ALBEMARLE CORP (ALB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ALB - US0126531013 - Common Stock
150.01 USD
+1.5 (+1.01%)
149.44 USD
-0.57 (-0.38%)
We assign a fundamental rating of 3 out of 10 to ALB. ALB was compared to 84 industry peers in the Chemicals industry. ALB scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. ALB is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
ALB had negative earnings in the past year.
ALB had a positive operating cash flow in the past year.
Of the past 5 years ALB 4 years were profitable.
Each year in the past 5 years ALB had a positive operating cash flow.
1.2 Ratios
ALB's Return On Assets of -1.10% is in line compared to the rest of the industry. ALB outperforms 44.05% of its industry peers.
Looking at the Return On Equity, with a value of -1.88%, ALB is in line with its industry, outperforming 48.81% 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 80.95% 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
Looking at the Operating Margin, with a value of 0.41%, ALB is doing worse than 78.57% of the companies in the same industry.
ALB has a Gross Margin of 12.31%. This is in the lower half of the industry: ALB underperforms 77.38% 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.
ALB has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for ALB has been increased compared to 5 years ago.
The debt/assets ratio for ALB has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.36 indicates that ALB is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of ALB (2.36) is better than 69.05% of its industry peers.
The Debt to FCF ratio of ALB is 34.76, which is on the high side as it means it would take ALB, 34.76 years of fcf income to pay off all of its debts.
ALB's Debt to FCF ratio of 34.76 is in line compared to the rest of the industry. ALB outperforms 48.81% of its industry peers.
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 Debt to Equity ratio of 0.32. This is in the better half of the industry: ALB outperforms 73.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 34.76 | ||
| Altman-Z | 2.36 |
ROIC/WACC0.01
WACC13.48%
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 Current ratio of 2.27. This is in the better half of the industry: ALB outperforms 65.48% 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.
Looking at the Quick ratio, with a value of 1.51, ALB is in the better half of the industry, outperforming 61.90% of the companies in the same industry.
| 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 Y59.17%
EPS Next 2Y43.93%
EPS Next 3Y54.1%
EPS Next 5Y49.09%
Revenue Next Year-7.73%
Revenue Next 2Y-3.33%
Revenue Next 3Y1.68%
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
The Price/Earnings Ratio is negative for ALB. In the last year negative earnings were reported.
Based on the Price/Forward Earnings ratio of 897.27, the valuation of ALB can be described as expensive.
Based on the Price/Forward Earnings ratio, ALB is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.04, ALB is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 897.27 |
4.2 Price Multiples
79.76% of the companies in the same industry are cheaper than ALB, based on the Enterprise Value to EBITDA ratio.
ALB's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 169.26 | ||
| EV/EBITDA | 28.26 |
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 54.10% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y43.93%
EPS Next 3Y54.1%
5. Dividend
5.1 Amount
ALB has a Yearly Dividend Yield of 1.15%.
ALB's Dividend Yield is comparable with the industry average which is at 2.46.
ALB's Dividend Yield is slightly below the S&P500 average, which is at 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
5.2 History
The dividend of ALB is nicely growing with an annual growth rate of 13.04%!
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 2Y43.93%
EPS Next 3Y54.1%
150.01
+1.5 (+1.01%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners95.93%
Inst Owner Change-4.13%
Ins Owners0.36%
Ins Owner Change3.48%
Market Cap17.66B
Revenue(TTM)4.95B
Net Income(TTM)-187.91M
Analysts67.1
Price Target109.2 (-27.2%)
Short Float %8.32%
Short Ratio2.69
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-Date
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)11.1%
PT rev (3m)30.02%
EPS NQ rev (1m)-3.61%
EPS NQ rev (3m)-15.49%
EPS NY rev (1m)36.76%
EPS NY rev (3m)42.16%
Revenue NQ rev (1m)0.3%
Revenue NQ rev (3m)5.04%
Revenue NY rev (1m)1.35%
Revenue NY rev (3m)2.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 897.27 | ||
| P/S | 3.57 | ||
| P/FCF | 169.26 | ||
| P/OCF | 19.74 | ||
| P/B | 1.77 | ||
| P/tB | 2.13 | ||
| EV/EBITDA | 28.26 |
EPS(TTM)-1.35
EYN/A
EPS(NY)0.17
Fwd EY0.11%
FCF(TTM)0.89
FCFY0.59%
OCF(TTM)7.6
OCFY5.07%
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 | 2.36 |
F-Score5
WACC13.48%
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 Y59.17%
EPS Next 2Y43.93%
EPS Next 3Y54.1%
EPS Next 5Y49.09%
Revenue 1Y (TTM)-23.92%
Revenue growth 3Y17.35%
Revenue growth 5Y8.42%
Sales Q2Q%-3.46%
Revenue Next Year-7.73%
Revenue Next 2Y-3.33%
Revenue Next 3Y1.68%
Revenue Next 5Y6.83%
EBIT growth 1Y101.57%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year163.19%
EBIT Next 3Y43.98%
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 for 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.
Is the dividend of ALBEMARLE CORP sustainable?
The dividend rating of ALBEMARLE CORP (ALB) is 5 / 10 and the dividend payout ratio is -190.12%.