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Sociedad Química y Minera de Chile

Market Cap

US$14.1b

Last Updated

2021/04/12 22:19 UTC

Data Sources

Company Financials +

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 worldwide. 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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: SQM's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

-2.4%

SQM

0%

US Chemicals

0%

US Market


1 Year Return

132.7%

SQM

0%

US Chemicals

0%

US Market

Return vs Industry: SQM exceeded the US Chemicals industry which returned 55.6% over the past year.

Return vs Market: SQM exceeded the US Market which returned 56.3% over the past year.


Shareholder returns

SQMIndustryMarket
7 Day-2.4%0%0%
30 Day-7.9%0%0%
90 Day-12.6%0%0%
1 Year138.7%132.7%0%0%0%0%
3 Year8.7%0.09%0%0%0%0%
5 Year184.3%143.3%0%0%0%0%

Long-Term 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?

22.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SQM ($53.54) is trading below our estimate of fair value ($82.45)

Significantly Below Fair Value: SQM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SQM is poor value based on its PE Ratio (85.7x) compared to the US Chemicals industry average (28.5x).

PE vs Market: SQM is poor value based on its PE Ratio (85.7x) compared to the US market (22.3x).


Price to Earnings Growth Ratio

PEG Ratio: SQM is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: SQM is overvalued based on its PB Ratio (6.6x) compared to the US Chemicals industry average (2.7x).


Future Growth

How is Sociedad Química y Minera de Chile forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

28.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SQM's forecast earnings growth (28.6% per year) is above the savings rate (2%).

Earnings vs Market: SQM's earnings (28.6% per year) are forecast to grow faster than the US market (18.6% per year).

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

Revenue vs Market: SQM's revenue (15.1% per year) is forecast to grow faster than the US market (9.9% per year).

High Growth Revenue: SQM's revenue (15.1% 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 (21.3%)


Past Performance

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

-1.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SQM has a large one-off loss of $63.8M impacting its December 31 2020 financial results.

Growing Profit Margin: SQM's current net profit margins (9.1%) are lower than last year (14.3%).


Past Earnings Growth Analysis

Earnings Trend: SQM's earnings have declined by 1.4% 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 (-40.8%) over the past year, making it difficult to compare to the Chemicals industry average (3.3%).


Return on Equity

High ROE: SQM's Return on Equity (7.8%) is considered low.


Financial Health

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


Financial Position Analysis

Short Term Liabilities: SQM's short term assets ($2.6B) exceed its short term liabilities ($475.9M).

Long Term Liabilities: SQM's short term assets ($2.6B) exceed its long term liabilities ($2.2B).


Debt to Equity History and Analysis

Debt Level: SQM's debt to equity ratio (91%) is considered high.

Reducing Debt: SQM's debt to equity ratio has increased from 70.5% to 91% over the past 5 years.

Debt Coverage: SQM's debt is not well covered by operating cash flow (9.3%).

Interest Coverage: SQM's interest payments on its debt are well covered by EBIT (5.1x coverage).


Balance Sheet


Dividend

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

0.36%

Current Dividend Yield


Upcoming Dividend Payment

TodayApr 13 2021Ex Dividend DateApr 29 2021Dividend Pay DateJan 01 197018746 days from Ex DividendBuy in the next 15 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: SQM's dividend (0.35%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.26%).

High Dividend: SQM's dividend (0.35%) is low compared to the top 25% of dividend payers in the US market (3.5%).


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.


Next Steps

Management

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

3.4yrs

Average management tenure


CEO

Ricardo Ramos Rodríguez

2.25yrs

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

Experienced Management: SQM's management team is considered experienced (3.4 years average tenure).


Board Members

Experienced Board: SQM's board of directors are considered experienced (3 years average tenure).


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$14.092b
  • Shares outstanding: 263.20m
  • Website: https://www.sqm.com

Number of Employees


Location

  • Sociedad Química y Minera de Chile S.A.
  • El Trovador No. 4285
  • 6th Floor
  • Santiago
  • Region Metropolitana (Santiago)
  • Chile

Listings


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 Analysis2021/04/12 22:19
End of Day Share Price2021/04/12 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.