Albemarle Corporation (ALB)
NYSE:ALB
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Albemarle
(NYSE:ALB)
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Rating:66Neutral
Price Target:
$184.00
▼(-6.95% Downside)
Action:Reiterated
Date:05/09/26
The score is driven mainly by improving (but still uneven) financial performance—especially negative TTM net profitability offset by a stronger balance sheet and better cash generation. Technicals are supportive with the stock above major moving averages and positive momentum. Earnings call results and actions (strong YoY growth, cash flow, and debt reduction) add confidence, while valuation is reasonable but not notably cheap and the dividend yield is modest.
Positive Factors
Meaningfully stronger balance sheet and lower leverage
Significant debt reduction and lower average interest costs materially improve financial flexibility. Reduced leverage and ~1x net debt/EBITDA lower refinancing and interest-rate sensitivity, enabling the company to fund capex, absorb commodity shocks, and prioritize strategic investments over the medium term.
Negative Factors
Persistent negative net margin and earnings volatility
Despite recent operating improvements, TTM net margin remains negative and historical boom‑to‑bust swings undermine earnings quality. Continued inconsistent profitability constrains return on equity, limits retained-earnings growth, and reduces the company’s ability to steadily return capital or build reserves through commodity cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Meaningfully stronger balance sheet and lower leverage
Significant debt reduction and lower average interest costs materially improve financial flexibility. Reduced leverage and ~1x net debt/EBITDA lower refinancing and interest-rate sensitivity, enabling the company to fund capex, absorb commodity shocks, and prioritize strategic investments over the medium term.
Read all positive factors
Albemarle Key Performance Indicators (KPIs)
Any
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.
Analyzes revenue from different business segments, highlighting which areas drive growth and profitability, and indicating potential shifts in strategic focus or market demand.
Data provided by:
The Fly
The FlyAlbemarle (ALB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$20.10B
Dividend Yield1.1%
Average Volume (3M)2.16M
Price to Earnings (P/E)―
Beta (1Y)1.62
Revenue Growth7.87%
EPS Growth69.44%
CountryUS
Employees8,300
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)-3.40
Shares Outstanding117,934,654
10 Day Avg. Volume2,336,946
30 Day Avg. Volume2,160,274
Financial Highlights & Ratios
PEG Ratio0.67
Price to Book (P/B)1.75
Price to Sales (P/S)3.24
P/FCF Ratio24.04
Enterprise Value/Market Cap1.07
Enterprise Value/Revenue3.93
Enterprise Value/Gross Profit21.21
Enterprise Value/Ebitda36.65
Forecast
1Y Price Target
$221.29Price Target Upside11.91% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering17
EPS Forecast (FY)12.19
Revenue Forecast (FY)$6.26B
Albemarle Business Overview & Revenue Model
Company Description
Albemarle Corporation stands as a global innovator, producing and distributing a diverse portfolio of engineered specialty chemicals. Its business operations are divided into three principal segments: Lithium, Bromine, and Catalysts. The Lithium d...
How the Company Makes Money
Albemarle makes money primarily by producing and selling specialty chemical products, with revenue dominated by lithium-related sales. (1) Energy Storage (Lithium): Albemarle generates revenue by selling lithium compounds—most notably lithium hydr...
Albemarle Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial momentum: robust revenue (+33% YoY), large adjusted EBITDA gains (+148% YoY), significant cash generation ($346M operating cash flow) and decisive balance sheet actions (paid down $1.3B debt). Management raised Specialties guidance and highlighted successful productivity delivery and asset ramp progress (Wodgina, Greenbushes, Salar pilot). Offsetting these positives are tangible near-term headwinds from Middle East-related supply chain costs (~$70–$90M), pricing lag effects that compress realized lithium prices, sequential margin pressure in Energy Storage, JV safety/grade questions at Greenbushes, and limited visibility into the back half of the year. Overall, the positive financial results, cash generation and balance sheet improvements materially outweigh the operational and geopolitical risks discussed.Positive Updates
Strong Top-Line Growth
Reported Q1 net sales of $1.4 billion, up 33% year-over-year, driven by higher prices and volumes across both segments.
Negative Updates
Supply Chain and Geopolitical Cost Headwinds
Company estimates unmitigated full-year cost impact from Middle East supply chain disruptions of ~$70–$90 million; expecting some margin and cost pressure in coming quarters as a result.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Top-Line Growth
Reported Q1 net sales of $1.4 billion, up 33% year-over-year, driven by higher prices and volumes across both segments.
Read all positive updates
Company Guidance
Albemarle maintained its 2026 total‑company outlook across three lithium price scenarios while raising full‑year Specialties guidance to net sales of $1.3–$1.5 billion and adjusted EBITDA of $225–$275 million (EBITDA margin now expected in the high‑teens); in Q1 the company reported net sales of $1.4 billion (+33% YoY), adjusted EBITDA of $664 million (up $397M YoY; adjusted EBITDA growth ~148% YoY overall, Energy Storage EBITDA +196%, Specialties EBITDA +30%), diluted EPS $2.34, Energy Storage sales volumes of 53,000 t LCE at an average realized price of ~$17/kg (Energy Storage pricing +51%, Energy Storage volumes +14%, Specialties volumes +7%, Specialties net sales +12% YoY), generated operating cash flow $346M and free cash flow $248M with Q1 CapEx $99M (FY CapEx guidance $550–$600M), repaid $1.3B of debt in Q1 (weighted average interest rate down to ~3.1%, annual interest expense reduced by ~$60M) and finished the quarter at ~1x net debt/EBITDA; the company is year‑to‑date $40M into its $100–$150M FY cost/productivity target, expects Q2 net sales and EBITDA to be up sequentially (though Energy Storage margin to moderate due to spodumene timing and higher supply‑chain costs), is holding Energy Storage volume guidance steady, estimates an unmitigated FY supply‑chain cost impact of $70–$90M to be offset by debt reduction and stronger Specialties pricing/volumes, and models that at a $20/kg lithium price scenario full‑year operating cash conversion should be in its 60%–70% long‑term target range.Albemarle Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
72
Positive
Cash Flow
61
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.49B | 5.14B | 5.38B | 9.62B | 7.32B | 3.33B |
| Gross Profit | 1.02B | 671.62M | 60.24M | 1.20B | 3.09B | 1.01B |
| EBITDA | 589.26M | 559.90M | -291.83M | 2.65B | 3.63B | 544.86M |
| Net Income | -232.88M | -510.63M | -1.18B | 1.57B | 2.69B | 123.67M |
Balance Sheet | ||||||
| Total Assets | 15.14B | 16.37B | 16.61B | 18.27B | 15.46B | 10.97B |
| Cash, Cash Equivalents and Short-Term Investments | 1.09B | 1.62B | 1.19B | 889.90M | 1.50B | 439.27M |
| Total Debt | 1.88B | 3.30B | 3.62B | 4.28B | 3.32B | 2.52B |
| Total Liabilities | 5.03B | 6.59B | 6.41B | 8.61B | 7.27B | 5.17B |
| Stockholders Equity | 9.85B | 9.53B | 9.96B | 9.41B | 7.98B | 5.63B |
Cash Flow | ||||||
| Free Cash Flow | 577.27M | 692.47M | -992.65M | -827.96M | 646.20M | -609.41M |
| Operating Cash Flow | 1.08B | 1.28B | 687.88M | 1.33B | 1.91B | 344.26M |
| Investing Cash Flow | 574.26M | -146.01M | -1.58B | -2.56B | -1.42B | -666.59M |
| Financing Cash Flow | -2.13B | -834.19M | 1.24B | 623.91M | 611.89M | 50.21M |
Albemarle Technical Analysis
Positive
197.75
Price Trends
181.54
Negative
176.71
Negative
143.80
Positive
Market Momentum
-7.38
Positive
49.72
Neutral
42.08
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 197.75 is above the 20-day moving average (MA) of 167.26, above the 50-day MA of 181.54, and above the 200-day MA of 143.80, indicating a neutral trend. The MACD of -7.38 indicates Positive momentum. The RSI at 49.72 is Neutral, neither overbought nor oversold. The STOCH value of 42.08 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 48 risk factors in its most recent earnings report. Albemarle reported the most risks in the "Production" 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $20.10B | -86.24 | -2.35% | 1.10% | 7.87% | 69.44% | |
65 Neutral | $8.60B | 21.49 | 6.77% | 5.33% | -7.41% | -56.10% | |
63 Neutral | $22.16B | 29.14 | 14.69% | ― | 18.36% | 35.24% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
54 Neutral | $6.41B | -11.55 | -9.59% | ― | -1.99% | -176.82% | |
52 Neutral | $20.85B | -26.22 | -7.44% | 12.78% | -21.87% | -176.90% | |
46 Neutral | $11.34B | -6.92 | -17.68% | 2.88% | -8.63% | -524.43% |
* Basic Materials Sector Average
ALB
Albemarle
170.42
110.27
183.35%
EMN
Eastman Chemical
75.22
1.01
1.36%
LYB
LyondellBasell
64.58
7.75
13.64%
SQM
Sociedad Quimica Y Minera SA
84.12
51.21
155.63%
WLK
Westlake Corporation
88.50
14.05
18.87%
AVTR
Avantor
9.39
-4.04
-30.08%
Albemarle Corporate Events
Executive/Board Changes
Albemarle Names CFO Interim Principal Accounting Officer
Neutral
Jun 5, 2026
Albemarle Corporation reported that former Chief Accounting Officer Donald J. LaBauve Jr. retired on June 1, 2026, triggering an interim leadership change in its finance organization. Effective June 2, 2026, Executive Vice President and Chief Fina...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Albemarle Shareholders Approve Board, Pay and Incentive Plan
Positive
May 8, 2026
At its annual meeting on May 5, 2026, Albemarle shareholders elected the full slate of board nominees to serve until the 2027 meeting and approved, on an advisory basis, the company’s executive compensation program. Investors also ratified P...
Executive/Board Changes
Albemarle Announces Upcoming Retirement of Chief Accounting Officer
Neutral
Apr 17, 2026
On April 13, 2026, Albemarle Corporation announced that Donald J. LaBauve Jr. plans to retire as Chief Accounting Officer, effective June 1, 2026, after more than 36 years with the company. The company emphasized that his retirement stems from per...
Business Operations and StrategyPrivate Placements and Financing
Albemarle Amends Credit Facility, Extends Maturity to 2028
Positive
Mar 25, 2026
On March 19, 2026, Albemarle Corporation and its lenders executed a third amendment to the company’s amended and restated credit agreement originally dated October 28, 2022. The amendment extends the credit facility’s maturity to at le...
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.