ALBEMARLE CORP (ALB)

US0126531013 - Common Stock

127.59  +4.64 (+3.77%)

After market: 127.5 -0.09 (-0.07%)

Fundamental Rating

4

Taking everything into account, ALB scores 4 out of 10 in our fundamental rating. ALB was compared to 84 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.



3

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.
In the past 5 years ALB always reported a positive cash flow from operatings.

1.2 Ratios

ALB's Return On Assets of 1.71% is in line compared to the rest of the industry. ALB outperforms 48.81% of its industry peers.
With a Return On Equity value of 2.82%, ALB perfoms like the industry average, outperforming 46.43% of the companies in the same industry.
Industry RankSector 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

With a Profit Margin value of 3.88%, ALB perfoms like the industry average, outperforming 51.19% of the companies in the same 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.
ALB does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
Industry RankSector 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

4

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 has been increased compared to 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

ALB has an Altman-Z score of 2.21. 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.
Looking at the Altman-Z score, with a value of 2.21, ALB is in line with its industry, outperforming 57.14% of the companies in the same industry.
ALB has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.31, ALB is doing good in the industry, outperforming 72.62% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.31
Debt/FCF N/A
Altman-Z 2.21
ROIC/WACCN/A
WACC7.74%

2.3 Liquidity

ALB has a Current Ratio of 2.84. This indicates that ALB is financially healthy and has no problem in meeting its short term obligations.
ALB's Current ratio of 2.84 is fine compared to the rest of the industry. ALB outperforms 72.62% of its industry peers.
A Quick Ratio of 1.91 indicates that ALB should not have too much problems paying its short term obligations.
ALB has a Quick ratio of 1.91. This is in the better half of the industry: ALB outperforms 75.00% of its industry peers.
Industry RankSector Rank
Current Ratio 2.84
Quick Ratio 1.91

4

3. Growth

3.1 Past

The earnings per share for ALB have decreased strongly by -59.25% in the last year.
The Earnings Per Share has been growing by 32.24% on average over the past years. This is a very strong growth
The Revenue has decreased by -4.27% in the past 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

Based on estimates for the next years, ALB will show a small growth in Earnings Per Share. The EPS will grow by 6.97% on average per year.
Based on estimates for the next years, ALB will show a small growth in Revenue. The Revenue will grow by 5.32% on average per year.
EPS Next Y-82.72%
EPS Next 2Y-35.58%
EPS Next 3Y-16.87%
EPS Next 5Y6.97%
Revenue Next Year-37.54%
Revenue Next 2Y-13.05%
Revenue Next 3Y-3%
Revenue Next 5Y5.32%

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

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 10.48 indicates a reasonable valuation of ALB.
Based on the Price/Earnings ratio, ALB is valued cheaper than 91.67% of the companies in the same industry.
ALB's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.24.
A Price/Forward Earnings ratio of 13.82 indicates a correct valuation of ALB.
ALB's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ALB is cheaper than 64.29% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 19.93. ALB is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 10.48
Fwd PE 13.82

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A

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)0.32
EPS Next 2Y-35.58%
EPS Next 3Y-16.87%

5

5. Dividend

5.1 Amount

ALB has a Yearly Dividend Yield of 1.30%. Purely for dividend investing, there may be better candidates out there.
ALB's Dividend Yield is comparable with the industry average which is at 3.10.
With a Dividend Yield of 1.30, ALB pays less dividend than the S&P500 average, which is at 2.36.
Industry RankSector Rank
Dividend Yield 1.3%

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

57.66% of the earnings are spent on dividend by ALB. This is a bit on the high side, but may be sustainable.
The dividend of ALB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP57.66%
EPS Next 2Y-35.58%
EPS Next 3Y-16.87%

ALBEMARLE CORP

NYSE:ALB (5/24/2024, 7:13:26 PM)

After market: 127.5 -0.09 (-0.07%)

127.59

+4.64 (+3.77%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap15.00B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.3%
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)
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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 RankSector Rank
PE 10.48
Fwd PE 13.82
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)0.32
Profitability
Industry RankSector 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 RankSector 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-82.72%
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