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Why NYSE:SQM provides a good dividend, while having solid fundamentals.

By Mill Chart

Last update: Nov 3, 2023

Unearth the potential of QUIMICA Y MINERA CHIL-SP ADR (NYSE:SQM) as a dividend stock recommended by our stock screening tool. NYSE:SQM maintains a robust financial footing and delivers a sustainable dividend. We'll delve into the details below.

Looking at the Dividend

ChartMill employs its own Dividend Rating system for all stocks. This score, on a scale of 0 to 10, is determined by evaluating different dividend factors, such as yield, historical performance, dividend growth, and sustainability. NYSE:SQM has been assigned a 7 for dividend:

  • With a Yearly Dividend Yield of 10.90%, SQM is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 2.35, SQM pays a better dividend. On top of this SQM pays more dividend than 100.00% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 2.78, SQM pays a better dividend.
  • The dividend of SQM is nicely growing with an annual growth rate of 98.58%!
  • SQM has paid a dividend for at least 10 years, which is a reliable track record.

Health Analysis for NYSE:SQM

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:SQM, the assigned 8 reflects its health status:

  • An Altman-Z score of 4.95 indicates that SQM is not in any danger for bankruptcy at the moment.
  • SQM has a Altman-Z score of 4.95. This is amongst the best in the industry. SQM outperforms 83.91% of its industry peers.
  • The Debt to FCF ratio of SQM is 2.06, which is a good value as it means it would take SQM, 2.06 years of fcf income to pay off all of its debts.
  • SQM has a better Debt to FCF ratio (2.06) than 90.80% of its industry peers.
  • A Debt/Equity ratio of 0.45 indicates that SQM is not too dependend on debt financing.
  • 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's Current ratio of 2.48 is fine compared to the rest of the industry. SQM outperforms 60.92% of its industry peers.
  • With a decent Quick ratio value of 1.81, SQM is doing good in the industry, outperforming 70.11% of the companies in the same industry.

Analyzing Profitability Metrics

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:

  • Looking at the Return On Assets, with a value of 34.56%, SQM belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 71.10%, SQM belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
  • The Return On Invested Capital of SQM (46.56%) is better than 100.00% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for SQM is significantly above the industry average of 11.26%.
  • 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.
  • The Profit Margin of SQM (35.24%) is better than 97.70% of its industry peers.
  • In the last couple of years the Profit Margin of SQM has grown nicely.
  • With an excellent Operating Margin value of 49.99%, 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 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.
  • SQM's Gross Margin has improved in the last couple of years.

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

Our latest full fundamental report of SQM contains the most current fundamental analsysis.

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 (2/23/2024, 2:00:57 PM)

43.95

+0.81 (+1.88%)

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