Sociedad Quimica Y Minera SA (SQM) AI Stock Analysis

• Market Cap: $20.44B
• Dividend Yield: N/A
• Average Volume (3M): 1.30M
• Price to Earnings (P/E): 33.5
• Beta (1Y): 0.71
• Revenue Growth: -10.07%
• EPS Growth: N/A
• Country: US
• Employees: 8,344
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.64
• Shares Outstanding: 142,818,910
• 10 Day Avg. Volume: 1,126,198
• 30 Day Avg. Volume: 1,297,377
• PEG Ratio: -0.14
• Price to Book (P/B): 3.45
• Price to Sales (P/S): 4.30
• P/FCF Ratio: 44.97
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 5.21
• Enterprise Value/Gross Profit: 17.58
• Enterprise Value/Ebitda: 18.78
• 1Y Price Target: $86.17
• Price Target Upside: 14.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 5.38
• Revenue Forecast (FY): $6.93B

• Rating: 62 Neutral
• Price Target: $73.00 ▼(-2.71% Downside)
• Action: Reiterated Date: 03/04/26
• Date: Action: Reiterated 03/04/26

The score is driven primarily by improving but still cyclical fundamentals (rebound in 2025 profitability/cash flow with moderate leverage) and a constructive earnings outlook for 2026 volumes and near-term pricing, offset by execution/timeline risks and lithium price volatility. Valuation is mixed (high P/E vs very high dividend yield), while technicals are neutral with near-term weakness but better long-term trend support.

Positive Factors

Diversified portfolio & market leadership

SQM combines global leadership in lithium with sizable iodine and specialty fertilizer businesses. Iodine contributed ~42% of 2025 gross margin, giving durable margin diversification versus pure-play lithium peers and stabilizing cash flows across commodity cycles.

High contracted coverage and rising volumes

Management reports ~80% contracted volume for expected sales and has guided to ~260k LCE in 2026. High contracted coverage and a clear volume ramp provide revenue visibility, reduce spot-price exposure for most output, and support predictable cash generation as capacity scales.

Improving cash flow and margins in 2025

Operating cash flow rebounded to ~$1.31B and free cash flow turned positive (~$0.44B) in 2025 while margins recovered. Sustained positive FCF and expanded margins enhance capacity to fund growth and service debt, improving medium-term financial resilience if commodity conditions hold.

Negative Factors

Lithium price and earnings cyclicality

SQM's profitability and cash generation have swung materially year-to-year, reflecting commodity-driven cyclicality. Persistent lithium price volatility makes revenues and margins unpredictable, complicates capex planning and dividend policy, and raises sensitivity of returns to macro demand shifts.

Execution and permit/timeline risk

Multiple project timing shifts and pending permits (Kwinana ramp, Chile capacity, seawater pipeline, Salar Futuro approvals) create execution risk. Delays push out incremental cash flows and increase the chance of higher costs or missed market opportunities during tightening cycles.

Meaningful debt amid inconsistent cash conversion

Leverage remains material (~$4.8B debt, D/E ~0.85) even as it improved. Given historically inconsistent OCF and FCF coverage of earnings, elevated debt limits financial flexibility, raises refinancing risk on adverse cycles, and constrains ability to fund opportunistic growth without external financing.

Sociedad Quimica Y Minera SA Business Overview & Revenue Model

Company Description

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. 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, as well as ingredient in manufacturing of gunpowder. 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, including corn, rice, sugar, soybean, and wheat; industrial chemicals, including sodium nitrate, potassium nitrate, potassium chloride, and solar salts; and other fertilizers and blends. The company operates in Chile, Latin America and the Caribbean, Europe, North America, Asia, and internationally. Sociedad Química y Minera de Chile S.A. was incorporated in 1968 and is headquartered in Santiago, Chile.

How the Company Makes Money

SQM generates revenue through multiple key streams, including the sale of lithium and its derivatives, iodine, and specialty fertilizers. The company benefits from the rising global demand for lithium, driven by the growth of electric vehicle production and renewable energy storage solutions. Additionally, SQM's iodine products cater to diverse industries, contributing to stable revenue. The company engages in long-term contracts with major customers, ensuring a steady income flow. Strategic partnerships, particularly with leading battery manufacturers and agricultural companies, further bolster its market position and revenue potential. Fluctuations in commodity prices, particularly for lithium and iodine, significantly influence SQM's earnings, making market dynamics a crucial factor in its revenue generation.

Sociedad Quimica Y Minera SA Financial Statement Overview

Summary

Profitability and cash flow improved meaningfully in 2025 after a weak 2024, and leverage is moderate with debt-to-equity improving. However, earnings and cash flows have been highly cyclical/volatile across recent years and debt remains meaningful for a business with fluctuating profitability.

Income Statement

Profitability rebounded sharply in 2025 after a loss in 2024, with net margin improving to ~13% and EBITDA margin expanding to ~34%. However, the last few years show very high cyclicality: 2022–2023 were exceptionally strong (net margins ~36% and ~27%), followed by a steep downturn in 2024, and only modest revenue growth in 2025 (~6%). Overall, margins remain solid in the latest year, but earnings visibility looks volatile.

Balance Sheet

Leverage is moderate for the sector, with debt-to-equity around ~0.85 in 2025 (improving from ~0.93 in 2024). Equity has grown versus 2024 and the company retains a meaningful capital base, but total debt remains elevated at roughly $4.8B and returns on equity have swung materially year to year (negative in 2024, ~10% in 2025, much higher in peak years). Balance sheet strength is acceptable, but not conservative given earnings cyclicality.

Cash Flow

Cash generation improved in 2025, with operating cash flow around $1.31B and free cash flow turning solidly positive (~$0.44B), a major step up versus 2024. That said, free cash flow is still a relatively small share of net income (~33%) and operating cash flow covers less than all reported earnings (~0.74x), pointing to working-capital and/or timing effects. Cash flow has also been inconsistent historically (notably negative operating and free cash flow in 2023), which keeps overall quality moderate.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.57B	4.53B	7.47B	10.71B	2.86B
Gross Profit	1.34B	1.33B	3.08B	5.74B	1.09B
EBITDA	1.56B	1.17B	2.94B	5.58B	926.12M
Net Income	587.21M	-404.36M	2.01B	3.91B	585.45M
Balance Sheet
Total Assets	14.52B	11.50B	11.71B	10.82B	7.04B
Cash, Cash Equivalents and Short-Term Investments	2.73B	2.44B	2.36B	3.61B	2.42B
Total Debt	4.82B	4.82B	4.55B	2.91B	2.61B
Total Liabilities	6.46B	6.30B	6.14B	5.89B	3.83B
Stockholders Equity	5.70B	5.16B	5.53B	4.90B	3.18B
Cash Flow
Free Cash Flow	437.00M	302.89M	-1.28B	3.17B	357.80M
Operating Cash Flow	1.31B	1.27B	-178.29M	4.08B	822.52M
Investing Cash Flow	-770.54M	-1.21B	-1.48B	-909.40M	-1.01B
Financing Cash Flow	-146.72M	282.38M	47.91M	-2.00B	1.21B

Sociedad Quimica Y Minera SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 75.03
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SQM, the sentiment is Positive. The current price of 75.03 is above the 20-day moving average (MA) of 74.65, below the 50-day MA of 76.11, and above the 200-day MA of 54.00, indicating a neutral trend. The MACD of 0.39 indicates Negative momentum. The RSI at 50.53 is Neutral, neither overbought nor oversold. The STOCH value of 80.28 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SQM.

Sociedad Quimica Y Minera SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EMN	68 Neutral	$7.86B	15.45	8.09%	5.33%	-3.33%	-19.59%
RPM	63 Neutral	$12.66B	21.09	22.70%	1.96%	3.09%	12.25%
SQM	62 Neutral	$20.44B	33.47	10.92%	―	-10.07%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
IFF	57 Neutral	$17.45B	-46.13	-2.49%	2.41%	-3.01%	82.30%
WLK	55 Neutral	$14.40B	-6.32	-15.50%	2.88%	-5.32%	-1108.29%
ALB	54 Neutral	$19.54B	-32.60	-5.13%	1.10%	-23.92%	90.47%

Sociedad Quimica Y Minera SA Corporate Events

SQM to Invest $9 Million in Copper Exploration Partnership With Ivanhoe Electric in Northern Chile

On January 27, 2025, SQM announced it had signed a definitive collaboration and exploration agreement with Ivanhoe Electric to explore 2,002 km² of SQM-owned mining property in northern Chile for copper, marking a notable expansion of its resource exploration beyond its core lithium and specialty fertilizer business. SQM will invest US$9 million over an initial three-year exploration phase, using Ivanhoe Electric’s Typhoon geophysical surveying technology and CGI’s data inversion software to identify potential copper deposits, with the deal structured so that a successful exploration campaign could lead to a 50/50 joint venture in which SQM would have the option to operate and appoint the JV’s CEO, potentially strengthening its long-term presence in Chile’s copper sector and diversifying its portfolio for shareholders.

The most recent analyst rating on (SQM) stock is a Hold with a $91.00 price target. To see the full list of analyst forecasts on Sociedad Quimica Y Minera SA stock, see the SQM Stock Forecast page.

SQM Finalizes Codelco Partnership as Supreme Court Rejects Tianqi Appeal

On January 27, 2025, SQM announced that its merger by absorption of Codelco subsidiary Minera Tarar SpA into SQM’s subsidiary SQM Salar SpA (now Nova Andino Litio SpA), part of their broader partnership to develop the Salar de Atacama, has become fully effective after the Chilean Supreme Court rejected in full an appeal brought by Inversiones TLC SpA (linked to Tianqi) on January 26, 2026. By confirming the earlier ruling of the Santiago Court of Appeals and causing the condition subsequent to lapse, the Supreme Court’s decision removes the last legal uncertainty around the transaction and solidifies the long-term joint development framework between SQM and state-owned Codelco in Chile’s strategically important lithium-rich Salar de Atacama, clarifying the legal landscape for shareholders, partners and other stakeholders.

The most recent analyst rating on (SQM) stock is a Hold with a $91.00 price target. To see the full list of analyst forecasts on Sociedad Quimica Y Minera SA stock, see the SQM Stock Forecast page.

SQM Finalizes Key Codelco Partnership in Salar de Atacama

On December 27, 2025, SQM announced it had completed the structural steps of its strategic partnership with Chile’s state-owned copper company Codelco for the development of mining, production, commercial, community and environmental initiatives in the Salar de Atacama, via the merger by absorption of Codelco’s Minera Tarar SpA into SQM’s subsidiary SQM Salar SpA, which was simultaneously renamed Nova Andino Litio SpA. While the transaction follows substantially the same terms agreed in the May 31, 2024 partnership agreement and consolidates SQM’s position in Chile’s key lithium-producing basin, the merger remains subject to a resolutory condition tied to a pending Supreme Court decision on an appeal challenging a regulator’s prior resolution, and SQM and Nova Andino Litio SpA are currently determining dividend distributions and accounting effects under the new share structure and rights that became effective on January 1, 2025, to be reflected in SQM’s 2025 consolidated financial statements.

The most recent analyst rating on (SQM) stock is a Buy with a $79.00 price target. To see the full list of analyst forecasts on Sociedad Quimica Y Minera SA stock, see the SQM Stock Forecast page.

SQM Releases Q3 2025 Financial Statements

Sociedad Química y Minera de Chile S.A. (SQM) reported its consolidated interim financial statements for the three months ending September 30, 2025, which were initially filed with the Chilean Commission for the Financial Market on November 18, 2025. This release provides a comprehensive overview of the company’s financial position, income, cash flows, and changes in equity, reflecting its operational performance and strategic positioning in the industry. The financial results are crucial for stakeholders to assess SQM’s market standing and future growth potential.

The most recent analyst rating on (SQM) stock is a Hold with a $63.00 price target. To see the full list of analyst forecasts on Sociedad Quimica Y Minera SA stock, see the SQM Stock Forecast page.

SQM Completes $430 Million Bond Placement in Chile

On December 4, 2025, SQM announced the completion of its Series S Bonds placement in the Chilean securities market, raising approximately US$430 million. The bonds, authorized on November 25, 2025, are part of a 35-year bond program and will mature in 2058 with a fixed annual interest rate of 4%. The proceeds will be used for general corporate purposes and to refinance existing debt, potentially strengthening SQM’s financial position and operational flexibility.

The most recent analyst rating on (SQM) stock is a Hold with a $63.00 price target. To see the full list of analyst forecasts on Sociedad Quimica Y Minera SA stock, see the SQM Stock Forecast page.

SQM Completes $430 Million Hybrid Bond Issuance

On December 4, 2025, Sociedad Química y Minera de Chile S.A. (SQM) announced the successful placement of Series S Bonds in the Chilean securities market, totaling approximately US$430 million. Authorized on November 25, 2025, this bond issuance is part of a 35-year program and will support general corporate purposes and debt refinancing. The bonds, maturing in 2058, carry a fixed annual interest rate of 4% and were placed at an effective rate of 3.84%. This move strengthens SQM’s financial position and supports its strategic initiatives in key markets.

The most recent analyst rating on (SQM) stock is a Buy with a $71.00 price target. To see the full list of analyst forecasts on Sociedad Quimica Y Minera SA stock, see the SQM Stock Forecast page.