QUIMICA Y MINERA CHIL-SP ADR (SQM)

US8336351056 - ADR

51.43  +1.71 (+3.44%)

After market: 51.2 -0.23 (-0.45%)

Fundamental Rating

7

SQM gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 86 industry peers in the Electrical Equipment industry. SQM gets an excellent profitability rating and is at the same time showing great financial health properties. SQM is valued quite cheap, while showing a decent growth score. This is a good combination! Finally SQM also has an excellent dividend rating. These ratings could make SQM a good candidate for value and dividend and quality investing.



9

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

With an excellent Return On Assets value of 34.56%, SQM belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
SQM's Return On Equity of 71.10% is amongst the best of the industry. SQM outperforms 100.00% of its industry peers.
The Return On Invested Capital of SQM (46.56%) is better than 100.00% of its industry peers.
SQM had an Average Return On Invested Capital over the past 3 years of 22.85%. This is significantly above the industry average of 11.50%.
The 3 year average ROIC (22.85%) for SQM is below the current ROIC(46.56%), indicating increased profibility in the last year.
Industry RankSector 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

SQM's Profit Margin of 35.24% is amongst the best of the industry. SQM outperforms 98.82% of its industry peers.
In the last couple of years the Profit Margin of SQM has grown nicely.
With an excellent Operating Margin value of 49.99%, SQM belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of SQM has grown nicely.
The Gross Margin of SQM (51.46%) is better than 97.65% of its industry peers.
SQM's Gross Margin has improved in the last couple of years.
Industry RankSector 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%

7

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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

2.2 Solvency

SQM has an Altman-Z score of 5.07. This indicates that SQM is financially healthy and has little risk of bankruptcy at the moment.
SQM's Altman-Z score of 5.07 is fine compared to the rest of the industry. SQM outperforms 80.00% of its industry peers.
SQM has a debt to FCF ratio of 2.06. This is a good value and a sign of high solvency as SQM would need 2.06 years to pay back of all of its debts.
SQM has a Debt to FCF ratio of 2.06. This is amongst the best in the industry. SQM outperforms 89.41% of its industry peers.
A Debt/Equity ratio of 0.45 indicates that SQM is not too dependend on debt financing.
SQM's Debt to Equity ratio of 0.45 is on the low side compared to the rest of the industry. SQM is outperformed by 60.00% of its industry peers.
Although SQM does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
Industry RankSector Rank
Debt/Equity 0.45
Debt/FCF 2.06
Altman-Z 5.07
ROIC/WACC4.1
WACC11.35%

2.3 Liquidity

SQM has a Current Ratio of 2.48. This indicates that SQM is financially healthy and has no problem in meeting its short term obligations.
SQM has a better Current ratio (2.48) than 64.71% of its industry peers.
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 Quick ratio of 1.81. This is in the better half of the industry: SQM outperforms 67.06% of its industry peers.
Industry RankSector Rank
Current Ratio 2.48
Quick Ratio 1.81

5

3. Growth

3.1 Past

SQM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 193.91%, which is quite impressive.
Measured over the past years, SQM shows a very strong growth in Earnings Per Share. The EPS has been growing by 52.96% on average per year.
Looking at the last year, SQM shows a very strong growth in Revenue. The Revenue has grown by 151.62%.
SQM shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 37.78% yearly.
EPS 1Y (TTM)193.91%
EPS 3Y134.39%
EPS 5Y52.96%
EPS growth Q2Q-5.75%
Revenue 1Y (TTM)151.62%
Revenue growth 3Y76.62%
Revenue growth 5Y37.78%
Revenue growth Q2Q12.09%

3.2 Future

The Earnings Per Share is expected to decrease by -11.54% on average over the next years. This is quite bad
SQM is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -90.71% yearly.
EPS Next Y-19.19%
EPS Next 2Y-15.66%
EPS Next 3Y-11.54%
EPS Next 5YN/A
Revenue Next Year-99.91%
Revenue Next 2Y-97.29%
Revenue Next 3Y-90.71%
Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

7

4. Valuation

4.1 Price/Earnings Ratio

SQM is valuated cheaply with a Price/Earnings ratio of 3.80.
Based on the Price/Earnings ratio, SQM is valued cheaply inside the industry as 98.82% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.31. SQM is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 5.30 indicates a rather cheap valuation of SQM.
98.82% of the companies in the same industry are more expensive than SQM, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.87, SQM is valued rather cheaply.
Industry RankSector Rank
PE 3.8
Fwd PE 5.3

4.2 Price Multiples

Based on the Price/Free Cash Flow ratio, SQM is valued cheaply inside the industry as 95.29% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 10.19
EV/EBITDA N/A

4.3 Compensation for Growth

The excellent profitability rating of SQM may justify a higher PE ratio.
SQM's earnings are expected to decrease with -11.54% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.07
EPS Next 2Y-15.66%
EPS Next 3Y-11.54%

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5. Dividend

5.1 Amount

SQM has a Yearly Dividend Yield of 10.90%, which is a nice return.
SQM's Dividend Yield is rather good when compared to the industry average which is at 2.32. SQM pays more dividend than 100.00% of the companies in the same industry.
SQM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
Industry RankSector 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

57.99% of the earnings are spent on dividend by SQM. 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-15.66%
EPS Next 3Y-11.54%

QUIMICA Y MINERA CHIL-SP ADR

NYSE:SQM (3/1/2024, 7:04:01 PM)

After market: 51.2 -0.23 (-0.45%)

51.43

+1.71 (+3.44%)

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 Cap14.69B
Analysts
Price Target
Dividend
Industry RankSector 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)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 RankSector Rank
PE 3.8
Fwd PE 5.3
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)0.07
Profitability
Industry RankSector 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 RankSector 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)
Growth
EPS 1Y (TTM)193.91%
EPS 3Y134.39%
EPS 5Y
EPS growth Q2Q
EPS Next Y-19.19%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)151.62%
Revenue growth 3Y76.62%
Revenue growth 5Y
Revenue growth 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