The stock of Sociedad Quimica Y Minera de Chile S.A. ADR (NYSE: SQM) has decreased by -2.05 when compared to last closing price of 40.00. Despite this, the company has experienced a -1.24% fall in its stock price over the last five trading sessions. seekingalpha.com reported 2024-12-01 that Sociedad Química y Minera de Chile shares are trading near 5-year lows due to declining lithium prices, but their large market share and superior margins position them well for a turnaround. Despite revenue declines, SQM’s diversified operations and investments in new extraction capacities in China and Australia suggest robust future demand and potential revenue growth. Risks include slower-than-expected EV adoption and revenue loss from a renegotiated contract with the Chilean government, impacting their lithium extraction operations and profit margins.
Is It Worth Investing in Sociedad Quimica Y Minera de Chile S.A. ADR (NYSE: SQM) Right Now?
The 36-month beta value for SQM is also noteworthy at 1.09. There are mixed opinions on the stock, with 7 analysts rating it as a “buy,” 4 rating it as “overweight,” 5 rating it as “hold,” and 0 rating it as “sell.”
The public float for SQM is 141.91M, and at present, short sellers hold a 5.52% of that float. The average trading volume of SQM on February 28, 2025 was 995.67K shares.
SQM’s Market Performance
SQM stock saw a decrease of -1.24% in the past week, with a monthly decline of -2.78% and a quarterly a decrease of 0.88%. The volatility ratio for the week is 2.57%, and the volatility levels for the last 30 days are 3.06% for Sociedad Quimica Y Minera de Chile S.A. ADR (SQM). The simple moving average for the past 20 days is 0.38% for SQM’s stock, with a -1.73% simple moving average for the past 200 days.
Analysts’ Opinion of SQM
Many brokerage firms have already submitted their reports for SQM stocks, with JP Morgan repeating the rating for SQM by listing it as a “Neutral.” The predicted price for SQM in the upcoming period, according to JP Morgan is $44 based on the research report published on October 11, 2024 of the previous year 2024.
Berenberg gave a rating of “Hold” to SQM, setting the target price at $35 in the report published on July 31st of the previous year.
SQM Trading at 1.31% from the 50-Day Moving Average
After a stumble in the market that brought SQM to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -24.51% of loss for the given period.
Volatility was left at 3.06%, however, over the last 30 days, the volatility rate increased by 2.57%, as shares sank -4.50% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +3.77% upper at present.
During the last 5 trading sessions, SQM fell by -1.20%, which changed the moving average for the period of 200-days by -16.23% in comparison to the 20-day moving average, which settled at $39.03. In addition, Sociedad Quimica Y Minera de Chile S.A. ADR saw 7.76% in overturn over a single year, with a tendency to cut further gains.
Stock Fundamentals for SQM
Current profitability levels for the company are sitting at:
- 0.24 for the present operating margin
- 0.3 for the gross margin
The net margin for Sociedad Quimica Y Minera de Chile S.A. ADR stands at -0.07. The total capital return value is set at 0.12. Equity return is now at value -6.22, with -2.89 for asset returns.
Based on Sociedad Quimica Y Minera de Chile S.A. ADR (SQM), the company’s capital structure generated 0.49 points at debt to capital in total, while cash flow to debt ratio is standing at 0.03. The debt to equity ratio resting at 0.95. The interest coverage ratio of the stock is 6.26.
Currently, EBITDA for the company is 3.23 billion with net debt to EBITDA at 2.65. When we switch over and look at the enterprise to sales, we see a ratio of 2.95. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.94.
Conclusion
In summary, Sociedad Quimica Y Minera de Chile S.A. ADR (SQM) has had a mixed performance as of late. Analysts have bullish opinions on the stock, with some viewing it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
