Sociedad Quimica Y Minera SA (SQM) AI Stock Analysis

• Market Cap: $10.22B
• Dividend Yield: 0.47%
• Average Volume (3M): 1.23M
• Price to Earnings (P/E): 17.2
• Beta (1Y): 0.60
• Revenue Growth: -29.03%
• EPS Growth: 52.74%
• Country: US
• Employees: 8,344
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Chemicals - Specialty
• EPS (TTM): 0.48
• Shares Outstanding: 142,818,910
• 10 Day Avg. Volume: 1,483,737
• 30 Day Avg. Volume: 1,232,432
• PEG Ratio: 0.07
• Price to Book (P/B): 1.99
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 28.14
• Enterprise Value/Market Cap: 1.29
• Enterprise Value/Revenue: 0.69
• Enterprise Value/Gross Profit: 10.50
• Enterprise Value/Ebitda: 2.34
• 1Y Price Target: $43.40
• Price Target Upside: 11.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 68 Neutral
• Price Target: $42.00 ▲(7.83%Upside)

Sociedad Quimica Y Minera SA shows strength in its operational margins and strategic growth in the lithium segment, which is crucial given the current market demand. While financial and technical indicators are positive, challenges like declining lithium prices and political uncertainties in Chile weigh on the outlook. The company's strategic focus on expansion and innovation supports a positive long-term growth trajectory.

Positive Factors

Commodity Markets

SQM is seeing other benefits from very strong iodine markets and improving potash fertilizer markets.

Market Performance

The road to Chilean elections provides support to SQM shares, with the MSCI Chile index up 19.6% in US$ terms, making Chile a more appealing destination for investors.

Strategic Partnerships

The potential completion of the deal with Codelco and the stabilization of the lithium market are key to removing uncertainties around SQM and driving the shares.

Negative Factors

Financial Performance

Lower lithium volume and lower lithium ASP have led to a reduction in 2025E EBITDA expectations.

Market Sentiment

Global lithium remains mixed, with prices expected to decline and order backlogs stalling, affecting the overall sentiment in the lithium market.

Supply and Demand

It could be several quarters before better lithium prices emerge.

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 primarily through the production and sale of lithium, iodine, and plant nutrients. Lithium is a crucial component in battery production for electric vehicles and electronic devices, making it a significant growth driver for the company. Iodine is used in medical applications and various industrial processes, contributing to the company's diverse revenue streams. Additionally, SQM produces specialty plant nutrients that enhance agricultural productivity, further broadening its market reach. The company also benefits from strategic partnerships and joint ventures that enhance its production capabilities and market access, particularly in the expanding lithium market. These factors, along with its established global distribution network, enable SQM to maintain a strong financial performance.

Sociedad Quimica Y Minera SA Financial Statement Overview

Summary

Sociedad Quimica Y Minera SA showcases solid operational margins and a strong balance sheet with moderate leverage. Despite recent revenue and profit declines, the company maintains healthy cash flow and profitability ratios. Continued focus on improving revenue growth and net income will be essential for sustaining financial strength.

Income Statement

The company shows a strong gross profit margin of 28.12% and an EBIT margin of 22.25% for TTM, indicating good operational efficiency. However, the revenue growth rate is negative compared to previous periods, and net profit margin is reduced at 13.45% due to a decline in net income. EBITDA margin remains healthy at 24.13%, demonstrating stable earnings before non-cash items.

Balance Sheet

The balance sheet reflects a stable equity ratio of 45.73%, suggesting a solid financial base. The debt-to-equity ratio is moderate at 0.90, indicating manageable leverage. Return on equity is strong at 11.47%, showing effective use of equity to generate profits, although a reduction from past years.

Cash Flow

Operating cash flow to net income ratio is positive at 2.22, indicating sound cash generation capability relative to net income. However, free cash flow growth is modest with a TTM increase, and free cash flow to net income ratio is at 0.60, reflecting limited cash available for expansion or dividends.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.53B	7.47B	10.71B	2.86B	1.82B
Gross Profit	1.33B	3.07B	5.74B	1.09B	482.87M
EBITDA	1.17B	3.23B	5.80B	1.13B	516.62M
Net Income	-404.36M	2.01B	3.91B	585.45M	164.52M
Balance Sheet
Total Assets	11.50B	11.71B	10.82B	7.04B	4.82B
Cash, Cash Equivalents and Short-Term Investments	2.44B	2.36B	3.61B	2.42B	854.56M
Total Debt	4.82B	4.55B	2.91B	2.61B	1.95B
Total Liabilities	6.30B	6.14B	5.89B	3.83B	2.66B
Stockholders Equity	5.16B	5.53B	4.90B	3.18B	2.12B
Cash Flow
Free Cash Flow	302.89M	-1.28B	3.00B	357.80M	-140.01M
Operating Cash Flow	1.27B	-178.29M	3.91B	822.52M	182.23M
Investing Cash Flow	-1.21B	-1.48B	-909.40M	-1.01B	-167.09M
Financing Cash Flow	282.38M	47.91M	-2.00B	1.21B	-94.13M

Sociedad Quimica Y Minera SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 38.95
• 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 38.95 is above the 20-day moving average (MA) of 36.02, above the 50-day MA of 34.40, and above the 200-day MA of 37.81, indicating a bullish trend. The MACD of 1.11 indicates Negative momentum. The RSI at 62.65 is Neutral, neither overbought nor oversold. The STOCH value of 35.22 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	69 Neutral	$8.91B	9.82	16.16%	4.28%	2.78%	1.50%
AVTR	69 Neutral	$8.74B	12.27	12.52%	―	-2.64%	173.69%
SQM	68 Neutral	$10.22B	17.24	12.13%	0.47%	-29.03%	52.74%
PPG	64 Neutral	$25.94B	19.36	18.47%	2.38%	-7.67%	-0.58%
DD	63 Neutral	$31.00B	40.24	0.06%	2.22%	4.51%	-121.68%
ALB	55 Neutral	$8.24B	―	-10.58%	2.30%	-39.34%	-500.52%
Sector *	44 Neutral	C$967.00M	-6.65	-13.73%	2.47%	17.55%	-32.57%