NYSE:SQM

Stock Analysis Report

Sociedad Química y Minera de Chile

Executive Summary

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.

Snowflake

Fundamentals

Reasonable growth potential with adequate balance sheet and pays a dividend.


Similar Companies

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


Market Performance


7 Day Return

6.7%

SQM

3.1%

US Chemicals

2.3%

US Market


1 Year Return

-33.8%

SQM

-6.3%

US Chemicals

5.6%

US Market

Return vs Industry: SQM underperformed the US Chemicals industry which returned -6.3% over the past year.

Return vs Market: SQM underperformed the US Market which returned 5.6% over the past year.


Shareholder returns

SQMIndustryMarket
7 Day6.7%3.1%2.3%
30 Day-0.4%-1.3%-1.0%
90 Day-6.9%-1.6%-0.7%
1 Year-32.1%-33.8%7.4%-6.3%7.9%5.6%
3 Year7.7%-2.4%41.2%15.5%45.6%36.3%
5 Year43.9%22.8%44.5%13.4%65.8%47.6%

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

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

Undervalued: SQM ($27.92) is trading below our estimate of fair value ($119.73)

Significantly Undervalued: 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 (21.4x) compared to the Chemicals industry average (18.9x).

PE vs Market: SQM is poor value based on its PE Ratio (21.4x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: SQM is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: SQM is overvalued based on its PB Ratio (3.5x) compared to the US Chemicals industry average (2x).


Next Steps

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?

19.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SQM's forecast earnings growth (19.6% per year) is above the savings rate (2.7%).

Earnings vs Market: SQM's earnings (19.6% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: SQM's earnings are forecast to grow, but not significantly.

Revenue vs Market: SQM's revenue (12.2% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: SQM's revenue (12.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: SQM's Return on Equity is forecast to be high in 3 years time (22.3%)


Next Steps

Past Performance

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

13.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SQM's earnings have grown by 13.6% 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 (-27.2%) over the past year, making it difficult to compare to the Chemicals industry average (-2.4%).


Return on Equity

High ROE: SQM's Return on Equity (16.2%) is considered low.


Return on Assets

ROA vs Industry: SQM has a higher Return on Assets than the Chemicals industry average last year.


Return on Capital Employed

ROCE Improving: SQM has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Sociedad Química y Minera de Chile's financial position?


Financial Position Analysis

Short Term Liabilities: SQM's short term assets ($2.8B) exceeds its short term liabilities ($989.9M)

Long Term Liabilities: SQM's short term assets (2.8B) exceeds its long term liabilities (1.6B)


Debt to Equity History and Analysis

Debt Level: SQM's debt to equity ratio (85%) is considered high

Reducing Debt: SQM's debt to equity ratio has increased from 63.9% to 85% over the past 5 years.

Debt Coverage: SQM's debt is well covered by operating cash flow (24.2%).

Interest Coverage: SQM's interest payments on its debt are well covered by EBIT (13.8x coverage).


Balance Sheet

Inventory Level: SQM has a high level of physical assets or inventory.

Debt Coverage by Assets: SQM's debt is covered by short term assets (assets are 1.524150x debt).


Next Steps

Dividend

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

5.99%

Current Dividend Yield


Dividend Yield vs Market

company6.0%marketbottom25%1.5%markettop25%3.8%industryaverage2.2%forecastin3Years3.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SQM's dividend (5.99%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: SQM's dividend (5.99%) is in the top 25% of dividend payers in the US market (3.76%)

Stable Dividend: SQM's dividend payments have been volatile in the past 10 years.

Growing Dividend: SQM's dividend payments have increased 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 well covered by earnings (48.2% payout ratio).


Next Steps

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?

1.9yrs

Average management tenure


CEO

Ricardo Ramos Rodríguez 0

0.8yrs

Tenure

0

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 ...


Management Age and Tenure

1.9yrs

Average Tenure

Experienced Management: SQM's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Age and Tenure

1.5yrs

Average Tenure

Experienced Board: SQM's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Ricardo Ramos Rodríguez

    Chief Executive Officer

    • Tenure: 0.8yrs
  • Daniel Sch. Jiménez

    Vice President of Sales Iodine

    • Tenure: 17.8yrs
  • Gerardo Illanes

    CFO & VP of Corporate Finance

    • Tenure: 0yrs
  • Gonzalo T. Aguirre

    General Counsel

    • Tenure: 3.1yrs
  • Kelly O'Brien

    Head of Investor Relations

    • Tenure: 0yrs
  • Francisco Sanchez

    Risk Management & Compliance Officer

    • Tenure: 0.5yrs

Board Members

  • Hernán Büchi Buc (70yo)

    Independent Director

    • Tenure: 26.5yrs
    • Compensation: US$293.18m
  • Gonzalo Guerrero Yamamoto

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: US$258.17m
  • Patricio Contesse Fica

    Vice Chairman

    • Tenure: 1.5yrs
    • Compensation: US$76.42m
  • Laurence Riveros

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$88.46m
  • Alberto Salas Muñoz

    Independent Chairman

    • Tenure: 1.5yrs
    • Compensation: US$98.01m
  • Georges de Bourguignon Arndt

    Director

    • Tenure: 0.5yrs
  • Francisco Ugarte Larraín

    Director

    • Tenure: 0.5yrs
  • Robert Zatta

    Director

    • Tenure: 0.5yrs

Company Information

Sociedad Química y Minera de Chile S.A.'s company bio, 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$7.348b
  • Shares outstanding: 263.20m
  • Website: https://www.sqm.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SQM-ASNSE (Santiago Stock Exchange)Series A Preferred SharesCLCLPOct 1992
SQMNYSE (New York Stock Exchange)YesADR-EACH REPR 1 PRF SER'B'USUSDSep 1993
QYMDB (Deutsche Boerse AG)YesADR-EACH REPR 1 PRF SER'B'DEEURSep 1993
0TDGLSE (London Stock Exchange)YesADR-EACH REPR 1 PRF SER'B'GBUSDSep 1993
SQM-BSNSE (Santiago Stock Exchange)Series B Preferred SharesCLCLPJun 1994

Biography

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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 23:39
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.