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Friday, September 25, 2020

Is Now the Time to Invest in Sociedad Quimica y Minera de Chile S.A. (NYSE:SQM)?

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The Sociedad Quimica y Minera de Chile S.A. (SQM) shares are trading at higher $29.04 and the avg recommendation for the stock is Hold. while the current analyst price target stands at $27.93.

To add more color to this target, the company’s high over the last year is $33.30 and the low is $15.20. Over the last 52 weeks, SQM is down -12.79% while the S&P 500 is down -0.87%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, SQM reported a profit of $107.75 million. Sociedad Quimica y Minera de Chile S.A. also saw revenues increase to $392.04 million. In addition, SQM has free cash flow of -$60.04 million as of 03-2020. The company’s EBITDA came in at $83.4 million which compares well with its peers.

SQM booked profit margins of 13.20%, its Return on Equity (ROE) is 11.60%, and its Return on Assets is 5.10%. All told, it is clear that, SQM needs to be on your watchlist.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. SQM has a short ratio of 3.82 and outstanding shares of 263.20M.

Company Outlook

SQM has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.84 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 0.92. Sociedad Quimica y Minera de Chile S.A. SQM also noted assets of $5.03 billion at the end of the last quarter. Investors should also keep an eye on sector updates as SQM has historically followed its peers on positive news.

All told, Sociedad Quimica y Minera de Chile S.A. SQM has strung together solid data and demonstrated underlying fundamentals. At its current valuation, SQM represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

Sociedad Quimica y Minera de Chile S.A. SQM is now commanding a market cap of 6.99B and a float of 113.80M. SQM is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of SQM stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in SQM, either long or short, and we have not been compensated for this article.

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