Sociedad Quimica Y Minera SA (SQM)
NYSE:SQM
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Sociedad Quimica Y Minera SA
(NYSE:SQM)
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Rating:66Neutral
Price Target:
$103.00
▲(15.99% Upside)
Action:ReiteratedDate:04/18/26
The score is driven primarily by improving 2025 fundamentals but with pronounced cyclicality and mixed cash-flow quality, alongside constructive 2026 guidance on volumes/pricing tempered by execution delays and lithium price volatility. Technically, the uptrend is strong but momentum is overbought, and valuation is mixed with a high P/E partly offset by a very high dividend yield.
Positive Factors
High-margin iodine business
Iodine's outsized share of gross margin provides durable margin support and diversification versus lithium cyclicality. Its pharmaceutical and industrial end-markets are less correlated with EV cycles, supplying steady cash generation and insulating overall profitability across commodity swings.
Negative Factors
Cyclicality and price volatility
SQM's earnings and margins swing materially with lithium market cycles, exposing medium-term cashflows and returns to price shifts. Even with improving 2025 results, forecast visibility is limited beyond near-term quarters, complicating long-term planning and capital-intensive expansion timing.
Read all positive and negative factors
Positive Factors
Negative Factors
High-margin iodine business
Iodine's outsized share of gross margin provides durable margin support and diversification versus lithium cyclicality. Its pharmaceutical and industrial end-markets are less correlated with EV cycles, supplying steady cash generation and insulating overall profitability across commodity swings.
Read all positive factors
Sociedad Quimica Y Minera SA (SQM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$24.33B
Dividend YieldN/A
Average Volume (3M)1.31M
Price to Earnings (P/E)26.5
Beta (1Y)0.65
Revenue Growth1.79%
EPS GrowthN/A
CountryUS
Employees8,344
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)2.06
Shares Outstanding142,818,910
10 Day Avg. Volume1,564,546
30 Day Avg. Volume1,305,832
Financial Highlights & Ratios
PEG Ratio-0.14
Price to Book (P/B)3.45
Price to Sales (P/S)4.30
P/FCF Ratio44.97
Enterprise Value/Market Cap1.17
Enterprise Value/Revenue6.20
Enterprise Value/Gross Profit20.92
Enterprise Value/Ebitda22.35
Forecast
1Y Price Target
$83.00Price Target Upside-6.53% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)6.09
Revenue Forecast (FY)$7.40B
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...
How the Company Makes Money
SQM makes money primarily by producing commodity and specialty chemicals and selling them under commercial contracts to customers worldwide. Its main revenue streams include: (1) Lithium business: SQM extracts lithium-bearing brines, processes the...
Sociedad Quimica Y Minera SA Earnings Call Summary
Earnings Call Date:Feb 27, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 27, 2026
Earnings Call Sentiment Positive
The call presented a predominately positive operational and market picture: record lithium volumes, improving lithium prices, strong iodine profitability (42% of gross margin), and solid full-year revenues and net income. International operations achieved key milestones (first Kwinana shipment) and production/growth targets for 2026 were raised (target ~260,000 LCE). Offsetting these positives are execution and timing risks — Kwinana ramp-up delays into 2027, a delayed Chile capacity timeline to 2028, cost composition impacts from lease payments tied to higher prices, supply disruptions in certain lithium feedstocks, and pending permits that add timetable uncertainty. Overall, highlights on volumes, pricing, margins and ESG recognition outweigh the lowlights, which are mainly timing or volatility-related rather than structural demand failures.Positive Updates
Solid Full-Year Financial Results
Reported full-year 2025 revenues of $44.6 billion and net income of $588 million, described as slightly higher than prior year, reflecting improved market conditions and operational execution.
Negative Updates
Kwinana Refinery Ramp-up Delays
Kwinana refinery ramp-up has faced intermittent issues; management now expects ramp-up progress to extend into 2027, increasing reliance on spodumene concentrate sales in 2026.
Read all updates
Q4-2025 Updates
Positive
Negative
Solid Full-Year Financial Results
Reported full-year 2025 revenues of $44.6 billion and net income of $588 million, described as slightly higher than prior year, reflecting improved market conditions and operational execution.
Read all positive updates
Company Guidance
Management guided to stronger 2026 volumes and prices: after producing 234,000 LCE in 2025 (≈50,000 LCE from China) they now target roughly 260,000 LCE in 2026 with Q1 volumes expected to exceed Q1’25 by >15% and a quarter‑by‑quarter ramp to the largest volumes in Q4; International Lithium sales are seen up ~10% LCE with Mt Holland (SQM’s 50% share) supplying ~170–180k tonnes of spodumene concentrate in 2026, while the Kwinana refinery’s ramp‑up is pushed into 2027 and a concentrator expansion has ~$200m of CapEx penciled for 2027. Pricing guidance: realized lithium price rose ~14% q/q to ≈$10/kg in Q4‑2025 and Q1‑2026 prices are expected to be “substantially higher” (management noted ~80% of volumes already contracted, but prices will remain volatile). Other guidance: iodine (≈42% of 2025 gross margin) is forecast to see ~3% market growth in 2026 with SQM targeting >15,000 t of iodine production in 2026 and >17,000 t/yr once the Tarapacá seawater pipeline is complete; Specialty Plant Nutrition volumes grew ~3% in 2025 and are guided to grow 2–4% in 2026; dividends to Codelco tied to 33,500 t allocated to them are expected to be paid around April.Sociedad Quimica Y Minera SA Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
67
Positive
Cash Flow
58
Neutral
| 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
Positive
88.80
Price Trends
77.13
Positive
74.25
Positive
59.11
Positive
Market Momentum
3.65
Negative
59.57
Neutral
79.32
Neutral
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 88.8 is above the 20-day moving average (MA) of 82.18, above the 50-day MA of 77.13, and above the 200-day MA of 59.11, indicating a bullish trend. The MACD of 3.65 indicates Negative momentum. The RSI at 59.57 is Neutral, neither overbought nor oversold. The STOCH value of 79.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SQM.
Sociedad Quimica Y Minera SA Risk Analysis
Sociedad Quimica Y Minera SA disclosed 50 risk factors in its most recent earnings report. Sociedad Quimica Y Minera SA reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Sociedad Quimica Y Minera SA Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $8.87B | 20.33 | 8.09% | 5.33% | -7.41% | -56.10% | |
66 Neutral | $24.33B | 26.50 | 10.92% | ― | 1.79% | ― | |
64 Neutral | $12.93B | 70.63 | 21.80% | 1.96% | 5.68% | 3.81% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
57 Neutral | $22.85B | -32.60 | -5.13% | 1.10% | -4.37% | 48.60% | |
55 Neutral | $14.73B | -6.32 | -15.50% | 2.88% | -8.01% | -351.54% | |
53 Neutral | $18.09B | -46.13 | -2.49% | 2.41% | -5.17% | -242.69% |
* Basic Materials Sector Average
SQM
Sociedad Quimica Y Minera SA
89.75
55.89
165.06%
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76.72
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International Flavors & Fragrances
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-9.30%
RPM
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98.22
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WLK
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114.87
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50.84%
Sociedad Quimica Y Minera SA Corporate Events
SQM Files Updated Technical Reports for Key Chilean Mineral Properties
Apr 16, 2026
On April 15, 2026, SQM reported that it had filed updated technical report summaries for its Nueva Victoria, Pampa Blanca and Maria Elena properties with the U.S. Securities and Exchange Commission. These reports, dated in April 2026 with an effec...
SQM Files Updated Salar de Atacama Technical Report Summaries With U.S. Regulators
Apr 16, 2026
On April 15, 2026, SQM reported that it had filed technical report summaries for its Salar de Atacama operations with the U.S. Securities and Exchange Commission. The filings include a Technical Report Summary dated April 13, 2026, supported by qu...
SQM Board Proposes Higher-Than-Policy Final Dividend for 2025
Mar 20, 2026
On March 17, 2026, SQM’s board unanimously agreed to recommend a final dividend equivalent to 50% of the company’s 2025 net income, significantly above its current dividend policy, which calls for a 30% payout. The proposed distributio...
SQM Sets April 23, 2026 Date for Annual Shareholders’ Meeting
Mar 20, 2026
On March 17, 2026, SQM announced that its board has scheduled the company’s Annual General Shareholders’ Meeting for 10:00 a.m. Chile time on Thursday, April 23, 2026 in Santiago. The company also set March 26, 2026 at 4:00 p.m. EDT as...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.