Sociedad Quimica Y Minera SA (SQM) AI Stock Analysis

• Market Cap: $17.60B
• Dividend Yield: N/A
• Average Volume (3M): 1.77M
• Price to Earnings (P/E): 35.3
• Beta (1Y): 0.74
• Revenue Growth: -10.07%
• EPS Growth: N/A
• Country: US
• Employees: 8,344
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.62
• Shares Outstanding: 142,818,910
• 10 Day Avg. Volume: 2,266,222
• 30 Day Avg. Volume: 1,765,731
• PEG Ratio: 0.21
• Price to Book (P/B): 2.01
• Price to Sales (P/S): 2.29
• P/FCF Ratio: 34.19
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 3.39
• Enterprise Value/Gross Profit: 12.23
• Enterprise Value/Ebitda: 14.57
• 1Y Price Target: $59.64
• Price Target Upside: -6.71% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: $69.00 ▲(7.93% Upside)

The overall stock score is primarily driven by strong technical indicators and a positive earnings call outlook, highlighting record lithium sales and strategic expansions. However, financial performance and valuation concerns, including high leverage and an overvalued P/E ratio, temper the score.

Positive Factors

Record Lithium Sales

Record lithium sales indicate strong demand and operational efficiency, supporting long-term revenue growth and market leadership in the lithium sector.

Strategic Joint Venture

The joint venture with Codelco enhances SQM's strategic position in the Atacama region, potentially increasing production capacity and market influence.

Strong Demand Fundamentals

Continued strong demand for lithium, driven by electric vehicles, supports SQM's growth prospects and reinforces its market position.

Negative Factors

Negative Free Cash Flow

Negative free cash flow indicates challenges in cash generation, which could impact liquidity and limit investment in growth opportunities.

Decline in Revenue Growth

A decline in revenue growth reflects a challenging market environment, potentially affecting long-term financial performance and competitiveness.

Volatile Lithium Market

Market volatility in lithium prices can lead to unpredictable revenue streams, impacting financial stability and strategic planning.

Sociedad Quimica Y Minera SA Business Overview & Revenue Model

Company Description

Sociedad Quimica y Minera de Chile S.A. (SQM) is a leading global producer of specialty plant nutrients, iodine, lithium, and other industrial chemicals. Established in 1968 and headquartered in Santiago, Chile, SQM operates primarily in the mining and chemical sectors, leveraging its extensive lithium brine resources in the Salar de Atacama. The company focuses on sustainable production and innovation, offering a range of products that serve various industries, including agriculture, automotive, electronics, and renewable energy.

How the Company Makes Money

SQM generates revenue through multiple key streams, primarily from the sale of lithium, iodine, and specialty fertilizers. The company benefits significantly from the growing demand for lithium, driven by the electric vehicle and energy storage markets. SQM's lithium production comes from brine extraction in Chile, where it has a competitive advantage due to its low-cost operations and high-quality resources. Additionally, SQM produces iodine, which is used in pharmaceuticals, and specialty fertilizers that cater to the agricultural sector. The company has established partnerships with major players in the electric vehicle industry, enhancing its market position and revenue potential. Market fluctuations, global demand, and regulatory factors also play a significant role in its earnings, impacting prices and production volumes.

Sociedad Quimica Y Minera SA Financial Statement Overview

Summary

Sociedad Quimica Y Minera SA shows signs of recovery in profitability with improved net profit margins and return on equity. However, challenges in operational efficiency and cash flow generation persist. The balance sheet remains stable, but high leverage could be a concern if profitability does not continue to improve.

Income Statement

The income statement shows a mixed performance. The TTM data indicates a modest revenue growth rate of 2.27%, but the gross profit margin has decreased to 26.78% from higher levels in previous years. Net profit margin has improved to 11.29% from a negative margin in 2024, indicating a recovery in profitability. However, the EBIT and EBITDA margins have declined compared to previous years, suggesting pressure on operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.88, showing a slight improvement from 2024. Return on equity has improved to 9.16% in the TTM period, indicating better profitability relative to equity. The equity ratio remains stable, suggesting a balanced capital structure. However, the overall leverage remains relatively high, which could pose risks if earnings do not continue to improve.

Cash Flow

Cash flow analysis reveals challenges, with a significant decline in free cash flow growth rate to -187.07% in the TTM period. The operating cash flow to net income ratio is 0.47, indicating moderate cash generation relative to net income. The negative free cash flow to net income ratio suggests that the company is not generating sufficient free cash flow to cover its net income, highlighting potential liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.33B	4.53B	7.47B	10.71B	2.86B	1.82B
Gross Profit	1.20B	1.33B	3.08B	5.74B	1.09B	482.87M
EBITDA	1.01B	1.17B	2.94B	5.58B	926.12M	326.81M
Net Income	524.50M	-404.36M	2.01B	3.91B	585.45M	164.52M
Balance Sheet
Total Assets	11.73B	11.50B	11.71B	10.82B	7.04B	4.82B
Cash, Cash Equivalents and Short-Term Investments	2.39B	2.44B	2.36B	3.61B	2.42B	854.56M
Total Debt	4.71B	4.82B	4.55B	2.91B	2.61B	1.95B
Total Liabilities	6.19B	6.30B	6.14B	5.89B	3.83B	2.66B
Stockholders Equity	5.49B	5.16B	5.53B	4.90B	3.18B	2.12B
Cash Flow
Free Cash Flow	65.65M	302.89M	-1.28B	3.17B	357.80M	-140.01M
Operating Cash Flow	1.05B	1.27B	-178.29M	4.08B	822.52M	182.23M
Investing Cash Flow	-945.66M	-1.21B	-1.48B	-909.40M	-1.01B	-167.09M
Financing Cash Flow	-160.01M	282.38M	47.91M	-2.00B	1.21B	-94.13M

Sociedad Quimica Y Minera SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 63.93
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 63.93 is above the 20-day moving average (MA) of 55.76, above the 50-day MA of 48.82, and above the 200-day MA of 40.99, indicating a bullish trend. The MACD of 4.53 indicates Negative momentum. The RSI at 72.19 is Negative, neither overbought nor oversold. The STOCH value of 84.60 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
RPM	69 Neutral	$13.75B	20.02	24.05%	1.93%	3.09%	12.25%
SQM	69 Neutral	$17.60B	35.27	9.87%	―	-10.07%	―
EMN	67 Neutral	$7.08B	10.35	12.24%	5.36%	-3.33%	-19.59%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
IFF	61 Neutral	$17.79B	―	-2.84%	2.53%	-3.01%	82.30%
ALB	58 Neutral	$15.30B	―	-0.21%	1.68%	-23.92%	90.47%
WLK	46 Neutral	$8.57B	―	-9.48%	3.16%	-5.32%	-1108.29%

Sociedad Quimica Y Minera SA Corporate Events

SQM Reports Record Lithium Sales and Strong Earnings Recovery

In its latest earnings report, SQM announced a net income of $404.4 million for the nine months ending September 30, 2025, marking a substantial recovery from a loss in the same period last year. The company achieved record lithium sales volumes and noted a strong pricing environment in iodine and nitrates. SQM is optimistic about continued demand in the lithium market, driven by electric vehicles and energy storage systems. Additionally, the company is advancing its capital expenditure plans, including projects in Chile and Australia, and has received Chinese antitrust approval for a joint venture with Codelco to develop the Atacama salt flat.

SQM and Codelco’s Partnership Approved by China for Atacama Salt Flat Development

On November 10, 2025, Sociedad Química y Minera de Chile S.A. (SQM) announced that the State Administration for Market Regulation of China approved its partnership with Codelco to develop mining activities in the Atacama Salt Flat. This approval requires SQM and Codelco to adhere to commitments ensuring fair competition, including safeguards against sharing sensitive information and supplying lithium carbonate to Chinese customers on fair terms. These commitments align with SQM’s existing business practices in China and are not expected to significantly impact the company’s financial results.

Sociedad Química y Minera de Chile S.A. Releases Interim Financial Statements for Q2 2025

Sociedad Química y Minera de Chile S.A. released its consolidated interim financial statements for the period ending June 30, 2025. The financial documents, which are unaudited, provide insights into the company’s financial position, income, and cash flows. While the release does not specify particular financial outcomes, it offers a comprehensive overview of SQM’s accounting policies and financial risk management strategies, reflecting the company’s ongoing commitment to transparency and regulatory compliance.