Investors should take note of NYSE:SQM, a growth stock that remains attractively priced.

Last update: Oct 13, 2023

Consider QUIMICA Y MINERA CHIL-SP ADR (NYSE:SQM) as an affordable growth stock, identified by our stock screening tool. NYSE:SQM is showcasing impressive growth figures and is well-positioned in terms of profitability, solvency, and liquidity. Moreover, it seems to be priced reasonably. Let's dive deeper into the analysis.

Growth Assessment of NYSE:SQM

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:SQM boasts a 10 out of 10:

The Earnings Per Share has grown by an impressive 193.91% over the past year.
Measured over the past years, SQM shows a very strong growth in Earnings Per Share. The EPS has been growing by 52.96% on average per year.
The Revenue has grown by 151.62% in the past year. This is a very strong growth!
The Revenue has been growing by 37.78% on average over the past years. This is a very strong growth!
Based on estimates for the next years, SQM will show a very strong growth in Earnings Per Share. The EPS will grow by 729.30% on average per year.
The Revenue is expected to grow by 748.99% on average over the next years. This is a very strong growth
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Valuation Analysis for NYSE:SQM

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:SQM has earned a 7 for valuation:

Based on the Price/Earnings ratio of 4.34, the valuation of SQM can be described as very cheap.
Based on the Price/Earnings ratio, SQM is valued cheaper than 98.85% of the companies in the same industry.
SQM is valuated cheaply when we compare the Price/Earnings ratio to 25.71, which is the current average of the S&P500 Index.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SQM indicates a rather cheap valuation: SQM is cheaper than 93.10% of the companies listed in the same industry.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SQM has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as SQM's earnings are expected to grow with 729.30% in the coming years.

Deciphering NYSE:SQM's Health Rating

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:SQM has earned a 8 out of 10:

An Altman-Z score of 5.29 indicates that SQM is not in any danger for bankruptcy at the moment.
The Altman-Z score of SQM (5.29) is better than 83.91% of its industry peers.
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 has a Debt to FCF ratio of 2.06. This is amongst the best in the industry. SQM outperforms 90.80% 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.
A Current Ratio of 2.48 indicates that SQM has no problem at all paying its short term obligations.
SQM has a better Current ratio (2.48) than 60.92% of its industry peers.
SQM has a better Quick ratio (1.81) than 68.97% of its industry peers.

What does the Profitability looks like 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 Return On Assets of 34.56%. This is amongst the best in the industry. SQM outperforms 100.00% of its industry peers.
SQM has a better Return On Equity (71.10%) than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 46.56%, SQM belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years 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's Profit Margin of 35.24% is amongst the best of the industry. SQM outperforms 97.70% of its industry peers.
In the last couple of years the Profit Margin of SQM has grown nicely.
SQM has a better Operating Margin (49.99%) than 100.00% of its industry peers.
In the last couple of years the Operating Margin of SQM has grown nicely.
The Gross Margin of SQM (51.46%) is better than 100.00% of its industry peers.
SQM's Gross Margin has improved in the last couple of years.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

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

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.