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NYSE:SQM: good value for what you're paying.

By Mill Chart

Last update: Nov 22, 2023

QUIMICA Y MINERA CHIL-SP ADR (NYSE:SQM) is a hidden gem identified by our stock screening tool, featuring undervaluation and robust fundamentals. NYSE:SQM showcases decent financial health and profitability, coupled with an attractive price. Let's dig deeper into the analysis.

A Closer Look at Valuation for NYSE:SQM

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:SQM scores a 7 out of 10:

  • A Price/Earnings ratio of 3.80 indicates a rather cheap valuation of SQM.
  • Based on the Price/Earnings ratio, SQM is valued cheaply inside the industry as 98.84% of the companies are valued more expensively.
  • SQM is valuated cheaply when we compare the Price/Earnings ratio to 24.39, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 5.53, which indicates a rather cheap valuation of SQM.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of SQM indicates a rather cheap valuation: SQM is cheaper than 98.84% of the companies listed in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 19.49. SQM is valued rather cheaply when compared to this.
  • 94.19% of the companies in the same industry are more expensive than SQM, based on the Price/Free Cash Flow ratio.
  • SQM has an outstanding profitability rating, which may justify a higher PE ratio.

Analyzing Profitability Metrics

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:SQM has achieved a 10:

  • SQM's Return On Assets of 34.56% is amongst the best of 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 11.12%.
  • The 3 year average ROIC (22.85%) for SQM is below the current ROIC(46.56%), indicating increased profibility in the last year.
  • The Profit Margin of SQM (35.24%) is better than 98.84% of its industry peers.
  • SQM's Profit Margin has improved in the last couple of years.
  • 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.
  • SQM's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 51.46%, SQM belongs to the top of the industry, outperforming 98.84% of the companies in the same industry.
  • SQM's Gross Margin has improved in the last couple of years.

ChartMill's Evaluation of Health

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:SQM has earned a 8 out of 10:

  • SQM has an Altman-Z score of 5.07. This indicates that SQM is financially healthy and has little risk of bankruptcy at the moment.
  • SQM's Altman-Z score of 5.07 is amongst the best of the industry. SQM outperforms 83.72% 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.
  • With an excellent Debt to FCF ratio value of 2.06, SQM belongs to the best of the industry, outperforming 88.37% of the companies in the same industry.
  • 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.
  • Looking at the Quick ratio, with a value of 1.81, SQM is in the better half of the industry, outperforming 65.12% of the companies in the same industry.

Exploring NYSE:SQM's Growth

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 5 for growth:

  • The Earnings Per Share has grown by an impressive 193.91% over the past year.
  • Measured over the past years, SQM shows a very strong growth in Earnings Per Share. The EPS has been growing by 52.96% on average per year.
  • Looking at the last year, SQM shows a very strong growth in Revenue. The Revenue has grown by 151.62%.
  • The Revenue has been growing by 37.78% on average over the past years. This is a very strong growth!

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Check the latest full fundamental report of SQM for a complete fundamental 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 (2/22/2024, 6:00:00 PM)

After market: 43.48 +0.34 (+0.79%)

43.14

+0.22 (+0.51%)

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