Albemarle Corp

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ALB : NYSE : Basic Materials
$134.29 | %
Today's Range: 133.26 - 134.88
Avg. Daily Volume: 1388200.0
09/22/17 - 4:02 PM ET

Financial Analysis


ALBEMARLE CORP's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. ALBEMARLE CORP has strong liquidity. Currently, the Quick Ratio is 1.52 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 19.14% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)737.26669.33
EBITDA ($mil)211.83209.5
EBIT ($mil)162.71141.55
Net Income ($mil)103.33-314.82


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)1006.95193.66
Total Assets ($mil)7291.999312.38
Total Debt ($mil)1728.583513.18
Equity ($mil)3760.833156.62


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin45.4347.22
EBITDA Margin28.7331.3
Operating Margin22.0721.15
Sales Turnover0.390.29
Return on Assets12.131.64
Return on Equity8.0216.14
Debt Q2 FY17 Q2 FY16
Current Ratio2.241.32
Debt/Capital0.310.53
Interest Expense14.5915.8
Interest Coverage11.158.96


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)110.39112.39
Div / share0.320.31
EPS0.920.74
Book value / share34.0728.09
Institutional Own % n/a n/a
Avg Daily Volume1356628.0934729.0

Valuation


BUY. This stock's P/E ratio indicates a premium compared to an average of 47.97 for the Chemicals industry and a significant premium compared to the S&P 500 average of 24.97. To use another comparison, its price-to-book ratio of 3.85 indicates a premium versus the S&P 500 average of 3.11 and a discount versus the industry average of 4.94. 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 49.07 Peers 47.97   ALB 34.68 Peers 16.77

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

ALB is trading at a valuation on par with 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 significant 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 26.20 Peers 21.51   ALB 4.12 Peers 1.70

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.

 

Premium. 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 significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ALB 3.85 Peers 4.94   ALB -40.93 Peers -25.36

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 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 5.15 Peers 2.38   ALB 2.46 Peers 9.37

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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