Sociedad Quimica Y Minera De Chile SA ADR (SQM) Quote - XNYS | Morningstar

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Trimming SQM's Fair Value Estimate to $55 on Dilutive Share Issuance to Fund Capacity Expansions

Senior Equity Analyst Seth Goldstein

Seth Goldstein, CFA Senior Equity Analyst

Analyst Note

| Seth Goldstein, CFA | Dec 24, 2020

On Dec. 23, SQM announced it plans to issue $1.1 billion in class-B equity--roughly 22.4 million shares. This implies an average share issuance price of around $49 per share, which we view as dilutive to current shareholders given that the price is 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.

Contact

El Trovador 4285, 6th Floor, Las Condes
Santiago, Chile

T +56 224252000

kelly.obrien@sqm.com

Sector Basic Materials

Industry Chemicals

Most Recent Earnings Sep 30, 2020

Fiscal Year End Dec 31, 2020

Stock Type —

Employees 5,598

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