QUIMICA Y MINERA CHIL-SP ADR (SQM)

US8336351056 - ADR

49.16  +0.67 (+1.38%)

After market: 49.16 0 (0%)

Fundamental Rating

7

SQM gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 86 industry peers in the Electrical Equipment industry. Both the health and profitability get an excellent rating, making SQM a very profitable company, without any liquidiy or solvency issues. SQM may be a bit undervalued, certainly considering the very reasonable score on growth SQM also has an excellent dividend rating. This makes SQM very considerable for value and dividend and quality investing!



9

1. Profitability

1.1 Basic Checks

In the past year SQM was profitable.
SQM had a positive operating cash flow in the past year.
SQM had positive earnings in 4 of the past 5 years.
SQM had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

SQM has a better Return On Assets (34.56%) than 100.00% of its industry peers.
SQM has a better Return On Equity (71.10%) than 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.
The Average Return On Invested Capital over the past 3 years for SQM is significantly above the industry average of 11.59%.
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.
Industry RankSector Rank
ROA 34.56%
ROE 71.1%
ROIC 46.56%
ROA(3y)15.94%
ROA(5y)12.82%
ROE(3y)35.31%
ROE(5y)28.07%
ROIC(3y)22.85%
ROIC(5y)17.87%

1.3 Margins

SQM has a Profit Margin of 35.24%. This is amongst the best in the industry. SQM outperforms 98.82% of its industry peers.
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.
SQM's Gross Margin of 51.46% is amongst the best of the industry. SQM outperforms 97.65% of its industry peers.
SQM's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 49.99%
PM (TTM) 35.24%
GM 51.46%
OM growth 3Y31.62%
OM growth 5Y11.73%
PM growth 3Y36.62%
PM growth 5Y12.94%
GM growth 3Y22.97%
GM growth 5Y8.17%

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so SQM is creating value.
SQM has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

2.2 Solvency

SQM has an Altman-Z score of 4.99. This indicates that SQM is financially healthy and has little risk of bankruptcy at the moment.
SQM's Altman-Z score of 4.99 is amongst the best of the industry. SQM outperforms 82.35% 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 89.41% of the companies in the same industry.
A Debt/Equity ratio of 0.45 indicates that SQM is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.45, SQM perfoms like the industry average, outperforming 41.18% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.45
Debt/FCF 2.06
Altman-Z 4.99
ROIC/WACC4.15
WACC11.21%

2.3 Liquidity

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.
With a decent Current ratio value of 2.48, SQM is doing good in the industry, outperforming 63.53% of the companies in the same industry.
A Quick Ratio of 1.81 indicates that SQM should not have too much problems 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 68.24% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.48
Quick Ratio 1.81

5

3. Growth

3.1 Past

SQM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 193.91%, which is quite impressive.
SQM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 52.96% yearly.
Looking at the last year, SQM shows a very strong growth in Revenue. The Revenue has grown by 151.62%.
SQM shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 37.78% yearly.
EPS 1Y (TTM)193.91%
EPS 3Y134.39%
EPS 5Y52.96%
EPS growth Q2Q-5.75%
Revenue 1Y (TTM)151.62%
Revenue growth 3Y76.62%
Revenue growth 5Y37.78%
Revenue growth Q2Q12.09%

3.2 Future

SQM is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -10.72% yearly.
SQM is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -83.54% yearly.
EPS Next Y-28.77%
EPS Next 2Y-22.36%
EPS Next 3Y-11.69%
EPS Next 5Y-10.72%
Revenue Next Year-99.91%
Revenue Next 2Y-97.31%
Revenue Next 3Y-90.8%
Revenue Next 5Y-83.54%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

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4. Valuation

4.1 Price/Earnings Ratio

SQM is valuated cheaply with a Price/Earnings ratio of 3.64.
Based on the Price/Earnings ratio, SQM is valued cheaper than 98.82% of the companies in the same industry.
SQM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.48.
With a Price/Forward Earnings ratio of 5.98, the valuation of SQM can be described as very cheap.
Based on the Price/Forward Earnings ratio, SQM is valued cheaply inside the industry as 98.82% of the companies are valued more expensively.
SQM is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.79, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 3.64
Fwd PE 5.98

4.2 Price Multiples

SQM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SQM is cheaper than 97.65% of the companies in the same industry.
Industry RankSector Rank
P/FCF 9.74
EV/EBITDA N/A

4.3 Compensation for Growth

The excellent profitability rating of SQM may justify a higher PE ratio.
SQM's earnings are expected to decrease with -11.69% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.07
EPS Next 2Y-22.36%
EPS Next 3Y-11.69%

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5. Dividend

5.1 Amount

SQM has a Yearly Dividend Yield of 10.90%, which is a nice return.
SQM's Dividend Yield is rather good when compared to the industry average which is at 2.51. SQM pays more dividend than 97.65% of the companies in the same industry.
SQM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
Industry RankSector Rank
Dividend Yield 10.9%

5.2 History

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.
Dividend Growth(5Y)98.58%
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

SQM pays out 57.99% of its income as dividend. This is a bit on the high side, but may be sustainable.
The Dividend Rate of SQM has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP57.99%
EPS Next 2Y-22.36%
EPS Next 3Y-11.69%

QUIMICA Y MINERA CHIL-SP ADR

NYSE:SQM (3/28/2024, 8:04:01 PM)

After market: 49.16 0 (0%)

49.16

+0.67 (+1.38%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap14.04B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 10.9%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 3.64
Fwd PE 5.98
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.07
Profitability
Industry RankSector Rank
ROA 34.56%
ROE 71.1%
ROCE
ROIC
ROICexc
ROICexgc
OM 49.99%
PM (TTM) 35.24%
GM 51.46%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.98
Health
Industry RankSector Rank
Debt/Equity 0.45
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 2.48
Quick Ratio 1.81
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)193.91%
EPS 3Y134.39%
EPS 5Y
EPS growth Q2Q
EPS Next Y-28.77%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)151.62%
Revenue growth 3Y76.62%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y