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NYSE:SQM—A High-Growth Stock Gearing Up for Its Next Upward Move.

By Mill Chart

Last update: Oct 17, 2023

In this article we will dive into QUIMICA Y MINERA CHIL-SP ADR (NYSE:SQM) as a possible candidate for growth investing. Investors should always do their own research, but we noticed QUIMICA Y MINERA CHIL-SP ADR showing up in our strong growth, ready to breakout screen, which makes it worth to investigate a bit more.

Growth Insights: NYSE:SQM

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:SQM was assigned a score of 10 for growth:

  • The Earnings Per Share has grown by an impressive 193.91% over the past year.
  • The Earnings Per Share has been growing by 52.96% on average over the past years. This is a very strong growth
  • The Revenue has grown by 151.62% in the past year. This is a very strong growth!
  • The Revenue has been growing by 37.78% on average over the past years. This is a very strong growth!
  • The Earnings Per Share is expected to grow by 729.30% on average over the next years. This is a very strong growth
  • SQM is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 748.99% yearly.
  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

How We Gauge Health for NYSE:SQM

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:SQM, the assigned 8 for health provides valuable insights:

  • SQM has an Altman-Z score of 5.24. This indicates that SQM is financially healthy and has little risk of bankruptcy at the moment.
  • With an excellent Altman-Z score value of 5.24, SQM belongs to the best of the industry, outperforming 82.76% of the companies in the same industry.
  • 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.
  • With an excellent Debt to FCF ratio value of 2.06, SQM belongs to the best of the industry, outperforming 90.80% of the companies in the same industry.
  • 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.
  • SQM has a Current Ratio of 2.48. This indicates that SQM is financially healthy and has no problem in meeting its short term obligations.
  • SQM has a Current ratio of 2.48. This is in the better half of the industry: SQM outperforms 60.92% of its industry peers.
  • SQM has a better Quick ratio (1.81) than 68.97% of its industry peers.

Assessing Profitability for NYSE:SQM

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:SQM, the assigned 10 is a significant indicator of profitability:

  • SQM has a better Return On Assets (34.56%) than 100.00% of its industry peers.
  • SQM's Return On Equity of 71.10% is amongst the best of the industry. SQM outperforms 100.00% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 46.56%, SQM belongs to the top 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 11.31%.
  • The last Return On Invested Capital (46.56%) for SQM is above the 3 year average (22.85%), which is a sign of increasing profitability.
  • SQM has a Profit Margin of 35.24%. This is amongst the best in the industry. SQM outperforms 97.70% of its industry peers.
  • In the last couple of years the Profit Margin of SQM has grown nicely.
  • SQM has a Operating Margin of 49.99%. This is amongst the best in the industry. SQM outperforms 100.00% of its industry peers.
  • In the last couple of years the Operating Margin of SQM has grown nicely.
  • The Gross Margin of SQM (51.46%) is better than 100.00% of its industry peers.
  • In the last couple of years the Gross Margin of SQM has grown nicely.

How does the Setup look for NYSE:SQM

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NYSE:SQM scores a 8 out of 10:

SQM has a bad technical rating, but it does show a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is very little resistance above the current price.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

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

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

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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QUIMICA Y MINERA CHIL-SP ADR

NYSE:SQM (4/26/2024, 7:17:24 PM)

After market: 44.02 -0.12 (-0.27%)

44.14

+0.63 (+1.45%)

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