In the world of growth stocks, NYSE:ALB shines as a value proposition.

Last update: Oct 11, 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.

Growth Analysis for NYSE:ALB

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:ALB has received a 8 out of 10:

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.
Based on estimates for the next years, ALB will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.67% on average per year.
ALB is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.40% yearly.

Valuation Analysis for NYSE:ALB

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NYSE:ALB has received a 8 out of 10:

The Price/Earnings ratio is 4.80, which indicates a rather cheap valuation of ALB.
Compared to the rest of the industry, the Price/Earnings ratio of ALB indicates a rather cheap valuation: ALB is cheaper than 94.12% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.88, ALB is valued rather cheaply.
The Price/Forward Earnings ratio is 6.86, which indicates a rather cheap valuation of ALB.
92.94% 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 18.97.
ALB's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ALB is cheaper than 78.82% 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.
The excellent profitability rating of ALB may justify a higher PE ratio.

Understanding NYSE:ALB's 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 2.99. This indicates that ALB is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 2.99, ALB is doing good in the industry, outperforming 72.94% 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 Debt to FCF ratio of 3.65. This is in the better half of the industry: ALB outperforms 72.94% of its industry peers.
ALB has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.36, ALB is doing good in the industry, outperforming 68.24% of the companies in the same industry.
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 Analysis for 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:

ALB has a better Return On Assets (20.50%) than 98.82% of its industry peers.
ALB's Return On Equity of 39.92% is amongst the best of the industry. ALB outperforms 96.47% of its industry peers.
ALB has a better Return On Invested Capital (16.42%) than 92.94% of its industry peers.
The last Return On Invested Capital (16.42%) for ALB is above the 3 year average (8.60%), which is a sign of increasing profitability.
ALB's Profit Margin of 40.55% is amongst the best of the industry. ALB outperforms 98.82% of its industry peers.
In the last couple of years the Profit Margin of ALB has grown nicely.
With an excellent Operating Margin value of 31.10%, ALB belongs to the best of the industry, outperforming 92.94% of the companies in the same industry.
ALB's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 40.18%, ALB is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
ALB's Gross Margin has improved in the last couple of years.

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 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.