Sociedad Quimica Y Minera SA (SQM) AI Stock Analysis

• Market Cap: $20.97B
• Dividend Yield: N/A
• Average Volume (3M): 1.43M
• Price to Earnings (P/E): 41.8
• 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): 0.64
• Shares Outstanding: 142,818,910
• 10 Day Avg. Volume: 1,072,976
• 30 Day Avg. Volume: 1,427,376
• 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: 1.18
• Enterprise Value/Revenue: 5.71
• Enterprise Value/Gross Profit: 20.62
• Enterprise Value/Ebitda: 24.57
• 1Y Price Target: $79.29
• Price Target Upside: 3.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 4.91
• Revenue Forecast (FY): $6.42B

• Rating: 63 Neutral
• Price Target: $91.00 ▲(19.27% Upside)
• Action: Downgraded Date: 01/16/26
• Date: Action: Downgraded 01/16/26

The score is led by mixed financial performance—solid balance sheet but pressured profitability and notably weak free cash flow—while technicals show a strong trend but overbought momentum risk. Valuation is demanding due to a high P/E, partly offset by an elevated dividend yield. Earnings call commentary was a relative positive with record volumes and constructive pricing/demand guidance, though volatility and CapEx adjustments add risk.

Positive Factors

Record lithium sales volumes

Achieving record lithium volumes at low-cost Atacama operations demonstrates durable production scale and operational competence. Scale and cost advantages support long-term contract wins and market share retention as EV and storage demand grows, underpinning sustainable revenue generation.

Global lithium leadership

Market leadership in lithium creates structural competitive advantages: customer relationships with battery makers, procurement and logistics scale, and bargaining power. As the transition to electrification continues, leadership supports durable demand capture and strategic positioning in the supply chain.

Diversified revenue streams

Revenue diversification across lithium, iodine and specialty plant nutrition reduces reliance on any single commodity cycle. Stable iodine and fertilizer demand plus long-term contracts provide recurring cash, smoothing earnings volatility and improving resilience during commodity price swings.

Negative Factors

Weak free cash flow generation

Sharply deteriorated free cash flow indicates limited internal funding capacity for dividends, debt reduction or expansion. Persistent weak FCF undermines financial flexibility, may force external financing for projects, and elevates execution risk for multi-year growth initiatives.

Large multi-year CapEx commitment

A $2.7bn CapEx program over three years is structurally significant and can strain cash generation given weak FCF. Delays help near-term liquidity but may defer returns; funding needs could increase leverage or equity issuance, affecting long-term capital allocation and shareholder returns.

Regulatory/legal uncertainty in Codelco JV

The Codelco partnership materially alters asset structure in the Atacama basin, but a pending Supreme Court appeal introduces execution and accounting risk. Legal uncertainty can delay synergies, affect dividend rules and capital decisions, and create prolonged regulatory and stakeholder challenges.

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

Mixed fundamentals: modest TTM revenue growth and relatively stable operating margins, supported by a manageable leverage profile (debt-to-equity 0.88). However, profitability has declined (TTM net margin 11.29%, ROE 9.16%) and cash flow is weak with sharply negative free cash flow growth (-187.07%) and a negative FCF-to-net-income ratio.

Income Statement

The income statement shows a mixed performance. The TTM data indicates a modest revenue growth rate of 2.27%, but margins have declined compared to previous years, with a gross profit margin of 26.78% and a net profit margin of 11.29%. The EBIT and EBITDA margins are relatively stable, indicating operational efficiency. However, the company experienced a significant drop in revenue and profitability in the previous year, which affects the overall score.

Balance Sheet

The balance sheet reflects moderate financial stability. The debt-to-equity ratio is 0.88, indicating a manageable level of leverage. Return on equity has decreased to 9.16% in the TTM, which is a concern compared to previous years. The equity ratio remains stable, suggesting a balanced capital structure. Overall, the company maintains a solid financial position, but declining ROE is a point of concern.

Cash Flow

Cash flow analysis reveals challenges, particularly in free cash flow generation. The TTM data shows a negative free cash flow growth rate of -187.07%, and the free cash flow to net income ratio is negative, highlighting cash flow issues. The operating cash flow to net income ratio is 0.47, indicating some cash flow generation from operations, but overall cash flow performance is weak.

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: 76.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 76.3 is above the 20-day moving average (MA) of 73.90, above the 50-day MA of 74.76, and above the 200-day MA of 51.36, indicating a bullish trend. The MACD of 0.34 indicates Negative momentum. The RSI at 52.89 is Neutral, neither overbought nor oversold. The STOCH value of 70.24 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
RPM	71 Outperform	$14.62B	21.98	22.72%	1.96%	3.09%	12.25%
EMN	68 Neutral	$8.62B	18.42	8.07%	5.33%	-3.33%	-19.59%
SQM	63 Neutral	$20.97B	41.84	9.87%	―	-10.07%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ALB	60 Neutral	$21.06B	―	-5.24%	1.10%	-23.92%	90.47%
IFF	57 Neutral	$21.06B	-60.04	-2.48%	2.41%	-3.01%	82.30%
WLK	55 Neutral	$13.48B	-9.00	-15.54%	2.88%	-5.32%	-1108.29%

Sociedad Quimica Y Minera SA Corporate Events

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.

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.

The most recent analyst rating on (SQM) stock is a Hold with a $64.00 price target. To see the full list of analyst forecasts on Sociedad Quimica Y Minera SA stock, see the SQM Stock Forecast page.

SQM 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.

The most recent analyst rating on (SQM) stock is a Buy with a $54.00 price target. To see the full list of analyst forecasts on Sociedad Quimica Y Minera SA stock, see the SQM Stock Forecast page.