Based on the aggregated intelligence of 115,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, fertilizer Sociedad Quimica y Minera
With that in mind, let's take a closer look at SQM's business, and see what CAPS investors are saying about the stock right now.
SQM facts
Headquarters |
Santiago, Chile (1968) |
Market Cap |
$5.35 billion |
Industry |
Fertilizers & Agricultural Chemicals |
TTM Revenue |
$1.42 billion |
Management |
CEO Patricio Contesse (since 1990) CFO Ricardo Ramos (since 1994) |
TTM Return on Equity |
23.6% |
Competitors |
Rockwood Holdings
FMC |
CAPS members bullish on SQM also bullish on |
PotashCorp
Vale |
CAPS members bearish on SQM also bearish on |
Mosaic
JPMorgan Chase |
Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.
Over on CAPS, fully 945 of 966 of the members who have rated SQM -- some 98% -- believe the stock will outperform the S&P 500 going forward. The All-Star bulls include rudolphsteiner and uclayoda87, both of whom are ranked in the top 15% of our community.
In June, rudolphsteiner reminded our community that SQM "claims to be the world's largest lithium producer (batteries!). Add fertilizer to that, and it might keep going up for quite a while, no doubt with some significant corrections along the way."
A more recent pitch from uclayoda87 last month shares that bullish feeling, elaborating on the stock's several long-term tailwinds:
Diversified Cash Cow.
Along with its stable fertilizer business, it has the potential for large profits from its Lithium production. Batteries for hybrid cars and storage batteries for wind and solar electricity production makes this company well positioned to benefit from new energy technology. ... Its assets maybe so valuable that it may be bought whole at a significant premium to secure control of its lithium supply.
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