Albemarle (ALB) AI Stock Analysis

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Albemarle

(NYSE:ALB)

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Neutral 55 (OpenAI - 4o)

Rating:55Neutral

Price Target:

$78.00

▼(-8.05% Downside)

Albemarle's overall stock score is driven by significant financial challenges and valuation concerns, which are partially offset by positive earnings call insights and technical stability. The company's ability to manage costs and maintain financial flexibility amidst market uncertainties is a positive factor, but the negative P/E ratio and profitability issues weigh heavily on the score.

Positive Factors

Cost and Productivity Improvements

Achieving cost and productivity targets enhances operational efficiency, supporting long-term profitability and competitive positioning.

Strong Lithium Demand

Rising lithium demand supports Albemarle's growth prospects, given its leadership in lithium production for EV batteries and energy storage.

Enhanced Financial Flexibility

Strong liquidity and improved leverage ratios provide Albemarle with the financial flexibility to navigate market uncertainties and invest in growth.

Negative Factors

Declining Revenue Growth

Significant revenue decline indicates challenges in maintaining market share and sales momentum, potentially impacting long-term growth.

Negative Profit Margins

Negative profit margins highlight operational inefficiencies, which could undermine Albemarle's ability to generate sustainable profits.

Lithium Market Pricing Pressure

Falling lithium prices can compress margins and reduce revenue, challenging Albemarle's profitability in its key growth segment.

Albemarle (ALB) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$9.60B

Dividend Yield1.91%

Average Volume (3M)3.54M

Price to Earnings (P/E)―

Beta (1Y)1.67

Revenue Growth-33.05%

EPS Growth-97.63%

CountryUS

Employees8,300

SectorBasic Materials

Sector Strength58

IndustryChemicals - Specialty

Share Statistics

EPS (TTM)0.11

Shares Outstanding117,682,930

10 Day Avg. Volume3,217,677

30 Day Avg. Volume3,538,499

Financial Highlights & Ratios

PEG Ratio0.05

Price to Book (P/B)1.02

Price to Sales (P/S)1.88

P/FCF Ratio-10.28

Enterprise Value/Market Cap1.23

Enterprise Value/Revenue2.36

Enterprise Value/Gross Profit30.48

Enterprise Value/Ebitda-41.93

Forecast

1Y Price Target

$81.71

Price Target Upside-3.68% Downside

Rating ConsensusHold

Number of Analyst Covering18

Albemarle Business Overview & Revenue Model

Company DescriptionAlbemarle 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 MoneyAlbemarle 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 Key Performance Indicators (KPIs)

Any

Revenue by Segment

Revenue by Segment
Analyzes revenue from different business segments, highlighting which areas drive growth and profitability, and indicating potential shifts in strategic focus or market demand.

Chart InsightsAlbemarle's revenue trajectory reveals a significant shift in its Energy Storage segment, which has seen robust growth but is now facing margin pressures due to lower lithium prices and high operating costs. Despite these challenges, the company remains optimistic about the strong demand for lithium, driven by the EV and stationary storage markets. The earnings call underscores Albemarle's strategic focus on cost improvements and financial flexibility, which are crucial as they navigate uncertainties in the North American EV market and potential tariff impacts.

Data provided by:

Main Street Data

Albemarle Earnings Call Summary

Earnings Call Date:Jul 30, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Nov 05, 2025

Earnings Call Sentiment Neutral

The earnings call presented a balanced view with strong operational performance and cost management highlighted against the backdrop of declining lithium prices and market uncertainties. The company's ability to achieve positive free cash flow and improve financial flexibility amidst these challenges is a positive takeaway.

Q2-2025 Updates

Positive Updates

Strong Volume Growth in Energy Storage and Specialties

The company reported net sales of $1.3 billion, driven by strong volume growth in energy storage and specialties, despite a decline in lithium pricing.

Cost and Productivity Improvement Achievements

Achieved a 100% run rate of the $400 million cost and productivity improvement target, reaching the high end of the initial range. SG&A costs were down more than 20% year-over-year.

Enhanced Financial Flexibility

Redeemed preferred shares for an aggregate value of $307 million and improved leverage ratios, ending the quarter with a net debt to adjusted EBITDA ratio of 2.3x.

Positive Free Cash Flow Expectation

The company now expects to achieve positive free cash flow for the full year 2025, aided by reduced capital expenditure forecasts and strong operating cash flow generation.

Record Production in JV Operations in Jordan

Achieved record production in Jordan, thanks to the NEBO project, which enhances financial and sustainability benefits.

Negative Updates

Decline in Lithium Market Pricing

Net sales and second quarter adjusted EBITDA declined year-over-year, mainly due to lower lithium market pricing.

Potential Margin Pressure in Second Half

Energy Storage EBITDA margin expected to be lower in the second half due to a smaller proportion of lithium salt sales under long-term agreements.

Lower Full Year 2025 Capital Expenditure Forecast

The company reduced its full-year 2025 expected capital expenditures by about 60% versus last year, potentially indicating slower growth investments.

China Supply Uncertainty

Uncertainty around supply and government policies in China, with speculative market behavior affecting lithium pricing.

Company Guidance

During Albemarle Corporation's Q2 2025 earnings call, the company provided detailed guidance on several key metrics. The company reported net sales of $1.3 billion, with adjusted EBITDA of $336 million, reflecting improvements in cost and productivity, particularly in energy storage product mix. Albemarle is maintaining its 2025 outlook, projecting positive free cash flow for the year, assuming the current lithium market pricing of approximately $9 per kilogram continues. The company achieved a 100% run rate of its $400 million cost and productivity improvement target and reduced full-year 2025 expected capital expenditures to $650 million to $700 million, representing a 60% reduction compared to the previous year. Albemarle ended the quarter with $3.4 billion in available liquidity, including $1.8 billion in cash and cash equivalents, and reported a net debt to adjusted EBITDA ratio of 2.3x. The company continues to see strong lithium demand, with global lithium consumption up about 35% year-to-date, and remains confident in the long-term growth potential of the lithium industry despite current market conditions.

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 leverage but negative return on equity. Cash flow analysis indicates operational inefficiencies and potential liquidity concerns.

Income Statement

Neutral

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

Neutral

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

Neutral

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	4.99B	5.38B	9.62B	7.32B	3.33B	3.13B
Gross Profit	387.35M	62.54M	1.19B	3.07B	997.97M	994.85M
EBITDA	-281.58M	-1.01B	792.75M	2.86B	449.09M	678.62M
Net Income	-929.45M	-1.18B	1.57B	2.69B	123.67M	375.76M
Balance Sheet
Total Assets	17.29B	16.61B	18.27B	15.46B	10.97B	10.45B
Cash, Cash Equivalents and Short-Term Investments	1.81B	1.19B	889.90M	1.50B	439.27M	746.72M
Total Debt	3.72B	3.62B	4.28B	3.32B	2.52B	3.69B
Total Liabilities	6.79B	6.41B	8.61B	7.27B	5.17B	5.98B
Stockholders Equity	10.24B	9.96B	9.41B	7.98B	5.63B	4.27B
Cash Flow
Free Cash Flow	-178.35M	-983.72M	-823.96M	646.20M	-609.41M	-51.56M
Operating Cash Flow	775.10M	702.07M	1.33B	1.91B	344.26M	798.91M
Investing Cash Flow	-451.65M	-1.57B	-2.78B	-1.42B	-666.59M	-863.57M
Financing Cash Flow	-413.49M	1.24B	623.91M	611.89M	50.21M	177.26M

Albemarle Technical Analysis

Technical Analysis Sentiment

Positive

Last Price84.83

Price Trends

50DMA

78.03

Positive

100DMA

69.60

Positive

200DMA

73.39

Positive

Market Momentum

MACD

1.24

Negative

RSI

60.76

Neutral

STOCH

70.86

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 84.83 is above the 20-day moving average (MA) of 79.84, above the 50-day MA of 78.03, and above the 200-day MA of 73.39, indicating a bullish trend. The MACD of 1.24 indicates Negative momentum. The RSI at 60.76 is Neutral, neither overbought nor oversold. The STOCH value of 70.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ALB.

Albemarle Risk Analysis

Albemarle disclosed 53 risk factors in its most recent earnings report. Albemarle reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Albemarle Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EMN	70 Neutral	7.33B	8.97	14.26%	5.42%	1.60%	-3.97%
SQM	65 Neutral	11.94B	26.58	8.92%	―	-23.20%	1226.72%
AVTR	63 Neutral	8.19B	11.70	10.94%	―	-2.34%	89.86%
ALB	55 Neutral	$9.60B	―	-8.66%	1.91%	-33.05%	-97.63%
LYB	55 Neutral	16.52B	67.39	2.19%	11.07%	-14.12%	-89.22%
WLK	52 Neutral	10.12B	-143.45	-0.64%	2.77%	-3.00%	-124.79%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

* Basic Materials Sector Average

Performance Comparison

ALB

Albemarle

84.83

-9.18

-9.76%

EMN

Eastman Chemical

62.71

-45.19

-41.88%

LYB

LyondellBasell

48.98

-39.88

-44.88%

SQM

Sociedad Quimica Y Minera SA

44.46

2.78

6.67%

WLK

Westlake Corporation

76.00

-70.85

-48.25%

AVTR

Avantor

11.78

-14.05

-54.39%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 13, 2025