Albemarle (ALB) AI Stock Analysis

• Market Cap: $9.99B
• Dividend Yield: 1.91%
• Average Volume (3M): 4.83M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.70
• Revenue Growth: -33.05%
• EPS Growth: -97.63%
• Country: US
• Employees: 8,300
• Sector: Basic Materials
• Sector Strength: 73
• Industry: Chemicals - Specialty
• EPS (TTM): 0.11
• Shares Outstanding: 117,682,930
• 10 Day Avg. Volume: 3,309,824
• 30 Day Avg. Volume: 4,834,861
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 2.36
• Enterprise Value/Gross Profit: 30.48
• Enterprise Value/Ebitda: -41.93
• 1Y Price Target: $80.95
• Price Target Upside: -4.67% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 20

• Rating: 61 Neutral
• Price Target: $89.00 ▲(4.80% Upside)

Albemarle's overall stock score reflects significant financial challenges, particularly in profitability and revenue growth, which weigh heavily on the score. However, positive technical indicators and a balanced earnings call with strong operational performance and cost management provide some optimism. Valuation concerns due to negative earnings further impact the score.

Positive Factors

Cost Management

Analysts are increasingly confident that Albemarle will achieve free cash flow positivity with disciplined capital expenditure management.

Financial Position

A further CapEx cut has been realized, which is expected to positively impact Albemarle's financial position.

Negative Factors

Lithium Market Conditions

The lithium market remains oversupplied, which could pose continued price risks for Albemarle.

Market Dynamics

Temporary market dynamics have led to a shift towards spot volumes, which could imply a weaker performance in the second half of the year.

Pricing Environment

The recent increases in lithium pricing may be speculator-driven, with concerns that the lower-for-longer pricing environment may persist longer than previously believed.

Albemarle Business Overview & Revenue Model

Company Description

Albemarle Corporation is a global specialty chemicals company headquartered in Charlotte, North Carolina. It operates primarily in three segments: Lithium, Bromine Specialties, and Catalysts. Albemarle is a leading provider of lithium for electric vehicle batteries and energy storage, producing a range of lithium compounds and derivatives. The company also manufactures bromine and bromine-based products for various applications, including flame retardants and oil and gas production. Additionally, its Catalysts segment develops advanced catalysts for refining and petrochemical industries, contributing to cleaner fuels and sustainable processes.

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 with manageable leverage, but negative return on equity suggests inefficiencies. Cash flow analysis indicates some ability to generate cash from operations, but free cash flow remains negative.

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	4.99B	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 Price: 84.92
• 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 84.92 is above the 20-day moving average (MA) of 79.35, above the 50-day MA of 73.97, and above the 200-day MA of 75.92, indicating a bullish trend. The MACD of 2.85 indicates Positive momentum. The RSI at 51.60 is Neutral, neither overbought nor oversold. The STOCH value of 59.94 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	69 Neutral	$8.08B	9.88	14.52%	4.75%	1.60%	-3.97%
SQM	65 Neutral	$12.76B	27.20	9.29%	0.47%	-23.20%	1226.72%
AVTR	64 Neutral	$9.18B	13.38	11.73%	―	-2.34%	89.86%
Sector *	61 Neutral	$10.24B	6.18	0.71%	2.90%	3.45%	-36.02%
LYB	61 Neutral	$18.12B	73.92	1.08%	9.71%	-14.12%	-89.22%
ALB	61 Neutral	$9.99B	―	-8.66%	1.91%	-33.05%	-97.63%
WLK	54 Neutral	$11.26B	25.36	-0.64%	2.40%	-3.00%	-124.79%

Albemarle Corporate Events

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.

Albemarle Extends CEO J. Kent Masters’ Contract

On July 30, 2025, Albemarle Corporation announced an extension of the employment agreement with its CEO, J. Kent Masters, through March 30, 2027. This decision reflects the company’s confidence in Masters’ leadership during a period of restructuring and industry dynamism. The agreement includes provisions for salary, bonuses, and long-term incentives, with specific conditions for termination and vesting. The move is seen as a strategic effort to maintain stability and continuity in Albemarle’s executive leadership as it navigates changes in the specialty chemicals industry.