Sociedad Quimica y Minera de Chile S.A. [NYSE:SQM]: Analyst Rating and Earnings
Pro stock market traders often keep their attention pointed at what top market analysts have to say regarding a potential equity investment. For Sociedad Quimica y Minera de Chile S.A. [SQM] currently, the latest-available mean analyst rating is for the fiscal quarter that will end in December. On average, stock market experts give SQM an Outperform rating. The average 12-month price forecast for this stock is $54.49, with the high estimate being $65.23, the low estimate being $44.00 and the median estimate amounting to $55.00. This is compared to its latest closing price of $42.19.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Sociedad Quimica y Minera de Chile S.A. [SQM] is sitting at 2.15. This is compared to 1 month ago, when its average rating was 2.23.
For the quarter ending in Sep-18 Sociedad Quimica y Minera de Chile S.A. [SQM] generated $0.54 billion in sales. That’s 9.50% lower than the average estimate of $0.6 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Keep your eyes peeled for this company’s upcoming financial results publication, which is slated for Wed 27 Feb (In 45 Days).
Fundamental Analysis of Sociedad Quimica y Minera de Chile S.A. [SQM]
Now let’s turn to look at profitability: with a current Operating Margin for Sociedad Quimica y Minera de Chile S.A. [SQM] sitting at +28.83 and its Gross Margin at +35.34, this company’s Net Margin is now 19.40%. These measurements indicate that Sociedad Quimica y Minera de Chile S.A. [SQM] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 17.74, and its Return on Invested Capital has reached 13.30%. Its Return on Equity is 19.48, and its Return on Assets is 10.01. These metrics all suggest that Sociedad Quimica y Minera de Chile S.A. is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, Sociedad Quimica y Minera de Chile S.A. [SQM] has generated a Total Debt to Total Equity ratio of 57.22. Similarly, its Total Debt to Total Capital is 36.39, while its Total Debt to Total Assets stands at 28.29. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 47.15, and its Long-Term Debt to Total Capital is 29.99. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 12.83 and its Total Debt to EBITDA Value is 1.38. The Enterprise Value to Sales for this firm is now 5.01, and its Total Debt to Enterprise Value stands at 0.08. Sociedad Quimica y Minera de Chile S.A. [SQM] has a Price to Book Ratio of 7.15, a Price to Cash Flow Ratio of 21.06 and P/E Ratio of 24.92. These metrics suggest that this publicly-traded organization will not likely result in investment gains.
Shifting the focus to workforce efficiency, Sociedad Quimica y Minera de Chile S.A. [SQM] earns $284,477,240 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 4.43 and its Total Asset Turnover is 0.50. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 2.09 and its Current Ratio is 3.30. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Let’s now turn our attention to trading performance: Sociedad Quimica y Minera de Chile S.A. [SQM] has 262.51M shares outstanding, amounting to a total market cap of $11.02B. Its stock price has been found in the range of 36.70 to 63.77. At its current price, it has moved by -34.19% from its 52-week high, and it has moved 14.36% from its 52-week low.
This stock’s Beta value is currently 1.25, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 54.62. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Sociedad Quimica y Minera de Chile S.A. [SQM] a Reliable Buy?
Shares of Sociedad Quimica y Minera de Chile S.A. [SQM], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.