Sociedad Química y Minera de Chile S.A.

SQM

Chemicals - Specialty · Basic Materials

Price

$81.96

+3.51 (+4.47%)

Market Cap

$23.41B

Exchange

NYSE

Winston Score

Winston is happy

A high-quality business with solid fundamentals.

Data as of Aug 23, 2026 · filings through Mar 31, 2026

How the score breaks down

Quality

Strong

Growth

Good

Cash Flow

Exceptional

Stability

Strong

Valuation

Strong

Dividends

Good

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Winston Score History

The full picture

Sociedad Química y Minera de Chile, known as SQM, is a Chilean mining and chemicals company that digs up and sells lithium, potassium, and other minerals from the Atacama Desert. Its biggest product is lithium, which is used to make batteries for electric vehicles and electronics. SQM is one of the largest lithium producers in the world, and it also sells fertilizers and industrial chemicals to customers across agriculture and manufacturing.

SQM makes money by selling these minerals and chemicals to companies around the globe, with major customers in Asia, Europe, and the Americas. Its main competitive advantage is its access to the Atacama salt flat in Chile, which holds some of the richest and lowest-cost lithium deposits on Earth. However, the company faces real risk from falling lithium prices — prices dropped sharply in recent years as global supply grew faster than demand — which directly squeezes its revenues and profit margins.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+69.8% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+166.7% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$0/ year

0.0% of revenue

Below sector average (3%)

Research and development spending

Insider Activity

63.5%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$4.6B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

Sociedad Química y Minera de Chile S.A. grew revenue 70% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count broadly stable

0.0% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 285.6M (2021) → 285.6M (2025)

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

44.2%

Healthy — 44.2% gross margin

Profit after running costs

Operating Margin

41.5%

Excellent — 41.5% operating margin

Return on the money invested

ROCE

14.4%

Good — 14.4% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth

Sales YoY

+18.5%

Fast-growing sales (+18.5% YoY)

Profit growth

EPS YoY

+35.5%

Earnings growing fast (+35.5% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash

Cash Conversion

239%

Turns 239% of profit into real cash

Spare cash per sale

FCF Margin

20.3%

Converts sales into free cash efficiently (20.3%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

What it owes vs what it owns

Debt / Equity

0.87

Moderate — manageable debt (0.87)

Covers its interest

Interest Cover

8.59x

Comfortably covers interest (8.6x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

28.7x

Growth-priced — P/E 28.7

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year

P/E vs Forward

+17.5

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (28.7 → 11.2)

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Dividends

Dividend

Dividend Yield

4.97%

Healthy income — 4.97% yield

Generous yield. Worth checking whether the payout is sustainable.

Dividend record

Dividend Growth

-73.2%

Dividend cut (-73.2% YoY) — warning sign

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