ALB  Albemarle Corporation

Exchange

NYSE

Sector

Basic Industries

Industry

Major Chemicals

Market Cap.

12.50B

Vuru Grade

48.05/100

Current Price

$112.86
+0.27 (+0.24%)

Growth Price

$52.50
Overvalued by 53.48%

Stability Price

$9.00
Overvalued by 92.03%

Company Metrics

  • P/E 27.43
  • P/S 4.55
  • P/B 3.43
  • EPS 4.11
  • Cash ROIC 11.09%
  • Cash Ratio 1.99
  • Dividend 1.28 / 1.13 %
  • Avg. Vol. 1.03M
  • Shares 110.76M
  • Market Cap. 12.50B

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

Albemarle Corporation to present at Deutsche Bank Global Industrials and ...
PR Newswire (press release) - May 24, 2017
CHARLOTTE, N.C., May 24, 2017 /PRNewswire/ -- Albemarle Corporation (NYSE: ALB), a leader in the global specialty chemicals industry, announced today that Executive Vice President and Chief Financial Officer, Scott Tozier, will present at the Deutsche ...
Let This Leading Lithium Producer Recharge Your Portfolio
Seeking Alpha - 19 hours ago
World Leader In Lithium Production. Albemarle Corporation is the world's largest producer of lithium, a key component in the manufacture of batteries used in EVs, solar panels and a host of other popular electronics, from cell phones to cordless power ...
Analyst's Predictions on Albemarle Corporation (ALB), Editas Medicine, Inc. (EDIT)
StockNewsJournal - 21 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 reports 10% growth in first quarter 2017 net sales
PR Newswire (press release) - May 3, 2017
Albemarle Corporation (NYSE: ALB) reported first quarter 2017 net sales of $722.1 million, net income from continuing operations of $62.7 million and adjusted EBITDA of $211.4 million.
Albemarle (ALB) Earnings and Revenues Beat Estimates in Q1 - Yahoo Finance
Why Albemarle Is the Best Stock in the Lithium Sector - Motley Fool
Technical Analysis for today's market share: Albemarle Corporation (NYSE: ALB)
The News Journal - 15 hours ago
Delineated as the total market value of all outstanding shares of the company, the current market cap for Albemarle Corporation is valued at 12.47 B. The prevailing figure will allow the investment community to determine the size of Albemarle ...
Albemarle announces quarterly dividend
PR Newswire (press release) - May 11, 2017
CHARLOTTE, N.C., May 11, 2017 /PRNewswire/ -- The board of directors of Albemarle Corporation (NYSE: ALB) declared today a quarterly dividend of $0.32 per share.
Morning Watch List: Albemarle Corporation (NYSE: ALB) | Basic Materials - The Daily Leicester
Albemarle Co. (ALB) Announces Quarterly Earnings Results, Beats Expectations ... - The Cerbat Gem
The Dirty Secret to Trading National Instruments Corporation (NATI), Albemarle ...
USA Commerce Daily - 17 hours ago
Shares of National Instruments Corporation (NASDAQ:NATI) are making a strong comeback as they have jumped 47.88% since bottoming out at $25.9 on Jun. 27, 2016.
Shares in Albemarle Co. (ALB) Acquired by Karp Capital Management Corp
AppsforPCdaily - 22 hours ago
Zacks Investment Research lowered shares of Albemarle Co. The Tudor Investment Corp Et Al holds 87,766 shares with $410,000 value, down from 204,720 last quarter.
Morning Watch List: Albemarle Corporation (NYSE: ALB) - The Daily Leicester
Are Investors Shying Away from Shares of Albemarle Corporation (NYSE:ALB)? - FLBC News
Albemarle (ALB) Had Its Target Decreased by at Morgan Stanley to $100.00 ...
Key Gazette - May 29, 2017
Blueprint Medicines Corporation (NASDAQ:BPMC) had a decrease of 21.43% in short interest. BPMC's SI was 1.48M shares in May as released by FINRA.
Albemarle (ALB) Is At $112.86 Formed Wedge; Last Week Crown Castle ...
HuronReport - 51 minutes ago
Among 15 analysts covering Crown Castle International Corp (NYSE:CCI), 11 have Buy rating, 0 Sell and 4 Hold. Therefore 73% are positive.
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.

$112.86 Current Price

$52.50 Growth Price (DCF)

Overvalued by 53.48%


Growth Rate Assumed by Market: 38.41%


Future Free Cash Flow Growth Rate: 3.4%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$9.00 Stability Price (EPV)

Overvalued by 92.03%


Discount Rate: 15.0%

$101.88 Book Price

Overvalued by 9.73%


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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