs – as they price their de-icing contracts once a year – and thus a chunk of 2022 earnings have been eaten by the bulk of what you read about in the paper. The good news is that pricing is an annual event – and we are highly confident that next year’s prices will reflect inflationary pressures, and margins will be restored. The stock is absurdly inexpensive.”

Copyright: vyacheslavsvetlichnyy / 123RF Stock Photo

Compass Minerals International, Inc. (NYSE:CMP) is not on the list of 30 Most Popular Stocks Among Hedge Funds. Compass Minerals International, Inc. (NYSE:CMP) was held by 17 hedge fund portfolios at the end of the second quarter compared to 13 in the previous quarter.

We discussed Compass Minerals International, Inc. (NYSE:CMP) in another article and shared Bernzott Capital Advisors’ views on the company. You can check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other prominent investors.

Disclosure: None. This article is originally published at Insider Monkey.