# Albemarle (ALB.US)

Canonical: https://gigainvestors.com/s/ALB

Analysis as of: 2026-10-16T07:26:21.429Z. Financial observations: FY1996–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $98.18 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 4 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 2

- Operating margin variation: 0.88×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.19×

- FY2017: 0.20×

- FY2018: 0.21×

- FY2019: 0.19×

- FY2020: 0.17×

- FY2021: 0.16×

- FY2022: 0.34×

- FY2023: 0.03×

- FY2024: -0.12×

- FY2025: 0.02×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 21.0pp below the typical margin (limit 4pp)

- ROIC, median of available years: 10.3%

- ROIC, second-lowest year: 0.8%

- Typical minus recent gross margin: 21.0 pp

- Typical gross margin (annual median): 33.4%

- Recent gross margin (lower of latest and 3-year median): 12.5%

- Years with nonpositive capital: 0

- Capital spending / revenue: 21.6%

- ROIC including acquisitions, ten-year median: 1.4%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 18.0%

- FY2017: 14.6%

- FY2018: 19.1%

- FY2019: 12.1%

- FY2020: 8.5%

- FY2021: 7.6%

- FY2022: 26.8%

- FY2023: 1.7%

- FY2024: -4.7%

- FY2025: 0.8%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.46×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $1.2B

- Net income, five-year total: $2.7B

- Return on incremental invested capital: -5.8%

- Working capital / revenue, annual change: -0.5 pp

- Working capital / revenue, change between three-year averages: -2.8 pp

- Working capital / revenue, final three-year average: 23.4%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: -2.52×

- FY2022: 1.00×

- FY2023: 1.00×

- FY2024: 1.93×

- FY2025: 0.87×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 18.0% vs 0.8%

- Per-share earnings: 3.00 to -4.34 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.5%

- Ordinary dilution, 5-year annual growth: 2.0%

- Market cap gain: $7.0B

- Cumulative retained earnings: $2.5B

- Diluted shares, 10-year annual growth: 0.5%

- Diluted shares, 5-year annual growth: 2.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: -$7.34

- Per-share value, starting three-year median: $3.00

- Per-share value, ending three-year median: -$4.34

- Buybacks concentrated in cheaper years (correlation): 0.00

- Average buyback yield: 2.0%

- Buyback history: 4 years

- Debt-funded buybacks: No

- Acquisition spending: $269M

- Cumulative net income, 10 years: $5.0B

- ROIC, first three-year median: 18.0%

- ROIC, last three-year median: 0.8%

Chart: Earnings per share; fiscal year observations.

- FY2016: $5.68

- FY2017: $0.49

- FY2018: $6.34

- FY2019: $5.02

- FY2020: $3.52

- FY2021: $1.06

- FY2022: $22.84

- FY2023: $13.36

- FY2024: -$10.04

- FY2025: -$4.34

### accounting: pass

- Sloan accruals: -10.9%

- Receivables to sales index (DSRI): 0.75×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 3.1%

- Earnings backed by cash: Yes

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.18×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -1.1%

- FY2017: -3.2%

- FY2018: 1.9%

- FY2019: -1.9%

- FY2020: -4.0%

- FY2021: -2.0%

- FY2022: 5.1%

- FY2023: 1.4%

- FY2024: -11.2%

- FY2025: -10.9%

## Holders

## Price story

Down 65% since Jan 2023 · "Albemarle Faces Prolonged Lithium Oversupply, Dividend Risk, UBS Says" (finance.yahoo.com, Jul 2025) · sales -4.4%

Story as of 2026-10-16T09:58:16.072Z; price observation 2026-10-15.

- 2025-08-09: Albemarle (ALB) Reports US$23 Million Q2 2025 Net Income Turnaround ([finance.yahoo.com](https://finance.yahoo.com/news/albemarle-alb-reports-us-23-171320682.html))

- 2025-10-24: Rothschild says lithium nearing bottom and supply crunch to lift Albemarle ([finance.yahoo.com](https://finance.yahoo.com/news/rothschild-says-lithium-nearing-bottom-135843178.html))

- 2025-11-10: Albemarle Outlook Strengthens With Shrinking Inventories, Improving Demand, RBC Says ([finance.yahoo.com](https://finance.yahoo.com/news/albemarle-outlook-strengthens-shrinking-inventories-165406432.html))

- 2026-01-07: Rising Lithium Prices Get Miner Albemarle Off To A Flying Start In 2026 ([finance.yahoo.com](https://finance.yahoo.com/m/7828e41f-e533-3f83-aafe-90349e11c693/rising-lithium-prices-get.html))

- 2026-05-14: Albemarle sinks after booking $820M charge for closing Australia's biggest lithium refinery ([seekingalpha.com](https://seekingalpha.com/news/4593086-albemarle-sinks-after-booking-820m-charge-for-closing-australias-biggest-lithium-refinery?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-08-06: ALB Q2 Earnings Beat Estimates on Lithium Pricing Strength ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/alb-q2-earnings-beat-estimates-122200251.html))

### Sales · FY2024–2025

sales -4.4%; source https://www.sec.gov/Archives/edgar/data/915913/000091591326000018/alb-20251231.htm; observed 2026-02-11.

- FY2016: $2.7B 

- FY2017: $3.1B 

- FY2018: $3.4B 

- FY2019: $3.6B 

- FY2020: $3.1B 

- FY2021: $3.3B 

- FY2022: $7.3B 

- FY2023: $9.6B 

- FY2024: $5.4B 

- FY2025: $5.1B 

### Gross margin · FY2025

gross margin 13.1%; source https://www.sec.gov/Archives/edgar/data/915913/000091591326000018/alb-20251231.htm; observed 2026-02-11.

- FY2016: 36.3% 

- FY2017: 36.6% 

- FY2018: 36.2% 

- FY2019: 35.1% 

- FY2020: 31.8% 

- FY2021: 30.3% 

- FY2022: 42.2% 

- FY2023: 12.5% 

- FY2024: 1.1% 

- FY2025: 13.1% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in specialty chemicals; annual sales are USD 5.1 billion.

- Source: https://www.sec.gov/Archives/edgar/data/915913/000091591326000018/alb-20251231.htm (filed 2026-02-11); FY2025: revenue 5142733000; grossProfit 671619000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ALB.US: Albemarle Corporation provides energy storage solutions worldwide. It operates through three segments: Energy Storage, Specialties, and Ketjen. The Energy Storage segment offers lithium compounds, including lithium carbonate, lithium hydroxide, and lithium chloride for use in lithium batteries used in consumer electronics and electric vehicles; power grids and solar panels; high-performance greases; and specialty glass used in consumer appliances and electronics. The Specialties segment provides bromine and highly specialized lithium solutions for various industries, such as energy, mobility, connectivity, and health comprising fire safety compounds; bromine-based specialty chemical products, including elemental bromine, alkyl bromides, inorganic bromides, brominated powdered activated carbon, and various bromine fine chemicals; lithium specialties, such as butyllithium and lithium aluminum hydride; cesium products for the chemical and pharmaceutical industries; and zirconium, barium, and titanium products for pyrotechnical applications, including airbag initiators. This segment also provides organic synthesis processes in the areas of steroid chemistry and vitamins, and various life science applications, as well as intermediates for the pharmaceutical industry; technical services, including handling and use of reactive lithium products; and recycling services for lithium-containing by-products. The Ketjen segment offers clean fuels technologies, including hydroprocessing catalysts together with isomerization and alkylation catalysts; fluidized catalytic cracking catalysts and additives; and performance catalyst solutions comprising organometallics and curatives. It serves the grid storage, automotive, aerospace, conventional energy, electronics, construction, agriculture and food, pharmaceuticals, and medical device industries. Albemarle Corporation was founded in 1887 and is headquartered in Charlotte, North Carolina.

### Why customers stay

Margins ranged from 1.1% to 13.1% during 2023–25; it earns 10.3% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2023: grossProfit / revenue = 12.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2024: grossProfit / revenue = 1.1%.

- Source: https://www.sec.gov/Archives/edgar/data/915913/000091591326000018/alb-20251231.htm (filed 2026-02-11); FY2025: grossProfit / revenue = 13.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); 10-year return on capital observations [[2016,0.18020619907042726],[2017,0.1463912804244748],[2018,0.19117266664650404],[2019,0.12135251036760056],[2020,0.08451279037418828],[2021,0.07599244716752467],[2022,0.268469757325399],[2023,0.01716081263441414],[2024,-0.046512962297121006],[2025,0.007628685021701219]]; median 0.10293265037089441. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2016: growth capex 0; upkeep 196654000; owner earnings 673190000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2017: growth capex 120775000; upkeep 196928000; owner earnings 54850000. Growth capex / owner earnings = 2.2019143117593436.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2018: growth capex 240632642.15463006; upkeep 459358357.84536994; owner earnings 434901642.15463006. Growth capex / owner earnings = 0.5533035951818105.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2019: growth capex 209008323.56539965; upkeep 642787676.4346004; owner earnings 103924323.56539965. Growth capex / owner earnings = 2.0111588547783095.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2022: growth capex 960805000; upkeep 300841000; owner earnings 2689816000. Growth capex / owner earnings = 0.3572010130060941.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2023: growth capex 1724598000; upkeep 429944000; owner earnings 1573476000. Growth capex / owner earnings = 1.0960434096230256.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); Dividend observations: [[2016,135353000],[2017,140557000],[2018,144596000],[2019,152204000],[2020,161818000],[2021,177853000],[2022,184429000],[2023,187188000],[2024,311276000],[2025,357280000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 0.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ALB.US SharesStats.PercentInsiders = 0.215 percentage points; cache date 2026-10-16.

### What could break it

"Our inability to develop lithium or bromine reserves" (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/915913/000091591326000018/alb-20251231.htm (filed 2026-02-11); Our inability to develop lithium or bromine reserves

### What the price says

The price is 2.2 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); Closing price 98.18 USD; reporting-to-trading FX 1; FY2025 annual sales per share 43.70693670111504; price multiple 2.246325352686986. FY2025 cash earnings/share -3.7543428746260536. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $83.55 per share

- 2016-11: $87.78 per share

- 2016-12: $86.08 per share

- 2017-01: $92.64 per share

- 2017-02: $101.51 per share

- 2017-03: $105.64 per share

- 2017-04: $108.91 per share

- 2017-05: $113.60 per share

- 2017-06: $105.54 per share

- 2017-07: $115.80 per share

- 2017-08: $116.26 per share

- 2017-09: $136.31 per share

- 2017-10: $140.89 per share

- 2017-11: $134.32 per share

- 2017-12: $127.89 per share

- 2018-01: $111.59 per share

- 2018-02: $100.43 per share

- 2018-03: $92.74 per share

- 2018-04: $96.96 per share

- 2018-05: $93.47 per share

- 2018-06: $94.33 per share

- 2018-07: $94.20 per share

- 2018-08: $95.52 per share

- 2018-09: $99.78 per share

- 2018-10: $99.22 per share

- 2018-11: $96.32 per share

- 2018-12: $77.07 per share

- 2019-01: $80.73 per share

- 2019-02: $91.29 per share

- 2019-03: $81.98 per share

- 2019-04: $75.06 per share

- 2019-05: $63.30 per share

- 2019-06: $70.41 per share

- 2019-07: $72.96 per share

- 2019-08: $61.73 per share

- 2019-09: $69.52 per share

- 2019-10: $60.74 per share

- 2019-11: $65.38 per share

- 2019-12: $73.04 per share

- 2020-01: $80.28 per share

- 2020-02: $81.85 per share

- 2020-03: $56.37 per share

- 2020-04: $61.43 per share

- 2020-05: $76.52 per share

- 2020-06: $77.21 per share

- 2020-07: $82.46 per share

- 2020-08: $91.01 per share

- 2020-09: $89.28 per share

- 2020-10: $93.21 per share

- 2020-11: $135.97 per share

- 2020-12: $147.52 per share

- 2021-01: $162.66 per share

- 2021-02: $157.21 per share

- 2021-03: $146.11 per share

- 2021-04: $168.17 per share

- 2021-05: $167.08 per share

- 2021-06: $168.46 per share

- 2021-07: $206.04 per share

- 2021-08: $236.74 per share

- 2021-09: $218.97 per share

- 2021-10: $250.47 per share

- 2021-11: $266.49 per share

- 2021-12: $233.77 per share

- 2022-01: $220.74 per share

- 2022-02: $195.89 per share

- 2022-03: $221.15 per share

- 2022-04: $192.83 per share

- 2022-05: $260.42 per share

- 2022-06: $208.98 per share

- 2022-07: $244.31 per share

- 2022-08: $267.96 per share

- 2022-09: $264.44 per share

- 2022-10: $279.87 per share

- 2022-11: $277.99 per share

- 2022-12: $216.86 per share

- 2023-01: $281.45 per share

- 2023-02: $254.31 per share

- 2023-03: $221.04 per share

- 2023-04: $185.46 per share

- 2023-05: $193.53 per share

- 2023-06: $223.09 per share

- 2023-07: $212.28 per share

- 2023-08: $198.71 per share

- 2023-09: $170.04 per share

- 2023-10: $126.78 per share

- 2023-11: $121.27 per share

- 2023-12: $144.48 per share

- 2024-01: $114.74 per share

- 2024-02: $137.85 per share

- 2024-03: $131.74 per share

- 2024-04: $120.31 per share

- 2024-05: $122.59 per share

- 2024-06: $95.52 per share

- 2024-07: $93.67 per share

- 2024-08: $90.25 per share

- 2024-09: $94.71 per share

- 2024-10: $94.73 per share

- 2024-11: $107.70 per share

- 2024-12: $86.08 per share

- 2025-01: $84.19 per share

- 2025-02: $77.03 per share

- 2025-03: $72.02 per share

- 2025-04: $58.55 per share

- 2025-05: $55.76 per share

- 2025-06: $62.67 per share

- 2025-07: $67.85 per share

- 2025-08: $84.92 per share

- 2025-09: $81.08 per share

- 2025-10: $98.23 per share

- 2025-11: $129.99 per share

- 2025-12: $141.44 per share

- 2026-01: $170.63 per share

- 2026-02: $178.67 per share

- 2026-03: $179.53 per share

- 2026-04: $196.70 per share

- 2026-05: $176.42 per share

- 2026-06: $135.03 per share

- 2026-07: $117.64 per share

- 2026-08: $134.97 per share

- 2026-09: $105.78 per share

- 2026-10: $98.18 per share

## Annual estimated value (USD per share)

- FY2016: low $53.16 per share, central $57.79 per share, high $63.95 per share

- FY2017: low $48.40 per share, central $53.76 per share, high $60.89 per share

- FY2018: low $49.22 per share, central $57.04 per share, high $65.63 per share

- FY2019: low $52.64 per share, central $59.20 per share, high $67.93 per share

- FY2020: low $15.95 per share, central $17.62 per share, high $19.45 per share

- FY2021: low $8.77 per share, central $9.54 per share, high $10.56 per share

- FY2022: low $35.43 per share, central $44.94 per share, high $50.74 per share

- FY2023: low $31.77 per share, central $35.33 per share, high $40.07 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/915913/000091591326000018/alb-20251231.htm); period 2025-12-31, filed 2026-02-11.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.