ALB Stock Analysis — Albemarle Corporation
Sector: Materials
AI Verdict
Albemarle trades at a steep discount to materials peers on 10.5x forward earnings, so you’re getting growth exposure cheap, but the moat only matters if lithium prices stop falling.
Competitive Moat
Albemarle is one of the world’s largest lithium producers, controlling key brine and hard rock assets in Chile, Australia, and the U.S. Its moat comes from long-term resource concessions and technical know-how in lithium extraction and processing, which are hard for new entrants to replicate at scale.
Summary
A sub-30 RSI and 10.5x forward P/E make Albemarle a deep-value lithium play after a brutal five-year drawdown.
Where It Stands
Albemarle is down 46% over five years despite an 18.3% revenue growth rate and now trades at just 10.5x next year’s earnings, with an RSI of 28.3 signaling oversold conditions.
Key Metrics
- RSI: 28.3 — Oversold
- Forward P/E: 10.5x
- Revenue Growth: +0.2%
- Market Cap: $13.3B
- Dividend Yield: 0.01%
- 1-Year Return: 12.70%
- 5-Year Return: -46%
- 52-Week High: $221.00
- 52-Week Low: $88.01
Learn About More Stock Metrics
- Beta: Learn more
- Return on Equity (ROE): Learn more
- EV/EBITDA: Learn more
Analyst Consensus
18 Buy · 9 Hold · 0 Sell (27 analysts)
Bull Case
At a 10.5x forward P/E, Albemarle is cheap for a business posting 18.3% revenue growth and controlling critical lithium supply.
Bear Case
If the P/E multiple falls from 10.5x to 8x in a lithium glut, shares could drop another 24% from here despite already being oversold at 28.3 RSI.
Catalyst to Watch
Watch for lithium price stabilization or new supply agreements—either could drive a rerating from today’s compressed multiple.