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
Price History & Performance
|Historical stock prices|
|Current Share Price||US$55.97|
|52 Week High||US$71.50|
|52 Week Low||US$40.53|
|1 Month Change||13.88%|
|3 Month Change||6.79%|
|1 Year Change||-2.12%|
|3 Year Change||32.47%|
|5 Year Change||69.66%|
|Change since IPO||2,073.59%|
Recent News & Updates
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.
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...
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.
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...
|SQM||US Chemicals||US Market|
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.
|SQM Average Weekly Movement||8.1%|
|Chemicals Industry Average Movement||5.6%|
|Market Average Movement||6.6%|
|10% most volatile stocks in US Market||15.7%|
|10% least volatile stocks in US Market||2.4%|
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
|1968||5,889||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$1.61b|
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
Mar 03, 2022
|Earnings per share (EPS)||1.16|
|Net Profit Margin||14.44%|
How did SQM perform over the long term?See historical performance and comparison
1.0%Current Dividend Yield
Is Sociedad Química y Minera de Chile undervalued compared to its fair value and its price relative to the market?
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).
How is Sociedad Química y Minera de Chile forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
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%)
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 (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.
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).
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 (0.99%) 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).
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 seasoned and experienced (5.3 years average tenure).
Experienced Board: SQM's board of directors are considered experienced (3.8 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
- Implied Market Cap: US$15.987b
- 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||2022/01/20 23:56|
|End of Day Share Price||2022/01/20 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.