Want to see SQM full AI Analyst Report?
Top Page
Sociedad Quimica Y Minera SA
(NYSE:SQM)
Select Model
Select Model
Rating:73Outperform
Price Target:
$91.00
▲(16.25% Upside)
Action:Upgraded
Date:08/22/26
The score is driven primarily by strong TTM financial recovery (high margins and improved free cash flow) and constructive technical trend (price above major moving averages with positive MACD). This is tempered by cyclical volatility and moderate leverage, stretched momentum signals (RSI/Stoch overbought), and earnings-call risks around lithium price/supply volatility and execution dependencies, while valuation appears reasonable but not clearly cheap and the dividend yield is modest.
Positive Factors
Earnings and Cash Flow Recovery
The rebound in revenue, profitability and free cash flow strengthens internal funding capacity and demonstrates operating leverage. If maintained, this recovery can support investment, debt servicing and shareholder returns over the next several quarters.
Negative Factors
Commodity-Cycle Earnings Volatility
The historical swings show that SQM’s earnings remain highly sensitive to lithium, fertilizer and iodine prices. Even with strong current results, a reversal in commodity conditions could quickly pressure margins, cash flow and funding capacity.
Read all positive and negative factors
Positive Factors
Negative Factors
Earnings and Cash Flow Recovery
The rebound in revenue, profitability and free cash flow strengthens internal funding capacity and demonstrates operating leverage. If maintained, this recovery can support investment, debt servicing and shareholder returns over the next several quarters.
Read all positive factors
Sociedad Quimica Y Minera SA (SQM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$21.37B
Dividend Yield1.27%
Average Volume (3M)961.92K
Price to Earnings (P/E)16.6
Beta (1Y)0.73
Revenue Growth58.56%
EPS Growth189.59%
CountryUS
Employees7,739
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)4.86
Shares Outstanding142,818,910
10 Day Avg. Volume1,006,040
30 Day Avg. Volume961,925
Financial Highlights & Ratios
PEG Ratio-0.14
Price to Book (P/B)3.45
Price to Sales (P/S)4.30
P/FCF Ratio44.90
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$85.71Price Target Upside9.50% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)6.91
Revenue Forecast (FY)$8.33B
Sociedad Quimica Y Minera SA Business Overview & Revenue Model
Company Description
Sociedad Química y Minera de Chile S.A., commonly known as SQM, is a major global producer and distributor of a diverse array of chemical and mineral products. Its extensive offerings include specialized plant nutrition solutions, iodine and its v...
How the Company Makes Money
SQM primarily makes money by producing and selling commodity and specialty chemical products, with revenue driven by sales volumes and market prices under customer contracts and spot/short-term arrangements (where applicable). Its key revenue stre...
Sociedad Quimica Y Minera SA Earnings Call Summary
Earnings Call Date:Aug 19, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 18, 2026
Earnings Call Sentiment Positive
SQM's call was largely positive: the company reported record lithium volumes, rising Q2 lithium prices, clear near-term production targets (280k–290k LCE in 2026; ~300k in 2027), robust iodine and specialty nutrition performance, and sizable strategic investments (Mount Holland expansion, Salar Futuro, and $3B CapEx plan). However, the positive outlook is tempered by market and execution risks — price volatility, timing/realization mismatches, potential supply additions from other regions, BESS deployment timing, reliance on tolling partners, and multi-year timelines for major projects — which create short-to-medium term uncertainty.Positive Updates
Record Lithium Sales Volumes
Achieved record quarterly sales volumes of more than 84,000 metric tons of lithium carbonate equivalent (LCE) across Chile (Novandino) and Australia (Covalent) in Q2 2026.
Negative Updates
Price Volatility and Index-Linked Realizations
Price realizations can be volatile and are index-linked; timing of discrete shipments caused international (spodumene) average selling price to lag increases seen in spot spodumene indices, creating temporary realization mismatches.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Lithium Sales Volumes
Achieved record quarterly sales volumes of more than 84,000 metric tons of lithium carbonate equivalent (LCE) across Chile (Novandino) and Australia (Covalent) in Q2 2026.
Read all positive updates
Company Guidance
Management's guidance highlighted strong near‑term volumes and a clear build‑out of capacity: record Q2 sales of >84,000 metric tons LCE, Q3 sales volumes and index‑based prices expected roughly in line with Q2 (with Q3 unit costs similar to Q2 and gross margins broadly stable), Novandino Litio production guidance of 280,000–290,000 mt LCE in 2026 and ~300,000 mt capacity by 2027 (with roughly 80,000 mt LCE from sulfate processing and ~220,000 mt from the Antofagasta plant, and ~20–30k mt as hydroxide), International (Australia/Covalent) full‑year sales expected at ~27,000–30,000 mt LCE, SQM’s view that global lithium demand will exceed 2.1 million mt in 2026, a ~$3 billion capital expenditure program for 2026–28 (and the Salar Futuro project also described at ~ $3 billion over seven years), Mount Holland spodumene capacity to double to ~350,000 tpy with first production targeted in 2030, expected total iodine production of ~15,500 mt in 2026, specialty plant nutrition volumes up ~10% versus 2025, and >$1.6 billion paid to the Chilean government in 1H.Sociedad Quimica Y Minera SA Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
66
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.74B | 4.57B | 4.53B | 7.47B | 10.71B | 2.86B |
| Gross Profit | 2.84B | 1.34B | 1.33B | 3.08B | 5.74B | 1.09B |
| EBITDA | 2.97B | 1.57B | 1.17B | 2.94B | 5.58B | 926.12M |
| Net Income | 1.39B | 587.21M | -404.36M | 2.01B | 3.91B | 585.45M |
Balance Sheet | ||||||
| Total Assets | 16.58B | 14.52B | 11.50B | 11.71B | 10.82B | 7.18B |
| Cash, Cash Equivalents and Short-Term Investments | 4.33B | 2.73B | 2.44B | 2.36B | 3.61B | 2.42B |
| Total Debt | 5.29B | 4.82B | 4.82B | 4.55B | 2.91B | 2.61B |
| Total Liabilities | 7.94B | 6.46B | 6.30B | 6.14B | 5.89B | 3.96B |
| Stockholders Equity | 6.29B | 5.70B | 5.16B | 5.53B | 4.90B | 3.18B |
Cash Flow | ||||||
| Free Cash Flow | 1.94B | 437.69M | 302.89M | -1.30B | 3.17B | 357.80M |
| Operating Cash Flow | 2.75B | 1.31B | 1.27B | -196.64M | 4.08B | 822.52M |
| Investing Cash Flow | -1.10B | -771.76M | -1.21B | -1.48B | -909.40M | -1.01B |
| Financing Cash Flow | 146.11M | -146.95M | 282.38M | 66.26M | -2.00B | 1.21B |
Sociedad Quimica Y Minera SA Technical Analysis
Positive
78.28
Price Trends
73.02
Positive
79.01
Positive
75.03
Positive
Market Momentum
2.32
Negative
63.77
Neutral
58.58
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 78.28 is above the 20-day moving average (MA) of 74.28, above the 50-day MA of 73.02, and above the 200-day MA of 75.03, indicating a bullish trend. The MACD of 2.32 indicates Negative momentum. The RSI at 63.77 is Neutral, neither overbought nor oversold. The STOCH value of 58.58 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 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $21.37B | 16.59 | 23.63% | 1.48% | 58.56% | 189.59% | |
69 Neutral | $13.67B | 20.37 | 20.93% | 2.02% | 6.66% | -3.58% | |
66 Neutral | $22.23B | 79.68 | 2.05% | 2.11% | -11.72% | ― | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | $15.87B | 282.85 | 2.26% | 1.41% | 18.32% | ― | |
60 Neutral | $8.34B | 18.77 | 7.42% | 4.91% | -4.30% | -46.24% | |
58 Neutral | $9.53B | -7.69 | -13.93% | 2.87% | -3.95% | -1725.20% |
* Basic Materials Sector Average
SQM
Sociedad Quimica Y Minera SA
80.43
35.08
77.37%
ALB
Albemarle
135.77
51.99
62.05%
EMN
Eastman Chemical
72.65
7.71
11.87%
IFF
International Flavors & Fragrances
86.85
21.34
32.57%
RPM
RPM International
105.70
-17.29
-14.06%
WLK
Westlake Corporation
73.93
-10.20
-12.12%
Sociedad Quimica Y Minera SA Corporate Events
SQM Posts Surging First-Half 2026 Profits and Doubles Down on Global Lithium Expansion
Aug 21, 2026
Sociedad Química y Minera de Chile reported that for the six months ended June 30, 2026, revenues more than doubled year on year to US$4.23 billion and net income jumped 353.5% to US$1.02 billion, driven primarily by lithium, which delivered ...
SQM and Wesfarmers Double Down on Mt Holland Lithium Expansion
Jul 27, 2026
On July 21, 2026, SQM and Australia’s Wesfarmers approved a final investment decision to expand their Mt Holland lithium project in Western Australia through joint venture Covalent Lithium. The plan includes enlarging the mine and concentrat...
SQM Names Hernán Büchi Buc as New Vice Chairman After Board Reshuffle
May 27, 2026
On May 26, 2026, SQM announced a change in its board leadership, with Vice Chairman Gonzalo Guerrero Yamamoto resigning from his position. At an ordinary board meeting held the same day, directors appointed Hernán Büchi Buc as the new Vi...
SQM First-Quarter 2026 Profit Soars on Lithium, Raises Sales Guidance
May 27, 2026
Sociedad Química y Minera de Chile (SQM) reported that in the first quarter ended March 31, 2026, revenues surged 69.8% year-on-year to US$1,760.1 million, while net income jumped 165.2% to US$364.7 million, driven mainly by lithium. Lithium ...
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.