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

Last update: Nov 1, 2023

Here's ALBEMARLE CORP (NYSE:ALB) for you, a growth stock our stock screener believes is undervalued. NYSE:ALB is scoring impressively in terms of growth while demonstrating strong financials. On top of that, it remains attractively priced. Let's break it down further.

Deciphering NYSE:ALB's Growth Rating

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:

The Earnings Per Share has grown by an impressive 328.01% over the past year.
Measured over the past years, ALB shows a very strong growth in Earnings Per Share. The EPS has been growing by 36.69% on average per year.
Looking at the last year, ALB shows a very strong growth in Revenue. The Revenue has grown by 123.06%.
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 a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 31.82% yearly.
ALB is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.05% yearly.

Assessing Valuation for NYSE:ALB

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:ALB scores a 9 out of 10:

The Price/Earnings ratio is 3.75, which indicates a rather cheap valuation of ALB.
Based on the Price/Earnings ratio, ALB is valued cheaper than 95.35% of the companies in the same industry.
ALB is valuated cheaply when we compare the Price/Earnings ratio to 22.86, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 5.71, the valuation of ALB can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ALB indicates a rather cheap valuation: ALB is cheaper than 94.19% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 18.20, ALB is valued rather cheaply.
ALB's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ALB is cheaper than 81.40% of the companies in the same industry.
67.44% of the companies in the same industry are more expensive than ALB, based on the Price/Free Cash Flow ratio.
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.

Analyzing Health Metrics

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:ALB scores a 5 out of 10:

ALB has a better Altman-Z score (2.73) than 70.93% 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.
ALB has a better Debt to FCF ratio (3.65) than 74.42% 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.
The Debt to Equity ratio of ALB (0.36) is better 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:

ALB has a better Return On Assets (20.50%) than 98.84% of its industry peers.
ALB has a Return On Equity of 39.92%. This is amongst the best in the industry. ALB outperforms 96.51% of its industry peers.
ALB's Return On Invested Capital of 16.42% is amongst the best of the industry. ALB outperforms 91.86% 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.
With an excellent Profit Margin value of 40.55%, ALB belongs to the best of the industry, outperforming 98.84% of the companies in the same industry.
In the last couple of years the Profit Margin of ALB has grown nicely.
ALB's Operating Margin of 31.10% is amongst the best of the industry. ALB outperforms 93.02% of its industry peers.
In the last couple of years the Operating Margin of ALB has grown nicely.
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.

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

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

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.