ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Sociedad Quimica Y Minera De Chile's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 14.37%.
As of today (2026-06-27), Sociedad Quimica Y Minera De Chile's WACC % is 13.48%. Sociedad Quimica Y Minera De Chile's ROIC % is 10.26% (calculated using TTM income statement data).
Sociedad Quimica Y Minera De Chile earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Sociedad Quimica Y Minera De Chile (NYSE:SQM) ROIC % Explanation
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROIC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Sociedad Quimica Y Minera De Chile's WACC % is 13.48%. Sociedad Quimica Y Minera De Chile's ROIC % is 10.26% (calculated using TTM income statement data).
Sociedad Quimica Y Minera De Chile earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Sociedad Quimica Y Minera De Chile ROIC % Related Terms
Sociedad Quimica Y Minera De Chile ROIC % 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.
For the Specialty Chemicals subindustry, Sociedad Quimica Y Minera De Chile's ROIC %, along with its competitors' market caps and ROIC % 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 ROIC % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Sociedad Quimica Y Minera De Chile's ROIC % distribution charts can be found below:
* The bar in red indicates where Sociedad Quimica Y Minera De Chile's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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 (SQM) has a ROIC % of 14.37% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Sociedad Quimica Y Minera De Chile and its competitors.
Is Sociedad Quimica Y Minera De Chile's ROIC % too high?
Sociedad Quimica Y Minera De Chile's current ROIC % is 14.37%. The Chemicals industry median ROIC % is 4.46. Sociedad Quimica Y Minera De Chile's value of 14.37% is 222.6% above this industry median. 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 ROIC % compare to LIN and SHW?
Sociedad Quimica Y Minera De Chile's ROIC % of 14.37% can be compared against companies in the Chemicals industry. The industry median ROIC % is 4.46. Sociedad Quimica Y Minera De Chile's value of 14.37% is 222.6% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for a Chemicals company?
The median ROIC % among Chemicals companies is 4.46, based on 1,586 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % 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 ROIC % of 14.37% is 222.6% 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 ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Sociedad Quimica Y Minera De Chile and its competitors. For the Chemicals industry, the median ROIC % is 4.46 — 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 ROIC % is 14.37%. 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 $44.95, compared to a current price of $71.59 — trading 59.3% above its estimated fair value. The current ROIC % is 14.37% and 222.6% above the Chemicals industry median of 4.46. 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 ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Sociedad Quimica Y Minera De Chile (SQM), the current ROIC % is 14.37% 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 $71.59 is trading 59.3% above its estimated GF Value™ of $44.95.
GuruFocus considers Sociedad Quimica Y Minera De Chile to be Significantly Overvalued.
Key valuation signals for SQM:
ROIC %: 14.37%
GF Value™: $44.95 vs. price of $71.59 (59.3% above fair value)
Industry Position: 222.6% above the Chemicals median
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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