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Sociedad Química y Minera de Chile

NYSE:SQM
Snowflake Description

High growth potential with excellent balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SQM
NYSE
$8B
Market Cap
  1. Home
  2. US
  3. Materials
Company description

Sociedad Química y Minera de Chile S.A. produces and distributes specialty plant nutrients, iodine and its derivatives, lithium and its derivatives, industrial chemicals, potassium, and other products and services. The last earnings update was 26 days ago. More info.


Add to Portfolio Compare Print
  • Sociedad Química y Minera de Chile has significant price volatility in the past 3 months.
SQM Share Price and Events
7 Day Returns
-4.9%
NYSE:SQM
-0.3%
US Chemicals
0.1%
US Market
1 Year Returns
-34.7%
NYSE:SQM
-11.8%
US Chemicals
1.2%
US Market
SQM Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Sociedad Química y Minera de Chile (SQM) -4.9% -4.7% -19.5% -34.7% 30.3% 4.2%
US Chemicals -0.3% 0.9% -7.2% -11.8% 16.6% 5.7%
US Market 0.1% 0.6% 0.9% 1.2% 36.7% 37.9%
1 Year Return vs Industry and Market
  • SQM underperformed the Chemicals industry which returned -11.8% over the past year.
  • SQM underperformed the Market in United States of America which returned 1.2% over the past year.
Price Volatility
SQM
Industry
5yr Volatility vs Market

Value

 Is Sociedad Química y Minera de Chile undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Sociedad Química y Minera de Chile to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Sociedad Química y Minera de Chile.

NYSE:SQM Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 14 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.6%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:SQM
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Chemicals Unlevered Beta Simply Wall St/ S&P Global 0.87
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.874 (1 + (1- 26%) (16.86%))
0.988
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.99
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.988 * 5.96%)
8.62%

Discounted Cash Flow Calculation for NYSE:SQM using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Sociedad Química y Minera de Chile is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:SQM DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.62%)
2019 258.80 Analyst x5 238.26
2020 367.71 Analyst x7 311.66
2021 430.75 Analyst x4 336.12
2022 628.33 Analyst x3 451.38
2023 1,099.50 Analyst x2 727.17
2024 1,400.31 Est @ 27.36% 852.62
2025 1,679.95 Est @ 19.97% 941.70
2026 1,928.55 Est @ 14.8% 995.26
2027 2,144.11 Est @ 11.18% 1,018.69
2028 2,329.43 Est @ 8.64% 1,018.90
Present value of next 10 years cash flows $6,891.77
NYSE:SQM DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $2,329.43 × (1 + 2.73%) ÷ (8.62% – 2.73%)
$40,625.37
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $40,625.37 ÷ (1 + 8.62%)10
$17,769.71
NYSE:SQM Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $6,891.77 + $17,769.71
$24,661.47
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $24,661.47 / 263.20
$93.7
NYSE:SQM Discount to Share Price
Calculation Result
Value per share (USD) From above. $93.70
Current discount Discount to share price of $31.37
= -1 x ($31.37 - $93.70) / $93.70
66.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Sociedad Química y Minera de Chile is available for.
Intrinsic value
>50%
Share price is $31.37 vs Future cash flow value of $93.7
Current Discount Checks
For Sociedad Química y Minera de Chile to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Sociedad Química y Minera de Chile's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Sociedad Química y Minera de Chile's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Sociedad Química y Minera de Chile's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Sociedad Química y Minera de Chile's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:SQM PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $1.54
NYSE:SQM Share Price ** NYSE (2019-06-18) in USD $31.37
United States of America Chemicals Industry PE Ratio Median Figure of 68 Publicly-Listed Chemicals Companies 17.68x
United States of America Market PE Ratio Median Figure of 3,092 Publicly-Listed Companies 17.63x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Sociedad Química y Minera de Chile.

NYSE:SQM PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:SQM Share Price ÷ EPS (both in USD)

= 31.37 ÷ 1.54

20.31x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sociedad Química y Minera de Chile is overvalued based on earnings compared to the US Chemicals industry average.
  • Sociedad Química y Minera de Chile is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Sociedad Química y Minera de Chile's expected growth come at a high price?
Raw Data
NYSE:SQM PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 20.31x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts
21.6%per year
United States of America Chemicals Industry PEG Ratio Median Figure of 49 Publicly-Listed Chemicals Companies 1.25x
United States of America Market PEG Ratio Median Figure of 2,126 Publicly-Listed Companies 1.53x

*Line of best fit is calculated by linear regression .

NYSE:SQM PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 20.31x ÷ 21.6%

0.94x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sociedad Química y Minera de Chile is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Sociedad Química y Minera de Chile's assets?
Raw Data
NYSE:SQM PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $7.93
NYSE:SQM Share Price * NYSE (2019-06-18) in USD $31.37
United States of America Chemicals Industry PB Ratio Median Figure of 94 Publicly-Listed Chemicals Companies 2.05x
United States of America Market PB Ratio Median Figure of 5,244 Publicly-Listed Companies 1.79x
NYSE:SQM PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:SQM Share Price ÷ Book Value per Share (both in USD)

= 31.37 ÷ 7.93

3.95x

* Primary Listing of Sociedad Química y Minera de Chile.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sociedad Química y Minera de Chile is overvalued based on assets compared to the US Chemicals industry average.
X
Value checks
We assess Sociedad Química y Minera de Chile's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Chemicals industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Chemicals industry average (and greater than 0)? (1 check)
  5. Sociedad Química y Minera de Chile has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
21.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Sociedad Química y Minera de Chile expected to grow at an attractive rate?
  • Sociedad Química y Minera de Chile's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Sociedad Química y Minera de Chile's earnings growth is expected to exceed the United States of America market average.
  • Sociedad Química y Minera de Chile's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:SQM Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:SQM Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts 21.6%
NYSE:SQM Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 14 Analysts 15%
United States of America Chemicals Industry Earnings Growth Rate Market Cap Weighted Average 11.5%
United States of America Chemicals Industry Revenue Growth Rate Market Cap Weighted Average 4.7%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:SQM Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:SQM Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 4,412 1,425 1,166 2
2022-12-31 3,516 822 1,039 3
2021-12-31 2,744 768 564 10
2020-12-31 2,606 697 558 14
2019-12-31 2,142 630 377 9
NYSE:SQM Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 2,251 460 407
2018-12-31 2,266 525 440
2018-09-30 2,275 617 442
2018-06-30 2,291 681 471
2018-03-31 2,157 728 438
2017-12-31 2,157 704 428
2017-09-30 2,136 693 398
2017-06-30 2,082 674 341
2017-03-31 2,066 650 323
2016-12-31 1,939 634 278
2016-09-30 1,797 483 249
2016-06-30 1,738 394 207

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Sociedad Química y Minera de Chile's earnings are expected to grow significantly at over 20% yearly.
  • Sociedad Química y Minera de Chile's revenue is expected to grow by 15% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:SQM Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below

All data from Sociedad Química y Minera de Chile Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:SQM Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 1.94 2.66 1.41 6.00
2020-12-31 1.98 3.20 1.28 11.00
2019-12-31 1.40 1.73 1.19 8.00
NYSE:SQM Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 1.54
2018-12-31 1.67
2018-09-30 1.68
2018-06-30 1.79
2018-03-31 1.67
2017-12-31 1.63
2017-09-30 1.51
2017-06-30 1.30
2017-03-31 1.23
2016-12-31 1.06
2016-09-30 0.95
2016-06-30 0.79

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Sociedad Química y Minera de Chile is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Sociedad Química y Minera de Chile's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Sociedad Química y Minera de Chile has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Sociedad Química y Minera de Chile's growth in the last year to its industry (Chemicals).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Sociedad Química y Minera de Chile's year on year earnings growth rate has been positive over the past 5 years.
  • Sociedad Química y Minera de Chile's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Sociedad Química y Minera de Chile's 1-year earnings growth is negative, it can't be compared to the US Chemicals industry average.
Earnings and Revenue History
Sociedad Química y Minera de Chile's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Sociedad Química y Minera de Chile Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:SQM Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 2,251.32 406.54 119.45
2018-12-31 2,265.80 439.83 118.13
2018-09-30 2,275.35 441.65 112.13
2018-06-30 2,290.88 471.01 111.35
2018-03-31 2,157.46 438.29 104.15
2017-12-31 2,157.32 427.70 101.17
2017-09-30 2,136.36 398.11 98.40
2017-06-30 2,081.73 341.06 94.18
2017-03-31 2,066.07 323.00 92.72
2016-12-31 1,939.32 278.29 88.44
2016-09-30 1,796.85 249.21 85.03
2016-06-30 1,738.02 207.07 82.07
2016-03-31 1,732.66 207.20 83.04
2015-12-31 1,728.33 220.36 86.83
2015-09-30 1,808.40 187.05 92.58
2015-06-30 1,829.61 239.73 96.24
2015-03-31 1,867.66 227.57 96.36
2014-12-31 2,014.21 236.89 95.70
2014-09-30 2,015.01 287.39 96.96
2014-06-30 2,069.66 359.95 99.35
2014-03-31 2,113.82 396.31 103.22
2013-12-31 2,203.14 467.11 105.19
2013-09-30 2,311.88 539.89 108.18
2013-06-30 2,406.06 566.16 108.83
2013-03-31 2,522.93 650.94 106.76
2012-12-31 2,429.16 649.17 106.44
2012-09-30 2,367.12 666.31 99.38
2012-06-30 2,326.54 644.38 96.90

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Sociedad Química y Minera de Chile has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Sociedad Química y Minera de Chile used its assets more efficiently than the US Chemicals industry average last year based on Return on Assets.
  • Sociedad Química y Minera de Chile has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Sociedad Química y Minera de Chile's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Chemicals industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Sociedad Química y Minera de Chile has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Sociedad Química y Minera de Chile's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Sociedad Química y Minera de Chile's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Sociedad Química y Minera de Chile is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Sociedad Química y Minera de Chile's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Sociedad Química y Minera de Chile's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Sociedad Química y Minera de Chile Company Filings, last reported 2 months ago.

NYSE:SQM Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 2,136.59 1,392.32 890.78
2018-12-31 2,137.80 1,353.97 850.55
2018-09-30 2,138.11 1,236.86 738.33
2018-06-30 2,139.81 1,377.48 926.81
2018-03-31 2,252.97 1,173.86 986.54
2017-12-31 2,247.47 1,251.84 997.42
2017-09-30 2,251.50 1,154.73 899.34
2017-06-30 2,248.09 1,200.44 833.39
2017-03-31 2,256.00 1,222.47 855.97
2016-12-31 2,307.27 1,272.58 798.83
2016-09-30 2,347.98 1,340.46 954.61
2016-06-30 2,320.91 1,339.92 804.41
2016-03-31 2,428.97 1,713.81 1,205.38
2015-12-31 2,400.36 1,692.23 1,144.53
2015-09-30 2,378.60 1,768.75 1,257.84
2015-06-30 2,374.13 1,769.60 1,187.96
2015-03-31 2,335.22 1,791.19 1,111.29
2014-12-31 2,292.52 1,787.40 1,008.01
2014-09-30 2,264.14 1,577.23 802.82
2014-06-30 2,512.05 1,602.56 993.92
2014-03-31 2,480.28 1,588.03 795.35
2013-12-31 2,432.24 1,818.82 908.51
2013-09-30 2,394.69 1,842.51 1,035.67
2013-06-30 2,377.06 1,849.24 880.13
2013-03-31 2,339.28 1,613.51 599.09
2012-12-31 2,187.45 1,590.58 568.51
2012-09-30 2,370.58 1,586.47 817.37
2012-06-30 2,207.32 1,553.18 743.47
  • Sociedad Química y Minera de Chile's level of debt (63.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (64% vs 63.8% today).
  • Debt is well covered by operating cash flow (33.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 17.3x coverage).
X
Financial health checks
We assess Sociedad Química y Minera de Chile's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Sociedad Química y Minera de Chile has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.33%
Current annual income from Sociedad Química y Minera de Chile dividends. Estimated to be 3.9% next year.
If you bought $2,000 of Sociedad Química y Minera de Chile shares you are expected to receive $107 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Sociedad Química y Minera de Chile's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.46%).
  • Sociedad Química y Minera de Chile's dividend is above the markets top 25% of dividend payers in United States of America (3.72%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:SQM Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
United States of America Chemicals Industry Average Dividend Yield Market Cap Weighted Average of 54 Stocks 2.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:SQM Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31 0.77 1.00
2021-12-31 1.27 5.00
2020-12-31 1.24 9.00
2019-12-31 1.22 9.00
NYSE:SQM Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-03-28 1.671 4.853
2018-03-29 1.625 3.594
2017-08-28 1.537 2.802
2017-08-24 1.537 3.280
2017-05-18 1.569 4.201
2017-04-12 1.057 3.009
2016-03-23 0.975 3.676
2015-04-24 0.563 3.329
2014-05-23 0.887 3.559
2014-03-05 0.887 2.887
2013-11-19 1.233 4.767
2013-03-13 1.233 3.432
2012-11-23 1.253 2.211
2012-04-27 1.037 1.791
2011-05-24 0.726 1.257
2011-03-15 0.726 1.282
2010-11-24 0.659 1.215
2010-05-26 0.621 1.498
2010-03-17 0.621 1.726
2009-11-17 1.238 3.220

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Sociedad Química y Minera de Chile's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.5x coverage).
X
Income/ dividend checks
We assess Sociedad Química y Minera de Chile's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Sociedad Química y Minera de Chile afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Sociedad Química y Minera de Chile has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Sociedad Química y Minera de Chile's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ricardo Rodríguez
TENURE AS CEO 0.4 years
CEO Bio

Mr. Ricardo Ramos Rodríguez has been Chief Executive Officer of Sociedad Quimica y Minera de Chile S.A. since January 8, 2019. He served as Deputy Chief Executive Officer of Sociedad Química y Minera de Chile S.A. from October 30, 2018 to January 07, 2019. Mr. Rodríguez served as Chief Financial Officer at Sociedad Química y Minera de Chile S.A. and SQM S.A. from November 1994 to October 30, 2018. Mr. Rodríguez served as Vice President of Corporate Affairs at Sociedad Química y Minera de Chile S.A until October 2018 and serves as its Vice President of Development since October 2018 . He served as Senior Vice President of Business Development at Sociedad Química y Minera de Chile S.A. since November 1994. He served as Finance and Development Vice President at SQM S.A. since November 1994. He served as Vice President of Development at Chemical & Mining Co of Chile Inc. He joined SQM in 1989 as an Advisor in the Finance area. In 1991, he moved to the Sales department, where he was in charge of the coordination between operations and sales. In 1993, he returned to the Finance department and became deputy Chief Financial Officer. He serves as a Member of the Board of Soquimich Comercial. He served as a Chairman and Director of Soquimich Comercial S.A. He serves as a Member of the Board of Directors of SQM Industrial S.A. He is an Industrial Engineer from the Pontificia Universidad Católica de Chile.

CEO Compensation
  • Insufficient data for Ricardo to compare compensation growth.
  • Insufficient data for Ricardo to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team Tenure

Average tenure of the Sociedad Química y Minera de Chile management team in years:

1.6
Average Tenure
  • The average tenure for the Sociedad Química y Minera de Chile management team is less than 2 years, this suggests a new team.
Management Team

Ricardo Rodríguez

TITLE
Chief Executive Officer
TENURE
0.4 yrs

Gerardo Illanes

TITLE
CFO & VP of Corporate Finance

Kelly O'Brien

TITLE
Head of Investor Relations

Gonzalo Aguirre

TITLE
General Counsel
TENURE
2.8 yrs

Francisco Sanchez

TITLE
Risk Management & Compliance Officer
TENURE
0.2 yrs

Daniel Jiménez

TITLE
Vice President of Sales Iodine
TENURE
17.4 yrs
Board of Directors Tenure

Average tenure of the Sociedad Química y Minera de Chile board of directors in years:

1.2
Average Tenure
  • The average tenure for the Sociedad Química y Minera de Chile board of directors is less than 3 years, this suggests a new board.
Board of Directors

Alberto Muñoz

TITLE
Chairman
COMPENSATION
$98M
TENURE
1.2 yrs

Patricio Contesse Fica

TITLE
Vice Chairman
COMPENSATION
$76M
TENURE
1.2 yrs

Hernán Buc

TITLE
Director
COMPENSATION
$293M
AGE
69
TENURE
26.2 yrs

Gonzalo Guerrero Yamamoto

TITLE
Director
COMPENSATION
$258M
TENURE
3.2 yrs

Laurence Riveros

TITLE
Independent Director
COMPENSATION
$88M
TENURE
1.2 yrs

Georges de Arndt

TITLE
Director
TENURE
0.2 yrs

Francisco Larraín

TITLE
Director
TENURE
0.2 yrs

Robert Zatta

TITLE
Director
TENURE
0.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Sociedad Química y Minera de Chile's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Sociedad Química y Minera de Chile has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is Sociedad Química y Minera de Chile SA (NYSE:SQM) A High Quality Stock To Own?

To keep the lesson grounded in practicality, we'll use ROE to better understand Sociedad Química y Minera de Chile SA (NYSE:SQM). … Our data shows Sociedad Química y Minera de Chile has a return on equity of 22% for the last year. … See our latest analysis for Sociedad Química y Minera de Chile?

Simply Wall St -

Sociedad Química y Minera de Chile SA (NYSE:SQM): Exploring Free Cash Flows

I will take you through Sociedad Química y Minera de Chile’s cash flow health and the risk-return concept based on the stock’s cash flow yield, using the most recent financial data. … Sociedad Química y Minera de Chile generates cash through its day-to-day business, which needs to be reinvested into the company in order for it to continue operating. … There are two methods I will use to evaluate the quality of Sociedad Química y Minera de Chile’s FCF: firstly, I will measure its FCF yield relative to the market index yield; secondly, I will examine whether its operating cash flow will continue to grow into the future, which will give us a sense of sustainability

Simply Wall St -

Are Sociedad Química y Minera de Chile SA's (NYSE:SQM) Interest Costs Too High?

Sociedad Química y Minera de Chile SA (NYSE:SQM), a large-cap worth US$12.79b, comes to mind for investors seeking a strong and reliable stock investment. … Let’s take a look at Sociedad Química y Minera de Chile’s leverage and assess its financial strength to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. … Check out our latest analysis for Sociedad Química y Minera de Chile

Simply Wall St -

Is Sociedad Química y Minera de Chile SA's (NYSE:SQM) ROE Of 19.50% Sustainable?

and looking to gauge the potential return on investment in Sociedad Química y Minera de Chile SA (NYSE:SQM). … Sociedad Química y Minera de Chile SA (NYSE:SQM) delivered an ROE of 19.50% over the past 12 months, which is an impressive feat relative to its industry average of 13.85% during the same period. … With more debt, SQM can invest even more and earn more money, thus pushing up its returns.

Simply Wall St -

Does Sociedad Química y Minera de Chile SA's (NYSE:SQM) PE Ratio Signal A Selling Opportunity?

I am writing today to help inform people who are new to the stock market. … and want to begin learning the link between Sociedad Química y Minera de Chile SA (NYSE:SQM)’s fundamentals and stock market performance. … Sociedad Química y Minera de Chile SA (NYSE:SQM) trades with a trailing P/E of 29.5x, which is higher than the industry average of 16.5x.

Simply Wall St -

You Should Buy Sociedad Química y Minera de Chile SA (NYSE:SQM) Because Of These Reasons

As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook. … In the case of Sociedad Química y Minera de Chile SA (NYSE:SQM), it

Simply Wall St -

How Does Sociedad Química y Minera de Chile SA. (NYSE:SQM) Fare As A Dividend Stock?

See our latest analysis for Sociedad Química y Minera de Chile 5 checks you should use to assess a dividend stock If you are a dividend investor, you should always assess these five key metrics: Is it the top 25% annual dividend yield payer? … NYSE:SQM Historical Dividend Yield Jun 5th 18 How well does Sociedad Química y Minera de Chile fit our criteria? … Relative to peers, Sociedad Química y Minera de Chile generates a yield of 3.12%, which is high for Chemicals stocks but still below the market's top dividend payers.Next Steps: If you are building an income portfolio, then Sociedad Química y Minera de Chile is a complicated choice since it has some positive aspects as well as negative ones.

Simply Wall St -

Does Sociedad Química y Minera de Chile SA.'s (NYSE:SQM) 53.69% Earnings Growth Make It An Outperformer?

Today I will run you through a basic sense check to gain perspective on how Sociedad Química y Minera de Chile is doing by comparing its latest earnings with its long-term trend as well as the performance of its chemicals industry peers. … Check out our latest analysis for Sociedad Química y Minera de Chile Did SQM's recent earnings growth beat the long-term trend and the industry? … I recommend you continue to research Sociedad Química y Minera de Chile to get a better picture of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for SQM’s future growth?

Simply Wall St -

Did Sociedad Química y Minera de Chile SA (NYSE:SQM) Create Value For Shareholders?

View our latest analysis for Sociedad Química y Minera de Chile Peeling the layers of ROE – trisecting a company’s profitability Return on Equity (ROE) is a measure of Sociedad Química y Minera de Chile’s profit relative to its shareholders’ equity. … For now, let’s just look at the cost of equity number for Sociedad Química y Minera de Chile, which is 8.69%. … Given a positive discrepancy of 8.67% between return and cost, this indicates that Sociedad Química y Minera de Chile pays less for its capital than what it generates in return, which is a sign of capital efficiency.

Simply Wall St -

Should You Be Tempted To Sell Sociedad Química y Minera de Chile SA (SQM) At Its Current PE Ratio?

SQM’s P/E of 35.9x is higher than its industry peers (21.2x), which implies that each dollar of SQM’s earnings is being overvalued by investors. … For example, if you accidentally compared lower growth firms with SQM, then SQM’s P/E would naturally be higher since investors would reward SQM’s higher growth with a higher price. … Alternatively, if you inadvertently compared riskier firms with SQM, SQM’s P/E would again be higher since investors would reward SQM’s lower risk with a higher price as well.

Simply Wall St -

Company Info

Description

Sociedad Química y Minera de Chile S.A. produces and distributes specialty plant nutrients, iodine and its derivatives, lithium and its derivatives, industrial chemicals, potassium, and other products and services. 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 flowers under the Ultrasol, Qrop, Speedfol, and Allganic brands. 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. In addition, the company offers lithium carbonates for various applications that include electrochemical materials for batteries, frits for the ceramic and enamel industries, heat-resistant glass, air conditioning chemicals, continuous casting powder for steel extrusion, primary aluminum smelting process, pharmaceuticals, and lithium derivatives. Further, it supplies lithium hydroxide for the lubricating greases industry, as well as cathodes for batteries. Additionally, it offers potassium chloride and potassium sulfate for various crops; industrial chemicals, including sodium nitrate, potassium nitrate, potassium chloride, and solar salts under the QSodiumNitrate, QPotassiumNitrate, and QPotassiumChloride brands; and other fertilizers and blends. The company sells its products through sales offices and a network of distributors in Chile, Latin America, the Caribbean, Europe, North America, Asia, Central and South America, and internationally. Sociedad Química y Minera de Chile S.A. was founded in 1968 and is headquartered in Santiago, Chile.

Details
Name: Sociedad Química y Minera de Chile S.A.
SQM
Exchange: NYSE
Founded: 1968
$8,256,474,957
263,196,524
Website: http://www.sqm.com
Address: Sociedad Química y Minera de Chile S.A.
El Trovador No. 4285,
6th Floor,
Santiago,
Region Metropolitana (Santiago), Chile
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE SQM ADR-EACH REPR 1 PRF SER'B' New York Stock Exchange US USD 21. Sep 1993
DB QYM ADR-EACH REPR 1 PRF SER'B' Deutsche Boerse AG DE EUR 21. Sep 1993
LSE 0TDG ADR-EACH REPR 1 PRF SER'B' London Stock Exchange GB USD 21. Sep 1993
SNSE SQM-B Series B Preferred Shares Santiago Stock Exchange CL CLP 21. Jun 1994
SNSE SQM-A Series A Preferred Shares Santiago Stock Exchange CL CLP 09. Oct 1992
Number of employees
Current staff
Staff numbers
5,365
Sociedad Química y Minera de Chile employees.
Industry
Fertilizers and Agricultural Chemicals
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/18 23:44
End of day share price update: 2019/06/18 00:00
Last estimates confirmation: 2019/06/05
Last earnings filing: 2019/05/23
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.