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. A decent growth rate in combination with a cheap valuation! Better keep an eye on SQM. These ratings could make SQM a good candidate for value investing.
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
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 Return On Equity of 11.48%. This is amongst the best in the industry. SQM outperforms 81.18% of its industry peers.
SQM has a Return On Invested Capital of 8.33%. This is in the better half of the industry: SQM outperforms 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
With an excellent Profit Margin value of 13.46%, SQM belongs to the best of the industry, outperforming 92.94% of the companies in the same industry.
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.
The Gross Margin of SQM (28.20%) is comparable to the rest of the industry.
SQM's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so SQM is creating value.
Compared to 1 year ago, SQM has about the same amount of shares outstanding.
Compared to 5 years ago, SQM has more shares outstanding
Compared to 1 year ago, SQM has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.45 indicates that SQM is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.45, SQM is doing good in the industry, outperforming 68.24% of the companies in the same industry.
The Debt to FCF ratio of SQM is 12.98, which is on the high side as it means it would take SQM, 12.98 years of fcf income to pay off all of its debts.
SQM has a better Debt to FCF ratio (12.98) than 61.18% of its industry peers.
A Debt/Equity ratio of 0.73 indicates that SQM is somewhat dependend on debt financing.
SQM has a Debt to Equity ratio (0.73) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 12.98 | ||
| Altman-Z | 2.45 |
ROIC/WACC0.88
WACC9.46%
2.3 Liquidity
SQM has a Current Ratio of 2.88. This indicates that SQM is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.88, SQM belongs to the top of the industry, outperforming 82.35% of the companies in the same industry.
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
SQM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 52.90%, which is quite impressive.
Looking at the last year, SQM shows a very negative growth in Revenue. The Revenue has decreased by -28.74% in the last year.
SQM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.43% yearly.
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
The Price/Earnings ratio is 16.11, which indicates a correct valuation of SQM.
63.53% of the companies in the same industry are more expensive than SQM, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.55, SQM is valued a bit cheaper.
With a Price/Forward Earnings ratio of 10.12, the valuation of SQM can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SQM indicates a somewhat cheap valuation: SQM is cheaper than 75.29% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.40. SQM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.11 | ||
| Fwd PE | 10.12 |
4.2 Price Multiples
SQM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SQM is cheaper than 63.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.69 | ||
| 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.
SQM has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as SQM's earnings are expected to grow with 103.88% in the coming years.
PEG (NY)0.06
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.
In the last 3 months the price of SQM has falen by -21.06%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.75, SQM pays a better dividend. On top of this SQM pays more dividend than 96.47% of the companies listed in the same industry.
SQM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.9% |
5.2 History
The dividend of SQM decreases each year by -28.43%.
SQM has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-28.43%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
11.72% of the earnings are spent on dividend by SQM. This is a low number and sustainable payout ratio.
DP11.72%
EPS Next 2Y103.88%
EPS Next 3YN/A
34
-0.08 (-0.23%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners1%
Inst Owner Change20.83%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap9.71B
Analysts40
Price TargetN/A
Short Float %114.91%
Short Ratio7.43
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)0.12%
EPS NY rev (3m)-61.87%
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 | 16.11 | ||
| Fwd PE | 10.12 | ||
| P/S | 2.17 | ||
| P/FCF | 26.69 | ||
| P/OCF | 7.25 | ||
| P/B | 1.85 | ||
| P/tB | 1.93 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.11
EY6.21%
EPS(NY)3.36
Fwd EY9.88%
FCF(TTM)1.27
FCFY3.75%
OCF(TTM)4.69
OCFY13.8%
SpS15.69
BVpS18.39
TBVpS17.58
PEG (NY)0.06
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 | 2.45 |
F-Score5
WACC9.46%
ROIC/WACC0.88
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%