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SQMSociedad Química y Minera de Chile S.A.
$73.40$21.0B
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Sociedad Química y Minera de Chile S.A. (SQM) Financial Ratios

Latest Ratios: P/E Ratio 35.6x · EV/EBITDA 15.4x · ROE 8.9%. (1996–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

SQM Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$21.0B$19.7B$10.4B$17.2B$22.8B$14.4B$13.1B$7.1B$10.2B$15.7B$7.6B
Enterprise Value$24.0B$22.7B$13.8B$20.7B$23.1B$15.5B$14.6B$8.3B$10.9B$15.3B$8.3B
P/E Ratio →35.6333.40—8.545.8424.6079.1825.6623.0736.8827.29
P/S Ratio4.594.302.292.302.135.037.213.674.487.303.92
P/B Ratio2.602.441.993.094.624.486.063.344.757.003.29
P/FCF47.9844.9734.19—7.1840.26—69.1084.0855.1215.18
P/OCF15.9814.988.12—5.5917.5171.9416.6923.0936.8011.99

P/E links to full P/E history page with 30-year chart

SQM EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—4.973.052.772.155.418.014.294.827.094.28
EV / EBITDA15.3914.5512.887.274.1716.6647.6219.0916.4024.7318.49
EV / EBIT21.1820.0211.877.064.1416.7944.9718.0316.1523.7617.61
EV / FCF—51.9945.55—7.2643.32—80.7690.5253.5316.59

SQM Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin29.3%29.3%29.3%41.2%53.6%38.1%26.6%28.8%34.4%35.3%31.5%
Operating Margin24.8%24.8%23.5%38.1%51.6%32.4%16.6%22.3%29.4%28.6%23.1%
Net Profit Margin12.9%12.9%-8.9%27.0%36.5%20.5%9.1%14.3%19.4%19.8%14.3%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE8.9%8.9%-7.5%38.3%95.9%21.8%7.7%13.0%20.1%18.8%11.8%
ROA4.5%4.5%-3.5%17.9%43.7%9.9%3.5%6.2%10.3%10.0%6.3%
ROIC8.6%8.6%9.0%29.9%87.4%17.6%6.5%10.4%17.4%15.9%10.4%
ROCE10.3%10.3%11.4%33.2%80.0%17.8%7.3%11.4%18.4%17.2%11.8%

SQM Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity0.600.600.930.820.590.810.900.840.620.540.53
Debt / EBITDA3.093.094.501.600.532.816.394.102.001.962.72
Net Debt / Equity—0.380.660.630.050.340.670.560.36-0.200.31
Net Debt / EBITDA1.961.963.211.230.051.184.732.761.17-0.731.57
Debt / FCF—7.0211.36—0.083.06—11.666.44-1.591.41
Interest Coverage6.076.076.1820.8358.0811.073.856.3712.1612.838.20

SQM Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio3.273.272.512.502.294.625.403.454.323.304.02
Quick Ratio2.252.251.751.741.713.433.102.192.672.092.31
Cash Ratio1.541.541.101.001.182.441.801.381.001.331.38
Asset Turnover—0.310.390.640.990.410.380.410.530.500.46
Inventory Turnover1.791.791.882.482.791.501.221.411.631.551.34
Days Sales Outstanding—91.0847.5041.3437.5088.12117.47107.3595.5582.8783.64

SQM Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield0.0%0.0%0.6%8.6%9.8%4.0%1.7%4.6%5.4%2.4%5.3%
Payout Ratio0.7%0.7%—73.1%57.3%97.7%134.9%118.6%125.1%87.4%143.5%

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield2.8%3.0%—11.7%17.1%4.1%1.3%3.9%4.3%2.7%3.7%
FCF Yield2.1%2.2%2.9%—13.9%2.5%—1.4%1.2%1.8%6.6%
Buyback Yield0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%
Total Shareholder Yield0.0%0.0%0.6%8.6%9.8%4.0%1.7%4.6%5.4%2.4%5.3%
Shares Outstanding—$286M$285M$286M$286M$286M$267M$267M$265M$265M$265M

Key Metrics

Growth RegimeMixed
ProfitabilityModerate
Balance SheetHealthy
Cash FlowImproving
Top Statement Risk

Lithium price volatility exposure

Cyclical Valuation Masks Long-term Potential

Based on recent market data, SQM trades at a forward P/E of 10.58, which appears to discount the company's historical earnings volatility and suggests that investors are pricing in a significant normalization of lithium prices compared to the trailing P/E of 34.75.

The divergence between trailing and forward multiples indicates that the market is heavily discounting future earnings, likely reflecting skepticism regarding the sustainability of current lithium price levels. While the PEG ratio of 1.28 suggests a reasonable valuation relative to growth expectations, investors should monitor whether this multiple expansion is supported by the successful execution of the Codelco partnership.

Capital Efficiency Constrained by Cycles

According to reported financial statements, SQM's ROIC has fluctuated between 1.5% and 5.1% over the last ten quarters, reflecting the inherent difficulty in compounding returns when the underlying commodity price dictates the majority of the company's margin profile.

The modest ROIC levels suggest that while the company maintains a structural cost advantage, the capital-intensive nature of brine extraction and the aggressive royalty regime limit the ability to generate high returns on invested capital during price troughs. This trend warrants further investigation into whether future expansion projects can achieve higher hurdle rates as the company diversifies its geographic footprint.

Working Capital Cycles Remain Extended

As reported in recent filings, SQM's cash conversion cycle has remained elevated, peaking at 246 days in 2024Q1 and settling at 194 days in 2026Q1, which indicates a structural reliance on inventory management to navigate the volatility of global lithium demand.

The high days-in-inventory (DIO) figure, which reached 215 days in 2025Q1, suggests that the company maintains significant buffer stocks to manage supply chain disruptions and market price fluctuations. This efficiency profile appears less favorable than peers with faster inventory turnover, implying that SQM's working capital management is a secondary priority to maintaining production stability.

Disciplined Leverage Supports Financial Resilience

Based on the provided balance sheet data, SQM has successfully reduced its debt-to-equity ratio from 0.96 in 2024Q1 to 0.62 in 2026Q1, demonstrating a commitment to maintaining a healthy balance sheet despite the capital-intensive nature of its ongoing lithium expansion projects.

The improvement in the debt-to-equity ratio, coupled with an interest coverage ratio of 13.79 in 2026Q1, suggests that the company is well-positioned to service its obligations even if commodity prices face further downward pressure. This financial discipline appears to provide a necessary buffer against the regulatory and geopolitical risks inherent in the Chilean mining sector.

Misapplication of Standard P/E Multiples

The P/E ratio is frequently misapplied to SQM because it fails to account for the non-linear impact of the CORFO royalty structure, which acts as a progressive tax that disproportionately compresses net income during peak commodity cycles while providing a natural hedge during downturns.

Investors should instead focus on EV/EBITDA or cash-flow-based metrics, as these provide a clearer view of the company's operational performance before the distortive effects of royalty payments and non-cash accounting adjustments. Relying solely on P/E may lead to an inaccurate assessment of the company's true earning power throughout the commodity cycle.

Download Financial Ratios Data

Includes 30+ ratios · 30 years · Updated daily

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SQM — Frequently Asked Questions

Quick answers to the most common questions about buying SQM stock.

What is Sociedad Química y Minera de Chile S.A.'s P/E ratio?

Sociedad Química y Minera de Chile S.A.'s current P/E ratio is 35.6x. The historical average is 24.3x. This places it at the 90th percentile of its historical range.

What is Sociedad Química y Minera de Chile S.A.'s EV/EBITDA?

Sociedad Química y Minera de Chile S.A.'s current EV/EBITDA is 15.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 14.7x.

What is Sociedad Química y Minera de Chile S.A.'s ROE?

Sociedad Química y Minera de Chile S.A.'s return on equity (ROE) is 8.9%. The historical average is 17.0%.

Is SQM stock overvalued?

Based on historical data, Sociedad Química y Minera de Chile S.A. is trading at a P/E of 35.6x. This is at the 90th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.

What is Sociedad Química y Minera de Chile S.A.'s dividend yield?

Sociedad Química y Minera de Chile S.A.'s current dividend yield is 0.02% with a payout ratio of 0.7%.

What are Sociedad Química y Minera de Chile S.A.'s profit margins?

Sociedad Química y Minera de Chile S.A. has 29.3% gross margin and 24.8% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.

How much debt does Sociedad Química y Minera de Chile S.A. have?

Sociedad Química y Minera de Chile S.A.'s Debt/EBITDA ratio is 3.1x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.