Sociedad Química y Minera de Chile S.A.’s (NYSE:SQM) 27% Share Price Surge Not Quite Adding Up
Sociedad Química y Minera de Chile S.A. (NYSE:SQM) shares have continued their recent momentum with a 27% gain in the last month alone. Taking a wider view, although not as strong as the last month, the full year gain of 17% is also fairly reasonable.
Since its price has surged higher, given close to half the companies operating in the United States’ Chemicals industry have price-to-sales ratios (or “P/S”) below 1.2x, you may consider Sociedad Química y Minera de Chile as a stock to potentially avoid with its 3.1x P/S ratio. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the elevated P/S.
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