ALBEMARLE CORP (ALB)
US0126531013 - Common Stock
We assign a fundamental rating of 4 out of 10 to ALB. ALB was compared to 84 industry peers in the Chemicals industry. ALB has a medium profitability rating, but doesn't score so well on its financial health evaluation. ALB shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
In the past year ALB was profitable.
ALB had a positive operating cash flow in the past year.
In the past 5 years ALB has always been profitable.
In the past 5 years ALB always reported a positive cash flow from operatings.
1.2 Ratios
ALB has a Return On Assets of 8.61%. This is amongst the best in the industry. ALB outperforms 85.71% of its industry peers.
ALB has a Return On Equity of 16.72%. This is in the better half of the industry: ALB outperforms 79.76% of its industry peers.
ALB has a worse Return On Invested Capital (2.47%) than 67.86% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ALB is in line with the industry average of 7.47%.
The 3 year average ROIC (7.56%) for ALB is well above the current ROIC(2.47%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.61% | ||
| ROE | 16.72% | ||
| ROIC | 2.47% |
ROA(3y)9.05%
ROA(5y)7.23%
ROE(3y)17.54%
ROE(5y)15%
ROIC(3y)7.56%
ROIC(5y)6.83%
1.3 Margins
ALB has a better Profit Margin (16.36%) than 89.29% of its industry peers.
In the last couple of years the Profit Margin of ALB has declined.
Looking at the Operating Margin, with a value of 4.78%, ALB is doing worse than 64.29% of the companies in the same industry.
In the last couple of years the Operating Margin of ALB has declined.
With a Gross Margin value of 12.44%, ALB is not doing good in the industry: 80.95% of the companies in the same industry are doing better.
ALB's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.78% | ||
| PM (TTM) | 16.36% | ||
| GM | 12.44% |
OM growth 3Y-35%
OM growth 5Y-26.28%
PM growth 3Y10.85%
PM growth 5Y-4.46%
GM growth 3Y-26.9%
GM growth 5Y-19.35%
2. Health
2.1 Basic Checks
ALB has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for ALB has been increased compared to 1 year ago.
Compared to 5 years ago, ALB has more shares outstanding
Compared to 1 year ago, ALB has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.14 indicates that ALB is not a great score, but indicates only limited risk for bankruptcy at the moment.
ALB has a Altman-Z score (2.14) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.38 indicates that ALB is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.38, ALB is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.14 |
ROIC/WACC0.32
WACC7.68%
2.3 Liquidity
ALB has a Current Ratio of 1.47. 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 Current ratio of 1.47. This is in the lower half of the industry: ALB underperforms 78.57% of its industry peers.
A Quick Ratio of 0.86 indicates that ALB may have some problems paying its short term obligations.
ALB's Quick ratio of 0.86 is on the low side compared to the rest of the industry. ALB is outperformed by 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.32% over the past year.
Measured over the past years, ALB shows a very strong growth in Earnings Per Share. The EPS has been growing by 32.24% on average per year.
The Revenue has grown by 31.38% in the past year. This is a very strong growth!
The Revenue has been growing by 23.30% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)1.32%
EPS 3Y75.42%
EPS 5Y32.24%
EPS growth Q2Q-78.54%
Revenue 1Y (TTM)31.38%
Revenue growth 3Y45.4%
Revenue growth 5Y23.3%
Revenue growth Q2Q-10.1%
3.2 Future
The Earnings Per Share is expected to grow by 26.79% on average over the next years. This is a very strong growth
ALB is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.53% yearly.
EPS Next Y-82.72%
EPS Next 2Y-35.58%
EPS Next 3Y-16.87%
EPS Next 5Y26.79%
Revenue Next Year-37.54%
Revenue Next 2Y-13.05%
Revenue Next 3Y-3%
Revenue Next 5Y12.53%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 5.09, which indicates a rather cheap valuation of ALB.
Compared to the rest of the industry, the Price/Earnings ratio of ALB indicates a rather cheap valuation: ALB is cheaper than 95.24% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ALB to the average of the S&P500 Index (24.80), we can say ALB is valued rather cheaply.
ALB is valuated quite expensively with a Price/Forward Earnings ratio of 29.43.
63.10% of the companies in the same industry are cheaper than ALB, based on the Price/Forward Earnings ratio.
ALB is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.27, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.09 | ||
| Fwd PE | 29.43 |
4.2 Price Multiples
ALB's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. ALB is more expensive than 69.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18.45 |
4.3 Compensation for Growth
ALB's earnings are expected to decrease with -16.87% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.16
EPS Next 2Y-35.58%
EPS Next 3Y-16.87%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.23%, ALB has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.21, ALB has a dividend in line with its industry peers.
With a Dividend Yield of 1.23, ALB pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
5.2 History
The dividend of ALB has a limited annual growth rate of 3.69%.
ALB has been paying a dividend for at least 10 years, so it has 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)3.69%
Div Incr Years16
Div Non Decr Years16
5.3 Sustainability
ALB pays out 11.90% of its income as dividend. This is a sustainable payout ratio.
The dividend of ALB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP11.9%
EPS Next 2Y-35.58%
EPS Next 3Y-16.87%
ALBEMARLE CORP
NYSE:ALB (4/19/2024, 9:02:53 AM)
113.145
+1.34 (+1.2%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap13.30B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.09 | ||
| Fwd PE | 29.43 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.61% | ||
| ROE | 16.72% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.78% | ||
| PM (TTM) | 16.36% | ||
| GM | 12.44% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)1.32%
EPS 3Y75.42%
EPS 5Y
EPS growth Q2Q
EPS Next Y-82.72%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)31.38%
Revenue growth 3Y45.4%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y