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.
Reasonable growth potential with mediocre balance sheet.
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's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: SQM exceeded the US Chemicals industry which returned -4.5% over the past year.
Return vs Market: SQM underperformed the US Market which returned 5.3% over the past year.
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
1 day ago | Simply Wall StSociedad Química y Minera de Chile (NYSE:SQM) Takes On Some Risk With Its Use Of Debt
1 month ago | Simply Wall StAre Investors Undervaluing Sociedad Química y Minera de Chile S.A. (NYSE:SQM) By 41%?
1 month ago | Simply Wall StWith A Return On Equity Of 12%, Has Sociedad Química y Minera de Chile S.A.'s (NYSE:SQM) Management Done Well?
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 ($30.09) is trading below our estimate of fair value ($57.6)
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 (32.6x) compared to the US Chemicals industry average (20.6x).
PE vs Market: SQM is poor value based on its PE Ratio (32.6x) compared to the US market (16.1x).
Price to Earnings Growth Ratio
PEG Ratio: SQM is poor value based on its PEG Ratio (1.4x)
Price to Book Ratio
PB vs Industry: SQM is overvalued based on its PB Ratio (3.8x) compared to the US Chemicals industry average (2x).
How is Sociedad Química y Minera de Chile forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SQM's forecast earnings growth (23.2% per year) is above the savings rate (2.2%).
Earnings vs Market: SQM's earnings (23.2% per year) are forecast to grow faster than the US market (22.5% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: SQM's revenue (14.4% per year) is forecast to grow faster than the US market (9.2% per year).
High Growth Revenue: SQM's revenue (14.4% 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 low in 3 years time (18.6%).
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 (13.2%) are lower than last year (18%).
Past Earnings Growth Analysis
Earnings Trend: SQM's earnings have grown by 10.5% 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 (-40.2%) over the past year, making it difficult to compare to the Chemicals industry average (-6.9%).
Return on Equity
High ROE: SQM's Return on Equity (11.6%) 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 ($3.0B) exceed its short term liabilities ($932.2M).
Long Term Liabilities: SQM's short term assets ($3.0B) exceed its long term liabilities ($2.0B).
Debt to Equity History and Analysis
Debt Level: SQM's debt to equity ratio (102.9%) is considered high.
Reducing Debt: SQM's debt to equity ratio has increased from 76.7% to 102.9% over the past 5 years.
Debt Coverage: SQM's debt is not well covered by operating cash flow (16.7%).
Interest Coverage: SQM's interest payments on its debt are well covered by EBIT (8.1x 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 (3.51%) is higher than the bottom 25% of dividend payers in the US market (1.68%).
High Dividend: SQM's dividend (3.51%) is low compared to the top 25% of dividend payers in the US market (4.59%).
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 high payout ratio (100%), SQM's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SQM's dividends in 3 years are forecast to be covered by earnings (57.5% 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 ...
|Chief Executive Officer||1.5yrs||no data||no data|
|CFO & VP of Corporate Finance||no data||no data||no data|
|Head of Investor Relations||no data||no data||no data|
|General Counsel||3.83yrs||no data||no data|
|Risk Management & Compliance Officer||1.25yrs||no data||no data|
|Senior Vice-President of People & Performance||1.25yrs||no data||no data|
|Senior Vice President of Operations Potassium Lithium||7.75yrs||no data||no data|
|Senior Vice President Business||no data||no data||no data|
|Senior Vice President Nitrate Iodine Operations||no data||no data||no data|
|Senior Vice President of Nitrate & Potassium Business||no data||no data||no data|
|Vice President of Sales Iodine||18.5yrs||no data||no data|
|Commercial Manager of Iodine Lithium & Industrial Chemicals||no data||no data||no data|
Experienced Management: SQM's management team is considered experienced (2.7 years average tenure).
|Independent Director||27.25yrs||US$444.65m||no data|
|Independent Director||4.25yrs||US$389.70m||no data|
|Vice Chairman||2.25yrs||US$586.63m||no data|
|Independent Director||2.25yrs||US$457.35m||no data|
|Independent Chairman||2.25yrs||US$680.99m||no data|
|Independent Director||1.25yrs||US$179.41m||no data|
Experienced Board: SQM's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.
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 not been meaningfully diluted in the past year.
Sociedad Química y Minera de Chile S.A.'s company bio, 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
- Market Cap: US$7.920b
- Shares outstanding: 263.20m
- Website: https://www.sqm.com
Number of Employees
- Sociedad Química y Minera de Chile S.A.
- El Trovador 4285
- 6th Floor
- Region Metropolitana (Santiago)
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|SQM-A||SNSE (Santiago Stock Exchange)||Series A Preferred Shares||CL||CLP||Oct 1992|
|SQM||NYSE (New York Stock Exchange)||Yes||ADR-EACH REPR 1 SER'B'NPV||US||USD||Sep 1993|
|QYM||DB (Deutsche Boerse AG)||Yes||ADR-EACH REPR 1 SER'B'NPV||DE||EUR||Sep 1993|
|0TDG||LSE (London Stock Exchange)||Yes||ADR-EACH REPR 1 SER'B'NPV||GB||USD||Sep 1993|
|SQM-B||SNSE (Santiago Stock Exchange)||Series B Preferred Shares||CL||CLP||Jun 1994|
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. 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 representative offices and distributors in Chile, North America, Europe, Central and South America, Asia, and internationally. Sociedad Química y Minera de Chile S.A. was founded in 1968 and is headquartered in Santiago, Chile.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/07/14 23:52|
|End of Day Share Price||2020/07/14 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.