Sociedad Quimica Y Minera SA (SQM) AI Stock Analysis

• Market Cap: $21.91B
• Dividend Yield: N/A
• Average Volume (3M): 1.21M
• Price to Earnings (P/E): 42.5
• Beta (1Y): 0.69
• 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: 1,750,720
• 30 Day Avg. Volume: 1,208,702
• 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: 0.67
• Enterprise Value/Revenue: 3.39
• Enterprise Value/Gross Profit: 12.23
• Enterprise Value/Ebitda: 14.57
• 1Y Price Target: $67.75
• Price Target Upside: -12.61% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 3.99
• Revenue Forecast (FY): $5.75B

• Rating: 63 Neutral
• Price Target: $89.00 ▲(14.79% Upside)

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

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 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

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: 77.53
• 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 77.53 is above the 20-day moving average (MA) of 73.25, above the 50-day MA of 64.96, and above the 200-day MA of 45.55, indicating a bullish trend. The MACD of 4.35 indicates Negative momentum. The RSI at 63.59 is Neutral, neither overbought nor oversold. The STOCH value of 70.91 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
EMN	72 Outperform	$7.83B	11.45	12.24%	5.33%	-3.33%	-19.59%
RPM	71 Outperform	$14.20B	21.36	22.72%	1.96%	3.09%	12.25%
SQM	63 Neutral	$21.91B	42.51	9.87%	―	-10.07%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
IFF	61 Neutral	$18.36B	-44.27	-2.84%	2.41%	-3.01%	82.30%
ALB	58 Neutral	$19.19B	-102.10	-0.21%	1.10%	-23.92%	90.47%
WLK	56 Neutral	$11.27B	-11.84	-9.48%	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.