Don't overlook NYSE:SQM—it's a hidden gem with strong fundamentals and an attractive price tag.

Last update: Apr 5, 2024

Discover QUIMICA Y MINERA CHIL-SP ADR (NYSE:SQM), an undervalued stock highlighted by our stock screener. NYSE:SQM showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

Evaluating Valuation: NYSE:SQM

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NYSE:SQM was assigned a score of 7 for valuation:

A Price/Earnings ratio of 3.54 indicates a rather cheap valuation of SQM.
SQM's Price/Earnings ratio is rather cheap when compared to the industry. SQM is cheaper than 98.82% of the companies in the same industry.
SQM is valuated cheaply when we compare the Price/Earnings ratio to 25.77, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 5.81, which indicates a rather cheap valuation of SQM.
Based on the Price/Forward Earnings ratio, SQM is valued cheaper than 98.82% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.16. SQM is valued rather cheaply when compared to this.
Based on the Price/Free Cash Flow ratio, SQM is valued cheaply inside the industry as 96.47% of the companies are valued more expensively.
The excellent profitability rating of SQM may justify a higher PE ratio.

Profitability Assessment of NYSE:SQM

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:SQM scores a 9 out of 10:

SQM's Return On Assets of 34.56% is amongst the best of the industry. SQM outperforms 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.
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 11.36%.
The 3 year average ROIC (22.85%) for SQM is below the current ROIC(46.56%), indicating increased profibility in the last year.
Looking at the Profit Margin, with a value of 35.24%, SQM belongs to the top of the industry, outperforming 98.82% of the companies in the same industry.
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.
With an excellent Gross Margin value of 51.46%, SQM belongs to the best of the industry, outperforming 97.65% of the companies in the same industry.
In the last couple of years the Gross Margin of SQM has grown nicely.

Exploring NYSE:SQM's Health

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 7 out of 10:

An Altman-Z score of 4.97 indicates that SQM is not in any danger for bankruptcy at the moment.
SQM has a Altman-Z score of 4.97. This is amongst the best in the industry. SQM outperforms 83.53% 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.
Looking at the Debt to FCF ratio, with a value of 2.06, SQM belongs to the top of the industry, outperforming 89.41% of the companies in the same industry.
A Debt/Equity ratio of 0.45 indicates that SQM is not too dependend on debt financing.
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 64.71% of its industry peers.
SQM's Quick ratio of 1.81 is fine compared to the rest of the industry. SQM outperforms 68.24% of its industry peers.

Assessing Growth 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:

The Earnings Per Share has grown by an impressive 193.91% over the past year.
The Earnings Per Share has been growing by 52.96% on average over the past years. This is a very strong growth
Looking at the last year, SQM shows a very strong growth in Revenue. The Revenue has grown by 151.62%.
The Revenue has been growing by 37.78% on average over the past years. This is a very strong growth!

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

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

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.