Sociedad Química y Minera de Chile S.A. produces and distributes specialty plant nutrients, iodine and its derivatives, lithium and its derivatives, potassium chloride and sulfate, industrial chemicals, and other products and services worldwide.
Sociedad Química y Minera de Chile Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$56.26|
|52 Week High||US$28.47|
|52 Week Low||US$60.74|
|1 Month Change||14.89%|
|3 Month Change||32.44%|
|1 Year Change||63.69%|
|3 Year Change||16.24%|
|5 Year Change||120.54%|
|Change since IPO||2,084.85%|
Recent News & Updates
SQM Is Forecast To More Than Quadruple Net Income From 2020 Level To End 2023 With Huge Lithium Expansion Plans
SQM has 3 main divisions - Specialty plant nutrients (fertilizers) (33%), Iodine and derivatives (31%) and Lithium & derivatives (21%) by gross profit. SQM plans to increase LCE capacity from ~83,500tpa in 2020 to 260,000 tpa by end 2024, a 3.1x increase. If successful, SQM's lithium division should become the biggest by far. Valuation looks to be about fair given the forecast rapid growth ahead in revenues and profits, but this assumes a successful lithium expansion.
At US$47.41, Is Sociedad Química y Minera de Chile S.A. (NYSE:SQM) Worth Looking At Closely?
Let's talk about the popular Sociedad Química y Minera de Chile S.A. ( NYSE:SQM ). The company's shares saw a decent...
Sociedad Química y Minera de Chile S.A.'s (NYSE:SQM) Intrinsic Value Is Potentially 24% Below Its Share Price
Today we will run through one way of estimating the intrinsic value of Sociedad Química y Minera de Chile S.A...
SQM: Political Uncertainty Creates A Buying Opportunity
The price of lithium is forecast to more than double by 2025 as the market's supply-demand balance tightens and capacity utilisation increases. Sociedad Química y Minera is the world's second largest lithium producer and plans to increase its capacity 3.7x by 2025 - faster than any other miner. SQM is one of the lowest cost producers of lithium in the world with cash costs of $4,200/t - 60% below the marginal producer’s cost of c. $11,000/t. Due to political risk concerning Chile's new constitution, SQM's shares are currently undervalued - trading 53% below intrinsic value and 70% below comps on a Fwd P/E basis. This is an attractive buying opportunity for long-term investors looking for exposure to lithium.
Here's Why Sociedad Química y Minera de Chile (NYSE:SQM) Has A Meaningful Debt Burden
Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...
|SQM||US Chemicals||US Market|
Return vs Industry: SQM exceeded the US Chemicals industry which returned 23% over the past year.
Return vs Market: SQM exceeded the US Market which returned 33.7% over the past year.
Stable Share Price: SQM is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: SQM's weekly volatility (6%) has been stable over the past year.
About the Company
|1968||5,647||Ricardo Ramos Rodríguez||https://www.sqm.com|
Sociedad Química y Minera de Chile S.A. produces and distributes specialty plant nutrients, iodine and its derivatives, lithium and its derivatives, potassium chloride and sulfate, industrial chemicals, and other products and services worldwide. The company offers specialty plant nutrients, including potassium nitrate, sodium nitrate, sodium potassium nitrate, specialty blends, and other specialty fertilizers for crops, such as vegetables, fruits, and industrial crops. It also provides iodine and its derivatives for use in medical, pharmaceutical, agricultural, and industrial applications comprising x-ray contrast media, polarizing films for LCD and LED, antiseptics, biocides and disinfectants, pharmaceutical synthesis, electronics, pigments, and dye components.
Sociedad Química y Minera de Chile Fundamentals Summary
|SQM fundamental statistics|
Is SQM overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|SQM income statement (TTM)|
|Cost of Revenue||US$1.51b|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
Nov 17, 2021
|Earnings per share (EPS)||0.83|
|Net Profit Margin||10.87%|
How did SQM perform over the long term?See historical performance and comparison
0.5%Current Dividend Yield
Is Sociedad Química y Minera de Chile undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: SQM ($56.26) is trading above our estimate of fair value ($39.27)
Significantly Below Fair Value: SQM is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: SQM is poor value based on its PE Ratio (71x) compared to the US Chemicals industry average (22.8x).
PE vs Market: SQM is poor value based on its PE Ratio (71x) compared to the US market (17.8x).
Price to Earnings Growth Ratio
PEG Ratio: SQM is poor value based on its PEG Ratio (2.5x)
Price to Book Ratio
PB vs Industry: SQM is overvalued based on its PB Ratio (5x) compared to the US Chemicals industry average (2.7x).
How is Sociedad Química y Minera de Chile forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SQM's forecast earnings growth (28.3% per year) is above the savings rate (2%).
Earnings vs Market: SQM's earnings (28.3% per year) are forecast to grow faster than the US market (14.9% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: SQM's revenue (16.5% per year) is forecast to grow faster than the US market (9.7% per year).
High Growth Revenue: SQM's revenue (16.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: SQM's Return on Equity is forecast to be high in 3 years time (24.5%)
How has Sociedad Química y Minera de Chile performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SQM has high quality earnings.
Growing Profit Margin: SQM's current net profit margins (10.9%) are lower than last year (12.4%).
Past Earnings Growth Analysis
Earnings Trend: SQM's earnings have declined by 8.5% per year over the past 5 years.
Accelerating Growth: SQM's earnings growth over the past year (1.5%) exceeds its 5-year average (-8.5% per year).
Earnings vs Industry: SQM earnings growth over the past year (1.5%) underperformed the Chemicals industry 38.9%.
Return on Equity
High ROE: SQM's Return on Equity (7.2%) is considered low.
How is Sociedad Química y Minera de Chile's financial position?
Financial Position Analysis
Short Term Liabilities: SQM's short term assets ($3.8B) exceed its short term liabilities ($581.3M).
Long Term Liabilities: SQM's short term assets ($3.8B) exceed its long term liabilities ($2.2B).
Debt to Equity History and Analysis
Debt Level: SQM's debt to equity ratio (59.9%) is considered high.
Reducing Debt: SQM's debt to equity ratio has increased from 57.7% to 59.9% over the past 5 years.
Debt Coverage: SQM's debt is not well covered by operating cash flow (14.8%).
Interest Coverage: SQM's interest payments on its debt are well covered by EBIT (6.2x coverage).
What is Sociedad Química y Minera de Chile current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SQM's dividend (0.45%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.34%).
High Dividend: SQM's dividend (0.45%) is low compared to the top 25% of dividend payers in the US market (3.58%).
Stability and Growth of Payments
Stable Dividend: SQM is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: SQM is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: SQM is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of SQM's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Ricardo Ramos Rodríguez
Mr. Ricardo Ramos Rodríguez has been Chief Executive Officer of Sociedad Quimica y Minera de Chile S.A. since January 8, 2019. Mr. Rodríguez served as Deputy Chief Executive Officer of Sociedad Química y M...
Experienced Management: SQM's management team is considered experienced (3.8 years average tenure).
Experienced Board: SQM's board of directors are considered experienced (3.4 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8.5%.
Sociedad Química y Minera de Chile S.A.'s employee growth, exchange listings and data sources
- Name: Sociedad Química y Minera de Chile S.A.
- Ticker: SQM
- Exchange: NYSE
- Founded: 1968
- Industry: Fertilizers and Agricultural Chemicals
- Sector: Materials
- Market Cap: US$16.070b
- Shares outstanding: 285.64m
- Website: https://www.sqm.com
Number of Employees
- Sociedad Química y Minera de Chile S.A.
- El Trovador No. 4285
- 6th Floor
- Santiago de Chile
- Region Metropolitana (Santiago)
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/16 22:50|
|End of Day Share Price||2021/09/16 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.