Why Sociedad Química y Minera de Chile (NYSE:SQM) is on investors’ radar

Sociedad Química y Minera de Chile (NYSE:SQM) has drawn attention after a strong share price move, with the stock up 2.7% over the past day and 10.8% over the past week.

Over the past month the stock shows a 28.0% return, while the past 3 months add up to an 87.2% gain. This makes recent performance a key focus for investors assessing what is driving sentiment.

See our latest analysis for Sociedad Química y Minera de Chile.

Looking beyond the recent jump, the stock shows building momentum, with an 87.2% 3 month share price return and a 106.6% 1 year total shareholder return. This points to a sharp shift in how the market is pricing Sociedad Química y Minera de Chile’s prospects and risks.

If SQM’s move has you thinking about what else is on the move, this could be a good moment to widen your search with fast growing stocks with high insider ownership.

With SQM up strongly over the past year and trading at a small intrinsic discount of about 6%, the key question is whether the recent optimism leaves any mispricing or if the market already reflects future growth.

Most Popular Narrative: 35.4% Overvalued

Compared with the narrative fair value of about US$61.44, Sociedad Química y Minera de Chile’s last close at US$83.18 implies a rich valuation that leans heavily on future execution.

Strong demand growth in electric vehicles (EVs) and renewable energy storage, particularly in China and Europe, is driving a sustained recovery in lithium prices and providing visible upside to SQM’s revenues and margins as sales volumes are guided to increase by at least 10% in 2025.

Read the complete narrative.

Curious what kind of revenue and margin profile could justify a higher future earnings base and still assume a lower P/E multiple than many peers? The narrative sets out a detailed earnings path, specific margin expansion, and a discount rate that together underpin that fair value. The tension between ambitious growth and a compressed future multiple is where the real story sits.

Result: Fair Value of $61.44 (OVERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, lithium price volatility and the unresolved Codelco joint venture terms could still upend these assumptions, potentially shifting earnings power and the valuation story quite quickly.

Find out about the key risks to this Sociedad Química y Minera de Chile narrative.

Another View: DCF Points in a Different Direction

While the narrative fair value of about US$61.44 suggests Sociedad Química y Minera de Chile is overvalued at US$83.18, our DCF model paints a different picture, with fair value at roughly US$88.76 and the shares trading at a 6.3% discount. Which set of assumptions do you find more realistic?

Look into how the SWS DCF model arrives at its fair value.

SQM Discounted Cash Flow as at Jan 2026

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Sociedad Química y Minera de Chile for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 884 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match – so you never miss a potential opportunity.

Build Your Own Sociedad Química y Minera de Chile Narrative

If you see the data differently or simply prefer to test your own assumptions, you can put together a full narrative in just a few minutes with Do it your way.

A great starting point for your Sociedad Química y Minera de Chile research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

Looking for more investment ideas?

If SQM has caught your eye, do not stop there; broaden your watchlist with a few focused stock ideas that could sharpen your next move.

• Spot opportunities in smaller names by scanning these 3531 penny stocks with strong financials that pair lower share prices with more robust financial profiles.

• Position yourself in the AI shift by checking out these 25 AI penny stocks targeting companies tied to artificial intelligence themes.

• Hunt for value by reviewing these 884 undervalued stocks based on cash flows that screen for stocks pricing in less optimistic cash flow assumptions.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include SQM.

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