QUIMICA Y MINERA CHIL-SP ADR (SQM)
US8336351056 - ADR
Taking everything into account, SQM scores 6 out of 10 in our fundamental rating. SQM was compared to 93 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 has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally SQM also has an excellent dividend rating. These ratings would make SQM suitable for dividend investing!
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 has a Return On Assets of 34.56%. This is amongst the best in the industry. SQM outperforms 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.
Measured over the past 3 years, the Average Return On Invested Capital for SQM is significantly above the industry average of 11.08%.
The 3 year average ROIC (22.85%) for SQM is below the current ROIC(46.56%), indicating increased profibility in the last year.
| Industry Rank | Sector 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
With an excellent Profit Margin value of 35.24%, SQM belongs to the best of the industry, outperforming 98.91% of the companies in the same industry.
SQM's Profit Margin has improved in the last couple of years.
SQM has a better Operating Margin (49.99%) than 100.00% of its industry peers.
SQM's Operating Margin has improved in the last couple of years.
SQM has a Gross Margin of 51.46%. This is amongst the best in the industry. SQM outperforms 97.83% of its industry peers.
In the last couple of years the Gross Margin of SQM has grown nicely.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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
An Altman-Z score of 4.66 indicates that SQM is not in any danger for bankruptcy at the moment.
SQM's Altman-Z score of 4.66 is amongst the best of the industry. SQM outperforms 81.52% 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.
SQM has a better Debt to FCF ratio (2.06) than 84.78% of its industry peers.
SQM has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.45, SQM perfoms like the industry average, outperforming 43.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 2.06 | ||
| Altman-Z | 4.66 |
ROIC/WACC4.08
WACC11.42%
2.3 Liquidity
A Current Ratio of 2.48 indicates that SQM has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.48, SQM is doing good in the industry, outperforming 66.30% of the companies in the same industry.
SQM has a Quick Ratio of 1.81. 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 (1.81) than 68.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.48 | ||
| Quick Ratio | 1.81 |
3. Growth
3.1 Past
EPS 1Y (TTM)N/A
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-82.38%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-58.14%
3.2 Future
Based on estimates for the next years, SQM will show a decrease in Earnings Per Share. The EPS will decrease by -2.47% on average per year.
SQM is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -8.85% yearly.
EPS Next Y-63.47%
EPS Next 2Y-0.6%
EPS Next 3Y-2.47%
EPS Next 5YN/A
Revenue Next Year-39.8%
Revenue Next 2Y-9.58%
Revenue Next 3Y-8.85%
Revenue Next 5YN/A
3.3 Evolution
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 5.44, the valuation of SQM can be described as very cheap.
98.91% 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 24.41, SQM is valued rather cheaply.
With a Price/Forward Earnings ratio of 14.88, SQM is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SQM indicates a rather cheap valuation: SQM is cheaper than 86.96% of the companies listed in the same industry.
SQM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.44 | ||
| Fwd PE | 14.88 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, SQM is valued cheaply inside the industry as 96.74% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.59 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
SQM has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as SQM's earnings are expected to decrease with -2.47% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.6%
EPS Next 3Y-2.47%
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 2.44, 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 2.30.
| Industry Rank | Sector 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-0.6%
EPS Next 3Y-2.47%
QUIMICA Y MINERA CHIL-SP ADR
NYSE:SQM (7/26/2024, 7:04:01 PM)
After market: 38.33 0 (0%)38.33
+0.88 (+2.35%)
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 Cap10.95B
Analysts
Price Target
Dividend
| Industry Rank | Sector 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)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.44 | ||
| Fwd PE | 14.88 | ||
| 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)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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)
High Growth Momentum
Growth
EPS 1Y (TTM)N/A
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-63.47%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5Y
Sales 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