Albemarle (ALB) AI Stock Analysis

• Market Cap: $9.07B
• Dividend Yield: 2.62%
• Average Volume (3M): 3.69M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.55
• Revenue Growth: -39.34%
• EPS Growth: -500.52%
• Country: US
• Employees: 8,300
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Chemicals - Specialty
• EPS (TTM): -0.18
• Shares Outstanding: 117,660,910
• 10 Day Avg. Volume: 4,841,749
• 30 Day Avg. Volume: 3,685,593
• PEG Ratio: 38.91
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -59.24
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 0.42
• Enterprise Value/Gross Profit: 57.59
• Enterprise Value/Ebitda: -2.10
• 1Y Price Target: $73.00
• Price Target Upside: -5.28% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 19

• Rating: 55 Neutral
• Price Target: $70.00 ▼(-9.17%Downside)

Albemarle's overall stock score is primarily impacted by financial performance challenges, including declining profitability and negative cash flow. Technical analysis indicates some positive momentum, but valuation concerns and mixed earnings call results suggest caution. The company's strategic focus on cost improvements and long-term lithium demand outlook are positives, but short-term risks remain significant.

Positive Factors

Cost Efficiency

ALB has made strong progress on its cost-saving initiatives, reaching 90% of its $300-400mn run rate target as of April.

Financial Performance

ALB posted 1Q EBITDA of $267mn, above consensus despite a sales miss, as cost savings expanded margins.

Lithium Demand

ALB's lithium demand model suggests a sooner inflection to undersupply, with a bullish demand outlook potentially supporting a lithium price recovery.

Negative Factors

Energy Storage Pricing

ALB reported Energy Storage pricing fell 34% Y/Y vs. our estimate of -25% Y/Y.

Market Expectations

The results have not improved short-term expectations nor had a lasting impact on the share price; in our view, the stock will remain an underperformer until lithium prices recover.

Valuation Concerns

The price target is reduced from $68 to $58 with a tilt to the low end of the valuation range given the higher end requires lithium prices to increase significantly.

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 makes money through the production and sale of specialty chemicals, with a significant portion of its revenue derived from its Lithium segment. The demand for lithium is driven by the growing electric vehicle market, which has been a primary growth driver for the company. Albemarle extracts lithium from its mines and converts it into compounds required for battery production. The Bromine Specialties segment generates revenue by supplying bromine-based products, which are crucial in various industrial applications, including flame retardants and oilfield solutions. The Catalysts segment contributes to earnings by providing refining solutions that improve the efficiency and output of petroleum refineries. Additionally, Albemarle engages in strategic partnerships and long-term supply agreements, particularly in the lithium sector, which enhance its revenue stability and growth potential.

Albemarle Financial Statement Overview

Summary

Albemarle's financial performance is under pressure with declining sales and profitability as indicated by the income statement. Despite a moderate balance sheet, the company faces challenges in cash flow management with persistent negative free cash flow, highlighting liquidity concerns.

Income Statement

Albemarle's income statement reveals significant challenges in the TTM period with negative EBIT and net income, causing a downturn in profitability. The company's gross profit margin has declined dramatically, reflecting pressure on cost management. Additionally, revenue has decreased on a year-over-year basis, indicating a contraction in sales. These factors contribute to a low score due to weak performance metrics, despite historical periods of profitability.

Balance Sheet

Albemarle maintains a moderate balance sheet with a debt-to-equity ratio around the industry norm, indicating a balanced leverage position. The company's equity ratio remains strong, showcasing a stable asset base backed by shareholder equity. However, the recent decline in equity and assets could signal potential risks if the trend continues.

Cash Flow

Cash flow analysis shows Albemarle experiencing negative free cash flow in recent periods, impacted by substantial capital expenditures. The operating cash flow to net income ratio is positive, suggesting that core operations are generating cash despite net losses. However, the lack of free cash flow growth and persistent negative free cash flow highlight liquidity concerns, warranting a cautious outlook.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.38B	9.62B	7.32B	3.33B	3.13B
Gross Profit	62.54M	1.19B	3.07B	997.97M	994.85M
EBITDA	-1.01B	792.75M	2.87B	875.13M	678.62M
Net Income	-1.18B	1.57B	2.04B	123.67M	375.76M
Balance Sheet
Total Assets	16.61B	18.27B	15.46B	10.97B	10.45B
Cash, Cash Equivalents and Short-Term Investments	1.19B	889.90M	1.50B	439.27M	746.72M
Total Debt	3.62B	4.31B	3.22B	2.39B	3.57B
Total Liabilities	6.41B	8.61B	7.27B	5.17B	5.98B
Stockholders Equity	9.96B	9.41B	7.98B	5.63B	4.27B
Cash Flow
Free Cash Flow	-983.72M	-823.96M	646.20M	-609.41M	-51.56M
Operating Cash Flow	702.07M	1.33B	1.91B	344.26M	798.91M
Investing Cash Flow	-1.57B	-2.78B	-1.42B	-666.59M	-863.57M
Financing Cash Flow	1.24B	623.91M	611.89M	50.21M	177.26M

Albemarle Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 77.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 77.07 is above the 20-day moving average (MA) of 67.07, above the 50-day MA of 62.27, and below the 200-day MA of 78.80, indicating a neutral trend. The MACD of 3.68 indicates Negative momentum. The RSI at 69.15 is Neutral, neither overbought nor oversold. The STOCH value of 75.05 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
FUL	75 Outperform	$3.24B	32.66	5.62%	1.56%	-0.09%	-37.60%
AVNT	69 Neutral	$2.97B	30.05	4.32%	4.08%	3.58%	-5.17%
EMN	69 Neutral	$8.98B	9.90	16.16%	5.29%	2.78%	1.50%
SQM	68 Neutral	$10.90B	18.39	12.13%	0.47%	-29.03%	52.74%
WLK	63 Neutral	$10.44B	27.38	3.71%	2.58%	-1.27%	48.34%
ALB	55 Neutral	$9.07B	―	-10.58%	2.62%	-39.34%	-500.52%
Sector *	44 Neutral	C$961.63M	-6.69	-13.73%	2.61%	17.55%	-32.57%

Albemarle Corporate Events

Albemarle Shareholders Approve Key Proposals at Annual Meeting

On May 6, 2025, Albemarle held its Annual Meeting of Shareholders where several proposals were voted on. Shareholders elected directors for a term expiring in 2026, approved executive compensation on a non-binding basis, ratified the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for 2025, and approved a shareholder proposal regarding a simple majority vote.