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ALB

AlbemarleNYSE:ALB Stock Report

Market Cap

US$29.4b

7D

-5.8%

1Y

80.6%

Updated

03 Dec, 2021

Data

Company Financials +
ALB fundamental analysis
Snowflake Score
Valuation0/6
Future Growth4/6
Past Performance1/6
Financial Health5/6
Dividends0/6

ALB Stock Overview

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

Albemarle Competitors

Sherwin-Williams

NYSE:SHW

US$89.1b

Eastman Chemical

NYSE:EMN

US$14.5b

Ashland Global Holdings

NYSE:ASH

US$5.8b

Livent

NYSE:LTHM

US$4.5b

Price History & Performance

Summary of all time highs, changes and price drops for Albemarle
Historical stock prices
Current Share PriceUS$251.47
52 Week HighUS$291.48
52 Week LowUS$132.21
Beta1.6
1 Month Change-4.00%
3 Month Change3.97%
1 Year Change80.63%
3 Year Change183.67%
5 Year Change177.29%
Change since IPO3,368.55%

Recent News & Updates

Nov 30
Is Albemarle Corporation (NYSE:ALB) Worth US$276 Based On Its Intrinsic Value?

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...

Nov 24

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.

Nov 08
Albemarle (NYSE:ALB) Hasn't Managed To Accelerate Its Returns

Albemarle (NYSE:ALB) Hasn't Managed To Accelerate Its Returns

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Typically, we'll want to notice a...

Shareholder Returns

ALBUS ChemicalsUS Market
7D-5.8%-1.7%-2.7%
1Y80.6%18.0%16.6%

Return vs Industry: ALB exceeded the US Chemicals industry which returned 21.3% over the past year.

Return vs Market: ALB exceeded the US Market which returned 19.4% over the past year.

Price Volatility

Is ALB's price volatile compared to industry and market?
ALB volatility
ALB Average Weekly Movement5.2%
Chemicals Industry Average Movement5.6%
Market Average Movement6.1%
10% most volatile stocks in US Market14.8%
10% least volatile stocks in US Market2.4%

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

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$29.42b
Earnings (TTM)US$212.13m
Revenue (TTM)US$3.31b

138.7x

P/E Ratio

8.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ALB income statement (TTM)
RevenueUS$3.31b
Cost of RevenueUS$2.28b
Gross ProfitUS$1.03b
ExpensesUS$815.97m
EarningsUS$212.13m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.81
Gross Margin31.03%
Net Profit Margin6.40%
Debt/Equity Ratio33.3%

How did ALB perform over the long term?

See historical performance and comparison

Dividends

0.6%

Current Dividend Yield

83%

Payout Ratio

Does ALB pay a reliable dividends?

See ALB dividend history and benchmarks

Valuation

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

138.67x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ALB ($251.47) is trading above our estimate of fair value ($214.38)

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 (138.7x) compared to the US Chemicals industry average (21.3x).

PE vs Market: ALB is poor value based on its PE Ratio (138.7x) compared to the US market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: ALB is poor value based on its PEG Ratio (3.5x)


Price to Book Ratio

PB vs Industry: ALB is overvalued based on its PB Ratio (5.2x) 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 21 analysts?

39.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALB's forecast earnings growth (39.1% per year) is above the savings rate (2%).

Earnings vs Market: ALB's earnings (39.1% per year) are forecast to grow faster than the US market (14.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ALB's revenue (15.5% per year) is forecast to grow faster than the US market (10% per year).

High Growth Revenue: ALB's revenue (15.5% 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 (13.3%).


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 (24.1%).


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?

0.62%

Current Dividend Yield


Upcoming Dividend Payment

TodayDec 04 2021Ex Dividend DateDec 16 2021Dividend Pay DateJan 03 202218 days from Ex DividendBuy in the next 11 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: ALB's dividend (0.62%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: ALB's dividend (0.62%) is low compared to the top 25% of dividend payers in the US market (3.61%).


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.


Next Steps

Management

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

3.9yrs

Average management tenure


CEO

Jerry Masters (60 yo)

1.67yrs

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 ($USD5.23M) is below average for companies of similar size in the US market ($USD11.16M).

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 (3.9 years average tenure).


Board Members

Experienced Board: ALB's board of directors are considered experienced (3.6 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
  • Market Cap: US$29.416b
  • 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/03 23:50
End of Day Share Price2021/12/03 00:00
Earnings2021/09/30
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.