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

Last update: Oct 2, 2023

Uncover the potential of ALBEMARLE CORP (NYSE:ALB), a growth stock that our stock screener found to be reasonably priced. NYSE:ALB is excelling in growth aspects, maintaining a healthy financial position, and still offers an attractive valuation. We'll examine each aspect in detail.

Evaluating Growth: 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:

ALB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 328.01%, which is quite impressive.
ALB shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 36.69% yearly.
The Revenue has grown by 123.06% in the past year. This is a very strong growth!
Measured over the past years, ALB shows a quite strong growth in Revenue. The Revenue has been growing by 18.96% on average per year.
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.

What does the Valuation looks like for NYSE:ALB

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NYSE:ALB was assigned a score of 8 for valuation:

A Price/Earnings ratio of 5.04 indicates a rather cheap valuation of ALB.
Based on the Price/Earnings ratio, ALB is valued cheaply inside the industry as 91.86% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.75, ALB is valued rather cheaply.
A Price/Forward Earnings ratio of 7.20 indicates a rather cheap valuation of ALB.
Based on the Price/Forward Earnings ratio, ALB is valued cheaply inside the industry as 93.02% of the companies are valued more expensively.
ALB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 18.85.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ALB indicates a somewhat cheap valuation: ALB is cheaper than 77.91% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ALB is valued a bit cheaper than 60.47% of the companies in the same industry.
ALB's 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.

What does the Health looks like for NYSE:ALB

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:ALB has received a 6 out of 10:

An Altman-Z score of 3.05 indicates that ALB is not in any danger for bankruptcy at the moment.
ALB has a Altman-Z score of 3.05. This is in the better half of the industry: ALB outperforms 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.
Looking at the Debt to FCF ratio, with a value of 3.65, ALB is in the better half of the industry, outperforming 73.26% of the companies in the same industry.
ALB has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
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.

Assessing Profitability for 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 has a better Return On Assets (20.50%) than 98.84% of its industry peers.
The Return On Equity of ALB (39.92%) is better than 96.51% of its industry peers.
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.
Looking at the Profit Margin, with a value of 40.55%, ALB belongs to the top 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.
ALB has a Gross Margin of 40.18%. This is amongst the best in the industry. ALB outperforms 80.23% of its industry peers.
In the last couple of years the Gross Margin of ALB has grown nicely.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of ALB

Disclaimer

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.