Recent News
On July 21, 2026 SQM and Wesfarmers approved the final investment decision to expand the Mt Holland lithium project, doubling spodumene concentrate capacity and lowering unit costs. On August 25, 2026 the board approved an interim dividend of US$1.43501 per share to be paid in Chilean pesos using the observed dollar published September 4, 2026. On August 19, 2026 market reporting noted a surge in Q2 lithium sales and SQM raised its 2026 demand estimate, citing stronger-than-expected battery demand.
Technical Analysis
Directional indicators show ADX 24.12, indicating an emerging trend strength; DI+ sits at 30.30 with a peak-and-reversal (bearish), while DI- at 17.64 also shows a peak-and-reversal (bullish). Together these signals indicate recent directional contention even as trend strength rises, which may produce consolidation around current levels relative to the stated valuation.
MACD reads 2.11 and trends higher with the MACD signal at 1.46; MACD sits above its signal line, signaling bullish momentum that supports further near-term upside pressure on price versus the fair-valued appraisal.
MRO equals 33.86 and trends higher; a positive MRO indicates price sits above the model target and faces increased mean-reversion pressure even while momentum indicators push upward.
RSI at 52.38 and rising remains in neutral territory, leaving technical room for continuation before overbought conditions emerge and complementing moving-average structure where price ($81.14) trades above the 12-day EMA ($78.55), 20-day average ($78.05), 50-day average ($73.01) and 200-day average ($75.28), supporting short-run bullish bias relative to the current valuation.
Fundamental Analysis
Profitability: EBIT equals $740.5M and EBIT margin stands at 42.07%, well above the industry peer high of 32.08% and up 44.40% quarter-over-quarter and 69.39% year-over-year; gross margin equals 44.24%, also above the industry peer mean of 34.52%. Operating margin registers 41.46%, above the industry peer mean of 14.66% though below the industry peer high of 57.96%. These margin levels increase the company’s cash generation potential relative to peers.
Revenue and earnings: Total revenue equals $1,760.0M. Reported revenue change metrics show revenue growth 32.94%; quarter-over-quarter revenue growth of 156.23%; and year-over-year revenue decline of 10.53%. EPS actual registered $2.31 versus an estimate of $2.04, producing an EPS surprise of 13.24% and supporting the stronger margin profile reflected above.
Balance sheet and liquidity: Cash and short-term investments total $3,867.5M and cash equals $2,829.4M; current ratio stands at 2.76 and quick ratio at 2.01, indicating ample near-term liquidity. Net debt equals $2,282.5M with interest coverage about 13.79, and cost of debt near 0.655%, which supports the company’s capacity to fund expansions while maintaining coverage well above the industry peer mean of 9.15.
Efficiency and leverage: Asset turnover equals 0.12, below the industry peer mean of 0.145, suggesting lower sales intensity per asset dollar. Debt-to-equity reads 0.87, close to the industry peer mean of 0.73, while debt-to-EBITDA near 6.90 signals meaningful leverage against current earnings.
Valuation frame: PE equals 64.82, below the industry peer mean PE of 85.23; price-to-book equals 4.05, modestly above the industry peer mean price-to-book of 3.49. Forward PE stands at 49.50 while enterprise value to revenue and EV multiples remain elevated. The current valuation as determined by WMDST rates the stock fair-valued.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-03-31 |
| REPORT DATE: | 2026-08-19 |
| NEXT REPORT DATE: | 2026-11-17 |
| CASH FLOW | Begin Period Cash Flow | — |
| Operating Cash Flow | — | |
| Capital Expenditures | — | |
| Change In Working Capital | $ -364.70 M | |
| Dividends Paid | — | |
| Cash Flow Delta | — | |
| End Period Cash Flow | — | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 1.8 B | |
| Forward Revenue | $ 578.9 M | |
| COSTS | ||
| Cost Of Revenue | $ 981.5 M | |
| Depreciation | — | |
| Depreciation and Amortization | — | |
| Research and Development | — | |
| Total Operating Expenses | $ 1.0 B | |
| PROFITABILITY | ||
| Gross Profit | $ 778.6 M | |
| EBITDA | $ 740.5 M | |
| EBIT | $ 740.5 M | |
| Operating Income | $ 729.7 M | |
| Interest Income | $ 26.8 M | |
| Interest Expense | $ 53.7 M | |
| Net Interest Income | $ -26.90 M | |
| Income Before Tax | $ 686.8 M | |
| Tax Provision | $ 283.9 M | |
| Tax Rate | 40.0 % | |
| Net Income | $ 364.7 M | |
| Net Income From Continuing Operations | $ 364.7 M | |
| EARNINGS | ||
| EPS Estimate | $ 2.04 | |
| EPS Actual | $ 2.31 | |
| EPS Difference | $ 0.27 | |
| EPS Surprise | 13.235 % | |
| Forward EPS | $ 1.68 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 15.8 B | |
| Intangible Assets | — | |
| Net Tangible Assets | $ 5.9 B | |
| Total Current Assets | $ 7.0 B | |
| Cash and Short-Term Investments | $ 3.9 B | |
| Cash | $ 2.8 B | |
| Net Receivables | $ 826.1 M | |
| Inventory | $ 1.9 B | |
| Long-Term Investments | $ 3.2 B | |
| LIABILITIES | ||
| Accounts Payable | — | |
| Short-Term Debt | $ 324.4 M | |
| Total Current Liabilities | $ 2.5 B | |
| Net Debt | $ 2.3 B | |
| Total Debt | $ 5.1 B | |
| Total Liabilities | $ 7.6 B | |
| EQUITY | ||
| Total Equity | $ 5.9 B | |
| Retained Earnings | — | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 20.49 | |
| Shares Outstanding | 285.638 M | |
| Revenue Per-Share | $ 6.16 | |
| VALUATION | Market Capitalization | $ 23.7 B |
| Enterprise Value | $ 24.9 B | |
| Enterprise Multiple | 33.685 | |
| Enterprise Multiple QoQ | -40.99 % | |
| Enterprise Multiple YoY | -31.602 % | |
| Enterprise Multiple IPRWA | high: 194.687 mean: 64.464 median: 54.095 SQM: 33.685 low: -41.898 |
|
| EV/R | 14.173 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.696 | |
| Asset To Liability | 2.086 | |
| Debt To Capital | 0.466 | |
| Debt To Assets | 0.324 | |
| Debt To Assets QoQ | -0.617 % | |
| Debt To Assets YoY | -21.229 % | |
| Debt To Assets IPRWA | high: 0.892 median: 0.329 SQM: 0.324 mean: 0.289 low: 0.002 |
|
| Debt To Equity | 0.874 | |
| Debt To Equity QoQ | 5.142 % | |
| Debt To Equity YoY | -2.863 % | |
| Debt To Equity IPRWA | high: 3.545 SQM: 0.874 median: 0.751 mean: 0.728 low: 0.002 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 4.05 | |
| Price To Book QoQ | 14.728 % | |
| Price To Book YoY | 104.786 % | |
| Price To Book IPRWA | high: 7.728 SQM: 4.05 mean: 3.493 median: 2.167 low: -0.199 |
|
| Price To Earnings (P/E) | 64.82 | |
| Price To Earnings QoQ | -41.014 % | |
| Price To Earnings YoY | -14.454 % | |
| Price To Earnings IPRWA | high: 209.878 mean: 85.228 median: 69.95 SQM: 64.82 low: -157.884 |
|
| PE/G Ratio | 0.648 | |
| Price To Sales (P/S) | 13.466 | |
| Price To Sales QoQ | -11.261 % | |
| Price To Sales YoY | 34.364 % | |
| Price To Sales IPRWA | high: 20.33 SQM: 13.466 median: 10.753 mean: 10.733 low: 0.203 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 49.501 | |
| Forward PE/G | 0.495 | |
| Forward P/S | 46.483 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 2.792 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.116 | |
| Asset Turnover Ratio QoQ | 15.148 % | |
| Asset Turnover Ratio YoY | 28.844 % | |
| Asset Turnover Ratio IPRWA | high: 0.282 median: 0.155 mean: 0.145 SQM: 0.116 low: 0.002 |
|
| Receivables Turnover | 2.493 | |
| Receivables Turnover Ratio QoQ | 9.524 % | |
| Receivables Turnover Ratio YoY | 32.338 % | |
| Receivables Turnover Ratio IPRWA | high: 4.196 SQM: 2.493 mean: 1.598 median: 1.342 low: 0.052 |
|
| Inventory Turnover | 0.533 | |
| Inventory Turnover Ratio QoQ | 10.949 % | |
| Inventory Turnover Ratio YoY | 27.009 % | |
| Inventory Turnover Ratio IPRWA | high: 2.731 mean: 1.09 median: 0.906 SQM: 0.533 low: 0.416 |
|
| Days Sales Outstanding (DSO) | 36.61 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 228.717 | |
| Cash Conversion Cycle Days QoQ | 13.85 % | |
| Cash Conversion Cycle Days YoY | 11.889 % | |
| Cash Conversion Cycle Days IPRWA | high: 332.977 SQM: 228.717 mean: 90.928 median: 60.827 low: -4.195 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.396 | |
| CapEx To Revenue | — | |
| CapEx To Depreciation | — | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 10.6 B | |
| Net Invested Capital | $ 11.0 B | |
| Invested Capital | $ 11.0 B | |
| Net Tangible Assets | $ 5.9 B | |
| Net Working Capital | $ 4.4 B | |
| LIQUIDITY | ||
| Cash Ratio | 1.53 | |
| Current Ratio | 2.759 | |
| Current Ratio QoQ | -15.574 % | |
| Current Ratio YoY | -4.202 % | |
| Current Ratio IPRWA | high: 5.013 SQM: 2.759 mean: 1.699 median: 1.467 low: 0.644 |
|
| Quick Ratio | 2.015 | |
| Quick Ratio QoQ | -10.399 % | |
| Quick Ratio YoY | 2.814 % | |
| Quick Ratio IPRWA | high: 3.574 SQM: 2.015 mean: 1.115 median: 1.028 low: 0.404 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 6.903 | |
| Cost Of Debt | 0.655 % | |
| Interest Coverage Ratio | 13.79 | |
| Interest Coverage Ratio QoQ | 76.344 % | |
| Interest Coverage Ratio YoY | 145.087 % | |
| Interest Coverage Ratio IPRWA | high: 24.833 SQM: 13.79 mean: 9.151 median: 8.22 low: -7.509 |
|
| Operating Cash Flow Ratio | 0.0 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | — | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 8.787 % | |
| Revenue Growth | 32.944 % | |
| Revenue Growth QoQ | 156.234 % | |
| Revenue Growth YoY | -1052.689 % | |
| Revenue Growth IPRWA | high: 61.032 % SQM: 32.944 % mean: 7.164 % median: 4.698 % low: -48.15 % |
|
| Earnings Growth | 100.0 % | |
| Earnings Growth QoQ | 2999.814 % | |
| Earnings Growth YoY | 599.986 % | |
| Earnings Growth IPRWA | high: 424.0 % SQM: 100.0 % median: -18.269 % mean: -40.344 % low: -288.462 % |
|
| MARGINS | ||
| Gross Margin | 44.239 % | |
| Gross Margin QoQ | 30.576 % | |
| Gross Margin YoY | 50.514 % | |
| Gross Margin IPRWA | high: 51.641 % SQM: 44.239 % median: 37.14 % mean: 34.52 % low: -2.38 % |
|
| EBIT Margin | 42.074 % | |
| EBIT Margin QoQ | 44.401 % | |
| EBIT Margin YoY | 69.394 % | |
| EBIT Margin IPRWA | SQM: 42.074 % high: 32.081 % median: 15.627 % mean: 12.754 % low: -20.445 % |
|
| Return On Sales (ROS) | 41.46 % | |
| Return On Sales QoQ | 45.229 % | |
| Return On Sales YoY | 66.922 % | |
| Return On Sales IPRWA | high: 57.958 % SQM: 41.46 % median: 16.438 % mean: 14.661 % low: -20.805 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | — | |
| Free Cash Flow Yield | — | |
| Free Cash Flow Yield QoQ | — | |
| Free Cash Flow Yield YoY | — | |
| Free Cash Flow Yield IPRWA | — | |
| Free Cash Growth | — | |
| Free Cash Growth QoQ | — | |
| Free Cash Growth YoY | — | |
| Free Cash Growth IPRWA | — | |
| Free Cash To Net Income | — | |
| Cash Flow Margin | 0.0 % | |
| Cash Flow To Earnings | 0.0 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 2.408 % | |
| Return On Assets QoQ | 71.877 % | |
| Return On Assets YoY | 101.17 % | |
| Return On Assets IPRWA | high: 5.022 % SQM: 2.408 % median: 1.683 % mean: 1.225 % low: -4.763 % |
|
| Return On Capital Employed (ROCE) | 5.588 % | |
| Return On Equity (ROE) | 0.062 | |
| Return On Equity QoQ | 93.001 % | |
| Return On Equity YoY | 138.044 % | |
| Return On Equity IPRWA | high: 0.16 SQM: 0.062 median: 0.03 mean: 0.021 low: -0.36 |
|
| DuPont ROE | 6.319 % | |
| Return On Invested Capital (ROIC) | 4.052 % | |
| Return On Invested Capital QoQ | 56.993 % | |
| Return On Invested Capital YoY | 138.353 % | |
| Return On Invested Capital IPRWA | high: 4.674 % SQM: 4.052 % median: 2.687 % mean: 1.929 % low: -6.035 % |
|