NYSE:ALB is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Discover ALBEMARLE CORP (NYSE:ALB)—an undervalued stock our stock screener has picked out. NYSE:ALB demonstrates solid fundamentals, including health and profitability, all while staying attractively priced. Let's explore the details.

Assessing Valuation Metrics for 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:

• ALB is valuated cheaply with a Price/Earnings ratio of 4.97.
• ALB's Price/Earnings ratio is rather cheap when compared to the industry. ALB is cheaper than 93.02% of the companies in the same industry.
• The average S&P500 Price/Earnings ratio is at 25.90. ALB is valued rather cheaply when compared to this.
• A Price/Forward Earnings ratio of 7.10 indicates a rather cheap valuation of ALB.
• Based on the Price/Forward Earnings ratio, ALB is valued cheaper than 93.02% of the companies in the same industry.
• The average S&P500 Price/Forward Earnings ratio is at 18.97. ALB is valued rather cheaply when compared to this.
• ALB's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ALB is cheaper than 77.91% of the companies in the same industry.
• The 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.

Analyzing Profitability Metrics

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:ALB has earned a 9 out of 10:

• Looking at the Return On Assets, with a value of 20.50%, ALB belongs to the top of the industry, outperforming 98.84% of the companies in the same industry.
• The Return On Equity of ALB (39.92%) is better than 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.
• The Profit Margin of ALB (40.55%) is better than 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.
• In the last couple of years the Operating Margin of ALB has grown nicely.
• Looking at the Gross Margin, with a value of 40.18%, ALB belongs to the top of the industry, outperforming 80.23% of the companies in the same industry.
• ALB's Gross Margin has improved in the last couple of years.

Evaluating Health: NYSE:ALB

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:

• An Altman-Z score of 3.04 indicates that ALB is not in any danger for bankruptcy at the moment.
• ALB has a better Altman-Z score (3.04) than 75.58% 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.
• The Debt to FCF ratio of ALB (3.65) is better than 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.
• The Debt to Equity ratio of ALB (0.36) is better than 68.60% of its industry peers.
• 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.

How We Gauge Growth for NYSE:ALB

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:ALB, the assigned 8 reflects its growth potential:

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

More Decent Value stocks can be found in our Decent Value screener.

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

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.