QUIMICA Y MINERA CHIL-SP ADR (SQM) Stock Fundamental Analysis
USA - NYSE:SQM - US8336351056 - ADR
46.27 USD
-1.32 (-2.77%)
46.61 USD
+0.34 (+0.73%)
We assign a fundamental rating of 6 out of 10 to SQM. SQM was compared to 82 industry peers in the Chemicals industry. While SQM has a great profitability rating, there are some minor concerns on its financial health. SQM has a correct valuation and a medium growth rate.
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.
SQM had positive earnings in 4 of the past 5 years.
Of the past 5 years SQM 4 years had a positive operating cash flow.
1.2 Ratios
SQM's Return On Assets of 4.14% is fine compared to the rest of the industry. SQM outperforms 75.61% of its industry peers.
SQM has a better Return On Equity (8.92%) than 74.39% of its industry peers.
With a decent Return On Invested Capital value of 7.14%, SQM is doing good in the industry, outperforming 71.95% of the companies in the same industry.
SQM had an Average Return On Invested Capital over the past 3 years of 29.90%. This is significantly above the industry average of 6.23%.
The 3 year average ROIC (29.90%) for SQM is well above the current ROIC(7.14%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.14% | ||
| ROE | 8.92% | ||
| ROIC | 7.14% |
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 Profit Margin of 11.29%. This is amongst the best in the industry. SQM outperforms 90.24% of its industry peers.
SQM has a Operating Margin of 20.61%. This is amongst the best in the industry. SQM outperforms 89.02% of its industry peers.
In the last couple of years the Operating Margin of SQM has remained more or less at the same level.
SQM has a Gross Margin of 26.80%. This is comparable to the rest of the industry: SQM outperforms 50.00% of its industry peers.
SQM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.61% | ||
| PM (TTM) | 11.29% | ||
| GM | 26.8% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so SQM 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.
SQM has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.77 indicates that SQM is not a great score, but indicates only limited risk for bankruptcy at the moment.
SQM has a Altman-Z score of 2.77. This is in the better half of the industry: SQM outperforms 78.05% of its industry peers.
A Debt/Equity ratio of 0.71 indicates that SQM is somewhat dependend on debt financing.
SQM's Debt to Equity ratio of 0.71 is in line compared to the rest of the industry. SQM outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.77 |
ROIC/WACC0.76
WACC9.36%
2.3 Liquidity
SQM has a Current Ratio of 2.92. This indicates that SQM is financially healthy and has no problem in meeting its short term obligations.
SQM's Current ratio of 2.92 is amongst the best of the industry. SQM outperforms 82.93% of its industry peers.
SQM has a Quick Ratio of 1.93. This is a normal value and indicates that SQM is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.93, SQM is in the better half of the industry, outperforming 76.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.92 | ||
| Quick Ratio | 1.93 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 1600.00% over the past year.
The Revenue for SQM has decreased by -23.50% 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)1600%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-58.67%
Revenue 1Y (TTM)-23.5%
Revenue growth 3Y16.53%
Revenue growth 5Y18.43%
Sales Q2Q%-19.4%
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 111.02% on average per year.
SQM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.95% yearly.
EPS Next Y270.51%
EPS Next 2Y111.02%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.47%
Revenue Next 2Y12.95%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 27.22, which means the current valuation is very expensive for SQM.
SQM's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of SQM to the average of the S&P500 Index (25.67), we can say SQM is valued inline with the index average.
The Price/Forward Earnings ratio is 12.11, which indicates a correct valuation of SQM.
Based on the Price/Forward Earnings ratio, SQM is valued a bit cheaper than 64.63% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SQM to the average of the S&P500 Index (31.86), we can say SQM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.22 | ||
| Fwd PE | 12.11 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The 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 111.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.1
PEG (5Y)N/A
EPS Next 2Y111.02%
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.
SQM's Dividend Yield is rather good when compared to the industry average which is at 4.06. SQM pays more dividend than 95.12% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, 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
1.24% of the earnings are spent on dividend by SQM. This is a low number and sustainable payout ratio.
DP1.24%
EPS Next 2Y111.02%
EPS Next 3YN/A
46.27
-1.32 (-2.77%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners0.88%
Inst Owner Change-2.43%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap13.22B
Revenue(TTM)4.23B
Net Income(TTM)477.56M
Analysts40
Price TargetN/A
Short Float %65.72%
Short Ratio3.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.9% |
Yearly Dividend0.24
Dividend Growth(5Y)-28.43%
DP1.24%
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%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.22 | ||
| Fwd PE | 12.11 | ||
| P/S | 3.12 | ||
| P/FCF | N/A | ||
| P/OCF | 14.86 | ||
| P/B | 2.47 | ||
| P/tB | 2.58 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.7
EY3.67%
EPS(NY)3.82
Fwd EY8.25%
FCF(TTM)-0.26
FCFYN/A
OCF(TTM)3.11
OCFY6.73%
SpS14.81
BVpS18.74
TBVpS17.96
PEG (NY)0.1
PEG (5Y)N/A
Graham Number26.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.14% | ||
| ROE | 8.92% | ||
| ROCE | 9.04% | ||
| ROIC | 7.14% | ||
| ROICexc | 7.14% | ||
| ROICexgc | 7.31% | ||
| OM | 20.61% | ||
| PM (TTM) | 11.29% | ||
| GM | 26.8% | ||
| FCFM | N/A |
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%
ROICexgc growth 3Y-17.27%
ROICexgc 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 Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 22.81% | ||
| Interest Coverage | -3.5 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.92 | ||
| Quick Ratio | 1.93 | ||
| Altman-Z | 2.77 |
F-Score5
WACC9.36%
ROIC/WACC0.76
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)1600%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-58.67%
EPS Next Y270.51%
EPS Next 2Y111.02%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-23.5%
Revenue growth 3Y16.53%
Revenue growth 5Y18.43%
Sales Q2Q%-19.4%
Revenue Next Year4.47%
Revenue Next 2Y12.95%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-48.25%
EBIT growth 3Y3.31%
EBIT growth 5Y19.42%
EBIT Next Year50.63%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-104.79%
FCF growth 3Y-5.4%
FCF growth 5Y24.04%
OCF growth 1Y-65.9%
OCF growth 3Y15.72%
OCF growth 5Y24.45%
QUIMICA Y MINERA CHIL-SP ADR / SQM FAQ
What is the fundamental rating for SQM stock?
ChartMill assigns a fundamental rating of 6 / 10 to SQM.
What is the valuation status for SQM stock?
ChartMill assigns a valuation rating of 5 / 10 to QUIMICA Y MINERA CHIL-SP ADR (SQM). This can be considered as Fairly Valued.
What is the profitability of SQM stock?
QUIMICA Y MINERA CHIL-SP ADR (SQM) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for SQM stock?
The Price/Earnings (PE) ratio for QUIMICA Y MINERA CHIL-SP ADR (SQM) is 27.22 and the Price/Book (PB) ratio is 2.47.
Can you provide the financial health for SQM stock?
The financial health rating of QUIMICA Y MINERA CHIL-SP ADR (SQM) is 5 / 10.