Albemarle
Market Cap
US$7.1b
Last Updated
2020/04/09 23:30 UTC
Data Sources
Company Financials +
Executive Summary
Albemarle Corporation develops, manufactures, and markets engineered specialty chemicals worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Established dividend payer with adequate balance sheet.
Similar Companies
Share Price & News
How has Albemarle's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ALB's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
24.9%
ALB
15.7%
US Chemicals
9.4%
US Market
1 Year Return
-19.0%
ALB
-22.5%
US Chemicals
-6.8%
US Market
Return vs Industry: ALB exceeded the US Chemicals industry which returned -22.5% over the past year.
Return vs Market: ALB underperformed the US Market which returned -6.8% over the past year.
Shareholder returns
| ALB | Industry | Market | |
|---|---|---|---|
| 7 Day | 24.9% | 15.7% | 9.4% |
| 30 Day | -10.9% | -1.2% | -3.9% |
| 90 Day | -7.0% | -19.6% | -16.5% |
| 1 Year | -17.2%-19.0% | -17.3%-22.5% | -4.8%-6.8% |
| 3 Year | -32.2%-35.3% | 3.4%-16.4% | 23.4%15.2% |
| 5 Year | 24.2%14.1% | 11.3%-13.2% | 41.3%25.7% |
Price Volatility Vs. Market
How volatile is Albemarle's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 days ago | Simply Wall St
Is There More To Albemarle Corporation (NYSE:ALB) Than Its 9.0% Returns On Capital?1 week ago | Simply Wall St
What Is Albemarle's (NYSE:ALB) P/E Ratio After Its Share Price Tanked?2 weeks ago | Simply Wall St
Investors Who Bought Albemarle (NYSE:ALB) Shares Three Years Ago Are Now Down 49%Valuation
Is Albemarle undervalued compared to its fair value and its price relative to the market?
6.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ALB ($67.02) is trading below our estimate of fair value ($72.02)
Significantly Below Fair Value: ALB is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: ALB is good value based on its PE Ratio (13.3x) compared to the Chemicals industry average (16x).
PE vs Market: ALB is good value based on its PE Ratio (13.3x) compared to the US market (13.6x).
Price to Earnings Growth Ratio
PEG Ratio: ALB is poor value based on its PEG Ratio (2.3x)
Price to Book Ratio
PB vs Industry: ALB is overvalued based on its PB Ratio (1.8x) compared to the US Chemicals industry average (1.6x).
Next Steps
Future Growth
How is Albemarle forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?
5.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ALB's forecast earnings growth (5.9% per year) is above the savings rate (1.7%).
Earnings vs Market: ALB's earnings (5.9% per year) are forecast to grow slower than the US market (11.4% per year).
High Growth Earnings: ALB's earnings are forecast to grow, but not significantly.
Revenue vs Market: ALB's revenue (3.1% per year) is forecast to grow slower than the US market (6.9% per year).
High Growth Revenue: ALB's revenue (3.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ALB's Return on Equity is forecast to be low in 3 years time (11.8%).
Next Steps
Past Performance
How has Albemarle performed over the past 5 years?
18.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ALB has high quality earnings.
Growing Profit Margin: ALB's current net profit margins (14.9%) are lower than last year (20.6%).
Past Earnings Growth Analysis
Earnings Trend: ALB's earnings have grown by 18.2% per year over the past 5 years.
Accelerating Growth: ALB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: ALB had negative earnings growth (-23.1%) over the past year, making it difficult to compare to the Chemicals industry average (-11.3%).
Return on Equity
High ROE: ALB's Return on Equity (14.8%) is considered low.
Next Steps
Financial Health
How is Albemarle's financial position?
Financial Position Analysis
Short Term Liabilities: ALB's short term assets ($2.2B) exceed its short term liabilities ($1.4B).
Long Term Liabilities: ALB's short term assets ($2.2B) do not cover its long term liabilities ($4.4B).
Debt to Equity History and Analysis
Debt Level: ALB's debt to equity ratio (73.1%) is considered high.
Reducing Debt: ALB's debt to equity ratio has reduced from 195.3% to 73.1% over the past 5 years.
Debt Coverage: ALB's debt is well covered by operating cash flow (24.1%).
Interest Coverage: ALB's interest payments on its debt are well covered by EBIT (14.4x coverage).
Balance Sheet
Next Steps
Dividend
What is Albemarle's current dividend yield, its reliability and sustainability?
2.30%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ALB's dividend (2.3%) is higher than the bottom 25% of dividend payers in the US market (1.87%).
High Dividend: ALB's dividend (2.3%) is low compared to the top 25% of dividend payers in the US market (5.12%).
Stability and Growth of Payments
Stable Dividend: ALB's dividends per share have been stable in the past 10 years.
Growing Dividend: ALB's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (29.2%), ALB's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: ALB's dividends in 3 years are forecast to be well covered by earnings (26.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.8yrs
Average management tenure
CEO
Luke Kissam (54yo)
8.58s
Tenure
US$8,521,584
Compensation
Mr. Luther C. Kissam IV, also known as Luke, has been the Chief Executive Officer of Albemarle Corporation since September 1, 2011 and its President since May 07, 2013 also its Chairman since November 7, 2 ...
CEO Compensation Analysis
Compensation vs Market: Luke's total compensation ($USD8.52M) is about average for companies of similar size in the US market ($USD7.45M).
Compensation vs Earnings: Luke's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 8.58yrs | US$8.52m | 0.32% $22.5m | |
| Executive VP & CFO | 9.25yrs | US$2.15m | 0.052% $3.7m | |
| Executive VP | no data | US$1.99m | 0.039% $2.8m | |
| President of Catalysts Global Business Unit | no data | US$1.87m | 0.0095% $680.5k | |
| President of Bromine Specialties Global Business Unit | 1.67yrs | US$2.37m | 0.0022% $156.0k | |
| VP, Corporate Controller & Chief Accounting Officer | 0.42yr | no data | 0.0037% $260.1k | |
| Senior VP & Chief Human Resources Officer | 1.08yrs | no data | 0.00094% $67.0k | |
| Managing Director of Middle East Office | 12.92yrs | no data | no data | |
| Chief Tax Counsel & VP of Tax | 3.58yrs | no data | no data | |
| Chief Technology Officer of Lithium Business | 2yrs | no data | no data |
2.8yrs
Average Tenure
53yo
Average Age
Experienced Management: ALB's management team is considered experienced (2.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 8.58yrs | US$8.52m | 0.32% $22.5m | |
| Independent Director | 2.83yrs | US$240.11k | 0.0041% $295.0k | |
| Independent Director | 7.75yrs | US$240.11k | 0.0020% $139.7k | |
| Independent Director | 9.25yrs | US$250.11k | 0.0017% $124.0k | |
| Independent Director | 6.75yrs | US$240.11k | 0.0038% $267.9k | |
| Lead Independent Director | 1.92yrs | US$280.11k | 0.016% $1.1m | |
| Independent Director | 5.25yrs | US$230.11k | 0.027% $1.9m | |
| Independent Director | 13.17yrs | US$230.11k | 0.013% $917.0k | |
| Independent Director | 1.92yrs | US$230.11k | 0.0032% $230.9k | |
| Independent Director | 5.25yrs | US$245.11k | 0.0061% $434.7k |
5.3yrs
Average Tenure
61.5yo
Average Age
Experienced Board: ALB's board of directors are considered experienced (5.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Albemarle Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Albemarle Corporation
- Ticker: ALB
- Exchange: NYSE
- Founded: 1994
- Industry: Specialty Chemicals
- Sector: Materials
- Market Cap: US$7.125b
- Shares outstanding: 106.32m
- Website: https://www.albemarle.com
Number of Employees
Location
- Albemarle Corporation
- 4250 Congress Street
- Suite 900
- Charlotte
- North Carolina
- 28209
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ALB | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Feb 1994 |
| AMC | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Feb 1994 |
| ALB * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Feb 1994 |
| 0HC7 | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Feb 1994 |
| AMCCHF | BRSE (Berne Stock Exchange) | Yes | Common Stock | CH | CHF | Feb 1994 |
| ALBE | WBAG (Wiener Boerse AG) | Yes | Common Stock | AT | EUR | Feb 1994 |
| A1LB34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 1 REPR 1 COM | BR | BRL | Jan 2020 |
Biography
Albemarle Corporation develops, manufactures, and markets engineered specialty chemicals worldwide. The company operates in three segments: Lithium, Bromine Specialties, and Catalysts. The Lithium segment offers lithium compounds, including lithium carbonate, lithium hydroxide, lithium chloride, and value-added lithium specialties, as well as reagents, such as butyllithium and lithium aluminum hydride for applications in lithium batteries for consumer electronics and electric vehicles, high performance greases, thermoplastic elastomers for car tires, rubber soles, plastic bottles, catalysts for chemical reactions, organic synthesis processes, life science, pharmaceutical, and other markets. It also offers cesium products for the chemical and pharmaceutical industries; zirconium, barium, and titanium products for various pyrotechnical applications; technical services, such as the handling and use of reactive lithium products; and recycling services for lithium-containing by-products. The Bromine Specialties segment offers bromine and bromine-based solutions for fire safety, chemical synthesis, mercury control, water purification, beef and poultry processing, and other industrial applications, as well as oil and gas well drilling, and completion fluids applications; and tertiary amines, biocides, disinfectants, and sanitizers. The Catalysts segment offers hydroprocessing catalysts together with isomerization and akylation catalysts; fluidized catalytic cracking catalysts and additives; and performance catalyst solutions comprising organometallics and curatives. The company serves energy storage, petroleum refining, consumer electronics, construction, automotive, lubricants, pharmaceuticals, crop protection, and custom chemistry services markets. Albemarle Corporation was founded in 1994 and is headquartered in Charlotte, North Carolina.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/09 23:30 |
| End of Day Share Price | 2020/04/09 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.