NYSE:SQM

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Sociedad Química y Minera de Chile

Executive Summary

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. More Details


Snowflake Analysis

High growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Sociedad Química y Minera de Chile's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SQM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

7.7%

SQM

-0.3%

US Chemicals

-0.4%

US Market


1 Year Return

36.5%

SQM

9.2%

US Chemicals

18.3%

US Market

Return vs Industry: SQM exceeded the US Chemicals industry which returned 9.2% over the past year.

Return vs Market: SQM exceeded the US Market which returned 18.3% over the past year.


Shareholder returns

SQMIndustryMarket
7 Day7.7%-0.3%-0.4%
30 Day23.8%6.0%6.6%
90 Day20.4%5.5%8.6%
1 Year40.0%36.5%11.8%9.2%21.0%18.3%
3 Year-32.2%-37.6%15.4%-6.3%42.1%32.7%
5 Year126.6%92.4%62.9%25.1%85.6%64.7%

Price Volatility Vs. Market

How volatile is Sociedad Química y Minera de Chile's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sociedad Química y Minera de Chile undervalued compared to its fair value and its price relative to the market?

43.96x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SQM ($37.28) is trading above our estimate of fair value ($30.73)

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 (44x) compared to the US Chemicals industry average (27.1x).

PE vs Market: SQM is poor value based on its PE Ratio (44x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: SQM is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: SQM is overvalued based on its PB Ratio (4.7x) compared to the US Chemicals industry average (2x).


Next Steps

Future Growth

How is Sociedad Química y Minera de Chile forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

28.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SQM's forecast earnings growth (28.4% per year) is above the savings rate (2.2%).

Earnings vs Market: SQM's earnings (28.4% per year) are forecast to grow faster than the US market (22.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SQM's revenue (14.3% per year) is forecast to grow faster than the US market (9.9% per year).

High Growth Revenue: SQM's revenue (14.3% 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 (22.2%)


Next Steps

Past Performance

How has Sociedad Química y Minera de Chile performed over the past 5 years?

7.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SQM has high quality earnings.

Growing Profit Margin: SQM's current net profit margins (12.4%) are lower than last year (16.3%).


Past Earnings Growth Analysis

Earnings Trend: SQM's earnings have grown by 7.3% per year over the past 5 years.

Accelerating Growth: SQM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SQM had negative earnings growth (-34.8%) over the past year, making it difficult to compare to the Chemicals industry average (-18.6%).


Return on Equity

High ROE: SQM's Return on Equity (10.7%) is considered low.


Next Steps

Financial Health

How is Sociedad Química y Minera de Chile's financial position?


Financial Position Analysis

Short Term Liabilities: SQM's short term assets ($2.7B) exceed its short term liabilities ($635.4M).

Long Term Liabilities: SQM's short term assets ($2.7B) exceed its long term liabilities ($2.0B).


Debt to Equity History and Analysis

Debt Level: SQM's debt to equity ratio (91.1%) is considered high.

Reducing Debt: SQM's debt to equity ratio has increased from 74.5% to 91.1% over the past 5 years.

Debt Coverage: SQM's debt is not well covered by operating cash flow (17.8%).

Interest Coverage: SQM's interest payments on its debt are well covered by EBIT (7x coverage).


Balance Sheet


Next Steps

Dividend

What is Sociedad Química y Minera de Chile current dividend yield, its reliability and sustainability?

0.92%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SQM's dividend (0.92%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.63%).

High Dividend: SQM's dividend (0.92%) is low compared to the top 25% of dividend payers in the US market (4.56%).


Stability and Growth of Payments

Stable Dividend: SQM's dividend payments have been volatile in the past 10 years.

Growing Dividend: SQM's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (57.1%), SQM's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SQM's dividends in 3 years are forecast to be covered by earnings (64.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.9yrs

Average management tenure


CEO

Ricardo Ramos Rodríguez

1.75yrs

Tenure

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 ...


Leadership Team

NamePositionTenureCompensationOwnership
Ricardo Ramos Rodríguez
Chief Executive Officer1.75yrsno datano data
Gerardo Illanes
CFO & VP of Corporate Financeno datano datano data
Kelly O'Brien
Head of Investor Relationsno datano datano data
Gonzalo T. Aguirre
General Counsel4.08yrsno datano data
Francisco Sanchez
Risk Management & Compliance Officer1.5yrsno datano data
Natalia Pizarro
Senior Vice-President of People & Performance1.5yrsno datano data
Carlos Diaz
Senior Vice President of Operations Potassium Lithium8yrsno datano data
Pablo Altimiras
Senior Vice President Businessno datano datano data
José Miguel Berguño
Senior Vice President Nitrate Iodine Operationsno datano datano data
Frank Biot
Senior Vice President of Nitrate & Potassium Businessno datano datano data
Daniel Sch. Jiménez
Vice President of Sales Iodine18.75yrsno datano data
Felipe Smith
Commercial Manager of Iodine Lithium & Industrial Chemicalsno datano datano data

2.9yrs

Average Tenure

Experienced Management: SQM's management team is considered experienced (2.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hernán Büchi Buc
Independent Director27.5yrsUS$444.65mno data
Gonzalo Guerrero Yamamoto
Independent Director4.5yrsUS$389.70mno data
Patricio Contesse Fica
Vice Chairman2.5yrsUS$586.63mno data
Laurence Riveros
Independent Director2.5yrsUS$457.35mno data
Alberto Salas Muñoz
Independent Chairman2.5yrsUS$680.99mno data
Georges de Bourguignon Arndt
Independent Director1.5yrsUS$179.41mno data
Francisco Ugarte Larraín
Director1.5yrsUS$156.98mno data
Robert Zatta
Director1.5yrsUS$137.16mno data

2.5yrs

Average Tenure

Experienced Board: SQM's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Ownership

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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Sociedad Química y Minera de Chile S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • 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$9.812b
  • Shares outstanding: 263.20m
  • Website: https://www.sqm.com

Number of Employees


Location

  • Sociedad Química y Minera de Chile S.A.
  • El Trovador 4285
  • 6th Floor
  • Santiago
  • Region Metropolitana (Santiago)
  • Chile

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SQM-ASNSE (Santiago Stock Exchange)Series A Preferred SharesCLCLPOct 1992
SQMNYSE (New York Stock Exchange)YesADR-EACH REPR 1 SER'B'NPVUSUSDSep 1993
QYMDB (Deutsche Boerse AG)YesADR-EACH REPR 1 SER'B'NPVDEEURSep 1993
0TDGLSE (London Stock Exchange)YesADR-EACH REPR 1 SER'B'NPVGBUSDSep 1993
SQM-BSNSE (Santiago Stock Exchange)Series B Preferred SharesCLCLPJun 1994

Biography

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, an ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/25 00:40
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.