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

Last update: Aug 22, 2024

QUIMICA Y MINERA CHIL-SP ADR (NYSE:SQM) has caught the attention of dividend investors as a stock worth considering. NYSE:SQM excels in profitability, solvency, and liquidity, all while providing a decent dividend. Let's delve into the details.

A Closer Look at Dividend for NYSE:SQM

An integral part of ChartMill's stock analysis is the Dividend Rating, which spans from 0 to 10. This rating evaluates diverse dividend factors, including yield, historical data, growth, and sustainability. NYSE:SQM has received 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 2.38. 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 2.29.
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.

Analyzing Health Metrics

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 4.69 indicates that SQM is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.69, SQM belongs to the top of the industry, outperforming 81.32% of the companies in the same industry.
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.
With an excellent Debt to FCF ratio value of 2.06, SQM belongs to the best of the industry, outperforming 83.52% of the companies in the same industry.
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 67.03% of its industry peers.
SQM has a Quick ratio of 1.81. This is in the better half of the industry: SQM outperforms 68.13% of its industry peers.

Profitability Examination for NYSE:SQM

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:SQM has earned a 9 out of 10:

With an excellent Return On Assets value of 34.56%, SQM belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
SQM has a Return On Equity of 71.10%. This is amongst the best in the industry. SQM outperforms 100.00% of its industry peers.
SQM has a better Return On Invested Capital (46.56%) than 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SQM is significantly above the industry average of 10.85%.
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.
Looking at the Profit Margin, with a value of 35.24%, SQM belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Profit Margin of SQM has grown nicely.
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.
Looking at the Gross Margin, with a value of 51.46%, SQM belongs to the top of the industry, outperforming 97.80% of the companies in the same industry.
SQM's Gross Margin has improved in the last couple of years.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

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

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.