Albemarle Corp

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ALB : NYSE : Basic Materials
$112.86 | %
Today's Range: 112.2 - 113.06
Avg. Daily Volume: 1040100.0
05/26/17 - 4:02 PM ET

Financial Analysis


ALBEMARLE CORP's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. ALBEMARLE CORP has average liquidity. Currently, the Quick Ratio is 1.46 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 2.75% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)722.06657.21
EBITDA ($mil)205.63200.58
EBIT ($mil)160.56140.03
Net Income ($mil)51.21228.19


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)1254.54252.38
Total Assets ($mil)7366.479438.97
Total Debt ($mil)1712.893590.11
Equity ($mil)3637.673540.31


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin44.6746.12
EBITDA Margin28.4730.52
Operating Margin22.2421.31
Sales Turnover0.370.3
Return on Assets6.335.5
Return on Equity7.7413.22
Debt Q1 FY17 Q1 FY16
Current Ratio1.981.32
Debt/Capital0.320.5
Interest Expense15.7115.11
Interest Coverage10.229.27


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)110.75112.3
Div / share0.320.31
EPS0.451.87
Book value / share32.8531.53
Institutional Own % n/a n/a
Avg Daily Volume1034699.0841938.0

Valuation


BUY. ALBEMARLE CORP's P/E ratio indicates a significant premium compared to an average of 30.66 for the Chemicals industry and a significant premium compared to the S&P 500 average of 25.54. Conducting a second comparison, its price-to-book ratio of 3.43 indicates a premium versus the S&P 500 average of 3.06 and a significant discount versus the industry average of 5.56. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. The valuation analysis reveals that, ALBEMARLE CORP seems to be trading at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
ALB 45.22 Peers 30.66   ALB 19.66 Peers 16.20

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

ALB is trading at a significant premium to its peers.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

ALB is trading at a premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
ALB 22.52 Peers 20.02   ALB 3.92 Peers 4.50

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

ALB is trading at a significant premium to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

ALB trades at a discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ALB 3.43 Peers 5.56   ALB -40.00 Peers 7.18

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

ALB is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, ALB is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ALB 4.55 Peers 2.39   ALB -1.77 Peers 3.46

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

ALB is trading at a significant premium to its industry.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

ALB significantly trails its peers on the basis of sales growth

 

 

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