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ALB

AlbemarleNYSE:ALB Stock Report

Market Cap

US$26.0b

7D

3.1%

1Y

162.0%

Updated

27 Sep, 2021

Data

Company Financials +
ALB fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance4/6
Financial Health5/6
Dividends4/6

ALB Overview

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

Albemarle Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Albemarle
Historical stock prices
Current Share PriceUS$222.25
52 Week HighUS$83.88
52 Week LowUS$253.10
Beta1.58
1 Month Change-6.09%
3 Month Change32.66%
1 Year Change161.96%
3 Year Change120.40%
5 Year Change162.00%
Change since IPO2,965.52%

Recent News & Updates

Sep 10

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.

Sep 03

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.

Aug 18
Albemarle (NYSE:ALB) Will Pay A Dividend Of US$0.39

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...

Shareholder Returns

ALBUS ChemicalsUS Market
7D3.1%3.2%2.0%
1Y162.0%28.1%32.8%

Return vs Industry: ALB exceeded the US Chemicals industry which returned 29.5% over the past year.

Return vs Market: ALB exceeded the US Market which returned 35.3% over the past year.

Price Volatility

Is ALB's price volatile compared to industry and market?
ALB volatility
ALB Beta1.58
Industry Beta1.14
Market Beta1

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

FoundedEmployeesCEOWebsite
18875,900Jerry Mastershttps://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

How do Albemarle's earnings and revenue compare to its market cap?
ALB fundamental statistics
Market CapUS$25.99b
Earnings (TTM)US$703.21m
Revenue (TTM)US$3.23b

37.0x

P/E Ratio

8.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ALB income statement (TTM)
RevenueUS$3.23b
Cost of RevenueUS$2.20b
Gross ProfitUS$1.03b
ExpensesUS$328.37m
EarningsUS$703.21m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Nov 03, 2021

Earnings per share (EPS)6.01
Gross Margin31.95%
Net Profit Margin21.78%
Debt/Equity Ratio31.2%

How did ALB perform over the long term?

See historical performance and comparison

Dividends

0.7%

Current Dividend Yield

24%

Payout Ratio

Valuation

Is Albemarle undervalued compared to its fair value and its price relative to the market?

36.96x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ALB ($226.4) is trading above our estimate of fair value ($152.46)

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 (22.8x).

PE vs Market: ALB is poor value based on its PE Ratio (37.7x) compared to the US market (17.9x).


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 (2.6x).


Future Growth

How is Albemarle forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

14.9%

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 slower than the US market (15% 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%).


Past Performance

How has Albemarle performed over the past 5 years?

7.3%

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.


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 ($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).


Balance Sheet


Dividend

What is Albemarle current dividend yield, its reliability and sustainability?

0.70%

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'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 low payout ratio (24.4%), 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 (21% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.7yrs

Average management tenure


CEO

Jerry Masters (60 yo)

1.42yrs

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 ($USD5.23M) is below average for companies of similar size in the US market ($USD11.36M).

Compensation vs Earnings: Jerry's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: ALB's management team is considered experienced (3.7 years average tenure).


Board Members

Experienced Board: ALB's board of directors are considered experienced (3.3 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 10%.


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
  • Market Cap: US$25.992b
  • Shares outstanding: 116.95m
  • 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/27 22:52
End of Day Share Price2021/09/27 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.