Albemarle
Market Cap
US$6.9b
Last Updated
2019/12/10 23:31 UTC
Data Sources
Company Financials +
Executive Summary
Albemarle Corporation develops, manufactures, and markets engineered specialty chemicals worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Undervalued with solid track record and pays a dividend.
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
2.6%
ALB
0.7%
US Chemicals
1.1%
US Market
1 Year Return
-26.7%
ALB
-0.09%
US Chemicals
17.8%
US Market
Return vs Industry: ALB underperformed the US Chemicals industry which returned -0.1% over the past year.
Return vs Market: ALB underperformed the US Market which returned 17.8% over the past year.
Shareholder returns
| ALB | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.6% | 0.7% | 1.1% |
| 30 Day | -3.9% | -3.3% | 1.4% |
| 90 Day | -5.7% | 1.6% | 3.9% |
| 1 Year | -25.3%-26.7% | 15.3%-0.09% | 20.3%17.8% |
| 3 Year | -25.4%-28.3% | 32.6%7.7% | 44.8%35.4% |
| 5 Year | 28.5%18.8% | 50.1%17.7% | 71.3%52.4% |
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
1 week ago | Simply Wall St
How Much Are Albemarle Corporation (NYSE:ALB) Insiders Spending On Buying Shares?3 weeks ago | Simply Wall St
The Albemarle (NYSE:ALB) Share Price Is Down 31% So Some Shareholders Are Getting Worried1 month ago | Simply Wall St
Albemarle Corporation Just Reported Earnings, And Analysts Cut Their Target PriceValuation
Is Albemarle undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ALB ($65.3) is trading below our estimate of fair value ($195.7)
Significantly Below Fair Value: ALB is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: ALB is good value based on its PE Ratio (12.1x) compared to the Chemicals industry average (20.3x).
PE vs Market: ALB is good value based on its PE Ratio (12.1x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: ALB is poor value based on its PEG Ratio (12.9x)
Price to Book Ratio
PB vs Industry: ALB is good value based on its PB Ratio (1.8x) compared to the US Chemicals industry average (2.2x).
Next Steps
Future Growth
How is Albemarle forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?
0.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ALB's forecast earnings growth (0.9% per year) is below the savings rate (1.7%).
Earnings vs Market: ALB's earnings (0.9% per year) are forecast to grow slower than the US market (14.2% per year).
High Growth Earnings: ALB's earnings are forecast to grow, but not significantly.
Revenue vs Market: ALB's revenue (3.9% per year) is forecast to grow slower than the US market (7.4% per year).
High Growth Revenue: ALB's revenue (3.9% 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%).
Next Steps
Past Performance
How has Albemarle performed over the past 5 years?
15.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ALB has high quality earnings.
Growing Profit Margin: ALB's current net profit margins (16.3%) are higher than last year (10.4%).
Past Earnings Growth Analysis
Earnings Trend: ALB's earnings have grown by 15.9% per year over the past 5 years.
Accelerating Growth: ALB's earnings growth over the past year (65.6%) exceeds its 5-year average (15.9% per year).
Earnings vs Industry: ALB earnings growth over the past year (65.6%) exceeded the Chemicals industry -17%.
Return on Equity
High ROE: ALB's Return on Equity (16.1%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Albemarle's financial position?
Financial Position Analysis
Short Term Liabilities: ALB's short term assets ($2.0B) exceed its short term liabilities ($1.4B).
Long Term Liabilities: ALB's short term assets ($2.0B) do not cover its long term liabilities ($2.7B).
Debt to Equity History and Analysis
Debt Level: ALB's debt to equity ratio (47.9%) is considered high.
Reducing Debt: ALB's debt to equity ratio has reduced from 68.8% to 47.9% over the past 5 years.
Debt Coverage: ALB's debt is well covered by operating cash flow (26.8%).
Interest Coverage: ALB's interest payments on its debt are well covered by EBIT (15.6x coverage).
Balance Sheet
Inventory Level: ALB has a high level of physical assets or inventory.
Debt Coverage by Assets: ALB's debt is covered by short term assets (assets are 1x debt).
Next Steps
Dividend
What is Albemarle's current dividend yield, its reliability and sustainability?
2.25%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: ALB's dividend (2.25%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: ALB's dividend (2.25%) is low compared to the top 25% of dividend payers in the US market (3.67%).
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 (26.6%), 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 (24.1% payout ratio).
Next Steps
Management
What is the CEO of Albemarle's salary, the management and board of directors tenure and is there insider trading?
3.3yrs
Average management tenure
CEO
Luke Kissam (54yo)
8.3yrs
Tenure
US$6,666,394
Compensation
Mr. Luther C. Kissam IV, also known as Luke, has been the Chief Executive Officer of Albemarle Corporation September 1, 2011 and its President since March 7, 2013 also its Chairman since November 7, 2016. ...
CEO Compensation Analysis
Compensation vs Market: Luke's total compensation ($USD6.67M) is about average for companies of similar size in the US market ($USD6.70M).
Compensation vs Earnings: Luke's compensation has been consistent with company performance over the past year.
Management Age and Tenure
3.3yrs
Average Tenure
53yo
Average Age
Experienced Management: ALB's management team is considered experienced (3.3 years average tenure).
Board Age and Tenure
4.9yrs
Average Tenure
61.5yo
Average Age
Experienced Board: ALB's board of directors are considered experienced (4.9 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Shares | 3,090 |
| Max Price | US$64.66 |
| Entity | Individual |
| Role | Head of Human Resources Chief Human Resources Officer |
| Shares | 1,000 |
| Max Price | US$70.85 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Karen Narwold (59yo)
Executive VP
- Tenure: 0yrs
- Compensation: US$2.05m
Luke Kissam (54yo)
Chairman
- Tenure: 8.3yrs
- Compensation: US$6.67m
Ahmad Khalifeh
Managing Director of Middle East Office
- Tenure: 12.6yrs
Scott Tozier (53yo)
Executive VP & CFO
- Tenure: 8.9yrs
- Compensation: US$2.21m
Donald LaBauve (52yo)
VP, Corporate Controller & CFO of Lithium Global Business Unit
- Tenure: 6.8yrs
- Compensation: US$667.74k
DeeAnne Marlow (53yo)
Chief Human Resources Officer
- Tenure: 0.8yrs
Dave Ryan Terrence
Vice President of Corporate Strategy & Investor Relations
- Tenure: 1.4yrs
Brian Tessin
Chief Tax Counsel & VP of Tax
- Tenure: 3.3yrs
Glen Merfeld
Chief Technology Officer of Lithium Business
- Tenure: 1.7yrs
John Barichivich (52yo)
Principal Accounting Officer
- Tenure: 0.08yrs
Board Members
Laurie Brlas (61yo)
Independent Director
- Tenure: 2.5yrs
- Compensation: US$239.40k
Jim O’Brien (65yo)
Independent Director
- Tenure: 7.4yrs
- Compensation: US$240.87k
Bill Hernandez (71yo)
Independent Director
- Tenure: 8.9yrs
- Compensation: US$250.87k
Jerry Steiner (59yo)
Independent Director
- Tenure: 6.4yrs
- Compensation: US$237.36k
Jerry Masters (58yo)
Lead Independent Director
- Tenure: 1.6yrs
- Compensation: US$268.61k
Luke Kissam (54yo)
Chairman
- Tenure: 8.3yrs
- Compensation: US$6.67m
Doug Maine (70yo)
Independent Director
- Tenure: 4.9yrs
- Compensation: US$230.87k
Tee Taggart (71yo)
Independent Director
- Tenure: 12.8yrs
- Compensation: US$230.87k
Diarmuid O'Connell (55yo)
Independent Director
- Tenure: 1.6yrs
- Compensation: US$215.85k
Alejandro Wolff (62yo)
Independent Director
- Tenure: 4.9yrs
- Compensation: US$240.60k
Company Information
Albemarle Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Albemarle Corporation
- Ticker: ALB
- Exchange: NYSE
- Founded: 1993
- Industry: Specialty Chemicals
- Sector: Materials
- Market Cap: US$6.862b
- Shares outstanding: 106.03m
- 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 |
| ALBE | WBAG (Wiener Boerse AG) | Yes | Common Stock | AT | EUR | Feb 1994 |
Biography
Albemarle Corporation develops, manufactures, and markets engineered specialty chemicals worldwide. Its Lithium segment offers lithium compounds, including lithium carbonate, lithium hydroxide, lithium chl ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/12/10 23:31 |
| End of Day Share Price | 2019/12/10 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.