Sociedad Quimica y Minera S.A. Common Stock (SQM)

FairStock Score: 82/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am wary of cyclical chemical businesses because booms can flatter profits and busts can erase them. SQM, however, sells specialty plant nutrients and iodine derivatives, and in the second quarter of 2026 it reported $2.5 billion of revenue and $660.0 million of net income, a 26.74% net margin. That is a strong margin, and FairStock calculates a 21.82% return on equity and 11.55% return on capital, which suggest some durable competitive advantage in its niche products. The balance sheet is not reckless, with debt-to-equity of 0.61, though the Altman Z-score of 2.95 and Piotroski F-Score of 6/9 leave room for caution. At the close on 2026-10-13, the price was $62.83. FairStock calculates a P/E of 12.93, P/B of 2.84, EV/EBITDA of 9.81, and a PEG of 0.08. Those are not demanding if growth persists, but the Graham Number of $49.15 puts the price 27.83% above a conservative asset-and-earnings value. The dividend yield is 3.58%, and the FairStock Score is 75/100. The obvious caveat is cyclicality: the 52-week range of $41.94 to $98.00 shows how violently the market can reprice this business. Also, the Lynch category is none because only zero years of filed results were available under the rules, so I lack the multi-year record I would want. I would watch margins, debt, and fertilizer and iodine prices before calling it a bargain.

In plain English: SQM is a Chilean chemicals company that sells specialty fertilizers and iodine products. Its latest reported quarter showed $2.5 billion of sales and a strong 26.74% profit margin, and the business earns good returns on shareholder money. The stock price looks a little expensive compared with a conservative value estimate, but it also pays a solid dividend and has grown quickly.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer