Sociedad Química y Minera de Chile S.A.
Sociedad Química y Minera de Chile S.A. Fundamental Analysis
Sociedad Química y Minera de Chile S.A. (SQM) shows weak financial fundamentals with a PE ratio of 36.14, profit margin of 12.85%, and ROE of 10.82%. The company generates $4.6B in annual revenue with weak year-over-year growth of -39.35%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 4.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SQM's fundamental strength across five key dimensions:
Efficiency Score
WeakSQM struggles to generate sufficient returns from assets.
Valuation Score
WeakSQM trades at a premium to fair value.
Growth Score
WeakSQM faces weak or negative growth trends.
Financial Health Score
ExcellentSQM maintains a strong and stable balance sheet.
Profitability Score
WeakSQM struggles to sustain strong margins.
Key Financial Metrics
Is SQM Expensive or Cheap?
P/E Ratio
SQM trades at 36.14 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SQM's PEG of 2.88 indicates potential overvaluation.
Price to Book
The market values Sociedad Química y Minera de Chile S.A. at 3.74 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 14.34 times EBITDA. This signals the market has high growth expectations.
How Well Does SQM Make Money?
Net Profit Margin
For every $100 in sales, Sociedad Química y Minera de Chile S.A. keeps $12.85 as profit after all expenses.
Operating Margin
Core operations generate 23.94 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.82 in profit for every $100 of shareholder equity.
ROA
Sociedad Química y Minera de Chile S.A. generates $4.06 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sociedad Química y Minera de Chile S.A. generates strong operating cash flow of $1.32B, reflecting robust business health.
Free Cash Flow
Sociedad Química y Minera de Chile S.A. produces free cash flow of $437.62M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.53 in free cash annually.
FCF Yield
SQM converts 2.06% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
36.14
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.88
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.74
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.65
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.85
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.27
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How SQM Stacks Against Its Sector Peers
| Metric | SQM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 36.14 | 24.91 | Worse (Expensive) |
| ROE | 10.82% | 840.00% | Weak |
| Net Margin | 12.85% | -105381.00% (disorted) | Strong |
| Debt/Equity | 0.85 | 0.55 | Weak (High Leverage) |
| Current Ratio | 3.27 | 4.94 | Strong Liquidity |
| ROA | 4.06% | -4176.00% (disorted) | Weak |
SQM outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sociedad Química y Minera de Chile S.A.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
114.69%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
-233.97%
Industry Style: Cyclical, Commodity, Value
DecliningFCF CAGR
175.08%
Industry Style: Cyclical, Commodity, Value
High Growth