SQM Stock Analysis: Buy, Sell, or Hold?
SQM - Sociedad Quimica y Minera de Chile SA
$71.94
-1.25 (-1.71%)
▼
5d:
-2.15%
30d:
-3.1%
90d:
-12.4%
BUY
HIGH Confidence
Analysis Updated: Jul 13, 2026 12:00 AM ET
Earnings: Aug 19, 2026
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Interactive Price Chart (1 Month)
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Bottom Line:
✅ BUY SIGNAL: SQM appears deeply undervalued. Market expects -10.0% annual earnings decline despite 165% recent earnings growth. Contrarian opportunity at discount to historical valuation.
✅ BUY SIGNAL: SQM appears deeply undervalued. Market expects -10.0% 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
$97.22
Based on -0.3% avg growth
INTRINSIC VALUE TODAY
$60.37
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 15.7x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: SQM is currently trading at $71.94, which is considered oversold relative to its 30-day fair value range of $72.07 to $79.94. From a valuation perspective, the stock is trading at a discount (Forward PE: 11.4) compared to its historical average (15.7). Remarkably, the market is currently pricing in an annual earnings decline of 10.0% 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. The price is currently testing key support at $72.27. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: The stock shows a mixed technical setup (45/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $84.50 (+17.5%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, SQM is in a strong uptrend. The price is currently testing key support at $72.27. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: The stock shows a mixed technical setup (45/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $84.50 (+17.5%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
OVERSOLD
Historical Trading Range
$72.07 -
$79.94
Company Quality Score
55/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
77.1%
All Signals
- BULLISH: Price oversold vs 30-day range
- NEUTRAL: Mixed technical signals (45/100)
- BULLISH: High volume confirmation
- BULLISH: Trading below Wall St target ($84.50)
Trading Range Analysis
30-Day Trading Range
$72.07 -
$79.94
Current vs Trading Range
OVERSOLD
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.)
11.45
Wall Street Target
$84.50
(+17.5%)
Revenue Growth (YoY)
69.8%
Earnings Growth (YoY)
165.2%
Profit Margin
15.4%
Valuation Discount vs History
-10.0% cheaper
PE vs Historical
11.5 vs 15.7
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-10.0%
(market-implied from PE analysis)
1-Year Target
$64.75
(-10%)
2-Year Target
$58.27
(-19%)
3-Year Target
$52.44
(-27%)
3-Yr Target (if PE normalizes)
(PE: 11→16)
$71.93
(0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 21.8, Growth: -4.5%)
$119.23
(+66%)
Base:
(SPY PE: 11.4, Growth: -4.5%)
$62.67
(-13%)
Bear:
(PE: 9.7, Growth: -4.5%)
$53.27
(-26%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (26x PE), but valuation improves significantly next year (11x PE) as earnings recover.
Trailing PE: 25.59 | Current EPS (TTM): $2.86
Bull Case
$161.02
(+124%)
Analyst growth 100.0%, PE expands to 28.2
Base Case
$146.38
(+104%)
Market implied 100.0%, PE stable at 25.6
Bear Case
$49.77
(-31%)
Severe decline -20.0%, PE contracts to 21.8
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 11.4 to 15.7
Stabilization Target:
$98.67
(+37.2%)
PE Expansion Potential:
+37.2%
Share & Embed Analysis
Last updated: July 13, 2026 8:16 PM ET
Data refreshes hourly during market hours. Next update: 9:16 PM
Data refreshes hourly during market hours. Next update: 9:16 PM
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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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