For those who appreciate growth without the sticker shock, NYSE:ALB is worth considering.

Last update: Sep 29, 2023

Our stock screener has spotted ALBEMARLE CORP (NYSE:ALB) as a growth stock which is not overvalued. NYSE:ALB is scoring great on several growth aspects while it also shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

Analyzing Growth Metrics

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:ALB has achieved a 8 out of 10:

ALB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 328.01%, which is quite impressive.
The Earnings Per Share has been growing by 36.69% on average over the past years. This is a very strong growth
The Revenue has grown by 123.06% in the past year. This is a very strong growth!
Measured over the past years, ALB shows a quite strong growth in Revenue. The Revenue has been growing by 18.96% on average per year.
Based on estimates for the next years, ALB will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.67% on average per year.
The Revenue is expected to grow by 11.40% on average over the next years. This is quite good.

Valuation Insights: NYSE:ALB

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:ALB has achieved a 8 out of 10:

A Price/Earnings ratio of 5.11 indicates a rather cheap valuation of ALB.
ALB's Price/Earnings ratio is rather cheap when compared to the industry. ALB is cheaper than 91.86% of the companies in the same industry.
ALB's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.79.
A Price/Forward Earnings ratio of 7.30 indicates a rather cheap valuation of ALB.
ALB's Price/Forward Earnings ratio is rather cheap when compared to the industry. ALB is cheaper than 91.86% of the companies in the same industry.
ALB is valuated cheaply when we compare the Price/Forward Earnings ratio to 18.89, which is the current average of the S&P500 Index.
Based on the Enterprise Value to EBITDA ratio, ALB is valued a bit cheaper than 76.74% of the companies in the same industry.
ALB's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ALB is cheaper than 60.47% of the companies in the same industry.
ALB's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of ALB may justify a higher PE ratio.

Deciphering NYSE:ALB's Health Rating

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:ALB, the assigned 6 reflects its health status:

ALB has an Altman-Z score of 3.07. This indicates that ALB is financially healthy and has little risk of bankruptcy at the moment.
ALB has a better Altman-Z score (3.07) than 74.42% of its industry peers.
The Debt to FCF ratio of ALB is 3.65, which is a good value as it means it would take ALB, 3.65 years of fcf income to pay off all of its debts.
ALB's Debt to FCF ratio of 3.65 is fine compared to the rest of the industry. ALB outperforms 73.26% of its industry peers.
ALB has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.36, ALB is doing good in the industry, outperforming 68.60% of the companies in the same industry.
The current and quick ratio evaluation for ALB is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Exploring NYSE:ALB's Profitability

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:ALB scores a 9 out of 10:

ALB's Return On Assets of 20.50% is amongst the best of the industry. ALB outperforms 98.84% of its industry peers.
ALB's Return On Equity of 39.92% is amongst the best of the industry. ALB outperforms 96.51% of its industry peers.
The Return On Invested Capital of ALB (16.42%) is better than 93.02% of its industry peers.
The last Return On Invested Capital (16.42%) for ALB is above the 3 year average (8.60%), which is a sign of increasing profitability.
ALB's Profit Margin of 40.55% is amongst the best of the industry. ALB outperforms 98.84% of its industry peers.
In the last couple of years the Profit Margin of ALB has grown nicely.
ALB has a better Operating Margin (31.10%) than 93.02% of its industry peers.
ALB's Operating Margin has improved in the last couple of years.
ALB has a better Gross Margin (40.18%) than 80.23% of its industry peers.
ALB's Gross Margin has improved in the last couple of years.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of ALB

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.