One-glance verdict
Within fair range
$122.37 our estimate vs market $93.86
Wall Street consensus: $156.35 (27.8% higher than our fair-value estimate)
23% below our estimate
Fundamentals snapshot
Albemarle Corporation
ALB · NYQ · Basic Materials · Specialty Chemicals
Current price
$93.86
52-week range
$88.01 - $221.00
Market cap
$11.08B
Balance sheet
Distressed
0.32x Concerning
Net debt $367.25M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 14.9% last year.
- Reward Returns 2.6% on equity, ahead of 60% of its peers.
- Risk Stock trades 3323.4% above its 5-year average P/E.
- Risk Operating margin compressed from 33.9% to 27.7% over 3 years.
What this company does
Albemarle Corporation
Albemarle Corporation makes the special ingredients that go into batteries for electric cars and other electronics, along with chemicals used in things like fire safety and cleaning fuels. The money they make mostly comes from selling these lithium products and bromine-based chemicals, which are important because the demand for batteries and other high-tech applications is growing fast.
How the company got here
Albemarle Corporation has a long history, tracing its roots back to 1887. Initially focused on different chemical products, the company has undergone significant transformations over the decades. A key turning point was its strategic shift towards specialty chemicals, particularly lithium and bromine, recognizing their growing importance in modern industries. This focus has positioned Albemarle as a major player in materials essential for energy storage and advanced technologies.
What it actually does
Albemarle Corporation is a global producer of specialty chemicals that are crucial for many everyday products and advanced technologies. Think of the materials that make electric car batteries work, or the compounds that improve fire safety in electronics and buildings. The company also makes chemicals used in refining fuels and in various industrial processes. Essentially, Albemarle provides essential building blocks for a wide range of modern applications, from powering our devices to making our lives safer and our energy cleaner.
Energy Storage
This segment is all about lithium, a key ingredient in batteries that power electric vehicles and consumer electronics like smartphones and laptops. They produce different forms of lithium compounds, such as lithium carbonate and lithium hydroxide, which are the fundamental materials for these rechargeable batteries. This part of Albemarle's business is vital for the booming electric vehicle market and the ongoing transition to renewable energy sources, as lithium batteries are also used in grid storage for solar and wind power. It represents a significant portion of Albemarle's overall business, driven by the global demand for cleaner energy solutions.
Specialties
The Specialties segment focuses on bromine and other highly specialized chemical solutions. Bromine compounds are used in a variety of applications, including fire safety materials that prevent the spread of flames in electronics and construction, as well as in chemicals for energy and health industries. This segment also includes other advanced lithium products beyond battery materials, and specialized chemicals like cesium and zirconium products used in things like airbag initiators. It's a diverse area that provides critical components for industries ranging from pharmaceuticals to aerospace.
Ketjen
This segment is dedicated to producing catalysts and technology solutions primarily for the clean fuels industry. Catalysts are substances that speed up chemical reactions without being consumed themselves, and in this case, they help in refining petroleum into cleaner fuels. Albemarle's Ketjen segment provides these essential catalysts, along with other performance chemicals, to refineries worldwide. This business is crucial for improving the efficiency and environmental performance of traditional energy production, as well as for developing new fuel technologies.
What management is betting on now
Albemarle's management is heavily focused on expanding its lithium production capacity to meet the surging global demand, particularly from the electric vehicle sector. They are investing in new mines and processing facilities to ensure a reliable supply of high-quality lithium compounds. Another key priority is advancing their bromine and specialty chemical businesses, seeking new applications and markets for these versatile products. The company is also committed to sustainable operations, aiming to be a leader in responsible chemical production and resource management.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-62.58M
FY2024 Q4
$-355.05M
FY2025 Q1
$362.76M
FY2025 Q2
$-126.83M
FY2025 Q3
$223.44M
FY2025 Q4
$233.10M
FY2026 Q1
$247.57M
FY2026 Q2
$638.27M
Revenue
$1.74B
Net income
$479.96M
Diluted EPS
3.52
Operating cash flow
$710.00M
Free cash flow
$638.27M
Fetching…
Sources
Revenue
$1.43B
Net income
$319.09M
Diluted EPS
2.34
Operating cash flow
$346.24M
Free cash flow
$247.57M
Fetching…
Sources
Revenue
$1.43B
Net income
$-414.18M
Diluted EPS
-3.88
Operating cash flow
$388.49M
Free cash flow
$233.10M
Fetching…
Sources
Revenue
$1.31B
Net income
$-160.69M
Diluted EPS
-1.72
Operating cash flow
$355.60M
Free cash flow
$223.44M
Fetching…
Sources
Revenue
$1.33B
Net income
$22.90M
Diluted EPS
-0.16
Operating cash flow
$-7.20M
Free cash flow
$-126.83M
Fetching…
Sources
Revenue
$1.08B
Net income
$41.35M
Diluted EPS
0.00
Operating cash flow
$545.38M
Free cash flow
$362.76M
Fetching…
Sources
Revenue
$1.23B
Net income
$75.29M
Diluted EPS
0.29
Operating cash flow
$674.00K
Free cash flow
$-355.05M
Fetching…
Sources
Revenue
$1.35B
Net income
$-1.07B
Diluted EPS
-9.45
Operating cash flow
$240.55M
Free cash flow
$-62.58M
Fetching…
Sources
Is it cheap or expensive?
Fair value $122.37 vs current price $93.86
Wall Street consensus is the average analyst price target: $156.35 (27.8% higher than our fair-value estimate).
Our most-likely fair value is $122.37 a share — about 30.4% away from today's price of $93.86, so the stock currently looks fairly priced.
Is it drowning in debt?
Distressed
Net debt $367.3M. Interest coverage 0.3x.
Net debt
$367.25M
Interest coverage
0.32x
Albemarle Corporation's profit covers its interest bill about 0.3 times over. which is weaker than most peers shown here.
Distressed
Worse cushion
Baseline
Better cushion
ALB
BASELINE
Albemarle Corporation
Total debt $2.00B Interest coverage 0.32x This is the baseline the peer rows are being compared against.
Total debt $5.31B Interest coverage 5.96x +1,739% vs ALB Carries about 18.4x more debt cushion than ALB.
Total debt $4.40B Interest coverage 1.39x +328% vs ALB Carries about 4.3x more debt cushion than ALB.
Total debt $12.40B Interest coverage 1.09x +236% vs ALB Carries about 3.4x more debt cushion than ALB.
What you should know
The case for and against ALB
3 Rewards
3 Risks
Rewards
-
Revenue grew 14.9% last year.
-
Returns 2.6% on equity, ahead of 60% of its peers.
-
Free cash flow was positive in 3/10 years.
Risks
-
Stock trades 3323.4% above its 5-year average P/E.
-
Operating margin compressed from 33.9% to 27.7% over 3 years.
-
Insider ownership is only 0.2% (peer median: 3.5%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
347.63x
Forward P/E
8.69x
P/B
1.38x
P/S
1.87x
EV/EBITDA
9.39x
PEG ratio
0.79x
Profitability
How much profit each dollar creates
Gross margin
24.0%
Operating margin
27.7%
Net margin
3.8%
ROE
2.6%
ROA
3.2%
Health
Liquidity and balance-sheet strength
Debt / equity
0.19x
Current ratio
2.09x
Quick ratio
1.25x
Total debt
$2.00B
Total cash
$1.63B
Growth
How the business has been compounding
Revenue TTM
$5.91B
Revenue 5Y CAGR
11.5%
EPS TTM
0.27
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$1.80B
Free CF TTM
$692.47M
FCF margin
11.7%
Dividend
Shareholder payout
Yield
1.8%
Payout ratio
600.0%
Last ex-div date
2026-09-11