Zacks Investment Research
| Albemarle Corp |(ALB-NYSE) |
|Current Price |Hold |
|Current Price (05/21/19) |$68.50 |
OUTLOOK
|Analyst must write |
SUMMARY DATA
|52-Week High |$107.99 |
|52-Week Low |$67.76 |
|One-Year Return (%) |-32.03 |
|Beta |1.56 |
|Average Daily Volume (sh) |1,950,441 |
| | |
|Shares Outstanding (mil) |106 |
|Market Capitalization ($mil) |$7,258 |
|Short Interest Ratio (days) |N/A |
|Institutional Ownership (%) |89 |
|Insider Ownership (%) |1 |
| | |
|Annual Cash Dividend |$1.47 |
|Dividend Yield (%) |2.15 |
| | |
|5-Yr. Historical Growth Rates | |
| Sales (%) |3.7 |
| Earnings Per Share (%) |5.1 |
| Dividend (%) |5.3 |
| | |
|P/E using TTM EPS |12.6 |
|P/E using 2019 Estimate |10.9 |
|P/E using 2020 Estimate |10.3 |
| | |
|Zacks Rank |3 |
| | |
|Risk Level |Average, |
|Type of Stock |Large-Blend |
|Industry |Chem-Diversifd |
|Zacks Rank in Industry |14 of 39 |
KEY POINTS
➢ Analyst must write
OVERVIEW
Analyst must write
INDUSTRY OUTLOOK
Chemical and Fertilizer Industry
Our outlook for the Chemical and Fertilizer industry is neutral. Investors should market-weight chemical stocks now. The group is likely to track the S&P in the next six months. There is the risk of the economy slowing down. We should see earnings that are in-line expectations. The chemical industry is the largest consumer of oil and gas for industrial purposes. Raw material costs are at historically high levels, which is a very serious challenge for the chemical industry. Oil prices have stubbornly stayed high due to instability in Nigeria, Venezuela, Russia and Iraq, as well as higher demand growth from China. Demand growth is near 0% currently. Demand for chemicals tracks industrial production and GDP very closely. Housing and auto markets could continue to weaken due to higher interest rates. Nearly 10% of chemical demand is directly tied to the housing sector, and an additional 10% is tied to the auto sector. Prices are improving by 7-8% in this industry. Pricing power is a function of three variables: inflation, capacity utilization and raw material price changes. Inflation is low (but increasing), capacity utilization levels are improving but still in the low 80s, and oil prices are elevated. Pricing power improvement is driven primarily by the need to pass along higher raw material costs, with little net margin improvement.
INDUSTRY POSITION
Analyst must write
RECENT NEWS
Analyst must write
VALUATION
Analyst must write
RISKS
➢ Analyst must write.
INSIDER TRADING AND OWNERSHIP
Analyst must write.
ALB 16737.961.46.0 PROJECTED INCOME STATEMENT & BALANCE SHEET
Historical Stock Price
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DISCLOSURES
The following disclosures relate to relationships between Zacks Small-Cap Research (“Zacks SCR”), a division of Zacks Investment Research (“ZIR”), and the issuers covered by the Zacks SCR Analysts in the Small-Cap Universe.
ANALYST DISCLOSURES
I, @AnalystName, hereby certify that the view expressed in this research report accurately reflect my personal views about the subject securities and issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the recommendations or views expressed in this research report. I believe the information used for the creation of this report has been obtained from sources I considered to be reliable, but I can neither guarantee nor represent the completeness or accuracy of the information herewith. Such information and the opinions expressed are subject to change without notice.
INVESTMENT BANKING AND FEES FOR SERVICES
Zacks SCR does not provide investment banking services nor has it received compensation for investment banking services from the issuers of the securities covered in this report or article.
Zacks SCR has received compensation from the issuer directly or from an investor relations consulting firm engaged by the issuer for providing non-investment banking services to this issuer and expects to receive additional compensation for such non-investment banking services provided to this issuer. The non-investment banking services provided to the issuer includes the preparation of this report, investor relations services, investment software, financial database analysis, organization of non-deal road shows, and attendance fees for conferences sponsored or co-sponsored by Zacks SCR. The fees for these services vary on a per-client basis and are subject to the number and types of services contracted. Fees typically range between ten thousand and fifty thousand dollars per annum. Details of fees paid by this issuer are available upon request.
POLICY DISCLOSURES
This report provides an objective valuation of the issuer today and expected valuations of the issuer at various future dates based on applying standard investment valuation methodologies to the revenue and EPS forecasts made by the SCR Analyst of the issuer’s business.
SCR Analysts are restricted from holding or trading securities in the issuers that they cover. ZIR and Zacks SCR do not make a market in any security followed by SCR nor do they act as dealers in these securities. Each Zacks SCR Analyst has full discretion over the valuation of the issuer included in this report based on his or her own due diligence. SCR Analysts are paid based on the number of companies they cover.
SCR Analyst compensation is not, was not, nor will be, directly or indirectly, related to the specific valuations or views expressed in any report or article.
ADDITIONAL INFORMATION
Additional information is available upon request. Zacks SCR reports and articles are based on data obtained from sources that it believes to be reliable, but are not guaranteed to be accurate nor do they purport to be complete. Because of individual financial or investment objectives and/or financial circumstances, this report or article should not be construed as advice designed to meet the particular investment needs of any investor. Investing involves risk. Any opinions expressed by Zacks SCR Analysts are subject to change without notice. Reports or articles or tweets are not to be construed as an offer or solicitation of an offer to buy or sell the securities herein mentioned.
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Month Day, Year
Zacks Small-Cap Research Nilanjan Gupta, Junior Analyst
312-265-xxxx
email@
scr. 10 S. Riverside Plaza, Chicago, IL 60606
Sponsored – Impartial - Comprehensive
Sponsored – Impartial - Comprehensive
ALB: Zacks Company Report - HOLD
Text…
ZACKS ESTIMATES
Revenue
(in millions of $)
| |Q1 |Q2 |Q3 |Q4 |Year |
| |(Mar) |(Jun) |(Sep) |(Dec) |(Dec) |
|2017 |722 A |737 A |755 A |858 A |3,072 A |
|2018 |822 A |854 A |778 A |922 A |3,375 A |
|2019 |832 A |881 E |956 E |1,024 E |3,693 E |
|2020 |962 E | | | |4,038 E |
Price/Sales Ratio (Industry = 2.5x)
| |Q1 |Q2 |Q3 |Q4 |Year |
| |(Mar) |(Jun) |(Sep) |(Dec) |(Dec) |
|2017 |$1.05 A |$1.13 A |$1.08 A |$1.34 A |$4.59 A |
|2018 |$1.30 A |$1.36 A |$1.31 A |$1.53 A |$5.48 A |
|2019 |$1.23 A |$1.47 E |$1.75 E |$1.84 E |$6.28 E |
|2020 |$1.70 E | | | |$6.63 E |
|Zacks Projected EPS Growth Rate - Next 5 Years % |14 |
|Consensus Projected EPS Growth - Next 5 Years % |15 |
| Top 5 Public Companies in the industry |
| | | | |
|Ticker |Company |Market Share |Zacks |
| | | |Rec |
|BASFY |Basf Se |17.4205% |Neutral |
|DOW |Dow Chemical |12.04992% |Underperform |
|LYB |Lyondellbasel-A |9.44818% |Neutral |
|DD |Du Pont (Ei) De |7.46731% |Neutral |
|MTLHY |Mitsubishi Chem |7.11774% |N/A |
Industry Comparables
| |Pr Chg |P/E CurrFY |EPS Gr |Price/ |Price/ |Price/ |
| |YTD | |5Yr Est |Book |Sales |CF |
|ALBEMARLE CORP |-12.1 |10.9 |15.4 |1.9 |2.1 |9.0 |
| | | | | | | |
|Industry Mean |21.8 |14.1 |11.1 |2.8 |3.4 |9.1 |
|Industry Median |4.1 |12.0 |10.0 |2.0 |0.9 |7.9 |
|S&P 500 |13.3 |17.0 | |15.0 |4.3 |16.9 |
| | | | | | | |
|METHANEX CORP |-2.3 |12.2 |15.0 |2.0 |1.0 |4.5 |
|FMC CORP |-1.3 |12.6 |10.8 |3.4 |2.0 |9.4 |
|CABOT CORP |-1.3 |10.3 |10.5 |2.0 |0.7 |5.3 |
|STEPAN CO |17.2 |17.1 | |2.4 |1.0 |10.0 |
| | | | | | | |
| Albemarle Corp | |
|Income Statement and Balance Sheet | |
|(Dollars in millions, except EPS data) | |
| | | | | | | | | |
| |12/14 |12/15 |12/16 |12/17 |12/18 |12/19E |
|Sales | |2,446 |3,651 |2,677 |3,072 |3,375 |3,693 |
| |Cost of Goods Sold |1,675 |2,454 |1,707 |1,962 |2,158 |2,361 |
| |SG&A |411 |652 |316 |438 |236 |258 |
| |Other operating expenses |88 |103 |80 |84 |70 |77 |
| |Interest and other |77 |113 |156 |573 |262 |286 |
|Zacks Adjusted Income before NRI |332 |472 |404 |516 |600 |666 |
|Net Income |133 |335 |644 |55 |694 |666 |
|Diluted EPS before NRI |4.20 |4.23 |3.57 |4.59 |5.48 |6.28 |
|Reported EPS |1.69 |3.00 |5.68 |0.49 |6.34 |6.28 |
| | | | | | | |
|Cash & Marketable Securities |2,490 |214 |2,270 |1,137 |555 |555 |
|Current Assets |3,349 |1,831 |3,307 |2,478 |1,998 |1,998 |
|Current Liabilities |1,140 |1,617 |1,140 |1,201 |1,183 |1,183 |
|Long Term Debt |2,223 |3,142 |2,122 |1,415 |1,398 |1,398 |
|Shareholder's Equity |1,489 |3,401 |3,943 |3,818 |3,759 |4,425 |
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