SQM Stock Analysis: Buy, Sell, or Hold?
SQM - Sociedad Quimica y Minera de Chile SA
$83.11
-0.16 (-0.19%)
▼
5d:
+9.85%
30d:
-1.36%
90d:
+7.78%
BUY
HIGH Confidence
Analysis Updated: Jun 16, 2026 12:00 AM ET
Earnings: May 26, 2026
0d
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Interactive Price Chart (1 Month)
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Bottom Line:
✅ BUY SIGNAL: SQM appears deeply undervalued. Market expects -5.2% annual earnings decline despite 165% recent earnings growth. Contrarian opportunity at discount to historical valuation.
✅ BUY SIGNAL: SQM appears deeply undervalued. Market expects -5.2% annual earnings decline despite 165% recent earnings growth. Contrarian opportunity at discount to historical valuation.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$92.55
Based on -1.0% avg growth
INTRINSIC VALUE TODAY
$57.47
Trading above historical range
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 16.3x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: SQM is currently trading at $83.11, which is considered fair relative to its 30-day fair value range of $77.20 to $88.61. From a valuation perspective, the stock is trading at a discount (Forward PE: 13.8) compared to its historical average (16.3). Remarkably, the market is currently pricing in an annual earnings decline of 5.2% over the next few years. This pessimistic expectation contrasts with the company's recent 165.2% earnings growth, suggesting potential undervaluation if the company simply maintains stability.
Technical Outlook: Technically, SQM is in a strong uptrend. Immediate support is located at $72.27, while resistance sits at $87.52.
Market Sentiment: SQM has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, SQM is in a strong uptrend. Immediate support is located at $72.27, while resistance sits at $87.52.
Market Sentiment: SQM has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
FAIR
Historical Trading Range
$77.20 -
$88.61
Company Quality Score
57/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
78.6%
All Signals
- NEUTRAL: Price in fair range
- BULLISH: Strong technical setup (60/100)
- BULLISH: High volume confirmation
- NEUTRAL: Near Wall St target ($82.50)
Trading Range Analysis
30-Day Trading Range
$77.20 -
$88.61
Current vs Trading Range
FAIR
Support & Resistance Levels
Support Level
$72.27
Resistance Level
$87.52
Current Trend
Strong Uptrend
Technical data as of
Jun 9, 2026
Fundamental Context
Forward P/E (Next Year Est.)
13.84
Wall Street Target
$82.50
(-0.7%)
Revenue Growth (YoY)
69.8%
Earnings Growth (YoY)
165.2%
Profit Margin
15.4%
Valuation Discount vs History
-5.2% cheaper
PE vs Historical
13.8 vs 16.3
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-5.2%
(market-implied from PE analysis)
1-Year Target
$78.79
(-5%)
2-Year Target
$74.69
(-10%)
3-Year Target
$70.81
(-15%)
3-Yr Target (if PE normalizes)
(PE: 14→16)
$83.40
(+0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 21.8, Growth: -6.1%)
$108.31
(+30%)
Base:
(SPY PE: 13.8, Growth: -6.1%)
$68.82
(-17%)
Bear:
(PE: 11.8, Growth: -6.1%)
$58.50
(-30%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (29x PE), but valuation improves significantly next year (14x PE) as earnings recover.
Trailing PE: 29.12 | Current EPS (TTM): $2.86
Bull Case
$183.19
(+120%)
Analyst growth 100.0%, PE expands to 32.0
Base Case
$166.54
(+100%)
Market implied 100.0%, PE stable at 29.1
Bear Case
$56.62
(-32%)
Severe decline -20.0%, PE contracts to 24.8
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 13.8 to 16.3
Stabilization Target:
$97.89
(+17.8%)
PE Expansion Potential:
+17.8%
Share & Embed Analysis
Last updated: June 17, 2026 2:20 AM ET
Data refreshes hourly during market hours. Next update: 3:20 AM
Data refreshes hourly during market hours. Next update: 3:20 AM
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Technical Signals Check
Is SQM showing a specific setup today?
Insider Activity (6 Months)
0
Buys
0
Sells
0
Net
NEUTRAL
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