QUIMICA Y MINERA CHIL-SP ADR (SQM) Stock Fundamental Analysis
NYSE:SQM - US8336351056 - ADR
46.94 USD
+1.27 (+2.78%)
46.95 USD
+0.01 (+0.02%)
We assign a fundamental rating of 5 out of 10 to SQM. SQM was compared to 84 industry peers in the Chemicals industry. While SQM belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. SQM is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
SQM had positive earnings in the past year.
In the past year SQM had a positive cash flow from operations.
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
The Return On Assets of SQM (5.25%) is better than 82.14% of its industry peers.
SQM has a better Return On Equity (11.48%) than 80.95% of its industry peers.
SQM has a better Return On Invested Capital (8.33%) than 77.38% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SQM is significantly above the industry average of 6.43%.
The 3 year average ROIC (29.90%) for SQM is well above the current ROIC(8.33%). The reason for the recent decline needs to be investigated.
| 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 92.86% of its industry peers.
SQM has a better Operating Margin (22.46%) than 91.67% of its industry peers.
SQM's Operating Margin has been stable in the last couple of years.
SQM's Gross Margin of 28.20% is in line compared to the rest of the industry. SQM outperforms 51.19% of its industry peers.
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
SQM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, SQM has about the same amount of shares outstanding.
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
SQM has an Altman-Z score of 2.77. 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.
SQM has a Altman-Z score of 2.77. This is in the better half of the industry: SQM outperforms 78.57% of its industry peers.
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.
With a Debt to FCF ratio value of 12.98, SQM perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
SQM has a Debt/Equity ratio of 0.73. This is a neutral value indicating SQM is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.73, SQM is in line with its industry, outperforming 48.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 12.98 | ||
| Altman-Z | 2.77 |
ROIC/WACC0.87
WACC9.62%
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.
The Current ratio of SQM (2.88) is better than 82.14% 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.
Looking at the Quick ratio, with a value of 1.96, SQM is in the better half of the industry, outperforming 77.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.88 | ||
| Quick Ratio | 1.96 |
3. Growth
3.1 Past
SQM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -48.46%.
SQM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 33.38% yearly.
Looking at the last year, SQM shows a very negative growth in Revenue. The Revenue has decreased by -30.28% in the last year.
Measured over the past years, SQM shows a very strong growth in Revenue. The Revenue has been growing by 26.94% on average per year.
EPS 1Y (TTM)-48.46%
EPS 3Y123.67%
EPS 5Y33.38%
EPS Q2Q%-58.67%
Revenue 1Y (TTM)-30.28%
Revenue growth 3Y60.17%
Revenue growth 5Y26.94%
Sales Q2Q%-19.4%
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 -18.51% yearly.
The Revenue is expected to decrease by -14.60% on average over the next years. This is quite bad
EPS Next Y-122.06%
EPS Next 2Y-38.67%
EPS Next 3Y-18.51%
EPS Next 5YN/A
Revenue Next Year-51.18%
Revenue Next 2Y-28.59%
Revenue Next 3Y-14.6%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 6.65, which indicates a rather cheap valuation of SQM.
Based on the Price/Earnings ratio, SQM is valued cheaper than 96.43% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.14, SQM is valued rather cheaply.
The Price/Forward Earnings ratio is 17.68, which indicates a rather expensive current valuation of SQM.
SQM's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.80, SQM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.65 | ||
| Fwd PE | 17.68 |
4.2 Price Multiples
SQM's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.84 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The decent profitability rating of SQM may justify a higher PE ratio.
SQM's earnings are expected to decrease with -18.51% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.2
EPS Next 2Y-38.67%
EPS Next 3Y-18.51%
5. Dividend
5.1 Amount
SQM has a Yearly Dividend Yield of 10.90%, which is a nice return.
Compared to an average industry Dividend Yield of 3.54, SQM pays a better dividend. On top of this SQM pays more dividend than 100.00% 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 2.34.
| 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.
The Dividend Rate of SQM has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP11.72%
EPS Next 2Y-38.67%
EPS Next 3Y-18.51%
46.94
+1.27 (+2.78%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners0.66%
Inst Owner Change3.38%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap13.41B
Analysts40
Price TargetN/A
Short Float %107.56%
Short Ratio4.86
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)0.12%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.26%
Revenue NY rev (3m)-1.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.65 | ||
| Fwd PE | 17.68 | ||
| P/S | 2.99 | ||
| P/FCF | 36.84 | ||
| P/OCF | 10.01 | ||
| P/B | 2.55 | ||
| P/tB | 2.67 | ||
| EV/EBITDA | N/A |
EPS(TTM)7.06
EY15.04%
EPS(NY)2.66
Fwd EY5.66%
FCF(TTM)1.27
FCFY2.71%
OCF(TTM)4.69
OCFY9.99%
SpS15.69
BVpS18.39
TBVpS17.58
PEG (NY)N/A
PEG (5Y)0.2
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 | 2.77 |
F-Score5
WACC9.62%
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)-48.46%
EPS 3Y123.67%
EPS 5Y33.38%
EPS Q2Q%-58.67%
EPS Next Y-122.06%
EPS Next 2Y-38.67%
EPS Next 3Y-18.51%
EPS Next 5YN/A
Revenue 1Y (TTM)-30.28%
Revenue growth 3Y60.17%
Revenue growth 5Y26.94%
Sales Q2Q%-19.4%
Revenue Next Year-51.18%
Revenue Next 2Y-28.59%
Revenue Next 3Y-14.6%
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%