| Snowflake Score | |
|---|---|
| Valuation | 1/6 |
| Future Growth | 4/6 |
| Past Performance | 1/6 |
| Financial Health | 5/6 |
| Dividends | 4/6 |
ALB Stock Overview
Albemarle Corporation develops, manufactures, and markets engineered specialty chemicals worldwide.
Rewards
Risk Analysis
Albemarle Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$217.15 |
| 52 Week High | US$291.48 |
| 52 Week Low | US$133.82 |
| Beta | 1.54 |
| 1 Month Change | -3.12% |
| 3 Month Change | -6.20% |
| 1 Year Change | 23.09% |
| 3 Year Change | 193.37% |
| 5 Year Change | 127.43% |
| Change since IPO | 2,895.17% |
Recent News & Updates
Chile: Impact Of National Election Results On Albemarle, SQM And Beyond
There has been a considerable hype about lithium after the results of the first round of the national elections in Chile. This was aggravated by declarations of the candidate of the left regarding a possible nationalization of lithium in the country with the most reserves of the white metal on earth. These events were quite damaging to SQM and Albemarle, the two lithium operators in Chile, but could also have affected the energy lithium value chain as a whole. As for the possibility of a lithium nationalization in the near term in Chile, it is argued that this might be unlikely for at least two reasons. One, that SQM and Albemarle have contractual arrangements until 2030 and 2044, respectively, and two, that the Chilean Congress will be controlled to a certain extent by the opposition.
Is Albemarle (NYSE:ALB) A Risky Investment?
The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...
Is Albemarle Corporation (NYSE:ALB) Worth US$276 Based On Its Intrinsic Value?
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Albemarle Corporation...
Albemarle: Still A No-Go, Despite 2021 Performance
I called Albemarle a "HOLD" back in January, and despite this, the stock has outperformed broader indices, driving prices higher. I revisit the thesis to see if there's previously not included upsides to the investment and the company. Learn why I continue to see this company as overvalued, and unlikely to deliver outsized growth or respectable income in the longer term.
Shareholder Returns
| ALB | US Chemicals | US Market | |
|---|---|---|---|
| 7D | -7.7% | -3.5% | -4.6% |
| 1Y | 23.1% | 12.0% | 7.7% |
Return vs Industry: ALB exceeded the US Chemicals industry which returned 12% over the past year.
Return vs Market: ALB exceeded the US Market which returned 7.7% over the past year.
Price Volatility
| ALB volatility | |
|---|---|
| ALB Average Weekly Movement | 5.8% |
| Chemicals Industry Average Movement | 5.7% |
| Market Average Movement | 6.6% |
| 10% most volatile stocks in US Market | 15.7% |
| 10% least volatile stocks in US Market | 2.4% |
Stable Share Price: ALB is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: ALB's weekly volatility (6%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1887 | 5,900 | Jerry Masters | https://www.albemarle.com |
Albemarle Corporation develops, manufactures, and markets engineered specialty chemicals worldwide. It operates through three segments: Lithium, Bromine Specialties, and Catalysts. The Lithium segment offers lithium compounds, including lithium carbonate, lithium hydroxide, lithium chloride, and lithium specialties; and reagents, such as butyllithium and lithium aluminum hydride for use 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 in the areas of steroid chemistry and vitamins, life sciences, pharmaceutical industry, and other markets.
Albemarle Fundamentals Summary
| ALB fundamental statistics | |
|---|---|
| Market Cap | US$25.40b |
| Earnings (TTM) | US$212.13m |
| Revenue (TTM) | US$3.31b |
119.7x
P/E Ratio7.7x
P/S RatioIs ALB overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| ALB income statement (TTM) | |
|---|---|
| Revenue | US$3.31b |
| Cost of Revenue | US$2.28b |
| Gross Profit | US$1.03b |
| Expenses | US$815.97m |
| Earnings | US$212.13m |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
Feb 16, 2022
| Earnings per share (EPS) | 1.81 |
| Gross Margin | 31.03% |
| Net Profit Margin | 6.40% |
| Debt/Equity Ratio | 33.3% |
How did ALB perform over the long term?
See historical performance and comparisonDividends
0.7%
Current Dividend Yield83%
Payout RatioValuation
Is Albemarle undervalued compared to its fair value and its price relative to the market?
10.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ALB ($217.15) is trading below our estimate of fair value ($243.83)
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 poor value based on its PE Ratio (119.7x) compared to the US Chemicals industry average (21.1x).
PE vs Market: ALB is poor value based on its PE Ratio (119.7x) compared to the US market (16.9x).
Price to Earnings Growth Ratio
PEG Ratio: ALB is poor value based on its PEG Ratio (3.9x)
Price to Book Ratio
PB vs Industry: ALB is overvalued based on its PB Ratio (4.5x) compared to the US Chemicals industry average (2.5x).
Future Growth
How is Albemarle forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?
30.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ALB's forecast earnings growth (30.7% per year) is above the savings rate (2%).
Earnings vs Market: ALB's earnings (30.7% per year) are forecast to grow faster than the US market (13.1% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: ALB's revenue (14.2% per year) is forecast to grow faster than the US market (9.3% per year).
High Growth Revenue: ALB's revenue (14.2% 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 (13.4%).
Past Performance
How has Albemarle performed over the past 5 years?
5.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ALB has a large one-off loss of $328.9M impacting its September 30 2021 financial results.
Growing Profit Margin: ALB's current net profit margins (6.4%) are lower than last year (11.8%).
Past Earnings Growth Analysis
Earnings Trend: ALB's earnings have grown by 5.9% 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 (-44.4%) over the past year, making it difficult to compare to the Chemicals industry average (17.5%).
Return on Equity
High ROE: ALB's Return on Equity (4.9%) is considered low.
Financial Health
How is Albemarle's financial position?
Financial Position Analysis
Short Term Liabilities: ALB's short term assets ($2.1B) exceed its short term liabilities ($1.6B).
Long Term Liabilities: ALB's short term assets ($2.1B) do not cover its long term liabilities ($3.3B).
Debt to Equity History and Analysis
Debt Level: ALB's net debt to equity ratio (23.2%) is considered satisfactory.
Reducing Debt: ALB's debt to equity ratio has reduced from 99.4% to 33.3% over the past 5 years.
Debt Coverage: ALB's debt is well covered by operating cash flow (42.2%).
Interest Coverage: ALB's interest payments on its debt are well covered by EBIT (12.1x coverage).
Balance Sheet
Dividend
What is Albemarle current dividend yield, its reliability and sustainability?
0.72%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ALB's dividend (0.72%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.34%).
High Dividend: ALB's dividend (0.72%) is low compared to the top 25% of dividend payers in the US market (3.49%).
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: At its current payout ratio (83%), ALB's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: ALB's dividends in 3 years are forecast to be well covered by earnings (17% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.0yrs
Average management tenure
CEO
Jerry Masters (60 yo)
1.75yrs
Tenure
US$5,228,870
Compensation
Mr. Jerry Kent Masters, Jr., has been President, Chief Executive Officer and Chairman of Albemarle Corporation since April 20, 2020 and serves as its Director since January 12, 2015. He serves as the Chief...
CEO Compensation Analysis
Compensation vs Market: Jerry's total compensation ($USD5.23M) is below average for companies of similar size in the US market ($USD11.31M).
Compensation vs Earnings: Jerry's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
Experienced Management: ALB's management team is considered experienced (4 years average tenure).
Board Members
Experienced Board: ALB's board of directors are considered experienced (4.6 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: ALB insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.9%.
Top Shareholders
Company Information
Albemarle Corporation's employee growth, exchange listings and data sources
Key Information
- Name: Albemarle Corporation
- Ticker: ALB
- Exchange: NYSE
- Founded: 1887
- Industry: Specialty Chemicals
- Sector: Materials
- Implied Market Cap: US$25.401b
- Shares outstanding: 116.98m
- Website: https://www.albemarle.com
Number of Employees
Location
- Albemarle Corporation
- 4250 Congress Street
- Suite 900
- Charlotte
- North Carolina
- 28209
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/20 23:49 |
| End of Day Share Price | 2022/01/20 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2020/12/31 |
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.