13 Best Magnesium Stocks to Buy Right Now

6. Compass Minerals International, Inc. (NYSE:CMP)

Number of Hedge Fund Holders: 31

Compass Minerals International, Inc. (NYSE:CMP), is a producer of salt, magnesium chloride, essential minerals, and plant nutrition items. It operates across the U.K., North America, and international markets. The company functions through its Plant Nutrition and Salt segments, producing potash sulfate, sodium chloride, and magnesium chloride-based fire retardants. The company’s potential growth in the magnesium sector can be demonstrated by the total measured and indicated magnesium resources of 91.6 million tons.

Compass Minerals International, Inc. (NYSE:CMP) generated 671,486 tons of magnesium chloride for the fiscal year ending September 30, 2024. Accordingly, the company reported revenue of $307 million in Q1 FY 2025, a drop of 10% year-over-year. Although the Salt segment volumes decreased by 13%, it generated $242 million, with a 1% price rise to $97 per ton. Despite a 9% decline in pricing for the Plant Nutrition segments, it witnessed a 24% surge in revenue to $50 million, fueled by a 36% increase in sales volumes.

Furthermore, Compass Minerals International, Inc. (NYSE:CMP) aims to decrease highway deicing inventory by 10% as it continues to optimize inventory management. While the early winter conditions in October and November were mild, the winter weather intensified in December and January, increasing salt sales. Overall segment performance was majorly driven by the main component, Magnesium chloride, due to its deicing and dust control products.

Looking ahead to 2025, the company anticipates a 9% year-over-year growth in sales volumes, with adjusted EBITDA forecasted between $225 million and $250 million. By optimizing operations at Ogden Plant Nutrition complex, the company aims to improve cash flow, stabilize sulfate of potash (SOP), and decrease overall costs. As such, it is placed among the best magnesium stocks.