Why the dividend investor may take a look at NYSE:SQM.

Last update: Jun 19, 2024

Our stock screener has spotted QUIMICA Y MINERA CHIL-SP ADR (NYSE:SQM) as a good dividend stock with solid fundamentals. NYSE:SQM shows decent health and profitability. At the same time it gives a good and sustainable dividend. We'll dive into each aspect below.

Dividend Analysis for NYSE:SQM

To gauge a stock's dividend quality, ChartMill utilizes a Dividend Rating ranging from 0 to 10. This comprehensive assessment considers various dividend aspects, including yield, history, growth, and sustainability. NYSE:SQM has achieved a 7 out of 10:

SQM has a Yearly Dividend Yield of 10.90%, which is a nice return.
SQM's Dividend Yield is rather good when compared to the industry average which is at 2.25. SQM pays more dividend than 100.00% of the companies in the same industry.
SQM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
The dividend of SQM is nicely growing with an annual growth rate of 98.58%!
SQM has been paying a dividend for at least 10 years, so it has a reliable track record.

Unpacking NYSE:SQM's Health Rating

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:

An Altman-Z score of 4.78 indicates that SQM is not in any danger for bankruptcy at the moment.
The Altman-Z score of SQM (4.78) is better than 80.23% 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 better Debt to FCF ratio (2.06) than 83.72% of its industry peers.
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.
SQM has a Current ratio of 2.48. This is in the better half of the industry: SQM outperforms 62.79% of its industry peers.
The Quick ratio of SQM (1.81) is better than 65.12% of its industry peers.

Analyzing Profitability Metrics

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 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's Return On Equity of 71.10% is amongst the best of the industry. SQM outperforms 100.00% of its industry peers.
SQM has a Return On Invested Capital of 46.56%. This is amongst the best in the industry. SQM outperforms 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 11.21%.
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 98.84% of its industry peers.
SQM's Profit Margin has improved in the last couple of years.
SQM has a Operating Margin of 49.99%. This is amongst the best in the industry. SQM outperforms 100.00% of its industry peers.
SQM's Operating Margin has improved in the last couple of years.
The Gross Margin of SQM (51.46%) is better than 97.67% of its industry peers.
In the last couple of years the Gross Margin of SQM has grown nicely.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

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

Keep in mind

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.