ALBEMARLE CORP (ALB) Stock Fundamental Analysis
NYSE:ALB - New York Stock Exchange, Inc. - US0126531013 - Common Stock - Currency: USD
ALB gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 85 industry peers in the Chemicals industry. ALB may be in some trouble as it scores bad on both profitability and health. While showing a medium growth rate, ALB is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year ALB has reported negative net income.
In the past year ALB had a positive cash flow from operations.
Of the past 5 years ALB 4 years were profitable.
In the past 5 years ALB always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of -7.69%, ALB is not doing good in the industry: 76.47% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of -13.04%, ALB is doing worse than 75.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.69% | ||
| ROE | -13.04% | ||
| ROIC | N/A |
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's Gross Margin of 3.53% is on the low side compared to the rest of the industry. ALB is outperformed by 87.06% of its industry peers.
In the last couple of years the Gross Margin of ALB has declined.
ALB does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 3.53% |
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
ALB does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for ALB remains at a similar level compared to 1 year ago.
Compared to 5 years ago, ALB has more shares outstanding
ALB has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.43, we must say that ALB is in the distress zone and has some risk of bankruptcy.
ALB has a Altman-Z score of 1.43. This is in the lower half of the industry: ALB underperforms 67.06% of its industry peers.
ALB has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
ALB has a Debt to Equity ratio of 0.31. This is in the better half of the industry: ALB outperforms 72.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.43 |
ROIC/WACCN/A
WACC8.11%
2.3 Liquidity
A Current Ratio of 2.11 indicates that ALB has no problem at all paying its short term obligations.
The Current ratio of ALB (2.11) is comparable to the rest of the industry.
A Quick Ratio of 1.26 indicates that ALB should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.26, ALB is in line with its industry, outperforming 56.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.11 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
ALB shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -122.82%.
ALB shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -39.34%.
Measured over the past years, ALB shows a quite strong growth in Revenue. The Revenue has been growing by 8.42% on average per year.
EPS 1Y (TTM)-122.82%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-169.23%
Revenue 1Y (TTM)-39.34%
Revenue growth 3Y17.35%
Revenue growth 5Y8.42%
Sales Q2Q%-20.86%
3.2 Future
Based on estimates for the next years, ALB will show a very strong growth in Earnings Per Share. The EPS will grow by 65.34% on average per year.
Based on estimates for the next years, ALB will show a quite strong growth in Revenue. The Revenue will grow by 13.72% on average per year.
EPS Next Y42.64%
EPS Next 2Y64.88%
EPS Next 3Y56.41%
EPS Next 5Y65.34%
Revenue Next Year-10.9%
Revenue Next 2Y-0.66%
Revenue Next 3Y5.17%
Revenue Next 5Y13.72%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for ALB. In the last year negative earnings were reported.
With a Price/Forward Earnings ratio of 36.80, ALB can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, ALB is valued a bit more expensive than 71.76% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.99. ALB is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 36.8 |
4.2 Price Multiples
80.00% of the companies in the same industry are cheaper than ALB, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 59.8 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as ALB's earnings are expected to grow with 56.41% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y64.88%
EPS Next 3Y56.41%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.82%, ALB has a reasonable but not impressive dividend return.
The stock price of ALB dropped by -23.83% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 3.79, ALB pays a bit more dividend than its industry peers.
ALB's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.82% |
5.2 History
On average, the dividend of ALB grows each year by 13.04%, which is quite nice.
ALB has paid a dividend for at least 10 years, which is a reliable track record.
ALB has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)13.04%
Div Incr Years30
Div Non Decr Years30
5.3 Sustainability
ALB has negative earnings and hence a negative payout ratio. The dividend may be in danger.
ALB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-27.05%
EPS Next 2Y64.88%
EPS Next 3Y56.41%
61.86
+0.29 (+0.47%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners99.62%
Inst Owner Change-3.7%
Ins Owners0.22%
Ins Owner Change14.75%
Market Cap7.28B
Analysts69.09
Price Target83.98 (35.76%)
Short Float %14.56%
Short Ratio5.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.82% |
Yearly Dividend2.65
Dividend Growth(5Y)13.04%
DP-27.05%
Div Incr Years30
Div Non Decr Years30
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.02%
Min EPS beat(2)-54.53%
Max EPS beat(2)68.57%
EPS beat(4)1
Avg EPS beat(4)-81.38%
Min EPS beat(4)-249.28%
Max EPS beat(4)68.57%
EPS beat(8)3
Avg EPS beat(8)-26.95%
EPS beat(12)7
Avg EPS beat(12)-13%
EPS beat(16)11
Avg EPS beat(16)-4.4%
Revenue beat(2)0
Avg Revenue beat(2)-8.29%
Min Revenue beat(2)-8.69%
Max Revenue beat(2)-7.88%
Revenue beat(4)1
Avg Revenue beat(4)-3.24%
Min Revenue beat(4)-8.69%
Max Revenue beat(4)5.88%
Revenue beat(8)3
Avg Revenue beat(8)-1.95%
Revenue beat(12)3
Avg Revenue beat(12)-2.81%
Revenue beat(16)5
Avg Revenue beat(16)-1.38%
PT rev (1m)-15.31%
PT rev (3m)-25.67%
EPS NQ rev (1m)-98.48%
EPS NQ rev (3m)-456.01%
EPS NY rev (1m)-89.81%
EPS NY rev (3m)-400.15%
Revenue NQ rev (1m)-0.95%
Revenue NQ rev (3m)-9.76%
Revenue NY rev (1m)-3.56%
Revenue NY rev (3m)-9.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 36.8 | ||
| P/S | 1.43 | ||
| P/FCF | N/A | ||
| P/OCF | 6.33 | ||
| P/B | 0.73 | ||
| P/tB | 0.89 | ||
| EV/EBITDA | 59.8 |
EPS(TTM)-2.78
EYN/A
EPS(NY)1.68
Fwd EY2.72%
FCF(TTM)-1.19
FCFYN/A
OCF(TTM)9.77
OCFY15.79%
SpS43.3
BVpS85.24
TBVpS69.63
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.69% | ||
| ROE | -13.04% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 3.53% | ||
| FCFM | N/A |
ROA(3y)6.03%
ROA(5y)4.56%
ROE(3y)12.4%
ROE(5y)9.64%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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%
F-Score4
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 20.2 | ||
| Cap/Depr | 205.72% | ||
| Cap/Sales | 25.31% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 742.04% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.11 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z | 1.43 |
F-Score4
WACC8.11%
ROIC/WACCN/A
Cap/Depr(3y)401.9%
Cap/Depr(5y)389.55%
Cap/Sales(3y)23.64%
Cap/Sales(5y)25.35%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-122.82%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-169.23%
EPS Next Y42.64%
EPS Next 2Y64.88%
EPS Next 3Y56.41%
EPS Next 5Y65.34%
Revenue 1Y (TTM)-39.34%
Revenue growth 3Y17.35%
Revenue growth 5Y8.42%
Sales Q2Q%-20.86%
Revenue Next Year-10.9%
Revenue Next 2Y-0.66%
Revenue Next 3Y5.17%
Revenue Next 5Y13.72%
EBIT growth 1Y40.47%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year160.58%
EBIT Next 3Y46.65%
EBIT Next 5Y39.51%
FCF growth 1Y-114.29%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-52.55%
OCF growth 3Y26.81%
OCF growth 5Y-0.49%