Why SQM Is Poised to Bounce Back

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Latin fertilizer giant Sociedad Quimica y Minera de Chile (NYSE: SQM  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at SQM and see what CAPS investors are saying about the stock right now.

SQM facts

Headquarters (founded)

Santiago, Chile (1968)

Market Cap

$12.6 billion

Industry

Fertilizers and agricultural chemicals

Trailing-12-Month Revenue

$2.4 billion

Management

CEO Patricio Contesse (since 1990)

CFO Ricardo Ramos (since 1994)

Return on Equity (average, past 3 years)

29.5%

Cash/Debt

$568.5 million / $1.6 billion

Dividend Yield

0.8%

Competitors

Agrium

CF Industries

PotashCorp

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 98% of the 1,427 members who have rated SQM believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, Dagoldbaum, succinctly summed up the SQM bull case for our community: "Lithium demand set to increase with electric car sales. Fertilizer sales and prices to increase with higher demand. Solid balance sheet and sustainable dividend. [Price per share] at 52week low. What more can you ask for?"

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a perfect five-star rating, SQM may not be your top choice.

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