Exploring NYSE:SQM's dividend characteristics.

Last update: Dec 17, 2024

Take a closer look at QUIMICA Y MINERA CHIL-SP ADR (NYSE:SQM), a stock of interest to dividend investors uncovered by our stock screener. NYSE:SQM excels in fundamentals and provides a decent dividend, all while maintaining a reasonable valuation. Let's break it down further.

Assessing Dividend Metrics 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:

With a Yearly Dividend Yield of 10.90%, SQM is a good candidate for dividend investing.
SQM's Dividend Yield is rather good when compared to the industry average which is at 3.14. SQM pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.24, SQM pays a better dividend.
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.

Analyzing Health Metrics

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:SQM, the assigned 8 for health provides valuable insights:

An Altman-Z score of 4.66 indicates that SQM is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 4.66, SQM belongs to the best of the industry, outperforming 91.57% 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.
Looking at the Debt to FCF ratio, with a value of 2.06, SQM belongs to the top of the industry, outperforming 89.16% 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 better Debt to Equity ratio (0.45) than 65.06% of its industry peers.
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.
Looking at the Current ratio, with a value of 2.48, SQM is in the better half of the industry, outperforming 62.65% of the companies in the same industry.
With a decent Quick ratio value of 1.81, SQM is doing good in the industry, outperforming 69.88% of the companies in the same industry.

Understanding NYSE:SQM's Profitability

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:SQM was assigned a score of 9 for profitability:

The Return On Assets of SQM (34.56%) is better than 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's Return On Invested Capital of 46.56% is amongst the best of 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 7.24%.
The 3 year average ROIC (22.85%) for SQM is below the current ROIC(46.56%), indicating increased profibility in the last year.
SQM has a better Profit Margin (35.24%) 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.
In the last couple of years the Operating Margin of SQM has grown nicely.
Looking at the Gross Margin, with a value of 51.46%, SQM belongs to the top of the industry, outperforming 93.98% of the companies in the same industry.
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.

Our latest full fundamental report of SQM contains the most current fundamental analsysis.

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.