Sociedad Quimica Y Minera SA (SQM)
NYSE:SQM
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Sociedad Quimica Y Minera SA
(NYSE:SQM)
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Rating:62Neutral
Price Target:
$73.00
▼(-7.78% Downside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Sociedad Quimica Y Minera SA (SQM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$21.42B
Dividend YieldN/A
Average Volume (3M)1.14M
Price to Earnings (P/E)33.5
Beta (1Y)0.76
Revenue Growth-10.07%
EPS GrowthN/A
CountryUS
Employees8,344
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.64
Shares Outstanding142,818,910
10 Day Avg. Volume856,251
30 Day Avg. Volume1,140,673
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/Revenue5.45
Enterprise Value/Gross Profit18.38
Enterprise Value/Ebitda19.63
Forecast
1Y Price Target
$82.86Price Target Upside4.67% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)5.72
Revenue Forecast (FY)$7.17B
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 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 prod...
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
79.16
Price Trends
76.14
Positive
69.26
Positive
55.10
Positive
Market Momentum
0.55
Negative
57.50
Neutral
83.09
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 79.16 is above the 20-day moving average (MA) of 74.85, above the 50-day MA of 76.14, and above the 200-day MA of 55.10, indicating a bullish trend. The MACD of 0.55 indicates Negative momentum. The RSI at 57.50 is Neutral, neither overbought nor oversold. The STOCH value of 83.09 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 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | $8.15B | 15.45 | 8.09% | 5.33% | -3.33% | -19.59% | |
63 Neutral | $12.66B | 21.09 | 22.70% | 1.96% | 3.09% | 12.25% | |
62 Neutral | $21.42B | 33.47 | 10.92% | ― | -10.07% | ― | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
57 Neutral | $21.38B | -32.60 | -5.13% | 1.10% | -23.92% | 90.47% | |
57 Neutral | $18.06B | -46.13 | -2.49% | 2.41% | -3.01% | 82.30% | |
55 Neutral | $14.61B | ― | -15.50% | 2.88% | -5.32% | -1108.29% |
* Basic Materials Sector Average
SQM
Sociedad Quimica Y Minera SA
79.16
38.58
95.07%
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WLK
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Sociedad Quimica Y Minera SA Corporate Events
SQM to Invest $9 Million in Copper Exploration Partnership With Ivanhoe Electric in Northern Chile
Jan 30, 2026
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 res...
SQM Finalizes Codelco Partnership as Supreme Court Rejects Tianqi Appeal
Jan 30, 2026
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 b...
SQM Finalizes Key Codelco Partnership in Salar de Atacama
Jan 12, 2026
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 initiat...
SQM Releases Q3 2025 Financial Statements
Dec 15, 2025
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 1...
SQM Completes $430 Million Bond Placement in Chile
Dec 5, 2025
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 matur...
SQM Completes $430 Million Hybrid Bond Issuance
Dec 4, 2025
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 issuan...
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.