Sociedad Química y Minera de Chile S.A. operates as a mining company worldwide. The company offers specialty plant nutrients, including sodium potassium nitrate, specialty blends, and other specialty fertilizers under Ultrasol, Qrop, Speedfol, Allganic, Ultrasoline, ProP, and Prohydric brands. It also provides iodine and its derivatives for use in medical, agricultural, industrial, and human and animal nutrition products comprising x-ray contrast media, biocides, antiseptics and disinfectants, pharmaceutical intermediates, polarizing films for LCD and LED screens, chemicals, organic compounds, and pigments, as well as added to edible salt to prevent iodine deficiency disorders. In addition, the company produces lithium carbonate and lithium hydroxide which are used in the production of cathode material for secondary batteries; lithium chloride; and basic lithium chemicals and lithium derivatives used in lubricating greases for heat-resistant glass, chips for the ceramic and glazing industry, and air conditioning chemicals, as well as other pharmaceutical syntheses and metal alloys. Further, it produces potassium sulfate; and potassium chloride which is used as a fertilizer for the application of potassium to different crops. Additionally, the company produces and markets industrial chemicals, such as sodium nitrate mainly used in the production of glass and explosives, metal processing and recycling, and production of insulating materials and adhesives; potassium nitrate used as a raw material to produce frits and special glass, as well as in the enamel, metal treatment, and pyrotechnic sectors; solar salts used as a thermal storage medium in solar power generation plants; and potassium chloride as an additive in oil drilling and food processing sectors. Furthermore, it is involved in the commercialization of third-party fertilizers; and exploration of copper, gold, and silver deposits. The company was founded in 1926 and is headquartered in Santiago, Chile.
Geopolitical Challenges | Learn about the potential impact of the Codelco joint venture and partial nationalization risks on SQM's operations and market valuation. |
Financial Outlook | Analysts project $700 million free cash flow for 2025 and EPS of $3.17, with BMO Nesbitt Burns setting a price target of $55.00 for September 2024 and March 2025. |
Diversification Strategy | Delve into SQM's robust product portfolio, including strong iodine performance and improving potash markets, which buffer against lithium market volatility. |
Lithium Market Dynamics | Explore SQM's position in the rapidly growing lithium market, with demand projected to outpace supply, potentially driving up prices and benefiting revenue streams. |
Metrics to compare | SQM | Sector Sector - Average of metrics from a broad group of related Basic Materials sector companies | Relationship RelationshipSQMPeersSector | |
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P/E Ratio | −24.7x | −0.5x | −0.1x | |
PEG Ratio | 0.21 | 0.01 | 0.00 | |
Price / Book | 1.9x | 1.1x | 1.6x | |
Price / LTM Sales | 2.2x | 0.9x | 1.2x | |
Upside (Analyst Target) | 42.5% | 5.3% | 32.4% | |
Fair Value Upside | Unlock | 4.9% | 3.8% | Unlock |