Investors should take notice of NYSE:SQM—it offers a great deal for the fundamentals it presents.

Last update: Dec 29, 2023

Uncover the hidden value in QUIMICA Y MINERA CHIL-SP ADR (NYSE:SQM) as our stock screening tool recommends it as an undervalued choice. NYSE:SQM maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

Deciphering NYSE:SQM's Valuation Rating

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 4.58, the valuation of SQM can be described as very cheap.
Based on the Price/Earnings ratio, SQM is valued cheaper than 98.84% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.20, SQM is valued rather cheaply.
The Price/Forward Earnings ratio is 6.68, which indicates a rather cheap valuation of SQM.
Based on the Price/Forward Earnings ratio, SQM is valued cheaply inside the industry as 98.84% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.09, SQM is valued rather cheaply.
91.86% of the companies in the same industry are more expensive than SQM, based on the Price/Free Cash Flow ratio.
The excellent profitability rating of SQM may justify a higher PE ratio.

Profitability Assessment of 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:

The Return On Assets of SQM (34.56%) is better than 100.00% of its industry peers.
With an excellent Return On Equity value of 71.10%, SQM belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
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 11.39%.
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 98.84% 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's Gross Margin of 51.46% is amongst the best of the industry. SQM outperforms 98.84% of its industry peers.
SQM's Gross Margin has improved in the last couple of years.

Health Examination for NYSE:SQM

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:SQM was assigned a score of 8 for health:

SQM has an Altman-Z score of 5.39. This indicates that SQM is financially healthy and has little risk of bankruptcy at the moment.
SQM has a Altman-Z score of 5.39. This is amongst the best in the industry. SQM outperforms 86.05% of its industry peers.
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 Debt to FCF ratio of 2.06. This is amongst the best in the industry. SQM outperforms 88.37% 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.
A Current Ratio of 2.48 indicates that SQM has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.48, SQM is doing good in the industry, outperforming 62.79% of the companies in the same industry.
The Quick ratio of SQM (1.81) is better than 65.12% of its industry peers.

What does the Growth looks like for NYSE:SQM

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:SQM was assigned a score of 5 for growth:

SQM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 193.91%, which is quite impressive.
SQM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 52.96% yearly.
Looking at the last year, SQM shows a very strong growth in Revenue. The Revenue has grown by 151.62%.
SQM shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 37.78% yearly.

More Decent Value stocks can be found in our Decent Value screener.

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

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.