Skip to Content

Sociedad Quimica Y Minera De Chile SA ADR SQM

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Maintaining $60 FVE as SQM Reports Solid Second-Quarter Results; Shares Undervalued

Seth Goldstein, CFA Senior Equity Analyst

Analyst Note

| Seth Goldstein, CFA |

Sociedad Quimica y Minera de Chile reported solid second-quarter results. Adjusted EBITDA rose 34% year on year, driven by higher lithium, iodine, and fertilizer volumes. Lithium prices were roughly flat year on year but up sequentially as SQM's shorter-term contracts versus its lithium peers allow the company to benefit more quickly from rising prices. This was in line with our full-year outlook that SQM would see sequentially rising prices each quarter. Having updated our model to incorporate the second-quarter results, we maintain our fair value estimate of $60 per share. Our narrow moat rating is also unchanged. At current prices, we view SQM shares as undervalued, trading in 4-star territory.

Read Full Analysis

Company Profile

Business Description

Sociedad Quimica y Minera de Chile 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
Sector Basic Materials
Industry Chemicals
Most Recent Earnings Jun 30, 2021
Fiscal Year End Dec 31, 2021
Stock Type
Employees 5,647

Related