Chemical & Mining Company of Chile is an integrated producer and distributor of specialty plant nutrients, iodine, lithium, potassium-related fertilizers and industrial chemicals. The company was founded in 1968 and is based in Santiago, Chile.
SQM Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for SQM, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Chemical & Mining Co Of Chile Inc ranked in the 13th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for SQM, they are:
The company's compound free cash flow growth rate over the past 4.94 years comes in at -0.15%; that's greater than only 11.18% of US stocks we're applying DCF forecasting to.
Chemical & Mining Co Of Chile Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 16.63% of tickers in our DCF set.
As a business, Chemical & Mining Co Of Chile Inc experienced a tax rate of about 19% over the past twelve months; relative to its sector (Basic Materials), this tax rate is higher than 73.06% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Basic Materials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as SQM, try KGC, DD, IPI, STLD, and WDFC.
Sociedad Quimica y Minera de Chile SA (SQM) produces and sells specialty plant nutrients, iodine and iodine products, lithium and lithium derivatives, potassium chloride and sulfate, industrial chemicals, and other products and services. The plant nutrients include potassium nitrate, sodium nitrate, sodium potassium nitrate, specialty blends, and other fertilizers for...
Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Sociedad Quimica y Minera de Chile S.A. New York, July 08, 2020 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Sociedad Quimica y Minera de Chile S.A. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.
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