Investment Thesis
Albemarle is experiencing severe profitability deterioration with negative operating and net margins amid declining revenue, indicating structural challenges in its core business. While the company maintains adequate liquidity and generates positive free cash flow, the current operational losses are unsustainable and suggest the company may be navigating a significant industry downturn or competitive pressure.
ALB-PA Strengths
- Strong liquidity position with 2.23x current ratio and $1.6B in cash reserves
- Positive free cash flow of $692.5M despite operational losses, demonstrating underlying cash generation
- Conservative leverage at 0.33x debt-to-equity ratio with manageable debt levels
ALB-PA Risks
- Operating margin of -7.1% and net margin of -9.9% indicate the company is unprofitable and burning through shareholder value
- Revenue declining 4.4% YoY combined with compressed gross margins (13.0%) suggests weak pricing power and rising input costs
- Net income loss of $510.6M with negative ROE (-5.4%) and ROA (-3.1%) indicate deteriorating capital efficiency and potential capital impairment
Key Metrics to Watch
- Path to operating profitability and timeline for achieving positive operating margins
- Revenue stabilization and gross margin recovery as indicators of competitive positioning
- Trend in free cash flow sustainability given the magnitude of operating losses
ALB-PA Financial Metrics
ALB-PA Profitability Ratios
ALB-PA Balance Sheet & Liquidity
ALB-PA 5-Year Financial Trend
5-Year Trend Summary: ALBEMARLE CORP's revenue has grown significantly by 168% over the 5-year period, indicating strong business expansion. The most recent EPS of $13.36 reflects profitable operations.
ALB-PA Growth Metrics (YoY)
ALB-PA Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.3B | -$96.4M | $-1.72 |
| Q2 2025 | $1.3B | $22.9M | $-0.16 |
| Q1 2025 | $1.1B | $2.4M | $0.00 |
| Q3 2024 | $1.4B | $302.5M | $2.57 |
| Q2 2024 | $1.4B | -$185.8M | $-1.96 |
| Q1 2024 | $1.4B | $2.4M | $-0.08 |
| Q3 2023 | $2.1B | $302.5M | $2.57 |
| Q2 2023 | $1.5B | $406.8M | $3.46 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
ALB-PA Capital Allocation
ALB-PA SEC Filings
Access official SEC EDGAR filings for ALBEMARLE CORP (CIK: 0000915913)