For those who appreciate growth without the sticker shock, NYSE:ALB is worth considering.

Discover ALBEMARLE CORP (NYSE:ALB), an undervalued growth gem identified by our stock screener. NYSE:ALB is shining in terms of growth metrics, and it's also displaying strong financial health and profitability. What's more, it retains an appealing valuation. We'll break it down further.

Growth Analysis for NYSE:ALB

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:ALB, the assigned 8 reflects its growth potential:

• The Earnings Per Share has grown by an impressive 328.01% 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 36.69% on average per year.
• Looking at the last year, ALB shows a very strong growth in Revenue. The Revenue has grown by 123.06%.
• ALB shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.96% yearly.
• ALB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.67% yearly.
• The Revenue is expected to grow by 11.40% on average over the next years. This is quite good.

Analyzing Valuation Metrics

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:ALB has earned a 8 for valuation:

• Based on the Price/Earnings ratio of 4.85, the valuation of ALB can be described as very cheap.
• 91.86% of the companies in the same industry are more expensive than ALB, based on the Price/Earnings ratio.
• ALB's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.55.
• ALB is valuated cheaply with a Price/Forward Earnings ratio of 6.93.
• Based on the Price/Forward Earnings ratio, ALB is valued cheaply inside the industry as 91.86% of the companies are valued more expensively.
• The average S&P500 Price/Forward Earnings ratio is at 18.74. ALB is valued rather cheaply when compared to this.
• 77.91% of the companies in the same industry are more expensive than ALB, based on the Enterprise Value to EBITDA ratio.
• 60.47% of the companies in the same industry are more expensive than ALB, based on the Price/Free Cash Flow ratio.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• The excellent profitability rating of ALB may justify a higher PE ratio.

Looking at the Health

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:ALB has earned a 6 out of 10:

• ALB has an Altman-Z score of 3.00. This indicates that ALB is financially healthy and has little risk of bankruptcy at the moment.
• ALB's Altman-Z score of 3.00 is fine compared to the rest of the industry. ALB outperforms 74.42% of its industry peers.
• ALB has a debt to FCF ratio of 3.65. This is a good value and a sign of high solvency as ALB would need 3.65 years to pay back of all of its debts.
• ALB has a better Debt to FCF ratio (3.65) than 73.26% of its industry peers.
• A Debt/Equity ratio of 0.36 indicates that ALB is not too dependend on debt financing.
• ALB's Debt to Equity ratio of 0.36 is fine compared to the rest of the industry. ALB outperforms 68.60% of its industry peers.
• The current and quick ratio evaluation for ALB is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Evaluating Profitability: NYSE:ALB

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:ALB scores a 9 out of 10:

• The Return On Assets of ALB (20.50%) is better than 98.84% of its industry peers.
• Looking at the Return On Equity, with a value of 39.92%, ALB belongs to the top of the industry, outperforming 96.51% of the companies in the same industry.
• The Return On Invested Capital of ALB (16.42%) is better than 93.02% of its industry peers.
• The 3 year average ROIC (8.60%) for ALB is below the current ROIC(16.42%), indicating increased profibility in the last year.
• ALB has a Profit Margin of 40.55%. This is amongst the best in the industry. ALB outperforms 98.84% of its industry peers.
• In the last couple of years the Profit Margin of ALB has grown nicely.
• ALB has a better Operating Margin (31.10%) than 93.02% of its industry peers.
• ALB's Operating Margin has improved in the last couple of years.
• ALB's Gross Margin of 40.18% is amongst the best of the industry. ALB outperforms 80.23% of its industry peers.
• ALB's Gross Margin has improved in the last couple of years.

More Affordable Growth stocks can be found in our Affordable Growth screener.

Our latest full fundamental report of ALB contains the most current fundamental analsysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.