QUIMICA Y MINERA CHIL-SP ADR (SQM) Stock Fundamental Analysis
NYSE:SQM - New York Stock Exchange, Inc. - US8336351056 - ADR - Currency: USD
We assign a fundamental rating of 6 out of 10 to SQM. SQM was compared to 85 industry peers in the Chemicals industry. SQM has an excellent profitability rating, but there are some minor concerns on its financial health. SQM has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
SQM had positive earnings in the past year.
SQM had a positive operating cash flow in the past year.
Of the past 5 years SQM 4 years were profitable.
Of the past 5 years SQM 4 years had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 5.25%, SQM is doing good in the industry, outperforming 80.00% of the companies in the same industry.
SQM has a better Return On Equity (11.48%) than 81.18% of its industry peers.
SQM has a better Return On Invested Capital (8.33%) than 75.29% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SQM is significantly above the industry average of 6.84%.
The last Return On Invested Capital (8.33%) for SQM is well below the 3 year average (29.90%), which needs to be investigated, but indicates that SQM had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.25% | ||
| ROE | 11.48% | ||
| ROIC | 8.33% |
ROA(3y)16.59%
ROA(5y)12.3%
ROE(3y)36.11%
ROE(5y)26.9%
ROIC(3y)29.9%
ROIC(5y)21.88%
1.3 Margins
SQM has a better Profit Margin (13.46%) than 92.94% of its industry peers.
The Operating Margin of SQM (22.46%) is better than 90.59% of its industry peers.
SQM's Operating Margin has been stable in the last couple of years.
SQM has a Gross Margin (28.20%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of SQM has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.46% | ||
| PM (TTM) | 13.46% | ||
| GM | 28.2% |
OM growth 3Y-11.35%
OM growth 5Y0.83%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-8.37%
GM growth 5Y0.34%
2. Health
2.1 Basic Checks
SQM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
SQM has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for SQM has been increased compared to 5 years ago.
The debt/assets ratio for SQM is higher compared to a year ago.
2.2 Solvency
SQM has an Altman-Z score of 2.55. This is not the best score and indicates that SQM is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.55, SQM is in the better half of the industry, outperforming 71.76% of the companies in the same industry.
SQM has a debt to FCF ratio of 12.98. This is a negative value and a sign of low solvency as SQM would need 12.98 years to pay back of all of its debts.
With a Debt to FCF ratio value of 12.98, SQM perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
A Debt/Equity ratio of 0.73 indicates that SQM is somewhat dependend on debt financing.
SQM's Debt to Equity ratio of 0.73 is in line compared to the rest of the industry. SQM outperforms 48.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 12.98 | ||
| Altman-Z | 2.55 |
ROIC/WACC0.87
WACC9.55%
2.3 Liquidity
A Current Ratio of 2.88 indicates that SQM has no problem at all paying its short term obligations.
SQM's Current ratio of 2.88 is amongst the best of the industry. SQM outperforms 82.35% of its industry peers.
SQM has a Quick Ratio of 1.96. This is a normal value and indicates that SQM is financially healthy and should not expect problems in meeting its short term obligations.
SQM has a better Quick ratio (1.96) than 78.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.88 | ||
| Quick Ratio | 1.96 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 52.90% over the past year.
The Revenue for SQM has decreased by -28.74% in the past year. This is quite bad
The Revenue has been growing by 18.43% on average over the past years. This is quite good.
EPS 1Y (TTM)52.9%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%115.79%
Revenue 1Y (TTM)-28.74%
Revenue growth 3Y16.53%
Revenue growth 5Y18.43%
Sales Q2Q%-4.42%
3.2 Future
Based on estimates for the next years, SQM will show a very strong growth in Earnings Per Share. The EPS will grow by 103.88% on average per year.
Based on estimates for the next years, SQM will show a quite strong growth in Revenue. The Revenue will grow by 12.74% on average per year.
EPS Next Y270.51%
EPS Next 2Y103.88%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.81%
Revenue Next 2Y12.74%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 17.83, the valuation of SQM can be described as rather expensive.
SQM's Price/Earnings ratio is a bit cheaper when compared to the industry. SQM is cheaper than 61.18% of the companies in the same industry.
SQM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.41.
The Price/Forward Earnings ratio is 11.20, which indicates a very decent valuation of SQM.
Based on the Price/Forward Earnings ratio, SQM is valued a bit cheaper than 70.59% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SQM to the average of the S&P500 Index (35.19), we can say SQM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.83 | ||
| Fwd PE | 11.2 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SQM is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.54 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
SQM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of SQM may justify a higher PE ratio.
SQM's earnings are expected to grow with 103.88% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.07
PEG (5Y)N/A
EPS Next 2Y103.88%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 10.90%, SQM is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.53, SQM pays a better dividend. On top of this SQM pays more dividend than 96.47% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, SQM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.9% |
5.2 History
The dividend of SQM decreases each year by -28.43%.
SQM has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-28.43%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
SQM pays out 11.72% of its income as dividend. This is a sustainable payout ratio.
DP11.72%
EPS Next 2Y103.88%
EPS Next 3YN/A
37.63
-1.49 (-3.81%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners0.66%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap10.75B
Analysts40
Price TargetN/A
Short Float %125.92%
Short Ratio9.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.9% |
Yearly Dividend0.24
Dividend Growth(5Y)-28.43%
DP11.72%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0.14%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-19.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.83 | ||
| Fwd PE | 11.2 | ||
| P/S | 2.4 | ||
| P/FCF | 29.54 | ||
| P/OCF | 8.02 | ||
| P/B | 2.05 | ||
| P/tB | 2.14 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.11
EY5.61%
EPS(NY)3.36
Fwd EY8.93%
FCF(TTM)1.27
FCFY3.39%
OCF(TTM)4.69
OCFY12.47%
SpS15.69
BVpS18.39
TBVpS17.58
PEG (NY)0.07
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.25% | ||
| ROE | 11.48% | ||
| ROCE | 10.54% | ||
| ROIC | 8.33% | ||
| ROICexc | 8.33% | ||
| ROICexgc | 8.54% | ||
| OM | 22.46% | ||
| PM (TTM) | 13.46% | ||
| GM | 28.2% | ||
| FCFM | 8.12% |
ROA(3y)16.59%
ROA(5y)12.3%
ROE(3y)36.11%
ROE(5y)26.9%
ROIC(3y)29.9%
ROIC(5y)21.88%
ROICexc(3y)50.01%
ROICexc(5y)35.98%
ROICexgc(3y)52.37%
ROICexgc(5y)37.83%
ROCE(3y)37.85%
ROCE(5y)27.69%
ROICexcg growth 3Y-17.27%
ROICexcg growth 5Y-0.97%
ROICexc growth 3Y-16.33%
ROICexc growth 5Y0.11%
OM growth 3Y-11.35%
OM growth 5Y0.83%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-8.37%
GM growth 5Y0.34%
F-Score5
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 12.98 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 21.78% | ||
| Interest Coverage | -3.6 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 60.34% | ||
| Current Ratio | 2.88 | ||
| Quick Ratio | 1.96 | ||
| Altman-Z | 2.55 |
F-Score5
WACC9.55%
ROIC/WACC0.87
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)14.9%
Cap/Sales(5y)15.74%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)52.9%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%115.79%
EPS Next Y270.51%
EPS Next 2Y103.88%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-28.74%
Revenue growth 3Y16.53%
Revenue growth 5Y18.43%
Sales Q2Q%-4.42%
Revenue Next Year5.81%
Revenue Next 2Y12.74%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-53.87%
EBIT growth 3Y3.31%
EBIT growth 5Y19.42%
EBIT Next Year50.63%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-74.76%
FCF growth 3Y-5.4%
FCF growth 5Y24.04%
OCF growth 1Y-44.46%
OCF growth 3Y15.72%
OCF growth 5Y24.45%