Uncovering Dividend Opportunities with NYSE:SQM.

Last update: Oct 10, 2023

QUIMICA Y MINERA CHIL-SP ADR (NYSE:SQM) was identified as a stock worth exploring by dividend investors by our stock screener. NYSE:SQM scores well on profitability, solvency and liquidity. At the same time it seems to pay a decent dividend. We'll explore this a bit deeper below.

Analyzing Dividend Metrics

ChartMill employs its own Dividend Rating system for all stocks. This score, on a scale of 0 to 10, is determined by evaluating different dividend factors, such as yield, historical performance, dividend growth, and sustainability. NYSE:SQM has been assigned a 8 for dividend:

With a Yearly Dividend Yield of 10.90%, SQM is a good candidate for dividend investing.
SQM's Dividend Yield is rather good when compared to the industry average which is at 2.12. SQM pays more dividend than 100.00% of the companies in the same industry.
SQM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.76.
On average, the dividend of SQM grows each year by 98.58%, which is quite nice.
SQM has been paying a dividend for at least 10 years, so it has a reliable track record.
SQM's earnings are growing more than its dividend. This makes the dividend growth sustainable.

Analyzing Health Metrics

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:SQM has achieved a 8 out of 10:

SQM has an Altman-Z score of 5.12. This indicates that SQM is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.12, SQM belongs to the best of the industry, outperforming 82.76% of the companies in the same industry.
The Debt to FCF ratio of SQM is 2.06, which is a good value as it means it would take SQM, 2.06 years of fcf income to pay off all of its debts.
SQM has a better Debt to FCF ratio (2.06) than 90.80% of its industry peers.
A Debt/Equity ratio of 0.45 indicates that SQM is not too dependend on debt financing.
Even though the debt/equity ratio score it not favorable for SQM, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
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.
With a decent Current ratio value of 2.48, SQM is doing good in the industry, outperforming 60.92% of the companies in the same industry.
SQM's Quick ratio of 1.81 is fine compared to the rest of the industry. SQM outperforms 68.97% of its industry peers.

How do we evaluate the Profitability for NYSE:SQM?

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:SQM has achieved a 10:

With an excellent Return On Assets value of 34.56%, SQM belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Equity of SQM (71.10%) is better than 100.00% of its industry peers.
SQM has a better Return On Invested Capital (46.56%) than 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SQM is significantly above the industry average of 11.31%.
The last Return On Invested Capital (46.56%) for SQM is above the 3 year average (22.85%), which is a sign of increasing profitability.
SQM has a Profit Margin of 35.24%. This is amongst the best in the industry. SQM outperforms 97.70% of its industry peers.
SQM's Profit Margin has improved in the last couple of years.
SQM's Operating Margin of 49.99% is amongst the best of the industry. SQM outperforms 100.00% of its industry peers.
SQM's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 51.46%, SQM belongs to the top 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.

More Best Dividend stocks can be found in our Best Dividend screener.

Our latest full fundamental report of SQM contains the most current fundamental analsysis.

Keep in mind

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.