Sociedad Quimica Y Minera SA (SQM) AI Stock Analysis

• Market Cap: $18.58B
• Dividend Yield: N/A
• Average Volume (3M): 1.78M
• Price to Earnings (P/E): 37.7
• Beta (1Y): 0.66
• 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: 1,272,790
• 30 Day Avg. Volume: 1,777,370
• 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: 0.79
• Enterprise Value/Revenue: 3.39
• Enterprise Value/Gross Profit: 12.23
• Enterprise Value/Ebitda: 14.57
• 1Y Price Target: $64.28
• Price Target Upside: -6.52% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $71.00 ▲(3.26% Upside)

SQM's overall stock score is driven by strong technical indicators and a positive earnings call, highlighting record lithium sales and strategic growth initiatives. However, financial performance concerns, particularly in cash flow and valuation challenges, moderate the score.

Positive Factors

Record Lithium Sales

Record lithium sales indicate strong operational efficiency and market demand, reinforcing SQM's position as a leader in the lithium market.

Strategic Joint Venture

The joint venture with Codelco enhances SQM's strategic positioning and potential for expanded mining operations, promising long-term growth.

Strong Demand for Lithium

Sustained demand for lithium from EVs and energy storage systems supports long-term revenue growth and market leadership for SQM.

Negative Factors

Declining Profitability

Decreasing profitability and cash flow issues could hinder SQM's ability to invest in growth opportunities and maintain financial health.

Volatile Lithium Market

Market volatility in lithium prices can lead to unpredictable revenue streams, affecting SQM's financial stability and planning.

Negative Free Cash Flow

Negative free cash flow indicates potential liquidity issues, limiting SQM's ability to fund operations and strategic initiatives.

Sociedad Quimica Y Minera SA Business Overview & Revenue Model

Company Description

Sociedad Quimica Y Minera SA (SQM) is a Chilean company primarily engaged in the production of specialty plant nutrition, iodine, lithium, and other industrial chemicals. Operating mainly in the mining sector, SQM is a global leader in lithium production, which is vital for battery manufacturing and electric vehicles. The company also specializes in the extraction and processing of iodine, used in various applications including pharmaceuticals and disinfectants, as well as specialty fertilizers that enhance agricultural productivity.

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

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: 68.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: 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 68.76 is above the 20-day moving average (MA) of 63.52, above the 50-day MA of 54.57, and above the 200-day MA of 42.73, indicating a bullish trend. The MACD of 3.38 indicates Positive momentum. The RSI at 71.22 is Negative, neither overbought nor oversold. The STOCH value of 77.87 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SQM	71 Outperform	$18.58B	37.70	9.87%	―	-10.07%	―
RPM	71 Outperform	$13.48B	19.63	24.05%	1.97%	3.09%	12.25%
EMN	67 Neutral	$7.25B	10.60	12.24%	5.24%	-3.33%	-19.59%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
IFF	61 Neutral	$16.84B	-40.62	-2.84%	2.43%	-3.01%	82.30%
ALB	58 Neutral	$17.17B	-91.36	-0.21%	1.11%	-23.92%	90.47%
WLK	52 Neutral	$9.30B	-9.77	-9.48%	2.91%	-5.32%	-1108.29%

Sociedad Quimica Y Minera SA Corporate Events

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.

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.

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.