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Sociedad Quimica Y Minera De Chile SA ADR SQM

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Morningstar’s Analysis

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1-Star Price


5-Star Price


Economic Moat


Capital Allocation


Maintaining $55 FVE as SQM Grows Lithium Volumes in Fourth Quarter; Shares Fairly Valued

Seth Goldstein, CFA Senior Equity Analyst

Analyst Note

| Seth Goldstein, CFA |

SQM's fourth-quarter results were highlighted by higher lithium volumes and lower prices. However, both of these as well as management's outlook for 2021 were generally in line with our long-term view for the company. With our forecast largely unchanged, we maintain our $55 per share fair value estimate for SQM. Our narrow moat rating is also unchanged. At current prices, we view SQM as fairly valued with shares trading in 3-star territory just below our fair value estimate.

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Company Profile

Business Description

SQM is a Chilean commodities producer with significant operations in lithium (for electric vehicle batteries), specialty potassium fertilizers, iodine (for X-ray contrast media), and solar salts. The company extracts these materials through its high-quality caliche ore and salt brine deposits.

El Trovador 4285, 6th Floor, Las Condes
Santiago, Chile
T +56 224252000
Sector Basic Materials
Industry Chemicals
Most Recent Earnings Sep 30, 2020
Fiscal Year End Dec 31, 2020
Stock Type
Employees 5,598