Looking for growth without the hefty price tag? Consider NYSE:ALB.

Last update: Oct 5, 2023

ALBEMARLE CORP (NYSE:ALB) has caught the eye of our stock screener as an affordable growth stock. NYSE:ALB is displaying robust growth metrics and also excels in terms of profitability, solvency, and liquidity. Additionally, it appears to be reasonably priced. Let's delve into the details.

ChartMill's Evaluation of Growth

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.
The Earnings Per Share has been growing by 36.69% on average over the past years. This is a very strong growth
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.
Based on estimates for the next years, ALB will show a quite strong growth in Revenue. The Revenue will grow by 11.40% on average per year.

A Closer Look at Valuation for NYSE:ALB

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:ALB boasts a 8 out of 10:

A Price/Earnings ratio of 4.69 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.
Compared to an average S&P500 Price/Earnings ratio of 25.33, ALB is valued rather cheaply.
A Price/Forward Earnings ratio of 6.71 indicates a rather cheap valuation of ALB.
93.02% of the companies in the same industry are more expensive than ALB, based on the Price/Forward Earnings ratio.
ALB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 18.56.
79.07% of the companies in the same industry are more expensive than ALB, based on the Enterprise Value to EBITDA ratio.
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.
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.

ChartMill's Evaluation of Health

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:ALB has achieved a 5 out of 10:

Looking at the Altman-Z score, with a value of 2.97, ALB is in the better half of the industry, outperforming 73.26% of the companies in the same industry.
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 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 has a better Debt to Equity ratio (0.36) than 68.60% of its industry peers.

Profitability Insights: NYSE:ALB

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:ALB has achieved a 9:

With an excellent Return On Assets value of 20.50%, ALB belongs to the best of the industry, outperforming 98.84% of the companies in the same industry.
ALB has a better Return On Equity (39.92%) than 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.
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.

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

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.