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SQM

Sociedad Química y Minera de ChileNYSE:SQM Stock Report

Market Cap

US$15.4b

7D

-1.8%

1Y

50.4%

Updated

27 Oct, 2021

Data

Company Financials +
SQM fundamental analysis
Snowflake Score
Valuation0/6
Future Growth5/6
Past Performance2/6
Financial Health3/6
Dividends0/6

SQM Overview

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

Mosaic

NYSE:MOS

US$15.9b

Intrepid Potash

NYSE:IPI

US$648.0m

Johnson & Johnson

NYSE:JNJ

US$436.3b

Procter & Gamble

NYSE:PG

US$345.7b

Price History & Performance

Summary of all time highs, changes and price drops for Sociedad Química y Minera de Chile
Historical stock prices
Current Share PriceUS$53.78
52 Week HighUS$35.43
52 Week LowUS$60.74
Beta0.85
1 Month Change0.28%
3 Month Change9.80%
1 Year Change50.43%
3 Year Change22.76%
5 Year Change85.19%
Change since IPO1,988.54%

Recent News & Updates

Oct 18
Is Sociedad Química y Minera de Chile (NYSE:SQM) Using Too Much Debt?

Is Sociedad Química y Minera de Chile (NYSE:SQM) Using Too Much Debt?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Sep 17
Sociedad Química y Minera de Chile (NYSE:SQM) Could Be Struggling To Allocate Capital

Sociedad Química y Minera de Chile (NYSE:SQM) Could Be Struggling To Allocate Capital

There are a few key trends to look for if we want to identify the next multi-bagger. Ideally, a business will show two...

Sep 16

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.

Aug 03
At US$47.41, Is Sociedad Química y Minera de Chile S.A. (NYSE:SQM) Worth Looking At Closely?

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...

Jul 19
Sociedad Química y Minera de Chile S.A.'s (NYSE:SQM) Intrinsic Value Is Potentially 24% Below Its Share Price

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...

Shareholder Returns

SQMUS ChemicalsUS Market
7D-1.8%1.7%0.9%
1Y50.4%35.8%33.4%

Return vs Industry: SQM exceeded the US Chemicals industry which returned 35.8% over the past year.

Return vs Market: SQM exceeded the US Market which returned 33.4% over the past year.

Price Volatility

Is SQM's price volatile compared to industry and market?
SQM volatility
SQM Beta0.85
Industry Beta1.14
Market Beta1

Stable Share Price: SQM is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: SQM's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19685,647Ricardo Ramos Rodríguezhttps://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

How do Sociedad Química y Minera de Chile's earnings and revenue compare to its market cap?
SQM fundamental statistics
Market CapUS$15.36b
Earnings (TTM)US$226.47m
Revenue (TTM)US$2.08b

67.8x

P/E Ratio

7.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SQM income statement (TTM)
RevenueUS$2.08b
Cost of RevenueUS$1.51b
Gross ProfitUS$569.83m
ExpensesUS$343.36m
EarningsUS$226.47m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Nov 17, 2021

Earnings per share (EPS)0.79
Gross Margin27.35%
Net Profit Margin10.87%
Debt/Equity Ratio59.9%

How did SQM perform over the long term?

See historical performance and comparison

Dividends

0.5%

Current Dividend Yield

31%

Payout Ratio

Valuation

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

67.83x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SQM ($53.78) is trading above our estimate of fair value ($27.44)

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 (67.8x) compared to the US Chemicals industry average (24.3x).

PE vs Market: SQM is poor value based on its PE Ratio (67.8x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: SQM is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: SQM is overvalued based on its PB Ratio (4.8x) compared to the US Chemicals industry average (2.9x).


Future Growth

How is Sociedad Química y Minera de Chile forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

25.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SQM's forecast earnings growth (25.6% per year) is above the savings rate (2%).

Earnings vs Market: SQM's earnings (25.6% per year) are forecast to grow faster than the US market (14.7% per year).

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

Revenue vs Market: SQM's revenue (14.7% per year) is forecast to grow faster than the US market (9.9% per year).

High Growth Revenue: SQM's revenue (14.7% 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 (25.6%)


Past Performance

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

-8.5%

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 27.8%.


Return on Equity

High ROE: SQM's Return on Equity (7.2%) 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 ($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).


Balance Sheet


Dividend

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

0.47%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SQM's dividend (0.47%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.28%).

High Dividend: SQM's dividend (0.47%) is low compared to the top 25% of dividend payers in the US market (3.48%).


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?

3.9yrs

Average management tenure


CEO

Ricardo Ramos Rodríguez

2.75yrs

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

Experienced Management: SQM's management team is considered experienced (3.9 years average tenure).


Board Members

Experienced Board: SQM's board of directors are considered experienced (3.5 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 been diluted in the past year, with total shares outstanding growing by 8.5%.


Top Shareholders

Company Information

Sociedad Química y Minera de Chile S.A.'s 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$15.362b
  • Shares outstanding: 285.64m
  • Website: https://www.sqm.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/27 22:59
End of Day Share Price2021/10/27 00:00
Earnings2021/06/30
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.