• Sociedad Química y Minera de Chile (NYSE:SQM) is set to announce quarterly earnings with an expected EPS of $0.52 and revenue of $1.06 billion amid soaring lithium prices.
• The temporary closure of a major lithium operation in China has triggered a 7% increase in SQM’s stock, emphasizing the effects of a tighter lithium supply.
• Key financial metrics like a P/E ratio of 21.37 illustrate SQM’s solid market standing and financial health.

Sociedad Química y Minera de Chile (NYSE:SQM) holds a critical position in the lithium industry, essential for producing lithium and other industrial chemicals. As a significant lithium supplier, SQM plays a vital role in the electric vehicle and clean energy sectors. Competing with major players like Albemarle, SQM is set to report its quarterly earnings on August 19, 2025, where analysts foresee an earnings per share (EPS) of $0.52 and nearly $1.06 billion in revenue.

This prediction comes as lithium prices surge due to the suspension of a key lithium mine in China, a closure that impacts about 6% of the global lithium supply. Consequently, SQM’s stock has risen by 7%, showcasing market responsiveness to decreasing supply.

SQM’s financial indicators suggest a strong market position, with a P/E ratio of 21.37 indicating investor confidence in future earnings. Additionally, a price-to-sales ratio of 1.44 exhibits the value investors assign to each dollar of sales, underscoring SQM’s market strength.

The company’s enterprise value to sales ratio stands at 2.12, while the enterprise value to operating cash flow ratio is 7.09. This suggests SQM’s valuation is aligned with its sales and cash flow performance. With an earnings yield of 4.68% and a debt-to-equity ratio of 0.90, SQM showcases a healthy financial framework. A current ratio of 2.88 further emphasizes its ability to meet short-term obligations, demonstrating solid financial stability.