ALBEMARLE CORP (ALB)
US0126531013 - Common Stock
We assign a fundamental rating of 3 out of 10 to ALB. ALB was compared to 84 industry peers in the Chemicals industry. Both the profitability and financial health of ALB have multiple concerns. ALB is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ALB was profitable.
ALB had a positive operating cash flow in the past year.
Each year in the past 5 years ALB has been profitable.
In the past 5 years ALB always reported a positive cash flow from operatings.
1.2 Ratios
ALB has a worse Return On Assets (-11.27%) than 85.71% of its industry peers.
ALB's Return On Equity of -19.21% is on the low side compared to the rest of the industry. ALB is outperformed by 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -11.27% | ||
| ROE | -19.21% | ||
| ROIC | N/A |
ROA(3y)9.05%
ROA(5y)7.23%
ROE(3y)17.54%
ROE(5y)15%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
In the last couple of years the Profit Margin of ALB has declined.
In the last couple of years the Operating Margin of ALB has declined.
ALB does not have Profit Margin and Operating Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | N/A |
OM growth 3Y-35%
OM growth 5Y-26.28%
PM growth 3Y10.85%
PM growth 5Y-4.46%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
ALB does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for ALB has been increased compared to 1 year ago.
Compared to 5 years ago, ALB has more shares outstanding
ALB has a worse debt/assets ratio than last year.
2.2 Solvency
ALB has an Altman-Z score of 1.77. This is a bad value and indicates that ALB is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.77, ALB is in line with its industry, outperforming 45.24% of the companies in the same industry.
ALB has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of ALB (0.35) is better than 69.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.77 |
ROIC/WACCN/A
WACC7.47%
2.3 Liquidity
A Current Ratio of 2.44 indicates that ALB has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.44, ALB is in line with its industry, outperforming 59.52% of the companies in the same industry.
ALB has a Quick Ratio of 1.58. This is a normal value and indicates that ALB is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of ALB (1.58) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.44 | ||
| Quick Ratio | 1.58 |
3. Growth
3.1 Past
The earnings per share for ALB have decreased strongly by -97.93% in the last year.
Measured over the past years, ALB shows a very strong growth in Earnings Per Share. The EPS has been growing by 32.24% on average per year.
Looking at the last year, ALB shows a very negative growth in Revenue. The Revenue has decreased by -34.20% in the last year.
The Revenue has been growing by 23.30% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-97.93%
EPS 3Y75.42%
EPS 5Y32.24%
EPS Q2Q%-156.57%
Revenue 1Y (TTM)-34.2%
Revenue growth 3Y45.4%
Revenue growth 5Y23.3%
Sales Q2Q%-41.37%
3.2 Future
ALB is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.72% yearly.
Based on estimates for the next years, ALB will show a small growth in Revenue. The Revenue will grow by 4.94% on average per year.
EPS Next Y-102.81%
EPS Next 2Y-69.8%
EPS Next 3Y-39.23%
EPS Next 5Y6.72%
Revenue Next Year-41.04%
Revenue Next 2Y-20.45%
Revenue Next 3Y-10.01%
Revenue Next 5Y4.94%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 172.55, ALB can be considered very expensive at the moment.
Based on the Price/Earnings ratio, ALB is valued a bit more expensive than 67.86% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.53, ALB is valued quite expensively.
A Price/Forward Earnings ratio of 51.04 indicates a quite expensive valuation of ALB.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ALB indicates a slightly more expensive valuation: ALB is more expensive than 73.81% of the companies listed in the same industry.
ALB's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 172.55 | ||
| Fwd PE | 51.04 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
ALB's earnings are expected to decrease with -39.23% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)5.35
EPS Next 2Y-69.8%
EPS Next 3Y-39.23%
5. Dividend
5.1 Amount
ALB has a Yearly Dividend Yield of 1.59%.
ALB's Dividend Yield is comparable with the industry average which is at 2.93.
Compared to the average S&P500 Dividend Yield of 2.22, ALB is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
5.2 History
The dividend of ALB has a limited annual growth rate of 3.69%.
ALB has paid a dividend for at least 10 years, which is a reliable track record.
ALB has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.69%
Div Incr Years29
Div Non Decr Years29
5.3 Sustainability
The earnings of ALB are negative and hence is the payout ratio. ALB will probably not be able to sustain this dividend level.
The dividend of ALB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-13.67%
EPS Next 2Y-69.8%
EPS Next 3Y-39.23%
ALBEMARLE CORP
NYSE:ALB (11/15/2024, 8:04:00 PM)
After market: 103.54 +0.01 (+0.01%)103.53
+1.43 (+1.4%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap12.17B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 172.55 | ||
| Fwd PE | 51.04 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)5.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -11.27% | ||
| ROE | -19.21% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.44 | ||
| Quick Ratio | 1.58 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-97.93%
EPS 3Y75.42%
EPS 5Y
EPS Q2Q%
EPS Next Y-102.81%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-34.2%
Revenue growth 3Y45.4%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y