NYSE:ALB—Positioned as a High-Growth Stock, Ready for a Potential Breakout.

Last update: Oct 18, 2023

Groth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if ALBEMARLE CORP (NYSE:ALB) is suited for growth investing, while it is forming a base and may be ready to breakout. Investors should of course do their own research, but we spotted ALBEMARLE CORP showing up in our growth with base formation screen, so it may be worth spending some more time on it.

Unpacking NYSE:ALB's Growth Rating

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:ALB boasts 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
ALB shows a strong growth in Revenue. In the last year, the Revenue has grown by 123.06%.
ALB shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.96% yearly.
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.
The Revenue is expected to grow by 11.40% on average over the next years. This is quite good.

How do we evaluate the Health for NYSE:ALB?

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:ALB has earned a 6 out of 10:

An Altman-Z score of 3.05 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 75.58% 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.
With a decent Debt to FCF ratio value of 3.65, ALB is doing good in the industry, outperforming 73.26% of the companies in the same industry.
A Debt/Equity ratio of 0.36 indicates that ALB is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.36, ALB is doing good in the industry, outperforming 68.60% of the companies in the same industry.
The current and quick ratio evaluation for ALB is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

What does the Profitability looks like for NYSE:ALB

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:

ALB has a better Return On Assets (20.50%) than 98.84% of its industry peers.
Looking at the Return On Equity, with a value of 39.92%, ALB belongs to the top of the industry, outperforming 96.51% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 16.42%, ALB belongs to the top of the industry, outperforming 93.02% of the companies in the same industry.
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 has a Profit Margin of 40.55%. This is amongst the best in the industry. ALB outperforms 98.84% of its industry peers.
ALB's Profit Margin has improved in the last couple of years.
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.
In the last couple of years the Operating Margin of ALB has grown nicely.
ALB has a better Gross Margin (40.18%) than 80.23% of its industry peers.
In the last couple of years the Gross Margin of ALB has grown nicely.

How do we evaluate the setup for NYSE:ALB?

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NYSE:ALB scores a 7 out of 10:

ALB has a bad technical rating, but it does show a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period.

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

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

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

Keep in mind

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.