ALBEMARLE CORP (ALB)
US0126531013 - Common Stock
ALB gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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 not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
ALB had positive earnings in the past year.
ALB had a positive operating cash flow in the past year.
Each year in the past 5 years ALB has been profitable.
ALB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 1.71%, ALB perfoms like the industry average, outperforming 48.19% of the companies in the same industry.
Looking at the Return On Equity, with a value of 2.82%, ALB is in line with its industry, outperforming 44.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.71% | ||
| ROE | 2.82% | ||
| ROIC | N/A |
ROA(3y)9.05%
ROA(5y)7.23%
ROE(3y)17.54%
ROE(5y)15%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of ALB (3.88%) is comparable to the rest of the industry.
ALB's Profit Margin has declined in the last couple of years.
In the last couple of years the Operating Margin of ALB has declined.
The Operating Margin and Gross Margin are not available for ALB so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 3.88% | ||
| GM | N/A |
OM growth 3Y-35%
OM growth 5Y-26.28%
PM growth 3Y10.85%
PM growth 5Y-4.46%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
ALB does not have a ROIC to compare to the WACC, probably because it is not profitable.
ALB has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ALB has more shares outstanding
The debt/assets ratio for ALB is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.91 indicates that ALB is not a great score, but indicates only limited risk for bankruptcy at the moment.
ALB has a Altman-Z score of 1.91. This is comparable to the rest of the industry: ALB outperforms 44.58% 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 74.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.91 |
ROIC/WACCN/A
WACC7.21%
2.3 Liquidity
A Current Ratio of 2.84 indicates that ALB has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.84, ALB is in the better half of the industry, outperforming 72.29% of the companies in the same industry.
ALB has a Quick Ratio of 1.91. 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 1.91. This is in the better half of the industry: ALB outperforms 71.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.84 | ||
| Quick Ratio | 1.91 |
3. Growth
3.1 Past
The earnings per share for ALB have decreased strongly by -59.25% in the last year.
ALB shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.24% yearly.
Looking at the last year, ALB shows a decrease in Revenue. The Revenue has decreased by -4.27% in the last year.
The Revenue has been growing by 23.30% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-59.25%
EPS 3Y75.42%
EPS 5Y32.24%
EPS Q2Q%-97.48%
Revenue 1Y (TTM)-4.27%
Revenue growth 3Y45.4%
Revenue growth 5Y23.3%
Sales Q2Q%-47.26%
3.2 Future
The Earnings Per Share is expected to grow by 6.72% on average over the next years.
The Revenue is expected to grow by 4.94% on average over the next years.
EPS Next Y-86.76%
EPS Next 2Y-40.13%
EPS Next 3Y-20.22%
EPS Next 5Y6.72%
Revenue Next Year-36.94%
Revenue Next 2Y-13.05%
Revenue Next 3Y-4.12%
Revenue Next 5Y4.94%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
ALB is valuated cheaply with a Price/Earnings ratio of 7.62.
Based on the Price/Earnings ratio, ALB is valued cheaper than 95.18% of the companies in the same industry.
When comparing the Price/Earnings ratio of ALB to the average of the S&P500 Index (24.41), we can say ALB is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.64, the valuation of ALB can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ALB indicates a somewhat cheap valuation: ALB is cheaper than 71.08% of the companies listed in the same industry.
ALB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.62 | ||
| Fwd PE | 11.64 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A cheap valuation may be justified as ALB's earnings are expected to decrease with -20.22% in the coming years.
PEG (NY)N/A
PEG (5Y)0.24
EPS Next 2Y-40.13%
EPS Next 3Y-20.22%
5. Dividend
5.1 Amount
ALB has a Yearly Dividend Yield of 1.73%.
In the last 3 months the price of ALB has falen by -20.60%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.07, ALB pays a bit more dividend than its industry peers.
ALB's Dividend Yield is slightly below the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
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 Years29
Div Non Decr Years29
5.3 Sustainability
57.66% of the earnings are spent on dividend by ALB. This is a bit on the high side, but may be sustainable.
ALB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP57.66%
EPS Next 2Y-40.13%
EPS Next 3Y-20.22%
ALBEMARLE CORP
NYSE:ALB (7/26/2024, 5:20:51 PM)
After market: 92.82 +0.02 (+0.02%)92.8
+1.8 (+1.98%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap10.91B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
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)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
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)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
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 | 7.62 | ||
| Fwd PE | 11.64 | ||
| 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)0.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.71% | ||
| ROE | 2.82% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 3.88% | ||
| GM | N/A | ||
| 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 Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.84 | ||
| Quick Ratio | 1.91 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)-59.25%
EPS 3Y75.42%
EPS 5Y
EPS Q2Q%
EPS Next Y-86.76%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-4.27%
Revenue growth 3Y45.4%
Revenue growth 5Y
Sales 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