QUIMICA Y MINERA CHIL-SP ADR (SQM) Stock Fundamental Analysis
USA - NYSE:SQM - US8336351056 - ADR
44.65 USD
-1.27 (-2.77%)
We assign a fundamental rating of 6 out of 10 to SQM. SQM was compared to 83 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 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.
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
Looking at the Return On Assets, with a value of 4.14%, SQM is in the better half of the industry, outperforming 75.90% of the companies in the same industry.
Looking at the Return On Equity, with a value of 8.92%, SQM is in the better half of the industry, outperforming 73.49% of the companies in the same industry.
SQM's Return On Invested Capital of 7.14% is fine compared to the rest of the industry. SQM outperforms 72.29% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SQM is significantly above the industry average of 6.30%.
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's Profit Margin of 11.29% is amongst the best of the industry. SQM outperforms 90.36% of its industry peers.
With an excellent Operating Margin value of 20.61%, SQM belongs to the best of the industry, outperforming 89.16% of the companies in the same industry.
SQM's Operating Margin has been stable in the last couple of years.
SQM has a Gross Margin (26.80%) which is in line with 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.
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 2.73. 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 2.73. This is in the better half of the industry: SQM outperforms 77.11% of its industry peers.
A Debt/Equity ratio of 0.71 indicates that SQM is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.71, SQM perfoms like the industry average, outperforming 49.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.73 |
ROIC/WACC0.75
WACC9.54%
2.3 Liquidity
A Current Ratio of 2.92 indicates that SQM has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.92, SQM belongs to the best of the industry, outperforming 81.93% of the companies in the same industry.
A Quick Ratio of 1.93 indicates that SQM should not have too much problems paying its short term obligations.
The Quick ratio of SQM (1.93) is better than 75.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.92 | ||
| Quick Ratio | 1.93 |
3. Growth
3.1 Past
SQM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1600.00%, which is quite impressive.
SQM shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -23.50%.
Measured over the past years, SQM shows a quite strong growth in Revenue. The Revenue has been growing by 18.43% on average per year.
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
The Earnings Per Share is expected to grow by 111.02% on average over the next years. This is a very strong growth
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 26.26, which means the current valuation is very expensive for SQM.
The rest of the industry has a similar Price/Earnings ratio as SQM.
SQM is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.53, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 11.69, the valuation of SQM can be described as very reasonable.
SQM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SQM is cheaper than 69.88% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.04, SQM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.26 | ||
| Fwd PE | 11.69 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| 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.
A more expensive valuation may be justified as SQM's earnings are expected to grow with 111.02% in the coming years.
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 3.69. SQM pays more dividend than 97.59% of the companies in the same industry.
SQM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| 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
SQM pays out 1.24% of its income as dividend. This is a sustainable payout ratio.
DP1.24%
EPS Next 2Y111.02%
EPS Next 3YN/A
NYSE:SQM (10/16/2025, 2:54:02 PM)
44.65
-1.27 (-2.77%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners0.88%
Inst Owner Change0.18%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap12.75B
Analysts40
Price TargetN/A
Short Float %79.41%
Short Ratio3.86
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)-1.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.26 | ||
| Fwd PE | 11.69 | ||
| P/S | 3.01 | ||
| P/FCF | N/A | ||
| P/OCF | 14.34 | ||
| P/B | 2.38 | ||
| P/tB | 2.49 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.7
EY3.81%
EPS(NY)3.82
Fwd EY8.55%
FCF(TTM)-0.26
FCFYN/A
OCF(TTM)3.11
OCFY6.97%
SpS14.81
BVpS18.74
TBVpS17.96
PEG (NY)0.1
PEG (5Y)N/A
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%
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 Turnover0.37
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 | 2.73 |
F-Score5
WACC9.54%
ROIC/WACC0.75
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%