Sociedad Quimica Y Minera SA (SQM) AI Stock Analysis

• Market Cap: $12.26B
• Dividend Yield: 0.47%
• Average Volume (3M): 1.20M
• Price to Earnings (P/E): 25.8
• Beta (1Y): 0.69
• Revenue Growth: -23.20%
• EPS Growth: 1226.72%
• Country: US
• Employees: 8,344
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.31
• Shares Outstanding: 142,818,910
• 10 Day Avg. Volume: 1,317,031
• 30 Day Avg. Volume: 1,204,208
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 2.99
• Enterprise Value/Gross Profit: 11.16
• Enterprise Value/Ebitda: 13.48
• 1Y Price Target: $46.79
• Price Target Upside: 14.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 58 Neutral
• Price Target: $42.00 ▲(3.02% Upside)

The overall stock score reflects a combination of mixed financial performance, bearish technical indicators, and high valuation. The earnings call provided some optimism with strategic growth plans, but liquidity concerns and high P/E ratio weigh on the score.

Positive Factors

Lithium Market Dynamics

The improvement in lithium market dynamics, driven by strong demand from EV markets, indicates a positive structural trend that can enhance SQM's revenue potential and market position over the long term.

Strategic Partnerships

The completion of the Kwinana refinery through a joint venture with Wesfarmers strengthens SQM's production capabilities and positions it well to meet growing lithium demand, supporting long-term growth.

Operational Efficiency

SQM's ability to maintain robust EBIT and net profit margins reflects strong operational efficiency, which is crucial for sustaining profitability and competitive advantage in the long term.

Negative Factors

Revenue Decline

The decline in revenue due to lower lithium prices highlights vulnerability to commodity price fluctuations, which could impact financial performance and growth prospects if not managed effectively.

Negative Free Cash Flow

Negative free cash flow indicates challenges in cash generation, which could strain liquidity and limit the company's ability to invest in growth opportunities or weather economic downturns.

Delayed Expansion Plans

Delays in expansion plans for Mt. Holland could hinder SQM's ability to capitalize on future growth opportunities in the lithium market, potentially affecting long-term competitive positioning.

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, primarily by selling its specialty fertilizers and lithium products. The demand for lithium, driven by the growth of electric vehicles and renewable energy storage, has become a significant revenue driver for the company. Additionally, SQM earns income from the sale of iodine and potassium nitrate, which are utilized in diverse applications ranging from agriculture to pharmaceuticals. The company has established strategic partnerships with major players in the automotive and technology sectors, enhancing its market position and contributing to its earnings. Furthermore, SQM benefits from its efficient production processes and low-cost operations in the lithium and potassium markets, allowing it to maintain competitive pricing while maximizing profitability.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.23B	4.53B	7.47B	10.71B	2.86B	1.82B
Gross Profit	1.13B	1.33B	3.07B	5.74B	1.09B	482.87M
EBITDA	937.44M	1.17B	3.23B	5.80B	1.13B	516.62M
Net Income	477.51M	-404.36M	2.01B	3.91B	585.45M	164.52M
Balance Sheet
Total Assets	11.52B	11.50B	11.71B	10.82B	7.04B	4.82B
Cash, Cash Equivalents and Short-Term Investments	2.23B	2.44B	2.36B	3.61B	2.42B	854.56M
Total Debt	4.74B	4.82B	4.55B	2.91B	2.61B	1.95B
Total Liabilities	6.13B	6.30B	6.14B	5.89B	3.83B	2.66B
Stockholders Equity	5.35B	5.16B	5.53B	4.90B	3.18B	2.12B
Cash Flow
Free Cash Flow	-75.40M	302.89M	-1.28B	3.00B	357.80M	-140.01M
Operating Cash Flow	889.64M	1.27B	-178.29M	3.91B	822.52M	182.23M
Investing Cash Flow	-537.36M	-1.21B	-1.48B	-909.40M	-1.01B	-167.09M
Financing Cash Flow	189.19M	282.38M	47.91M	-2.00B	1.21B	-94.13M

Sociedad Quimica Y Minera SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 40.77
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SQM, the sentiment is Negative. The current price of 40.77 is below the 20-day moving average (MA) of 43.48, below the 50-day MA of 43.44, and above the 200-day MA of 38.81, indicating a neutral trend. The MACD of -0.14 indicates Positive momentum. The RSI at 38.98 is Neutral, neither overbought nor oversold. The STOCH value of 31.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	70 Neutral	$7.16B	8.76	14.52%	5.70%	1.60%	-3.97%
RPM	69 Neutral	$14.21B	20.70	24.05%	1.80%	3.09%	12.25%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SQM	58 Neutral	$12.26B	25.83	9.29%	0.47%	-23.20%	1226.72%
ALB	55 Neutral	$11.36B	―	-8.66%	1.80%	-33.05%	-97.63%
WLK	52 Neutral	$10.56B	25.36	-0.64%	2.78%	-3.00%	-124.79%
IFF	50 Neutral	$15.42B	83.39	-2.74%	2.69%	-0.07%	83.36%

Sociedad Quimica Y Minera SA Corporate Events

Sociedad Química y Minera de Chile S.A. Releases Interim Financial Statements for Q2 2025

Sociedad Química y Minera de Chile S.A. released its consolidated interim financial statements for the period ending June 30, 2025. The financial documents, which are unaudited, provide insights into the company’s financial position, income, and cash flows. While the release does not specify particular financial outcomes, it offers a comprehensive overview of SQM’s accounting policies and financial risk management strategies, reflecting the company’s ongoing commitment to transparency and regulatory compliance.

SQM Reports Turnaround in Earnings Amidst Lower Lithium Prices

Sociedad Química y Minera de Chile S.A. (SQM) reported a net income of $226 million for the first half of 2025, a significant turnaround from a net loss of $655.9 million in the same period last year, despite a 12.6% decline in revenues to $2,079.3 million. The company faced lower lithium market prices, impacting sales volumes, but anticipates a 10% growth in sales from its Salar de Atacama operations. SQM also announced the completion of the Kwinana refinery in Australia, expecting to produce 50,000 tons of battery-grade lithium hydroxide annually, which will support the rising demand for electric vehicles. The company remains optimistic about its diversified portfolio, with strong performance in iodine and potassium businesses.