Sociedad Quimica Y Minera De Chile SA ADR SQM

Morningstar Rating
$41.69 +1.25 (3.09%)
View Full Chart

Company Report

Lithium: We Expect a Recovery in 2025

Lithium prices are at multiyear lows due to oversupply. The issue is driven by supply growth. Demand is growing at a mid-teens percentage, due to higher global electric vehicle sales and the buildout of energy storage systems. However, a wave of new supply exceeded demand growth driving prices down.

Price vs Fair Value

SQM is trading at a 824% premium.
Price
$40.44
Fair Value
$59.00
Uncertainty
Very High
1-Star Price
$942.59
5-Star Price
$59.70
Economic Moat
Wltzsdc
Capital Allocation
Wxlxshkrb

Bulls Say, Bears Say

Bulls

SQM's crown jewel is its Salar de Atacama operation in Chile, which is the lowest-cost lithium deposit globally. Its capacity expansions at this resource should create long-term value.

Bears

Lithium prices will fall as new supply comes online faster than demand, which will weigh on profitability. SQM's plans to develop a new lithium resource will prove value-destructive in the wake of lower prices.

News

Trading Information

Previous Close Price
$40.44
Day Range
$41.2242.16
52-Week Range
$32.2464.62
Bid/Ask
$41.80 / $42.00
Market Cap
$11.91 Bil
Volume/Avg
1.4 Mil / 1.0 Mil

Key Statistics

Price/Earnings (Normalized)
31.18
Price/Sales
2.09
Dividend Yield (Trailing)
3.28%
Dividend Yield (Forward)
3.28%
Total Yield
3.28%

Company Profile

Sociedad Quimica y Minera de Chile is a Chilean commodities producer with significant operations in lithium (primarily used in batteries for electric vehicles and energy storage systems), specialty and standard potassium fertilizers, iodine (primarily used in X-ray contrast media), and solar salts. The company extracts these materials through its high-quality salt brine deposits and caliche ore. SQM is developing a hard rock lithium project in Australia and expanding its lithium refining assets in China.
Sector
Basic Materials
Industry
Specialty Chemicals
Stock Style Box
Large Value
Total Number of Employees
7,909

Competitors

Valuation

Metric
SQM
LAAC
MOS
Price/Earnings (Normalized)
31.1813.53
Price/Book Value
2.340.600.73
Price/Sales
2.090.72
Price/Cash Flow
21.320.414.85
Price/Earnings
SQM
LAAC
MOS

Financial Strength

Metric
SQM
LAAC
MOS
Quick Ratio
1.410.510.47
Current Ratio
2.190.511.16
Interest Coverage
9.47−1.171.91
Quick Ratio
SQM
LAAC
MOS

Profitability

Metric
SQM
LAAC
MOS
Return on Assets (Normalized)
0.62%−1.22%2.98%
Return on Equity (Normalized)
1.34%−1.50%5.63%
Return on Invested Capital (Normalized)
1.16%−3.41%4.85%
Return on Assets
SQM
LAAC
MOS

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