Albemarle Corporation - NYSE:ALB - Comprehensive analysis
We are removing Albemarle from our Best Ideas list. Currently, Albemarle shares are trading at a significant discount to our $200 fair value estimate and remain in 5-star territory. We maintain a positive long-term outlook for higher lithium prices, driven by increasing global EV sales and the expansion of energy storage system batteries, which are expected to boost lithium demand growth at a faster rate than supply, thereby balancing the market. However, we anticipate near-term uncertainty regarding demand due to tariff-related inflation, as well as supply challenges, as battery producer CATL and Chinese state-owned enterprises continue to increase high-cost, low-quality lithium production. Although these operations may be running at a loss, their continued presence in the market could prolong oversupply conditions. Consequently, we are identifying other opportunities within the basic materials sector that present stronger near-term catalysts.
Free evaluation through quantitative algorithms Albemarle Corporation - NYSE:ALB
Growth-Scoring Model Detail
Total Revenue Growth Over Prior Year | -44.08 | Market 1 Sector 1 |
Gross Profit Growth Over Prior Year | -92.96 | Market 1 Sector 2 |
EBITDA Growth Over Prior Year | 0 | Market 0 Sector 0 |
EBITA Growth Over Prior Year | 0 | Market 0 Sector 0 |
EBIT Growth Over Prior Year | 0 | Market 0 Sector 0 |
Earnings from Cont. Ops. Growth Over Prior Year | 0 | Market 0 Sector 0 |
Net Income Growth Over Prior Year | 0 | Market 0 Sector 0 |
Normalized Net Income Growth Over Prior Year | -96.3 | Market 1 Sector 1 |
Diluted EPS before Extra Growth Over Prior Year | 0 | Market 0 Sector 0 |
A/R Growth Over Prior Year | -38.82 | Market 2 Sector 3 |
Inventory Growth Over Prior Year | -30.48 | Market 2 Sector 2 |
PPE Net Growth Over Prior Year | -1.89 | Market 25 Sector 39 |
Total Assets Growth Over Prior Year | -9.09 | Market 6 Sector 18 |
Tangible Book Value Growth Over Prior Year | -21.38 | Market 8 Sector 11 |
Common Equity Growth Over Prior Year | -17.91 | Market 7 Sector 13 |
Cash from Ops. Growth Over Prior Year | -47.03 | Market 5 Sector 13 |
CAPEX Growth Over Prior Year | -21.57 | Market 13 Sector 26 |
Dividend per Share Growth Over Prior Year | 0.63 | Market 37 Sector 66 |
Levered Free Cash Flow Growth Over Prior Year | 0 | Market 0 Sector 0 |
Unlevered Free Cash Flow Growth Over Prior Year | 0 | Market 0 Sector 0 |
Profitability-Scoring Model Detail
Gross Margin % | 1.57 | Market 5 Sector 9 |
SG&A Margin % | 11.07 | Market 42 Sector 60 |
EBITDA Margin % | -0.17 | Market 1 Sector 4 |
EBITA Margin % | -10.69 | Market 1 Sector 4 |
EBIT Margin % | -11.12 | Market 1 Sector 4 |
Earnings from Cont. Ops Margin % | -21.12 | Market 2 Sector 6 |
Net Income Margin % | -21.93 | Market 2 Sector 6 |
Net Income Avail. for Common Margin % | -24.47 | Market 2 Sector 6 |
Normalized Net Income Margin % | 0.94 | Market 3 Sector 28 |
Levered Free Cash Flow Margin % | -22.92 | Market 4 Sector 5 |
Unlevered Free Cash Flow Margin % | -20.99 | Market 3 Sector 5 |
Return on Assets % | -2.14 | Market 1 Sector 14 |
Return on Capital % | -2.69 | Market 1 Sector 14 |
Return on Equity % | -11.43 | Market 3 Sector 17 |
Return on Common Equity % | -15.36 | Market 3 Sector 17 |
Total Asset Turnover | 0.31 | Market 29 Sector 18 |
