Albemarle (ALB) AI Stock Analysis

• Market Cap: $15.86B
• Dividend Yield: 1.2%
• Average Volume (3M): 3.62M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.67
• 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: 117,697,540
• 10 Day Avg. Volume: 3,083,910
• 30 Day Avg. Volume: 3,617,609
• 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: 0.88
• Enterprise Value/Revenue: 2.81
• Enterprise Value/Gross Profit: 22.80
• Enterprise Value/Ebitda: 19.20
• 1Y Price Target: $128.67
• Price Target Upside: -8.41% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 19
• EPS Forecast (FY): -0.86
• Revenue Forecast (FY): $5.06B

• Rating: 58 Neutral
• Price Target: $132.00 ▼(-6.04% Downside)

Albemarle's overall stock score reflects a mix of strong technical momentum and significant financial challenges. The company's financial performance is hindered by declining profitability and cash flow issues, while its valuation is pressured by a negative P/E ratio. Despite these challenges, the stock's technical indicators show bullish momentum, which is a positive factor for short-term investors. The optimistic earnings call guidance and strong demand in energy storage and EV markets provide some long-term potential, but caution is advised due to current financial and valuation concerns.

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 the sale of its specialty chemical products across its three business segments. The Lithium segment, which has seen significant growth due to the increasing demand for electric vehicles and renewable energy storage, is a major revenue driver for the company. The company has established long-term supply agreements with key players in the electric vehicle market, further enhancing its revenue potential. The Bromine Specialties segment earns income from the production of bromine and related compounds used in diverse industries, while the Catalysts segment benefits from sales of catalyst solutions that improve the efficiency of refining operations. Albemarle's strategic partnerships and investments in lithium production facilities, as well as its focus on innovation in specialty chemicals, also contribute to its overall earnings and market position.

Albemarle Financial Statement Overview

Summary

Albemarle faces significant challenges in maintaining profitability and growth, with declining margins and revenue. The balance sheet shows moderate stability, but negative return on equity and cash flow issues highlight areas for improvement. The company must focus on enhancing operational efficiency and cash generation to strengthen its financial position.

Income Statement

Albemarle's income statement shows significant volatility. The TTM (Trailing-Twelve-Months) data reveals a negative net profit margin and a substantial revenue decline, indicating challenges in maintaining profitability and growth. Historical data shows fluctuating revenue growth rates and margins, with a notable decline in gross profit margin from 2022 to 2025. The company needs to address these issues to stabilize its financial performance.

Balance Sheet

The balance sheet reflects moderate financial stability. The debt-to-equity ratio is relatively stable, indicating manageable leverage. However, the return on equity has turned negative in the TTM period, suggesting inefficiencies in generating returns for shareholders. The equity ratio remains healthy, but the company should focus on improving profitability to enhance shareholder value.

Cash Flow

Cash flow analysis shows mixed results. The TTM period indicates a negative free cash flow growth rate, highlighting cash management challenges. The operating cash flow to net income ratio is positive but lower than previous years, suggesting reduced efficiency in converting income to cash. Improving free cash flow generation is crucial for financial flexibility.

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	84.24M	1.20B	3.08B	1.01B	996.85M
EBITDA	722.94M	-9.11M	897.06M	2.87B	875.13M	742.46M
Net Income	-21.16M	-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	3.76B	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	104.31M	-983.72M	-823.96M	646.20M	-609.41M	-51.56M
Operating Cash Flow	894.46M	702.07M	1.33B	1.91B	344.26M	798.91M
Investing Cash Flow	-297.18M	-1.57B	-2.78B	-1.42B	-666.59M	-863.57M
Financing Cash Flow	-394.05M	1.24B	623.91M	611.89M	50.21M	177.26M

Albemarle Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 140.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 140.48 is above the 20-day moving average (MA) of 127.42, above the 50-day MA of 111.01, and above the 200-day MA of 79.71, indicating a bullish trend. The MACD of 7.21 indicates Negative momentum. The RSI at 71.09 is Negative, neither overbought nor oversold. The STOCH value of 82.01 is Negative, 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
SQM	71 Outperform	$18.40B	37.12	9.87%	―	-10.07%	―
EMN	67 Neutral	$7.29B	10.66	12.24%	5.19%	-3.33%	-19.59%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ALB	58 Neutral	$15.86B	-87.98	-0.21%	1.20%	-23.92%	90.47%
LYB	52 Neutral	$14.09B	-11.45	-10.44%	12.66%	-19.65%	-157.13%
WLK	52 Neutral	$9.49B	-10.07	-9.48%	2.85%	-5.32%	-1108.29%
AVTR	45 Neutral	$7.57B	-90.89	-1.48%	―	-3.59%	-126.16%

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.