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Albemarle
(NYSE:ALB)
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Rating:55Neutral
Price Target:
$110.00
▼(-17.41% Downside)
Action:Reiterated
Date:09/06/26
ALB scores mid-range primarily due to improving fundamentals (rebounding profitability, strong recent free cash flow, and a strengthened balance sheet with lower debt), but the overall score is pressured by weak technical positioning (price below key long-term moving averages) and a challenging valuation profile (very high P/E). The earnings call adds support via strong execution and maintained/raised outlook elements, though near-term operational and supply-chain headwinds remain.
Positive Factors
Strong operating recovery
The sharp improvement in sales and EBITDA indicates meaningful operating leverage as lithium activity recovers. If execution and demand remain supportive, stronger margins can improve earnings resilience, fund investment, and reinforce Albemarle’s position across energy storage and specialty chemicals.
Negative Factors
Cyclical earnings quality
The large revenue and margin swings show that Albemarle remains highly exposed to lithium pricing and demand cycles. Although profitability has recovered, margins remain well below earlier strong periods, making earnings less predictable and potentially limiting durable returns on its substantial asset base.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong operating recovery
The sharp improvement in sales and EBITDA indicates meaningful operating leverage as lithium activity recovers. If execution and demand remain supportive, stronger margins can improve earnings resilience, fund investment, and reinforce Albemarle’s position across energy storage and specialty chemicals.
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
$12.70B
Dividend Yield1.54%
Average Volume (3M)2.33M
Price to Earnings (P/E)220.4
Beta (1Y)1.62
Revenue Growth18.32%
EPS GrowthN/A
CountryUS
Employees7,800
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.48
Shares Outstanding118,005,060
10 Day Avg. Volume2,756,015
30 Day Avg. Volume2,331,757
Financial Highlights & Ratios
PEG Ratio0.51
Price to Book (P/B)1.75
Price to Sales (P/S)3.24
P/FCF Ratio24.04
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$175.31Price Target Upside31.63% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)11.48
Revenue Forecast (FY)$6.12B
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 selling lithium and lithium-based products used in lithium-ion batteries and other industrial applications. Its revenue model is largely business-to-business, generating sales under customer contracts and market-...
Albemarle Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call conveyed a strong operational and financial quarter highlighted by robust top‑line growth (net sales +31%), outsized EBITDA expansion (+155%), exceptional cash generation (Q2 cash from operations $710M and $638M FCF) and meaningful cost/productivity gains. Management raised Specialties outlook, advanced DLE pilot results (>90% recoveries) and signaled disciplined capital allocation with attractive brownfield growth options. Offsetting risks include a June fire at Greenbushes (CGP3) that delayed some volume, tight industry inventories and spodumene supply constraints, supply chain impacts from Middle East disruptions (estimated $70–$90M effect), and near‑term margin sensitivity from spodumene price timing. Overall, the positive operational execution, strong cash flow and upgraded outlooks outweigh the near‑term operational and market headwinds.Positive Updates
Strong Revenue and EBITDA Growth
Second quarter net sales of $1.7 billion, up 31% year‑over‑year; adjusted EBITDA of $858 million, up 155% year‑over‑year; enterprise adjusted EBITDA margin expanded to 49%.
Negative Updates
CGP3 Plant Fire and Volume Impact
Fire at Greenbushes CGP3 on June 9 reduced expected energy storage sales volume; full run rate for CGP3 now assumed in Q1 2027 (slip versus prior internal expectations) and contributed to lower expected Energy Storage volumes for 2026.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Revenue and EBITDA Growth
Second quarter net sales of $1.7 billion, up 31% year‑over‑year; adjusted EBITDA of $858 million, up 155% year‑over‑year; enterprise adjusted EBITDA margin expanded to 49%.
Read all positive updates
Company Guidance
Management said it is maintaining 2026 outlook ranges but expects to land toward the high end of the $20/kg LCE scenario, reflecting Q2 results of $1.7B net sales, $858M adjusted EBITDA (49% enterprise EBITDA margin), $710M cash from operations (>80% operating cash conversion) and $638M free cash flow (net income $480M, EPS $3.52). Key guidance metrics: Energy Storage full‑year sales volumes now expected at 225k–235k t LCE (Q2 = 65k t, avg realized price ≈ $20/kg; Q3 expected sequentially lower), Specialties raised to $1.4–1.6B sales and $275–325M adjusted EBITDA, cost/productivity savings on track to the high end of the $100–150M target (≈$100M run‑rate YTD), reduced capex, and a ~$70–90M estimated unmitigated Middle East supply‑chain impact; CGP3 restarted Aug 1 with full run rate assumed Q1 2027.Albemarle Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
66
Positive
Cash Flow
61
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.91B | 5.14B | 5.38B | 9.62B | 7.32B | 3.33B |
| Gross Profit | 1.41B | 671.62M | 60.24M | 1.20B | 3.09B | 1.01B |
| EBITDA | 1.23B | 559.90M | -291.83M | 2.65B | 3.63B | 544.86M |
| Net Income | 224.18M | -510.63M | -1.18B | 1.57B | 2.69B | 123.67M |
Balance Sheet | ||||||
| Total Assets | 15.91B | 16.37B | 16.61B | 18.27B | 15.46B | 10.97B |
| Cash, Cash Equivalents and Short-Term Investments | 1.63B | 1.62B | 1.19B | 889.90M | 1.50B | 439.27M |
| Total Debt | 1.99B | 3.30B | 3.62B | 4.28B | 3.32B | 2.52B |
| Total Liabilities | 5.41B | 6.59B | 6.41B | 8.61B | 7.27B | 5.17B |
| Stockholders Equity | 10.28B | 9.53B | 9.96B | 9.41B | 7.98B | 5.63B |
Cash Flow | ||||||
| Free Cash Flow | 1.34B | 692.47M | -992.65M | -827.96M | 646.20M | -609.41M |
| Operating Cash Flow | 1.80B | 1.28B | 687.88M | 1.33B | 1.91B | 344.26M |
| Investing Cash Flow | 130.90M | -146.01M | -1.58B | -2.56B | -1.42B | -666.59M |
| Financing Cash Flow | -2.12B | -834.19M | 1.24B | 623.91M | 611.89M | 50.21M |
Albemarle Technical Analysis
Negative
133.18
Price Trends
123.27
Negative
140.01
Negative
154.88
Negative
Market Momentum
-5.63
Positive
35.70
Neutral
20.96
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALB, the sentiment is Negative. The current price of 133.18 is above the 20-day moving average (MA) of 118.19, above the 50-day MA of 123.27, and below the 200-day MA of 154.88, indicating a bearish trend. The MACD of -5.63 indicates Positive momentum. The RSI at 35.70 is Neutral, neither overbought nor oversold. The STOCH value of 20.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $18.16B | 13.36 | 23.63% | 3.72% | 58.56% | 189.59% | |
70 Outperform | $7.52B | 16.75 | 7.42% | 5.18% | -4.30% | -46.24% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | $8.77B | 49.35 | 6.57% | 0.88% | 26.61% | -25.95% | |
56 Neutral | $3.13B | 59.58 | 2.77% | 2.46% | -1.39% | ― | |
55 Neutral | $12.70B | 220.38 | 2.26% | 1.54% | 18.32% | ― | |
47 Neutral | $2.09B | -6.79 | -170.31% | 2.58% | -1.38% | 28.10% |
* Basic Materials Sector Average
ALB
Albemarle
105.78
22.27
26.66%
ASH
Ashland
67.92
21.04
44.89%
EMN
Eastman Chemical
64.84
5.83
9.88%
SQM
Sociedad Quimica Y Minera SA
64.87
22.20
52.03%
ESI
Element Solutions
36.28
10.90
42.96%
CC
Chemours Company
13.57
-2.00
-12.85%
Albemarle Corporate Events
Business Operations and StrategyExecutive/Board Changes
Albemarle Names New CEO, Plans Leadership Transition
Positive
Sep 3, 2026
Albemarle Corporation announced on September 3, 2026 that Ragnar “Rag” Udd, currently Chief Commercial Officer at BHP, has been appointed President and CEO effective February 1, 2027, or an earlier agreed date, with current Chairman an...
Business Operations and StrategyExecutive/Board Changes
Albemarle Appoints Max W. Hood as Chief Accounting Officer
Positive
Aug 21, 2026
On August 19, 2026, Albemarle’s board appointed Max W. Hood as chief accounting officer, effective August 24, 2026, making him the company’s principal accounting officer. The move brings in an experienced finance leader with a backgrou...
Business Operations and StrategyExecutive/Board Changes
Albemarle Adds Independent Director to Strengthen Governance
Positive
Jul 23, 2026
On July 21, 2026, Albemarle’s board appointed Eduardo De Salles Bartolomeo as an independent director and member of its Audit Finance and Safety, Sustainability, Operations Capital committees. The former Vale S.A. chief executive brings mo...
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.