ALBEMARLE CORP (ALB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ALB - US0126531013 - Common Stock
191.565 USD
+2.06 (+1.08%)
We assign a fundamental rating of 3 out of 10 to ALB. ALB was compared to 83 industry peers in the Chemicals industry. While ALB seems to be doing ok healthwise, there are quite some concerns on its profitability. ALB is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year ALB has reported negative net income.
- ALB had a positive operating cash flow in the past year.
- ALB had positive earnings in 4 of the past 5 years.
- ALB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of ALB (-1.10%) is comparable to the rest of the industry.
- ALB's Return On Equity of -1.88% is in line compared to the rest of the industry. ALB outperforms 46.99% of its industry peers.
- ALB has a worse Return On Invested Capital (0.11%) than 81.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.1% | ||
| ROE | -1.88% | ||
| ROIC | 0.11% |
ROA(3y)6.03%
ROA(5y)4.56%
ROE(3y)12.4%
ROE(5y)9.64%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- ALB has a Operating Margin of 0.41%. This is in the lower half of the industry: ALB underperforms 79.52% of its industry peers.
- ALB has a Gross Margin of 12.31%. This is in the lower half of the industry: ALB underperforms 79.52% of its industry peers.
- In the last couple of years the Gross Margin of ALB has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.41% | ||
| PM (TTM) | N/A | ||
| GM | 12.31% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-66.02%
GM growth 5Y-49.18%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ALB is destroying value.
- The number of shares outstanding for ALB remains at a similar level compared to 1 year ago.
- ALB has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for ALB has been reduced compared to a year ago.
2.2 Solvency
- ALB has an Altman-Z score of 2.76. This is not the best score and indicates that ALB is in the grey zone with still only limited risk for bankruptcy at the moment.
- The Altman-Z score of ALB (2.76) is better than 77.11% of its industry peers.
- ALB has a debt to FCF ratio of 34.76. This is a negative value and a sign of low solvency as ALB would need 34.76 years to pay back of all of its debts.
- ALB has a Debt to FCF ratio of 34.76. This is comparable to the rest of the industry: ALB outperforms 46.99% of its industry peers.
- A Debt/Equity ratio of 0.32 indicates that ALB is not too dependend on debt financing.
- The Debt to Equity ratio of ALB (0.32) is better than 72.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 34.76 | ||
| Altman-Z | 2.76 |
ROIC/WACC0.01
WACC13.97%
2.3 Liquidity
- ALB has a Current Ratio of 2.27. This indicates that ALB is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Current ratio, with a value of 2.27, ALB is in the better half of the industry, outperforming 63.86% of the companies in the same industry.
- ALB has a Quick Ratio of 1.51. This is a normal value and indicates that ALB is financially healthy and should not expect problems in meeting its short term obligations.
- ALB has a Quick ratio of 1.51. This is in the better half of the industry: ALB outperforms 62.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.27 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
- The earnings per share for ALB have decreased strongly by -325.00% in the last year.
- The Revenue for ALB has decreased by -23.92% in the past year. This is quite bad
- The Revenue has been growing by 8.42% on average over the past years. This is quite good.
EPS 1Y (TTM)-325%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%87.74%
Revenue 1Y (TTM)-23.92%
Revenue growth 3Y17.35%
Revenue growth 5Y8.42%
Sales Q2Q%-3.46%
3.2 Future
- The Earnings Per Share is expected to grow by 49.09% on average over the next years. This is a very strong growth
- Based on estimates for the next years, ALB will show a small growth in Revenue. The Revenue will grow by 6.83% on average per year.
EPS Next Y63.95%
EPS Next 2Y70.01%
EPS Next 3Y63.7%
EPS Next 5Y49.09%
Revenue Next Year-7.66%
Revenue Next 2Y0.21%
Revenue Next 3Y3.62%
Revenue Next 5Y6.83%
3.3 Evolution
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings Ratio is negative for ALB. In the last year negative earnings were reported.
- A Price/Forward Earnings ratio of 91.94 indicates a quite expensive valuation of ALB.
- 68.67% of the companies in the same industry are cheaper than ALB, based on the Price/Forward Earnings ratio.
- ALB is valuated expensively when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 91.94 |
4.2 Price Multiples
- 81.93% of the companies in the same industry are cheaper than ALB, based on the Enterprise Value to EBITDA ratio.
- The rest of the industry has a similar Price/Free Cash Flow ratio as ALB.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 216.15 | ||
| EV/EBITDA | 35.38 |
4.3 Compensation for Growth
- ALB's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- A more expensive valuation may be justified as ALB's earnings are expected to grow with 63.70% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y70.01%
EPS Next 3Y63.7%
5. Dividend
5.1 Amount
- ALB has a yearly dividend return of 0.86%, which is pretty low.
- Compared to an average industry Dividend Yield of 2.23, ALB is paying slightly less dividend.
- Compared to an average S&P500 Dividend Yield of 1.81, ALB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
5.2 History
- On average, the dividend of ALB grows each year by 13.04%, which is quite nice.
- ALB has been paying a dividend for at least 10 years, so it has a reliable track record.
- ALB has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)13.04%
Div Incr Years30
Div Non Decr Years30
5.3 Sustainability
- The earnings of ALB are negative and hence is the payout ratio. ALB will probably not be able to sustain this dividend level.
- ALB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-190.12%
EPS Next 2Y70.01%
EPS Next 3Y63.7%
ALBEMARLE CORP / ALB FAQ
What is the ChartMill fundamental rating of ALBEMARLE CORP (ALB) stock?
ChartMill assigns a fundamental rating of 3 / 10 to ALB.
What is the valuation status of ALBEMARLE CORP (ALB) stock?
ChartMill assigns a valuation rating of 2 / 10 to ALBEMARLE CORP (ALB). This can be considered as Overvalued.
What is the profitability of ALB stock?
ALBEMARLE CORP (ALB) has a profitability rating of 2 / 10.
What is the financial health of ALBEMARLE CORP (ALB) stock?
The financial health rating of ALBEMARLE CORP (ALB) is 5 / 10.
What is the earnings growth outlook for ALBEMARLE CORP?
The Earnings per Share (EPS) of ALBEMARLE CORP (ALB) is expected to grow by 63.95% in the next year.