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SQM

Sociedad Química y Minera de ChileNYSE:SQM Stock Report

Last Price

US$55.97

Market Cap

US$16.0b

7D

0.8%

1Y

-2.1%

Updated

20 Jan, 2022

Data

Company Financials +
SQM fundamental analysis
Snowflake Score
Valuation2/6
Future Growth5/6
Past Performance4/6
Financial Health4/6
Dividends2/6

SQM Stock 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$15.4b

Intrepid Potash

NYSE:IPI

US$519.6m

Johnson & Johnson

NYSE:JNJ

US$435.0b

Procter & Gamble

NYSE:PG

US$388.3b

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$55.97
52 Week HighUS$71.50
52 Week LowUS$40.53
Beta0.78
1 Month Change13.88%
3 Month Change6.79%
1 Year Change-2.12%
3 Year Change32.47%
5 Year Change69.66%
Change since IPO2,073.59%

Recent News & Updates

Dec 23

SQM Has Cash In Hand, A New Project In Australia, And Is Undervalued

SQM produces lithium derivatives, specialty plants nutrition, and many other industrial chemicals. SQM signed an agreement to start production also in Australia. With the new project, most investors would be expecting more production and more revenue growth in the coming years. I chose the EV/EBITDA exit multiple. Peers are trading at 6x-24x EBITDA. Taking the valuation of peers into account, my exit multiple of 9x-13x EBITDA is quite conservative. With an asset/liability ratio close to 2x, $1.8 billion in cash, and $754 million in other financial assets, SQM has a significant amount of resources. I assumed cash of $2.61 billion and debt of $2.69 billion. With an exit multiple of 9x, the implied share price stands at $77.

Dec 21
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

Does the December share price for Sociedad Química y Minera de Chile S.A. ( NYSE:SQM ) reflect what it's really worth...

Nov 16

SQM's Earnings And Dividend Growth, Fueled By More Than Just Lithium

Increasing demand and prices for SQM's primary products - lithium, fertilizer and iodine - are fueling earnings growth. Sociedad Química y Minera de Chile S.A. is forecasting demand growth of more than 40% for lithium products, and is aggressively increasing production capacity. Agricultural fertilizer prices, including two of the company’s core offerings, potash and potassium nitrate, are reaching all-time highs. I'm very bullish on SQM, with a five-year price target of $132 for the stock.  We currently hold SQM in both our Dividend & Growth and Premier Growth portfolios.

Nov 02
At US$56.88, Is Sociedad Química y Minera de Chile S.A. (NYSE:SQM) Worth Looking At Closely?

At US$56.88, Is Sociedad Química y Minera de Chile S.A. (NYSE:SQM) Worth Looking At Closely?

Sociedad Química y Minera de Chile S.A. ( NYSE:SQM ) received a lot of attention from a substantial price increase on...

Shareholder Returns

SQMUS ChemicalsUS Market
7D0.8%-4.4%-4.0%
1Y-2.1%11.9%6.6%

Return vs Industry: SQM underperformed the US Chemicals industry which returned 12% over the past year.

Return vs Market: SQM underperformed the US Market which returned 7.7% over the past year.

Price Volatility

Is SQM's price volatile compared to industry and market?
SQM volatility
SQM Average Weekly Movement8.1%
Chemicals Industry Average Movement5.6%
Market Average Movement6.6%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.4%

Stable Share Price: SQM is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: SQM's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19685,889Ricardo 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$15.99b
Earnings (TTM)US$330.87m
Revenue (TTM)US$2.29b

48.3x

P/E Ratio

7.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SQM income statement (TTM)
RevenueUS$2.29b
Cost of RevenueUS$1.61b
Gross ProfitUS$679.85m
ExpensesUS$348.98m
EarningsUS$330.87m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Mar 03, 2022

Earnings per share (EPS)1.16
Gross Margin29.66%
Net Profit Margin14.44%
Debt/Equity Ratio79.2%

How did SQM perform over the long term?

See historical performance and comparison

Dividends

1.0%

Current Dividend Yield

48%

Payout Ratio

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SQM ($55.97) is trading below our estimate of fair value ($166.01)

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 (48.3x) compared to the US Chemicals industry average (21.1x).

PE vs Market: SQM is poor value based on its PE Ratio (48.3x) compared to the US market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: SQM is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: SQM is overvalued based on its PB Ratio (4.9x) compared to the US Chemicals industry average (2.5x).


Future Growth

How is Sociedad Química y Minera de Chile forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

21.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SQM's forecast earnings growth (21.5% per year) is above the savings rate (2%).

Earnings vs Market: SQM's earnings (21.5% per year) are forecast to grow faster than the US market (13.1% 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 (9.3% 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 (27.6%)


Past Performance

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

-9.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SQM has high quality earnings.

Growing Profit Margin: SQM's current net profit margins (14.4%) are higher than last year (9.3%).


Past Earnings Growth Analysis

Earnings Trend: SQM's earnings have declined by 9.9% per year over the past 5 years.

Accelerating Growth: SQM's earnings growth over the past year (101.2%) exceeds its 5-year average (-9.9% per year).

Earnings vs Industry: SQM earnings growth over the past year (101.2%) exceeded the Chemicals industry 17.5%.


Return on Equity

High ROE: SQM's Return on Equity (10.2%) 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 ($4.5B) exceed its short term liabilities ($622.7M).

Long Term Liabilities: SQM's short term assets ($4.5B) exceed its long term liabilities ($2.9B).


Debt to Equity History and Analysis

Debt Level: SQM's net debt to equity ratio (0.7%) is considered satisfactory.

Reducing Debt: SQM's debt to equity ratio has increased from 57.1% to 79.2% over the past 5 years.

Debt Coverage: SQM's debt is not well covered by operating cash flow (16%).

Interest Coverage: SQM's interest payments on its debt are well covered by EBIT (7.6x coverage).


Balance Sheet


Dividend

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

0.99%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SQM's dividend (0.99%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: SQM's dividend (0.99%) is low compared to the top 25% of dividend payers in the US market (3.49%).


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 reasonably low payout ratio (48.2%), SQM's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SQM's dividends in 3 years are forecast to be covered by earnings (60.6% payout ratio).


Next Steps

Management

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

5.3yrs

Average management tenure


CEO

Ricardo Ramos Rodríguez

3yrs

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 seasoned and experienced (5.3 years average tenure).


Board Members

Experienced Board: SQM's board of directors are considered experienced (3.8 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
  • Implied Market Cap: US$15.987b
  • 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 Analysis2022/01/20 23:56
End of Day Share Price2022/01/20 00:00
Earnings2021/09/30
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.