ALB  Albemarle Corporation

Exchange

NYSE

Sector

Basic Industries

Industry

Major Chemicals

Market Cap.

11.77B

Vuru Grade

48.05/100

Current Price

$104.60
+0.15 (+0.14%)

Growth Price

$51.67
Overvalued by 50.60%

Stability Price

$8.86
Overvalued by 91.53%

Company Metrics

  • P/E 18.4
  • P/S 4.39
  • P/B 3.1
  • EPS 5.68
  • Cash ROIC 11.09%
  • Cash Ratio 1.99
  • Dividend 1.28 / 1.23%
  • Avg. Vol. 1.02M
  • Shares 112.52M
  • Market Cap. 11.77B

Company Description

Albemarle Corporation develops, manufactures, and markets engineered specialty chemicals in the United States and internationally. The company operates in three segments: Polymer Solutions, Catalysts, and Fine Chemistry. The Polymer Solutions segment provides brominated, mineral, and phosphorus based flame retardants used in plastic enclosures for consumer electronics, printed circuit boards, wire... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Today's Brokerage Rating: Albemarle Corporation (ALB), Ophthotech Corporation ...
StockNewsJournal - 6 hours ago
Albemarle Corporation (ALB) have shown a high EPS growth of -1.90% in the last 5 years and has earnings decline of 43.80% yoy.
Albemarle Corporation says bromine sales up 13 percent, lithium 30 percent ...
Magnoliareporter - Feb 28, 2017
CHARLOTTE, NC -- Albemarle Corporation reported fourth quarter 2016 net sales of $696.7 million, net income from continuing operations of $50.3 million and adjusted EBITDA of $187.4 million.
Albemarle (ALB) Q4 2016 Results - Earnings Call Transcript - Seeking Alpha
Albemarle (ALB) Tops Earnings, Revenue Estimates in Q4 - Yahoo Finance
Institutions Continue To Be Top Holders in Albemarle Corporation (NYSE:ALB)
Midway Monitor - 1 hour ago
Albemarle Corporation (NYSE:ALB)'s stock has been a favorite of “smart money” aka institutions, as of late. Institutions are currently holders of 89.90% of the shares.
Albemarle positioned to double lithium concentrate production at Greenbushes ...
PR Newswire (press release) - Mar 16, 2017
CHARLOTTE, N.C., March 16, 2017 /PRNewswire/ -- Albemarle Corporation (NYSE: ALB), a leader in the global specialty chemicals industry, announced today that Talison, a joint venture between Albemarle and Tianqi Lithium Corporation, has approved the ...
Analysts Near-Term outlook: Ameren Corporation (AEE), Albemarle Corporation (ALB) - The USA Commerce
Stock Returns: Albemarle Corporation (NYSE:ALB) is Beating RPM International ... - CML News
Analyst's Proposition on Albemarle Corporation (ALB), Alaska Air Group, Inc. (ALK)
The USA Commerce - 10 hours ago
Presently Albemarle Corporation (NYSE:ALB) stock have an ABR of 1.92. This is built on a simplified 1 to 5 scale where 1 represents a Strong Buy and 5 a Strong Sell.
Albemarle executive named one of Charlotte's top Women in Business
PR Newswire (press release) - Mar 17, 2017
CHARLOTTE, N.C., March 17, 2017 /PRNewswire/ -- Albemarle Corporation (NYSE: ALB), a leader in the global specialty chemicals industry, proudly announces that executive vice president, chief administrative officer and general counsel, Karen G. Narwold ...
Which insiders are trading Albemarle Corporation (NYSE:ALB)? - Post Analyst
Albemarle Corporation (ALB) shares to see major resistance at $105.26 - USA Commerce Daily
Albemarle Corporation (ALB) Ex-Dividend Date Scheduled for March 13, 2017
Nasdaq - Mar 10, 2017
Albemarle Corporation ( ALB ) will begin trading ex-dividend on March 13, 2017. A cash dividend payment of $0.32 per share is scheduled to be paid on April 03, 2017.
Albemarle Corporation (ALB) Shows Strength: Stock Up 9.8% March 01, 2017
Zacks.com - Mar 1, 2017
Albemarle Corporation (ALB - Free Report) was a big mover last session, as the company saw its shares rise almost 10% on the day.
Still A Value Trap? – Albemarle Corporation (ALB), Colony Starwood Homes (SFR)
USA Commerce Daily - 15 hours ago
Shares of Albemarle Corporation (NYSE:ALB) are making a strong comeback as they have jumped 72.49% since bottoming out at $61.51 on Mar. 29, 2016.
ALBEMARLE CORPORATION (NYSE:ALB) Files An 8-K Results of Operations and ...
Market Exclusive - Feb 27, 2017
On February 27, 2017, Albemarle Corporation (the “Company”) issued a press release reporting its results for the fourth>quarter ended December 31, 2016.
Albemarle Corporation (ALB) Moves Higher on Volume Spike for February 28 - Equities.com
Albemarle Corporation (ALB) Hits New 12-Month High After Better-Than-Expected ... - Chaffey Breeze
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for ALB to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate ALB's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$104.60 Current Price

$51.67 Growth Price (DCF)

Overvalued by 50.60%


Growth Rate Assumed by Market: 36.35%


Future Free Cash Flow Growth Rate: 3.4%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$8.86 Stability Price (EPV)

Overvalued by 91.53%


Discount Rate: 15.0%

$101.81 Book Price

Fairly valued


Inconsistent Cash Return on Invested Capital over the past 5 years

ALB has somewhat efficiently invested its financial resources in buildings, projects, and equipment. However, there has been some inconsistency from year-to-year. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

ALB has created $11.09 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow 207.89M 277.51M 382.03M 133.04M 536.75M
divided by
Invested Capital 2.57B 2.67B 1.59B 7.78B 4.75B
Cash ROIC 8.07% 10.39% 23.98% 1.71% 11.30%

Excellent Return on Equity over the past 5 years

Over the past 5 years, ALB has generated strong profits with money shareholders have invested. This is considered one of the best indicators of quality management. Beware of extremely high Return on Equity (> 50%) as this is often unsustainable.

ALB has generated $16.82 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income 330.13M 439.83M 230.44M 360.06M 419.00M
divided by
Stockholders' Equity 1.83B 1.63B 1.36B 3.25B 3.80B
Return on Equity 18.00% 27.03% 16.95% 11.06% 11.04%

Excellent Business Performance over the past 10 years

ALB has been able to maintain profitability in good times and bad. This could mean ALB has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

ALB has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Free Cash Flow 143.80M 216.01M 257.74M 255.83M 296.79M 207.89M 277.51M 382.03M 133.04M 536.75M

Weak Balance Sheet

ALB's financial position is not ideal. The key is to check whether ALB is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Cash 130.55M 253.30M 308.79M 529.65M 469.42M 477.70M 477.24M 2.49B 213.73M 2.27B
Current Assets 1.05B 1.18B 1.03B 1.35B 1.36B 1.41B 1.48B 3.35B 1.83B 3.31B
Total Assets 2.83B 2.87B 2.77B 3.07B 3.20B 3.44B 3.58B 5.22B 9.62B 8.16B
Current Liabilities 402.92M 438.37M 353.26M 364.18M 401.18M 385.01M 436.36M 1.14B 1.62B 1.14B
Total Liabilities 1.55B 1.81B 1.57B 1.65B 1.61B 1.60B 1.96B 3.86B 6.36B 4.37B
Stockholder' Equity 1.28B 1.07B 1.21B 1.42B 1.59B 1.83B 1.63B 1.36B 3.25B 3.80B
Current Ratio 2.61 2.69 2.92 3.70 3.38 3.66 3.40 2.94 1.13 2.90
TL-to-TA 0.55 0.63 0.56 0.54 0.50 0.47 0.55 0.74 0.66 0.53

Consistent Reinvestment of Profits over the past 10 years

ALB has consistently retained profits. This may put ALB in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, ALB can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Retained Earnings 1.02B 1.17B 1.29B 1.56B 1.80B 1.74B 1.50B 1.41B 1.62B 2.12B
Retained Earnings Growth - 13.93% 10.51% 21.16% 15.23% -2.97% -14.00% -5.98% 14.52% 31.36%

Potential Competitive Advantage over the past 10 years

ALB potentially has a competitive advantage. This could be strong branding, the ability to keep costs low, or some other characteristic that is hard to replicate. Look at its future prospects to determine sustainability and whether the economic moat will strengthen.

$11.93 of every $100 of Revenue have been pure profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income 229.69M 194.20M 178.37M 323.72M 436.28M 330.13M 439.83M 230.44M 360.06M 419.00M
divided by
Revenue 2.34B 2.47B 2.01B 2.36B 2.87B 2.75B 2.62B 2.45B 3.65B 2.68B
Net Profit Margin 9.83% 7.87% 8.89% 13.70% 15.21% 12.02% 16.81% 9.42% 9.86% 15.65%

Inconsistent Gross Profit Margins over the past 10 years

ALB has good gross profit margins, however inconsistency of these margins is a cause for concern. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$37.09 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Gross Profit 622.49M 607.67M 483.86M 745.92M 2.79B 910.00M 861.41M 770.85M 1.20B 970.58M
divided by
Revenue 2.34B 2.47B 2.01B 2.36B 2.87B 2.75B 2.62B 2.45B 3.65B 2.68B
Gross Margin 26.65% 24.63% 24.13% 31.57% 97.31% 33.15% 32.92% 31.52% 32.78% 36.25%

Medium Capital Intensity over the past 10 years

ALB has used a reasonable amount of their financial resources to invest in facilities and equipment required to produce its goods and services. This isn't perfect, but it shouldn't be an area of concern unless this number is strongly trending upwards.

49.64% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Capital Expenditure 98.74M 99.74M 100.79M 75.48M 190.57M 280.87M 155.35M 110.58M 227.65M 196.65M
divided by
Net Income 229.69M 194.20M 178.37M 323.72M 436.28M 330.13M 439.83M 230.44M 360.06M 419.00M
Capital Expenditure Ratio 42.99% 51.36% 56.50% 23.32% 43.68% 85.08% 35.32% 47.99% 63.22% 46.93%

Very Strong Dividend History over the past 10 years

ALB has consistently distributed a dividend for at least the past 10 years. Such a long dividend history suggests ALB is very established in its market and that its dividend distribution is likely to continue for a significant period of time.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Dividend Paid 40.03M 55.94M 56.14M 49.64M 57.76M 76.74M 88.12M 99.64M 142.59M 135.35M
divided by
Shares Outstanding 97.22M 92.53M 92.05M 92.18M 91.52M 89.88M 84.32M 79.10M 111.56M 113.24M
Dividend Paid Per Share 0.41 0.60 0.61 0.54 0.63 0.85 1.05 1.26 1.28 1.20
Price at Year End 39.65 19.77 36.10 55.42 51.51 60.89 63.26 60.80 56.34 86.08
Dividend Yield 1.04% 3.06% 1.69% 0.97% 1.23% 1.40% 1.65% 2.07% 2.27% 1.39%

Strong History of Stock Buybacks over the past 10 years

ALB has a strong history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Shares Outstanding 97.22M 92.53M 92.05M 92.18M 91.52M 89.88M 84.32M 79.10M 111.56M 113.24M
Stock Bought Back - 5.06% 0.53% -0.15% 0.72% 1.82% 6.60% 6.60% -29.09% -1.49%
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