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Why the dividend investor may take a look at NYSE:SQM.

By Mill Chart

Last update: Sep 21, 2023

Discover QUIMICA Y MINERA CHIL-SP ADR (NYSE:SQM)—a stock that our stock screener has recognized as a solid dividend pick with strong fundamentals. NYSE:SQM showcases decent financial health and profitability while providing a sustainable dividend. We'll explore the specifics further.

Unpacking NYSE:SQM's Dividend Rating

An integral part of ChartMill's stock analysis is the Dividend Rating, which spans from 0 to 10. This rating evaluates diverse dividend factors, including yield, historical data, growth, and sustainability. NYSE:SQM has received a 8 out of 10:

  • With a Yearly Dividend Yield of 10.90%, SQM is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 12.44, SQM pays a better dividend. On top of this SQM pays more dividend than 98.80% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 2.35, SQM pays a better dividend.
  • On average, the dividend of SQM grows each year by 98.58%, which is quite nice.
  • SQM has been paying a dividend for at least 10 years, so it has a reliable track record.
  • SQM's earnings are growing more than its dividend. This makes the dividend growth sustainable.

Looking at the Health

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:SQM has earned a 8 out of 10:

  • An Altman-Z score of 5.29 indicates that SQM is not in any danger for bankruptcy at the moment.
  • SQM has a Altman-Z score of 5.29. This is amongst the best in the industry. SQM outperforms 81.93% of its industry peers.
  • SQM has a debt to FCF ratio of 2.06. This is a good value and a sign of high solvency as SQM would need 2.06 years to pay back of all of its debts.
  • SQM has a better Debt to FCF ratio (2.06) than 90.36% of its industry peers.
  • SQM has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
  • Even though the debt/equity ratio score it not favorable for SQM, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
  • A Current Ratio of 2.48 indicates that SQM has no problem at all paying its short term obligations.
  • Looking at the Quick ratio, with a value of 1.81, SQM is in the better half of the industry, outperforming 67.47% of the companies in the same industry.

Assessing Profitability for NYSE:SQM

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:SQM was assigned a score of 10 for profitability:

  • SQM has a Return On Assets of 34.56%. This is amongst the best in the industry. SQM outperforms 100.00% of its industry peers.
  • SQM has a Return On Equity of 71.10%. This is amongst the best in the industry. SQM outperforms 100.00% of its industry peers.
  • With an excellent Return On Invested Capital value of 46.56%, SQM belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
  • SQM had an Average Return On Invested Capital over the past 3 years of 22.85%. This is significantly above the industry average of 11.29%.
  • The 3 year average ROIC (22.85%) for SQM is below the current ROIC(46.56%), indicating increased profibility in the last year.
  • With an excellent Profit Margin value of 35.24%, SQM belongs to the best of the industry, outperforming 97.59% of the companies in the same industry.
  • In the last couple of years the Profit Margin of SQM has grown nicely.
  • The Operating Margin of SQM (49.99%) is better than 100.00% of its industry peers.
  • In the last couple of years the Operating Margin of SQM has grown nicely.
  • With an excellent Gross Margin value of 51.46%, SQM belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
  • In the last couple of years the Gross Margin of SQM has grown nicely.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

Check the latest full fundamental report of SQM for a complete fundamental analysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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QUIMICA Y MINERA CHIL-SP ADR

NYSE:SQM (12/11/2023, 12:13:00 PM)

49.85

-1.58 (-3.07%)

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