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

Last update: Oct 3, 2023

Take a closer look at ALBEMARLE CORP (NYSE:ALB), an affordable growth stock uncovered by our stock screener. NYSE:ALB boasts strong growth prospects and excels in financial health indicators, all while maintaining a reasonable valuation. Let's break it down further.

ChartMill's Evaluation of Growth

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:ALB was assigned a score of 8 for growth:

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.
The Earnings Per Share has been growing by 36.69% on average over the past years. This is a very strong growth
Looking at the last year, ALB shows a very strong growth in Revenue. The Revenue has grown by 123.06%.
The Revenue has been growing by 18.96% on average over the past years. This is quite good.
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.

Valuation Insights: NYSE:ALB

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:ALB has achieved a 8 out of 10:

A Price/Earnings ratio of 4.81 indicates a rather cheap valuation of ALB.
Based on the Price/Earnings ratio, ALB is valued cheaper than 94.19% of the companies in the same industry.
ALB is valuated cheaply when we compare the Price/Earnings ratio to 25.50, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 6.88, the valuation of ALB can be described as very cheap.
Based on the Price/Forward Earnings ratio, ALB is valued cheaper than 93.02% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 18.66, ALB is valued rather cheaply.
ALB's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ALB is cheaper than 77.91% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ALB is valued a bit cheaper than the industry average as 60.47% of the companies are valued more expensively.
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.

Understanding NYSE:ALB's Health

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 3.00 indicates that ALB is not in any danger for bankruptcy at the moment.
ALB has a Altman-Z score of 3.00. This is in the better half 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.
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.

Looking at the Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:ALB, the assigned 9 is a significant indicator of profitability:

Looking at the Return On Assets, with a value of 20.50%, ALB belongs to the top of the industry, outperforming 98.84% of the companies in the same industry.
ALB's Return On Equity of 39.92% is amongst the best of the industry. ALB outperforms 96.51% of its industry peers.
ALB has a Return On Invested Capital of 16.42%. This is amongst the best in 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.
ALB has a better Profit Margin (40.55%) than 98.84% of its industry peers.
In the last couple of years the Profit Margin of ALB has grown nicely.
Looking at the Operating Margin, with a value of 31.10%, ALB belongs to the top of the industry, outperforming 93.02% of the companies in the same industry.
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.
In the last couple of years the Gross Margin of ALB has grown nicely.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

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

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.