Albemarle (ALB) AI Stock Analysis

• Market Cap: $7.64B
• Dividend Yield: 2.49%
• Average Volume (3M): 3.38M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.50
• Revenue Growth: -39.34%
• EPS Growth: -500.52%
• Country: US
• Employees: 8,300
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Chemicals - Specialty
• EPS (TTM): -0.18
• Shares Outstanding: 117,660,910
• 10 Day Avg. Volume: 3,363,115
• 30 Day Avg. Volume: 3,381,749
• PEG Ratio: 31.37
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -47.76
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 0.36
• Enterprise Value/Gross Profit: 48.85
• Enterprise Value/Ebitda: -1.78
• 1Y Price Target: $70.63
• Price Target Upside: 8.75% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 20

• Rating: 53 Neutral
• Price Target: $61.00 ▼(-6.08%Downside)

Albemarle's overall stock score reflects significant financial challenges, particularly in profitability and cash flow. While the company shows technical resilience and a promising long-term outlook for lithium demand, ongoing valuation concerns and near-term earnings pressures weigh heavily on its attractiveness. Stakeholders should monitor strategic improvements and market conditions closely.

Positive Factors

Cost Efficiency

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

Demand Growth

The rapidly developing lithium storage market, driven by globally accelerated EV adoption, is expected to boost earnings growth.

Negative Factors

Price Forecast

The reduction in lithium price forecast leads to a 25% reduction to the 2026 EBITDA forecast.

Revenue Decline

Revenue declined 20.9% y/y to USD 1.08bn, with a 12.6% q/q drop, due to lower lithium.

Albemarle Business Overview & Revenue Model

Company Description

Albemarle Corporation is a global specialty chemicals company and a leading producer of lithium, bromine, and catalysts. The company operates in three primary segments: Lithium, Bromine Specialties, and Catalysts. Albemarle's lithium operations focus on producing high-quality lithium compounds used in batteries, especially for electric vehicles, as well as other industrial applications. The Bromine Specialties segment provides products used in fire safety, oilfield drilling, and other industrial uses. The Catalysts segment supplies refining solutions to the oil and gas industry, enhancing the production of high-value end products.

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 challenged by declining sales and profitability, with the income statement indicating negative EBIT and net income. The balance sheet remains moderately stable, but cash flow management needs improvement. Persistent negative free cash flow and high capital expenditure highlight liquidity risks.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.09B	5.38B	9.62B	7.32B	3.33B	3.13B
Gross Profit	179.90M	62.54M	1.19B	3.07B	997.97M	994.85M
EBITDA	-811.95M	-1.01B	792.75M	2.87B	875.13M	678.62M
Net Income	-1.14B	-1.18B	1.57B	2.04B	123.67M	375.76M
Balance Sheet
Total Assets	17.00B	16.61B	18.27B	15.46B	10.97B	10.45B
Cash, Cash Equivalents and Short-Term Investments	1.52B	1.19B	889.90M	1.50B	439.27M	746.72M
Total Debt	3.64B	3.62B	4.31B	3.22B	2.39B	3.57B
Total Liabilities	6.72B	6.41B	8.61B	7.27B	5.17B	5.98B
Stockholders Equity	10.03B	9.96B	9.41B	7.98B	5.63B	4.27B
Cash Flow
Free Cash Flow	-139.59M	-983.72M	-823.96M	646.20M	-609.41M	-51.56M
Operating Cash Flow	1.15B	702.07M	1.33B	1.91B	344.26M	798.91M
Investing Cash Flow	-1.26B	-1.57B	-2.78B	-1.42B	-666.59M	-863.57M
Financing Cash Flow	-435.57M	1.24B	623.91M	611.89M	50.21M	177.26M

Albemarle Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 64.95
• 50DMA: Positive
• 100DMA: Negative
• 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 64.95 is above the 20-day moving average (MA) of 60.04, above the 50-day MA of 58.54, and below the 200-day MA of 80.02, indicating a neutral trend. The MACD of 0.79 indicates Negative momentum. The RSI at 62.28 is Neutral, neither overbought nor oversold. The STOCH value of 74.32 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
AVNT	71 Outperform	$3.01B	30.37	4.32%	3.29%	3.58%	-5.17%
FUL	70 Outperform	$3.35B	33.53	5.62%	1.52%	-0.09%	-37.60%
EMN	69 Neutral	$8.80B	9.71	16.16%	4.36%	2.78%	1.50%
SQM	67 Neutral	$9.93B	16.59	12.17%	0.47%	-28.74%	53.25%
WLK	57 Neutral	$9.76B	25.60	3.71%	2.76%	-1.27%	48.34%
ALB	53 Neutral	$7.64B	―	-10.58%	2.49%	-39.34%	-500.52%
Sector *	44 Neutral	C$953.01M	-6.70	-13.31%	2.79%	17.55%	-32.28%

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.