NYSE:ALB

Stock Analysis Report

Executive Summary

Albemarle Corporation develops, manufactures, and markets engineered specialty chemicals worldwide.


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

ALBIndustryMarket
7 Day24.9%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 Year24.2%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

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

NamePositionTenureCompensationOwnership
Luther Kissam
Chairman8.58yrsUS$8.52m0.32% $22.5m
Scott Tozier
Executive VP & CFO9.25yrsUS$2.15m0.052% $3.7m
Karen Narwold
Executive VPno dataUS$1.99m0.039% $2.8m
Raphael Crawford
President of Catalysts Global Business Unitno dataUS$1.87m0.0095% $680.5k
Netha Johnson
President of Bromine Specialties Global Business Unit1.67yrsUS$2.37m0.0022% $156.0k
John Barichivich
VP, Corporate Controller & Chief Accounting Officer0.42yrno data0.0037% $260.1k
DeeAnne Marlow
Senior VP & Chief Human Resources Officer1.08yrsno data0.00094% $67.0k
Ahmad Khalifeh
Managing Director of Middle East Office12.92yrsno datano data
Brian Tessin
Chief Tax Counsel & VP of Tax3.58yrsno datano data
Glen Merfeld
Chief Technology Officer of Lithium Business2yrsno datano data

2.8yrs

Average Tenure

53yo

Average Age

Experienced Management: ALB's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Luther Kissam
Chairman8.58yrsUS$8.52m0.32% $22.5m
Mary Brlas
Independent Director2.83yrsUS$240.11k0.0041% $295.0k
James O'Brien
Independent Director7.75yrsUS$240.11k0.0020% $139.7k
William Hernandez
Independent Director9.25yrsUS$250.11k0.0017% $124.0k
Gerald Steiner
Independent Director6.75yrsUS$240.11k0.0038% $267.9k
Jerry Masters
Lead Independent Director1.92yrsUS$280.11k0.016% $1.1m
Douglas Maine
Independent Director5.25yrsUS$230.11k0.027% $1.9m
Harriett Taggart
Independent Director13.17yrsUS$230.11k0.013% $917.0k
Diarmuid O'Connell
Independent Director1.92yrsUS$230.11k0.0032% $230.9k
Alejandro Wolff
Independent Director5.25yrsUS$245.11k0.0061% $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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ALBNYSE (New York Stock Exchange)YesCommon StockUSUSDFeb 1994
AMCDB (Deutsche Boerse AG)YesCommon StockDEEURFeb 1994
ALB *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNFeb 1994
0HC7LSE (London Stock Exchange)YesCommon StockGBUSDFeb 1994
AMCCHFBRSE (Berne Stock Exchange)YesCommon StockCHCHFFeb 1994
ALBEWBAG (Wiener Boerse AG)YesCommon StockATEURFeb 1994
A1LB34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REPR 1 COMBRBRLJan 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/09 23:30
End of Day Share Price2020/04/09 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.