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. ALB may be in some trouble as it scores bad on both profitability and health. ALB is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
ALB had positive earnings in the past year.
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 (-3.01%) than 75.00% of its industry peers.
With a Return On Equity value of -4.94%, ALB is not doing good in the industry: 70.24% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.01% | ||
| ROE | -4.94% | ||
| 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
ALB's Profit Margin has declined in the last couple of years.
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.
Compared to 1 year ago, ALB has more shares outstanding
Compared to 5 years ago, ALB has more shares outstanding
ALB has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.73, we must say that ALB is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.73, ALB is not doing good in the industry: 63.10% of the companies in the same industry are doing better.
A Debt/Equity ratio of 0.31 indicates that ALB is not too dependend on debt financing.
ALB's Debt to Equity ratio of 0.31 is fine compared to the rest of the industry. ALB outperforms 72.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.73 |
ROIC/WACCN/A
WACC6.57%
2.3 Liquidity
ALB has a Current Ratio of 2.67. This indicates that ALB is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.67, ALB is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
A Quick Ratio of 1.75 indicates that ALB should not have too much problems paying its short term obligations.
ALB has a better Quick ratio (1.75) than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.67 | ||
| Quick Ratio | 1.75 |
3. Growth
3.1 Past
The earnings per share for ALB have decreased strongly by -85.52% in the last year.
The Earnings Per Share has been growing by 32.24% on average over the past years. This is a very strong growth
The Revenue for ALB has decreased by -22.82% in the past year. This is quite bad
The Revenue has been growing by 23.30% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-85.52%
EPS 3Y75.42%
EPS 5Y32.24%
EPS Q2Q%-99.45%
Revenue 1Y (TTM)-22.82%
Revenue growth 3Y45.4%
Revenue growth 5Y23.3%
Sales Q2Q%-39.65%
3.2 Future
Based on estimates for the next years, ALB will show a small growth in Earnings Per Share. The EPS will grow by 6.72% on average per year.
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-98.53%
EPS Next 2Y-60.99%
EPS Next 3Y-33.78%
EPS Next 5Y6.72%
Revenue Next Year-40.4%
Revenue Next 2Y-18.39%
Revenue Next 3Y-8.71%
Revenue Next 5Y4.94%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 15.73, ALB is valued correctly.
70.24% of the companies in the same industry are more expensive than ALB, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ALB to the average of the S&P500 Index (29.62), we can say ALB is valued slightly cheaper.
The Price/Forward Earnings ratio is 22.73, which indicates a rather expensive current 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 66.67% of the companies listed in the same industry.
ALB is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.22, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.73 | ||
| Fwd PE | 22.73 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A cheap valuation may be justified as ALB's earnings are expected to decrease with -33.78% in the coming years.
PEG (NY)N/A
PEG (5Y)0.49
EPS Next 2Y-60.99%
EPS Next 3Y-33.78%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.77%, ALB has a reasonable but not impressive dividend return.
The stock price of ALB dropped by -33.10% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
ALB's Dividend Yield is a higher than the industry average which is at 2.86.
ALB's Dividend Yield is slightly below the S&P500 average, which is at 2.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
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
ALB has negative earnings and hence a negative payout ratio. The dividend may be in danger.
ALB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-40.99%
EPS Next 2Y-60.99%
EPS Next 3Y-33.78%
ALBEMARLE CORP
NYSE:ALB (9/6/2024, 8:04:00 PM)
After market: 77 +0.1 (+0.13%)76.9
-5.7 (-6.9%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap9.04B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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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)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.73 | ||
| Fwd PE | 22.73 | ||
| 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)0.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.01% | ||
| ROE | -4.94% | ||
| 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 Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.67 | ||
| Quick Ratio | 1.75 | ||
| 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)-85.52%
EPS 3Y75.42%
EPS 5Y
EPS Q2Q%
EPS Next Y-98.53%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-22.82%
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