Sociedad Quimica Y Minera De ChileSQM -1.33%88 Return-on-Tangible-Equity is 24.93% as of Mar. 2026, which is 54% above its 10-year median of 16.14. GuruFocus rates SQM with a GF Score™ of 88/100 and a GF Value™ of $46.34 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,566 Chemicals companies, Sociedad Quimica Y Minera De Chile ranks better than 82.12% on this metric.
The historical rank and industry rank for Sociedad Quimica Y Minera De Chile's Return-on-Tangible-Equity or its related term are showing as below:
SQM'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 7.89 Med: 16.14 Max: 98.82
Current: 14.77
During the past 13 years, Sociedad Quimica Y Minera De Chile's highest Return-on-Tangible-Equity was 98.82%. The lowest was 7.89%. And the median was 16.14%.
SQM's Return-on-Tangible-Equity is ranked better than 82.12% of 1566
companies
in the Chemicals industry
Industry Median: 5.7
vs SQM: 14.77
Sociedad Quimica Y Minera De Chile (NYSE:SQM) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Sociedad Quimica Y Minera De Chile Return-on-Tangible-Equity Related Terms
Sociedad Quimica Y Minera De Chile Return-on-Tangible-Equity Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Sociedad Quimica Y Minera De Chile Return-on-Tangible-Equity Chart
SQM vs LIN, SHW, ECL: Return-on-Tangible-Equity Comparison
For the Specialty Chemicals subindustry, Sociedad Quimica Y Minera De Chile's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Sociedad Quimica Y Minera De Chile Return-on-Tangible-Equity vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Sociedad Quimica Y Minera De Chile's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Sociedad Quimica Y Minera De Chile's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 24.93% mean?
Sociedad Quimica Y Minera De Chile (SQM) has a Return-on-Tangible-Equity of 24.93% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Sociedad Quimica Y Minera De Chile and its competitors. This is 54% above median its historical median of 16.14. Over the past decade, Sociedad Quimica Y Minera De Chile's Return-on-Tangible-Equity has ranged from 7.89 to 98.82. According to the industry distribution chart, Sociedad Quimica Y Minera De Chile ranks #280 out of 1566 companies in the Chemicals industry, placing it in the top 17.9%.
Is Sociedad Quimica Y Minera De Chile's Return-on-Tangible-Equity too high?
Sociedad Quimica Y Minera De Chile's current Return-on-Tangible-Equity of 24.93% is 54% above median its 10-year median of 16.14. Over the past 10 years, this metric has ranged from a low of 7.89 to a high of 98.82. The Chemicals industry median Return-on-Tangible-Equity is 5.70. Sociedad Quimica Y Minera De Chile's value of 24.93% is 337.4% above this industry median. Based on the distribution chart, Sociedad Quimica Y Minera De Chile ranks #280 out of 1566 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Sociedad Quimica Y Minera De Chile has a GF Score™ of 88/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sociedad Quimica Y Minera De Chile's Return-on-Tangible-Equity compare to LIN and SHW?
According to the Chemicals industry distribution chart, Sociedad Quimica Y Minera De Chile ranks #280 out of 1566 companies for Return-on-Tangible-Equity. This places Sociedad Quimica Y Minera De Chile in the top 18% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.70. Sociedad Quimica Y Minera De Chile's value of 24.93% is 337.4% above this benchmark. Historically, Sociedad Quimica Y Minera De Chile's own Return-on-Tangible-Equity has ranged from 7.89 to 98.82 over the past decade. While the company's 10-year median is 16.14 vs. the industry median of 5.70, Sociedad Quimica Y Minera De Chile has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Chemicals company?
The median Return-on-Tangible-Equity among Chemicals companies is 5.70, based on 1,566 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sociedad Quimica Y Minera De Chile's current Return-on-Tangible-Equity of 24.93% is 337.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Sociedad Quimica Y Minera De Chile and its competitors. For the Chemicals industry, the median Return-on-Tangible-Equity is 5.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sociedad Quimica Y Minera De Chile's current Return-on-Tangible-Equity is 24.93%, which is 54% above median its own 10-year median of 16.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sociedad Quimica Y Minera De Chile stock overvalued right now?
Based on GuruFocus' analysis, Sociedad Quimica Y Minera De Chile (SQM) is currently considered Significantly Overvalued. The stock's GF Value™ is $46.34, compared to a current price of $72.54 — trading 56.5% above its estimated fair value. The current Return-on-Tangible-Equity is 24.93%, which is 54% above median its 10-year median of 16.14 and 337.4% above the Chemicals industry median of 5.70. Sociedad Quimica Y Minera De Chile's overall GF Score™ is 88/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Sociedad Quimica Y Minera De Chile (SQM), the current Return-on-Tangible-Equity is 24.93% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Sociedad Quimica Y Minera De Chile (SQM) Overvalued in 2026?
Based on GuruFocus' analysis, Sociedad Quimica Y Minera De Chile stock appears to be overvalued.
The current stock price of $72.54 is trading 56.5% above its estimated GF Value™ of $46.34.
GuruFocus considers Sociedad Quimica Y Minera De Chile to be Significantly Overvalued.
Key valuation signals for SQM:
Return-on-Tangible-Equity: 24.93% (54% above median its 10-year median of 16.14)
GF Value™: $46.34 vs. price of $72.54 (56.5% above fair value)
Industry Position: 337.4% above the Chemicals median (#280 of 1566)
No single metric tells the full story. See the SQM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sociedad Quimica Y Minera De Chile Business Description
Sociedad Quimica y Minera de Chile is a Chilean commodities producer with significant operations in lithium (primarily used in batteries for electric vehicles and energy storage systems), specialty and standard potassium fertilizers, iodine (primarily used in X-ray contrast media), and solar salts. The company extracts these materials through its high-quality salt brine deposits and caliche ore. SQM also sells lithium concentrate from a joint venture hard rock lithium project in Australia and expanding its lithium refining assets in China.
88GF Score
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