Albemarle (ALB, Financial) has experienced significant bearish trading activity, evidenced by the trading of 11,816 put options, a volume that doubles the anticipated figure. Notably, the most heavily traded contracts include the September 25th 50 puts and the May 2nd weekly 64 calls, which together have seen a total of approximately 10,300 contracts exchanged. The Put/Call Ratio stands at an elevated 6.26, signaling a heavier preference for puts over calls. Additionally, at-the-money implied volatility has risen by nearly 2 percentage points throughout the day. Investors are also keeping an eye on Albemarle's upcoming earnings announcement, scheduled for April 30th.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 25 analysts, the average target price for Albemarle Corp (ALB, Financial) is $87.74 with a high estimate of $155.00 and a low estimate of $60.00. The average target implies an upside of 50.25% from the current price of $58.40. More detailed estimate data can be found on the Albemarle Corp (ALB) Forecast page.
Based on the consensus recommendation from 29 brokerage firms, Albemarle Corp's (ALB, Financial) average brokerage recommendation is currently 2.6, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Albemarle Corp (ALB, Financial) in one year is $108.50, suggesting a upside of 85.8% from the current price of $58.395. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Albemarle Corp (ALB) Summary page.
ALB Key Business Developments
Release Date: February 13, 2025
- Net Sales (Q4 2024): $1.2 billion.
- Adjusted EBITDA (Q4 2024): $251 million.
- Net Sales (Full Year 2024): $5.4 billion.
- Adjusted EBITDA (Full Year 2024): $1.1 billion.
- Energy Storage Sales Volume Increase: 26% year-over-year.
- Cash from Operations (2024): $702 million.
- Operating Cash Conversion Rate (2024): Exceeded 60%.
- Capital Expenditure Outlook (2025): Reduced by $100 million to $700-$800 million.
- Adjusted Earnings Per Share (Q4 2024): Loss of $1.09.
- Available Liquidity (End of Q4 2024): $2.8 billion.
- Net Debt to Adjusted EBITDA Ratio (End of Q4 2024): 2.6x.
- Operating Cash Flow Conversion (2024): 62%.
- Expected Operating Cash Flow Conversion (2025): Exceed 80%.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Albemarle Corp (ALB, Financial) reported a 26% year-over-year increase in sales volumes in its Energy Storage segment, surpassing initial guidance.
- The company achieved an adjusted EBITDA of $1.1 billion for the full year 2024, in line with its outlook considerations.
- Operating cash conversion rate exceeded 60%, surpassing the target of 50% and aligning with long-term objectives.
- Albemarle Corp (ALB) has decreased its full-year 2025 CapEx outlook by an additional $100 million, expecting to spend between $700 million to $800 million.
- The company has a strong liquidity position with $2.8 billion available, including $1.2 billion in cash and cash equivalents.
Negative Points
- Net sales for the fourth quarter were $1.2 billion, marking a year-over-year decline primarily due to lower lithium market pricing.
- Adjusted earnings per share for the fourth quarter reflected a loss of $1.09, excluding gains on asset sales and reduced restructuring charges.
- The company is placing its Chengdu lithium conversion facility into care and maintenance due to market conditions.
- Albemarle Corp (ALB) anticipates that cash dividends from Talison in 2025 will remain below historical averages.
- The company faces challenges with a wide range in tax guidance for 2025 due to varying lithium price scenarios.
