NYSE:ALB, a growth stock which is not overvalued.

Last update: Sep 28, 2023

Consider ALBEMARLE CORP (NYSE:ALB) as an affordable growth stock, identified by our stock screening tool. NYSE:ALB is showcasing impressive growth figures and is well-positioned in terms of profitability, solvency, and liquidity. Moreover, it seems to be priced reasonably. Let's dive deeper into the analysis.

Analyzing Growth Metrics

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:ALB scores a 8 out of 10:

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.
The Revenue has grown by 123.06% in the past year. This is a very strong growth!
ALB shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.96% yearly.
The Earnings Per Share is expected to grow by 13.67% on average over the next years. This is quite good.
The Revenue is expected to grow by 11.40% on average over the next years. This is quite good.

Unpacking NYSE:ALB's Valuation Rating

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:ALB scores a 8 out of 10:

Based on the Price/Earnings ratio of 4.82, the valuation of ALB can be described as very cheap.
Based on the Price/Earnings ratio, ALB is valued cheaper than 94.19% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.59, ALB is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.89, 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/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 18.75, ALB is valued rather cheaply.
77.91% of the companies in the same industry are more expensive than ALB, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ALB indicates a somewhat cheap valuation: ALB is cheaper than 60.47% of the companies listed in the same industry.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ALB has an outstanding profitability rating, which may justify a higher PE ratio.

Evaluating Health: NYSE:ALB

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:

An Altman-Z score of 3.00 indicates that ALB is not in any danger for bankruptcy at the moment.
The Altman-Z score of ALB (3.00) is better than 74.42% of its industry peers.
The Debt to FCF ratio of ALB is 3.65, which is a good value as it means it would take ALB, 3.65 years of fcf income to pay off all of its debts.
ALB has a Debt to FCF ratio of 3.65. This is in the better half of the industry: ALB outperforms 73.26% of its industry peers.
A Debt/Equity ratio of 0.36 indicates that ALB is not too dependend on debt financing.
ALB has a Debt to Equity ratio of 0.36. This is in the better half of the industry: ALB outperforms 68.60% of its industry peers.
ALB does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Profitability Assessment of NYSE:ALB

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:ALB has earned a 9 out of 10:

ALB's Return On Assets of 20.50% is amongst the best of the industry. ALB outperforms 98.84% of its industry peers.
The Return On Equity of ALB (39.92%) is better than 96.51% of its industry peers.
ALB's Return On Invested Capital of 16.42% is amongst the best of the industry. ALB outperforms 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.
With an excellent Profit Margin value of 40.55%, ALB belongs to the best of the industry, outperforming 98.84% of the companies in the same industry.
ALB's Profit Margin has improved in the last couple of years.
The Operating Margin of ALB (31.10%) is better than 93.02% of its industry peers.
ALB's Operating Margin has improved in the last couple of years.
The Gross Margin of ALB (40.18%) is better than 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.

Check the latest full fundamental report of ALB for a complete fundamental analysis.

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.