Balancing Dividends and Fundamentals: The Case of NYSE:SQM.

Last update: Feb 29, 2024

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.

How do we evaluate the Dividend for NYSE:SQM?

ChartMill assigns a Dividend Rating to every stock. This score ranges from 0 to 10 and evaluates the different dividend aspects, including the yield, the growth and sustainability. NYSE:SQM scores a 7 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 2.37, 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 2.45.
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.

Health Assessment of NYSE:SQM

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:SQM scores a 7 out of 10:

SQM has an Altman-Z score of 4.91. 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 4.91, SQM is in the better half of the industry, outperforming 78.82% 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.
The Debt to FCF ratio of SQM (2.06) is better than 88.24% 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.
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.
The Current ratio of SQM (2.48) is better than 63.53% of its industry peers.
With a decent Quick ratio value of 1.81, SQM is doing good in the industry, outperforming 68.24% of the companies in the same industry.

Looking at the Profitability

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.
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.
SQM had an Average Return On Invested Capital over the past 3 years of 22.85%. This is significantly above the industry average of 11.48%.
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 98.82% of its industry peers.
In the last couple of years the Profit Margin of SQM has grown nicely.
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 Gross Margin of 51.46%. This is amongst the best in the industry. SQM outperforms 97.65% of its industry peers.
In the last couple of years the Gross Margin of SQM has grown nicely.

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

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

Keep in mind

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.