Albemarle Corporation develops, manufactures, and markets engineered specialty chemicals worldwide.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$226.85|
|52 Week High||US$79.06|
|52 Week Low||US$253.10|
|1 Month Change||3.26%|
|3 Month Change||40.54%|
|1 Year Change||131.57%|
|3 Year Change||115.19%|
|5 Year Change||180.93%|
|Change since IPO||3,028.97%|
Recent News & Updates
Albemarle: A Great Growth Pick In The EV Theme
Albemarle is a great growth pick to play the EV theme, due to its large exposure to lithium. Its recent investor day provided a bullish view on the company’s business prospects over the next five years. My price target is $370 per share by end-2024, thus Albemarle has good upside potential in the next three years.
Albemarle: Trend Is Your Friend Until It Is At The End
The company could benefit from the strong increase of lithium demand over the next few years and from a possible price increase due to weak supply. However, we think that at current price there is a strong speculative component in prices. The stock is trading at 38.6x 21’ P/E ratio, well above the prevailing valuation over the last few years. Albemarle is a dividend aristocrat but the current dividend yield (0.65%) is too low to offer a protection in case of a market correction.
Albemarle (NYSE:ALB) Will Pay A Dividend Of US$0.39
Albemarle Corporation's ( NYSE:ALB ) investors are due to receive a payment of US$0.39 per share on 1st of October...
|ALB||US Chemicals||US Market|
Return vs Industry: ALB exceeded the US Chemicals industry which returned 22.2% over the past year.
Return vs Market: ALB exceeded the US Market which returned 33.8% over the past year.
Stable Share Price: ALB is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: ALB's weekly volatility (5%) has been stable over the past year.
About the Company
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.
Is Albemarle undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: ALB ($226.85) is trading above our estimate of fair value ($152.67)
Significantly Below Fair Value: ALB is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: ALB is poor value based on its PE Ratio (37.7x) compared to the US Chemicals industry average (22.4x).
PE vs Market: ALB is poor value based on its PE Ratio (37.7x) compared to the US market (17.8x).
Price to Earnings Growth Ratio
PEG Ratio: ALB is poor value based on its PEG Ratio (2.5x)
Price to Book Ratio
PB vs Industry: ALB is overvalued based on its PB Ratio (4.3x) compared to the US Chemicals industry average (2.7x).
How is Albemarle forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ALB's forecast earnings growth (14.9% per year) is above the savings rate (2%).
Earnings vs Market: ALB's earnings (14.9% per year) are forecast to grow faster than the US market (14.8% per year).
High Growth Earnings: ALB's earnings are forecast to grow, but not significantly.
Revenue vs Market: ALB's revenue (14.5% per year) is forecast to grow faster than the US market (9.8% per year).
High Growth Revenue: ALB's revenue (14.5% 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 (13.7%).
How has Albemarle performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ALB has a large one-off gain of $329.5M impacting its June 30 2021 financial results.
Growing Profit Margin: ALB's current net profit margins (21.8%) are higher than last year (13%).
Past Earnings Growth Analysis
Earnings Trend: ALB's earnings have grown by 7.3% per year over the past 5 years.
Accelerating Growth: ALB's earnings growth over the past year (60.4%) exceeds its 5-year average (7.3% per year).
Earnings vs Industry: ALB earnings growth over the past year (60.4%) exceeded the Chemicals industry 32.6%.
Return on Equity
High ROE: ALB's Return on Equity (12.3%) is considered low.
How is Albemarle's financial position?
Financial Position Analysis
Short Term Liabilities: ALB's short term assets ($2.2B) exceed its short term liabilities ($984.9M).
Long Term Liabilities: ALB's short term assets ($2.2B) do not cover its long term liabilities ($3.4B).
Debt to Equity History and Analysis
Debt Level: ALB's debt to equity ratio (31.2%) is considered satisfactory.
Reducing Debt: ALB's debt to equity ratio has reduced from 106.2% to 31.2% over the past 5 years.
Debt Coverage: ALB's debt is well covered by operating cash flow (49.2%).
Interest Coverage: ALB's interest payments on its debt are well covered by EBIT (9.5x coverage).
What is Albemarle current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ALB's dividend (0.69%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.33%).
High Dividend: ALB's dividend (0.69%) is low compared to the top 25% of dividend payers in the US market (3.6%).
Stability and Growth of Payments
Stable Dividend: ALB is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: ALB is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: ALB is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of ALB's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Jerry Masters (60 yo)
Mr. Jerry Kent Masters, Jr., has been President, Chief Executive Officer and Chairman of Albemarle Corporation since April 20, 2020 and serves as its Director since January 12, 2015. He serves as the Chief...
CEO Compensation Analysis
Compensation vs Market: Jerry's total compensation ($USD5.23M) is below average for companies of similar size in the US market ($USD11.33M).
Compensation vs Earnings: Jerry's compensation has increased by more than 20% in the past year.
Experienced Management: ALB's management team is considered experienced (3.7 years average tenure).
Experienced Board: ALB's board of directors are considered experienced (3.3 years average tenure).
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
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10%.
Albemarle Corporation's employee growth, exchange listings and data sources
- Name: Albemarle Corporation
- Ticker: ALB
- Exchange: NYSE
- Founded: 1887
- Industry: Specialty Chemicals
- Sector: Materials
- Market Cap: US$26.530b
- Shares outstanding: 116.95m
- Website: https://www.albemarle.com
Number of Employees
- Albemarle Corporation
- 4250 Congress Street
- Suite 900
- North Carolina
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/19 22:01|
|End of Day Share Price||2021/09/17 00:00|
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.