ALBEMARLE CORP (ALB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ALB - US0126531013 - Common Stock
161.57 USD
+3.42 (+2.16%)
159.6 USD
-1.97 (-1.22%)
ALB gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 83 industry peers in the Chemicals industry. The financial health of ALB is average, but there are quite some concerns on its profitability. ALB is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
ALB had negative earnings in the past year.
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
The Return On Assets of ALB (-1.10%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of -1.88%, ALB is in line with its industry, outperforming 48.19% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 0.11%, ALB is doing worse than 81.93% of the companies in the same industry.
| 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
The Operating Margin of ALB (0.41%) is worse than 79.52% of its industry peers.
ALB's Gross Margin of 12.31% is on the low side compared to the rest of the industry. ALB is outperformed by 78.31% of its industry peers.
ALB's Gross Margin has declined in the last couple of years.
| 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.
Compared to 1 year ago, ALB has about the same amount of shares outstanding.
Compared to 5 years ago, ALB has more shares outstanding
ALB has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.48 indicates that ALB is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.48, ALB is in the better half of the industry, outperforming 75.90% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 34.76, ALB is in line with its industry, outperforming 48.19% of the companies in the same industry.
ALB has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
ALB has a better Debt to Equity ratio (0.32) than 73.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 34.76 | ||
| Altman-Z | 2.48 |
ROIC/WACC0.01
WACC13.65%
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.
ALB has a better Current ratio (2.27) than 65.06% of its industry peers.
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.
The Quick ratio of ALB (1.51) is better than 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
The Revenue is expected to grow by 6.83% on average over the next years.
EPS Next Y63.15%
EPS Next 2Y58.94%
EPS Next 3Y61.53%
EPS Next 5Y49.09%
Revenue Next Year-7.61%
Revenue Next 2Y-2.28%
Revenue Next 3Y3.11%
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
ALB reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
The Price/Forward Earnings ratio is 131.22, which means the current valuation is very expensive for ALB.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ALB indicates a slightly more expensive valuation: ALB is more expensive than 67.47% of the companies listed in the same industry.
ALB's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 131.22 |
4.2 Price Multiples
80.72% 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 | 182.31 | ||
| EV/EBITDA | 30.53 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ALB does not grow enough to justify the current Price/Earnings ratio.
ALB's earnings are expected to grow with 61.53% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y58.94%
EPS Next 3Y61.53%
5. Dividend
5.1 Amount
ALB has a Yearly Dividend Yield of 1.15%. Purely for dividend investing, there may be better candidates out there.
ALB's Dividend Yield is comparable with the industry average which is at 2.47.
Compared to an average S&P500 Dividend Yield of 1.94, ALB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
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 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
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 2Y58.94%
EPS Next 3Y61.53%
161.57
+3.42 (+2.16%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners96.18%
Inst Owner Change0%
Ins Owners0.36%
Ins Owner Change-2.74%
Market Cap19.02B
Revenue(TTM)4.95B
Net Income(TTM)-187.91M
Analysts67.1
Price Target123.97 (-23.27%)
Short Float %8.33%
Short Ratio2.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
Yearly Dividend2.65
Dividend Growth(5Y)13.04%
DP-190.12%
Div Incr Years30
Div Non Decr Years30
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)94.53%
Min EPS beat(2)75.86%
Max EPS beat(2)113.21%
EPS beat(4)3
Avg EPS beat(4)51.06%
Min EPS beat(4)-54.53%
Max EPS beat(4)113.21%
EPS beat(8)4
Avg EPS beat(8)-7.12%
EPS beat(12)7
Avg EPS beat(12)1.92%
EPS beat(16)11
Avg EPS beat(16)4.95%
Revenue beat(2)2
Avg Revenue beat(2)4.93%
Min Revenue beat(2)1.46%
Max Revenue beat(2)8.39%
Revenue beat(4)2
Avg Revenue beat(4)-1.68%
Min Revenue beat(4)-8.69%
Max Revenue beat(4)8.39%
Revenue beat(8)5
Avg Revenue beat(8)0.83%
Revenue beat(12)5
Avg Revenue beat(12)-1.14%
Revenue beat(16)6
Avg Revenue beat(16)-1.03%
PT rev (1m)19.75%
PT rev (3m)46.39%
EPS NQ rev (1m)17.56%
EPS NQ rev (3m)4.79%
EPS NY rev (1m)9.75%
EPS NY rev (3m)46.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.04%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)2.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 131.22 | ||
| P/S | 3.84 | ||
| P/FCF | 182.31 | ||
| P/OCF | 21.26 | ||
| P/B | 1.9 | ||
| P/tB | 2.3 | ||
| EV/EBITDA | 30.53 |
EPS(TTM)-1.35
EYN/A
EPS(NY)1.23
Fwd EY0.76%
FCF(TTM)0.89
FCFY0.55%
OCF(TTM)7.6
OCFY4.7%
SpS42.03
BVpS84.93
TBVpS70.31
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.1% | ||
| ROE | -1.88% | ||
| ROCE | 0.13% | ||
| ROIC | 0.11% | ||
| ROICexc | 0.12% | ||
| ROICexgc | 0.14% | ||
| OM | 0.41% | ||
| PM (TTM) | N/A | ||
| GM | 12.31% | ||
| FCFM | 2.11% |
ROA(3y)6.03%
ROA(5y)4.56%
ROE(3y)12.4%
ROE(5y)9.64%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc 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-Score5
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 34.76 | ||
| Debt/EBITDA | 4.69 | ||
| Cap/Depr | 120.07% | ||
| Cap/Sales | 15.97% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 131.85% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.27 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z | 2.48 |
F-Score5
WACC13.65%
ROIC/WACC0.01
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)-325%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%87.74%
EPS Next Y63.15%
EPS Next 2Y58.94%
EPS Next 3Y61.53%
EPS Next 5Y49.09%
Revenue 1Y (TTM)-23.92%
Revenue growth 3Y17.35%
Revenue growth 5Y8.42%
Sales Q2Q%-3.46%
Revenue Next Year-7.61%
Revenue Next 2Y-2.28%
Revenue Next 3Y3.11%
Revenue Next 5Y6.83%
EBIT growth 1Y101.57%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year163.07%
EBIT Next 3Y45.25%
EBIT Next 5Y36.66%
FCF growth 1Y-77.56%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-62.35%
OCF growth 3Y26.81%
OCF growth 5Y-0.49%
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 1 / 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 63.15% in the next year.