Albemarle (ALB) AI Stock Analysis

• Market Cap: $10.82B
• Dividend Yield: 1.68%
• Average Volume (3M): 3.49M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.75
• Revenue Growth: -23.92%
• EPS Growth: 90.47%
• Country: US
• Employees: 8,300
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): -0.19
• Shares Outstanding: 117,682,930
• 10 Day Avg. Volume: 3,518,473
• 30 Day Avg. Volume: 3,485,779
• PEG Ratio: 0.05
• Price to Book (P/B): 1.02
• Price to Sales (P/S): 1.88
• P/FCF Ratio: -10.28
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $94.00
• Price Target Upside: -3.27% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 18
• EPS Forecast (FY): -1.4
• Revenue Forecast (FY): $4.99B

• Rating: 53 Neutral
• Price Target: $93.00 ▼(-4.30% Downside)

Albemarle's overall stock score reflects significant financial challenges, particularly in profitability and revenue growth, which weigh heavily on the score. Technical analysis provides some positive signals, but valuation concerns due to negative earnings impact the overall assessment. The earnings call offered some optimism with cost improvements and strong demand in key markets, but these factors are not enough to significantly elevate the score.

Positive Factors

Cost and Productivity Improvements

Significant cost and productivity improvements enhance operational efficiency, supporting long-term profitability and competitive positioning.

Strong Demand in Energy Storage and EV Markets

Robust demand in energy storage and EV markets drives growth in Albemarle's lithium segment, ensuring sustained revenue opportunities.

Strategic Portfolio Actions

Strategic divestitures provide Albemarle with capital for debt reduction and reinvestment, enhancing financial flexibility and focus on core operations.

Negative Factors

Decline in Net Sales

A decline in net sales due to lower lithium prices poses a challenge to revenue stability, affecting long-term financial performance.

Net Loss Reported

Reporting a net loss indicates financial strain, potentially impacting investor confidence and limiting resources for growth initiatives.

Weaker Demand in Specialties

Weaker demand in the Specialties segment could hinder revenue diversification and growth, affecting overall business resilience.

Albemarle Business Overview & Revenue Model

Company Description

Albemarle Corporation develops, manufactures, and markets engineered specialty chemicals worldwide. It operates through three segments: Lithium, Bromine, 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. It also provides cesium products for the chemical and pharmaceutical industries; zirconium, barium, and titanium products for pyrotechnical applications that include airbag initiators; technical services for the handling and use of reactive lithium products; and lithium-containing by-products recycling services. The Bromine segment offers bromine and bromine-based fire safety solutions; specialty chemicals, including elemental bromine, alkyl and inorganic bromides, brominated powdered activated carbon, and other bromine fine chemicals for use in chemical synthesis, oil and gas well drilling and completion fluids, mercury control, water purification, beef and poultry processing, and other industrial applications; and other specialty chemicals, such as tertiary amines for surfactants, biocides, and disinfectants and sanitizers. The Catalysts segment provides hydroprocessing, isomerization, and akylation catalysts; fluidized catalytic cracking catalysts and additives; and organometallics and curatives. The company serves the energy storage, petroleum refining, consumer electronics, construction, automotive, lubricants, pharmaceuticals, and crop protection markets. Albemarle Corporation was founded in 1887 and is headquartered in Charlotte, North Carolina.

How the Company Makes Money

Albemarle generates revenue through several key streams primarily focused on its three business segments. The Lithium segment is a significant revenue driver, capitalizing on the growing demand for lithium-ion batteries in electric vehicles and renewable energy storage. The company sells lithium hydroxide, lithium carbonate, and other lithium compounds, often under long-term contracts with major battery and automotive manufacturers. The Bromine Specialties segment contributes through the production and sale of bromine derivatives used in various industries, including electronics and agriculture. The Catalysts segment earns revenue by providing innovative catalysts to refineries and petrochemical companies, helping them improve efficiency and reduce emissions. Additionally, Albemarle has established strategic partnerships and joint ventures, particularly in lithium production, which enhance its market position and provide stable revenue streams. Market dynamics, including the shift towards sustainable energy sources and electric vehicles, continue to bolster the company's earnings potential.

Albemarle Financial Statement Overview

Summary

Albemarle faces significant financial challenges, particularly in maintaining profitability and revenue growth. The income statement shows volatility with a negative net profit margin and declining revenue growth. The balance sheet reflects moderate stability, but negative return on equity and cash flow issues indicate operational inefficiencies and potential liquidity concerns.

Income Statement

Albemarle's income statement shows significant volatility. The TTM data reveals a negative net profit margin of -18.61% and a declining revenue growth rate of -197.1%. This indicates substantial challenges in maintaining profitability and revenue stability. Historical data shows a sharp decline from 2022, where the company had a net profit margin of 27.91% and a strong revenue growth rate of 119.96%. The current negative EBIT and EBITDA margins further highlight operational inefficiencies.

Balance Sheet

The balance sheet reflects moderate financial stability with a debt-to-equity ratio of 0.35 in the TTM period, indicating manageable leverage. However, the return on equity is negative at -9.19%, suggesting inefficiencies in generating returns for shareholders. The equity ratio remains stable, indicating a solid asset base relative to equity.

Cash Flow

Cash flow analysis shows mixed results. The TTM period indicates a positive operating cash flow to net income ratio of 0.40, suggesting some ability to generate cash from operations despite net losses. However, free cash flow remains negative, and the free cash flow to net income ratio is -0.07, highlighting challenges in sustaining free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.95B	5.38B	9.62B	7.32B	3.33B	3.13B
Gross Profit	609.00M	62.54M	1.19B	3.07B	997.97M	994.85M
EBITDA	652.36M	-1.01B	792.75M	2.86B	449.09M	678.62M
Net Income	-62.84M	-1.18B	1.57B	2.69B	123.67M	375.76M
Balance Sheet
Total Assets	17.15B	16.61B	18.27B	15.46B	10.97B	10.45B
Cash, Cash Equivalents and Short-Term Investments	1.93B	1.19B	889.90M	1.50B	439.27M	746.72M
Total Debt	3.63B	3.62B	4.28B	3.32B	2.52B	3.69B
Total Liabilities	6.88B	6.41B	8.61B	7.27B	5.17B	5.98B
Stockholders Equity	10.00B	9.96B	9.41B	7.98B	5.63B	4.27B
Cash Flow
Free Cash Flow	-119.13M	-983.72M	-823.96M	646.20M	-609.41M	-51.56M
Operating Cash Flow	538.85M	702.07M	1.33B	1.91B	344.26M	798.91M
Investing Cash Flow	-144.20M	-1.57B	-2.78B	-1.42B	-666.59M	-863.57M
Financing Cash Flow	-303.52M	1.24B	623.91M	611.89M	50.21M	177.26M

Albemarle Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 97.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALB, the sentiment is Positive. The current price of 97.18 is above the 20-day moving average (MA) of 95.64, above the 50-day MA of 88.04, and above the 200-day MA of 73.64, indicating a bullish trend. The MACD of 1.52 indicates Positive momentum. The RSI at 54.94 is Neutral, neither overbought nor oversold. The STOCH value of 36.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ALB.

Albemarle Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EMN	67 Neutral	$6.97B	10.19	12.24%	5.42%	-3.33%	-19.59%
SQM	62 Neutral	$13.13B	27.66	9.29%	―	-23.20%	1226.72%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
LYB	57 Neutral	$14.15B	―	-10.44%	12.60%	-19.65%	-157.13%
ALB	53 Neutral	$10.82B	―	-0.21%	1.68%	-23.92%	90.47%
AVTR	53 Neutral	$7.90B	―	-1.48%	―	-3.59%	-126.16%
WLK	47 Neutral	$8.57B	―	-9.48%	3.24%	-5.32%	-1108.29%

Albemarle Corporate Events

Albemarle Sells Ketjen Stock to ChemCat for $536M

On October 25, 2025, Albemarle Corporation entered into a Stock Purchase Agreement to sell part of Ketjen’s common stock to ChemCat AcquisitionCo, LLC, and contribute the remaining shares to ChemCat Holdings, LP, affiliated with KPS Capital Partners. This transaction, expected to yield $536 million in cash for Albemarle, will also involve a goodwill impairment charge of $181.5 million for the Refining Solutions unit. Additionally, Ketjen has agreed to sell its stake in Eurecat S.A. to Axens SA for €105 million, with the transaction expected to close in the first half of 2026. Albemarle anticipates receiving approximately $660 million in total proceeds from these transactions, which will be used for debt reduction and other corporate purposes.

The most recent analyst rating on (ALB) stock is a Buy with a $135.00 price target. To see the full list of analyst forecasts on Albemarle stock, see the ALB Stock Forecast page.

Albemarle Appoints New Chief Operations Officer

On August 11, 2025, Albemarle Corporation announced a change in its organizational structure with the departure of Chief Operations Officer Netha N. Johnson, effective August 10, 2025. Mark M. Mummert, who has been with the company since 2019 and has extensive experience in supply chain and global operations, will succeed Johnson. Mummert’s new role includes an annual base salary of $550,000, participation in the company’s annual incentive plan, and a long-term incentive grant for 2026, reflecting Albemarle’s commitment to strategic leadership and operational excellence.

The most recent analyst rating on (ALB) stock is a Buy with a $140.00 price target. To see the full list of analyst forecasts on Albemarle stock, see the ALB Stock Forecast page.

Albemarle Corporation’s Financial Stability Threatened by Economic Fluctuations

Albemarle Corporation faces significant market risks due to potential changes in economic conditions, which may hinder its purchasing power and lead to a decline in revenues. Such economic fluctuations could adversely affect the company’s business operations and overall financial performance. The impact of these market risks underscores the vulnerability of Albemarle’s business model to external economic factors. Consequently, these risks pose a substantial threat to the company’s ability to maintain stable operating results.