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SQM Earnings: Profits Rise on Higher Lithium Prices; Maintaining Valuation
Sociedad Quimica y Minera reported strong first-quarter results as higher lithium prices and volumes drove a more than 150% year-over-year gross profit increase.
Sociedad Quimica Y Minera De Chile SA ADR SQM
Bulls Say, Bears Say
Bulls
SQM's crown jewel is its Salar de Atacama operation in Chile, which is the lowest-cost lithium deposit globally. Its capacity expansions at this resource should create long-term value.
Bears
Lithium prices will fall as new supply comes online faster than demand, which will weigh on profitability. SQM's plans to develop a new lithium resource will prove value-destructive in the wake of lower prices.
News
Trading Information
- Previous Close Price
- $75.43
- Day Range
- $72.27–76.00
- 52-Week Range
- $31.90–98.00
- Bid/Ask
- $71.49 / $73.00
- Shares Outstanding
- 285.64M
- Market Cap
- $20.78B
- Volume/Avg
- 1M / 1M
Key Statistics
- Price/Earnings (Normalized)
- 25.02
- Price/Sales
- 3.92
- Dividend Yield (Trailing)
- 1.42%
- Dividend Yield (Forward)
- 1.42%
- Total Yield
- 1.42%
Company Profile
Sociedad Quimica y Minera de Chile is a Chilean commodities producer with significant operations in lithium (primarily used in batteries for electric vehicles and energy storage systems), specialty and standard potassium fertilizers, iodine (primarily used in X-ray contrast media), and solar salts. The company extracts these materials through its high-quality salt brine deposits and caliche ore. SQM also sells lithium concentrate from a joint venture hard rock lithium project in Australia and expanding its lithium refining assets in China.
- Sector
- Basic Materials
- Industry
- Specialty Chemicals
- Stock Style Box
- Large Core
- Total Number of Employees
- 7,739
- Website
- https://www.sqm.com
Competitors
Valuation
|
Metric
|
SQM
|
MOS
|
ALB
|
|---|---|---|---|
Price/Earnings (Normalized) | 25.02 | 11.75 | 64.07 |
Price/Book Value | 3.55 | 0.58 | 2.32 |
Price/Sales | 3.92 | 0.55 | 3.22 |
Price/Cash Flow | 10.58 | 4.46 | 34.56 |
Price/Earnings
SQM
MOS
ALB
Financial Strength
|
Metric
|
SQM
|
MOS
|
ALB
|
|---|---|---|---|
Quick Ratio | 1.86 | 0.36 | 1.11 |
Current Ratio | 2.76 | 1.25 | 2.07 |
Interest Coverage | 8.16 | 3.21 | −0.45 |
Quick Ratio
SQM
MOS
ALB
Profitability
|
Metric
|
SQM
|
MOS
|
ALB
|
|---|---|---|---|
Return on Assets (Normalized) | 7.08% | −0.35% | 1.99% |
Return on Equity (Normalized) | 16.65% | −0.69% | 4.29% |
Return on Invested Capital (Normalized) | 8.67% | 0.43% | 3.58% |
Return on Assets
SQM
MOS
ALB
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United States