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 Assessment of NYSE:SQM

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:

• SQM has a Yearly Dividend Yield of 10.90%, which is a nice return.
• Compared to an average industry Dividend Yield of 2.12, SQM pays a better dividend. On top of this SQM pays more dividend than 100.00% of the companies listed in the same industry.
• SQM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.76.
• The dividend of SQM is nicely growing with an annual growth rate of 98.58%!
• SQM has paid a dividend for at least 10 years, which is a reliable track record.
• SQM's earnings are growing more than its dividend. This makes the dividend growth sustainable.

Health Analysis for NYSE:SQM

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:SQM, the assigned 8 for health provides valuable insights:

• SQM has an Altman-Z score of 5.29. 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 5.29, SQM belongs to the top of the industry, outperforming 83.91% 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.
• SQM has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
• 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.
• 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.
• With a decent Quick ratio value of 1.81, SQM is doing good in the industry, outperforming 68.97% of the companies in the same industry.

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:

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

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

Check the latest full fundamental report of SQM for a complete fundamental analysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.