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

Last update: Nov 26, 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.

What does the Dividend looks like for NYSE:SQM

ChartMill provides a Dividend Rating for every stock, ranging from 0 to 10. This rating assesses various dividend aspects, including yield, growth, and sustainability. NYSE:SQM earns 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 3.05, 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 2.19.
On average, the dividend of SQM grows each year by 98.58%, which is quite nice.
SQM has paid a dividend for at least 10 years, which is a reliable track record.

Deciphering NYSE:SQM's Health Rating

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 8 out of 10:

An Altman-Z score of 4.70 indicates that SQM is not in any danger for bankruptcy at the moment.
The Altman-Z score of SQM (4.70) is better than 89.41% of its industry peers.
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.
The Debt to FCF ratio of SQM (2.06) is better than 89.41% 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's Debt to Equity ratio of 0.45 is fine compared to the rest of the industry. SQM outperforms 64.71% of its industry peers.
A Current Ratio of 2.48 indicates that SQM has no problem at all paying its short term obligations.
SQM's Current ratio of 2.48 is fine compared to the rest of the industry. SQM outperforms 62.35% of its industry peers.
The Quick ratio of SQM (1.81) is better than 69.41% of its industry peers.

Evaluating Profitability: NYSE:SQM

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:SQM, the assigned 9 is noteworthy for profitability:

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 better Return On Equity (71.10%) than 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.
Measured over the past 3 years, the Average Return On Invested Capital for SQM is significantly above the industry average of 7.18%.
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.
The Profit Margin of SQM (35.24%) is better than 100.00% of its industry peers.
SQM's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 49.99%, SQM belongs to the top 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 92.94% of its industry peers.
In the last couple of years the Gross Margin of SQM has grown nicely.

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

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

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.