Analyzing NYSE:SQM's Dividend Potential.

QUIMICA Y MINERA CHIL-SP ADR (NYSE:SQM) is a hidden gem unveiled by our stock screening tool, featuring a promising dividend outlook alongside solid fundamentals. NYSE:SQM demonstrates decent financial health and profitability while ensuring a sustainable dividend. Let's break it down further.

Dividend Analysis for NYSE:SQM

An integral part of ChartMill's stock analysis is the Dividend Rating, which spans from 0 to 10. This rating evaluates diverse dividend factors, including yield, historical data, growth, and sustainability. NYSE:SQM has received a 8 out of 10:

• With a Yearly Dividend Yield of 10.90%, SQM is a good candidate for dividend investing.
• Compared to an average industry Dividend Yield of 1.95, SQM pays a better dividend. On top of this SQM pays more dividend than 100.00% of the companies listed in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.64, SQM pays a better dividend.
• The dividend of SQM is nicely growing with an annual growth rate of 98.58%!
• SQM has been paying a dividend for at least 10 years, so it has a reliable track record.
• The dividend of SQM is growing, but earnings are growing more, so the dividend growth is sustainable.

Evaluating Health: NYSE:SQM

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:SQM, the assigned 8 reflects its health status:

• SQM has an Altman-Z score of 5.23. This indicates that SQM is financially healthy and has little risk of bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 5.23, SQM belongs to the top of the industry, outperforming 81.40% of the companies in the same industry.
• SQM has a debt to FCF ratio of 2.06. This is a good value and a sign of high solvency as SQM would need 2.06 years to pay back of all of its debts.
• SQM's Debt to FCF ratio of 2.06 is amongst the best of the industry. SQM outperforms 90.70% of its industry peers.
• A Debt/Equity ratio of 0.45 indicates that SQM is not too dependend on debt financing.
• Although SQM does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
• SQM has a Current Ratio of 2.48. This indicates that SQM is financially healthy and has no problem in meeting its short term obligations.
• Looking at the Current ratio, with a value of 2.48, SQM is in the better half of the industry, outperforming 60.47% of the companies in the same industry.
• With a decent Quick ratio value of 1.81, SQM is doing good in the industry, outperforming 68.60% of the companies in the same industry.

Profitability Assessment of NYSE:SQM

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:SQM has earned a 10 out of 10:

• The Return On Assets of SQM (34.56%) is better than 100.00% of its industry peers.
• The Return On Equity of SQM (71.10%) is better than 100.00% of its industry peers.
• The Return On Invested Capital of SQM (46.56%) is better than 100.00% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for SQM is significantly above the industry average of 11.29%.
• The 3 year average ROIC (22.85%) for SQM is below the current ROIC(46.56%), indicating increased profibility in the last year.
• Looking at the Profit Margin, with a value of 35.24%, SQM belongs to the top of the industry, outperforming 97.67% of the companies in the same industry.
• SQM's Profit Margin has improved in the last couple of years.
• Looking at the Operating Margin, with a value of 49.99%, SQM belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
• In the last couple of years the Operating Margin of SQM has grown nicely.
• With an excellent Gross Margin value of 51.46%, SQM belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
• SQM's Gross Margin has improved in the last couple of years.

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For an up to date full fundamental analysis you can check the fundamental report of SQM

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.