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Albemarle Piotroski F-Score

: 4 (As of Today)
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The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Albemarle has an F-score of 4 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Albemarle's Piotroski F-Score or its related term are showing as below:

ALB' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 6   Max: 9
Current: 4

During the past 13 years, the highest Piotroski F-Score of Albemarle was 9. The lowest was 3. And the median was 6.


Albemarle Piotroski F-Score Historical Data

The historical data trend for Albemarle's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Albemarle Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 7.00 5.00 4.00 5.00

Albemarle Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 4.00 5.00 6.00 4.00

Competitive Comparison

For the Specialty Chemicals subindustry, Albemarle's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Albemarle Piotroski F-Score Distribution

For the Chemicals industry and Basic Materials sector, Albemarle's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Albemarle's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Jun22) TTM:Last Year (Jun21) TTM:
Net Income was -392.781 + -3.824 + 253.383 + 406.773 = $264 Mil.
Cash Flow from Operations was 104.733 + -146.329 + 206.176 + -145.865 = $19 Mil.
Revenue was 830.566 + 894.204 + 1127.728 + 1479.593 = $4,332 Mil.
Gross Profit was 249.273 + 236.594 + 449.03 + 580.424 = $1,515 Mil.
Average Total Assets from the begining of this year (Jun21)
to the end of this year (Jun22) was
(10796.926 + 10832.325 + 10974.118 + 11416.058 + 12520.405) / 5 = $11307.9664 Mil.
Total Assets at the begining of this year (Jun21) was $10,797 Mil.
Long-Term Debt & Capital Lease Obligation was $3,206 Mil.
Total Current Assets was $3,350 Mil.
Total Current Liabilities was $1,782 Mil.
Net Income was 98.301 + 84.635 + 95.677 + 424.6 = $703 Mil.

Revenue was 746.868 + 879.147 + 829.291 + 773.896 = $3,229 Mil.
Gross Profit was 254.056 + 265.42 + 263.687 + 248.417 = $1,032 Mil.
Average Total Assets from the begining of last year (Jun20)
to the end of last year (Jun21) was
(10170.253 + 10231.983 + 10450.946 + 10290.302 + 10796.926) / 5 = $10388.082 Mil.
Total Assets at the begining of last year (Jun20) was $10,170 Mil.
Long-Term Debt & Capital Lease Obligation was $2,044 Mil.
Total Current Assets was $2,151 Mil.
Total Current Liabilities was $985 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Albemarle's current Net Income (TTM) was 264. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Albemarle's current Cash Flow from Operations (TTM) was 19. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Jun21)
=263.551/10796.926
=0.02440982

ROA (Last Year)=Net Income/Total Assets (Jun20)
=703.213/10170.253
=0.0691441

Albemarle's return on assets of this year was 0.02440982. Albemarle's return on assets of last year was 0.0691441. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Albemarle's current Net Income (TTM) was 264. Albemarle's current Cash Flow from Operations (TTM) was 19. ==> 19 <= 264 ==> CFROA <= ROA ==> Score 0.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jun22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun21 to Jun22
=3205.73/11307.9664
=0.28349306

Gearing (Last Year: Jun21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun20 to Jun21
=2043.794/10388.082
=0.19674412

Albemarle's gearing of this year was 0.28349306. Albemarle's gearing of last year was 0.19674412. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Jun22)=Total Current Assets/Total Current Liabilities
=3350.104/1781.762
=1.88021969

Current Ratio (Last Year: Jun21)=Total Current Assets/Total Current Liabilities
=2151.354/984.928
=2.1842754

Albemarle's current ratio of this year was 1.88021969. Albemarle's current ratio of last year was 2.1842754. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Albemarle's number of shares in issue this year was 117.724. Albemarle's number of shares in issue last year was 117.436. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=1515.321/4332.091
=0.34978974

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1031.58/3229.202
=0.31945354

Albemarle's gross margin of this year was 0.34978974. Albemarle's gross margin of last year was 0.31945354. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Jun21)
=4332.091/10796.926
=0.40123374

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun20)
=3229.202/10170.253
=0.31751442

Albemarle's asset turnover of this year was 0.40123374. Albemarle's asset turnover of last year was 0.31751442. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+0+0+0+0+1+1
=4

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Albemarle has an F-score of 4 indicating the company's financial situation is typical for a stable company.

Albemarle  (NYSE:ALB) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Albemarle Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of Albemarle's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Albemarle Business Description

Albemarle logo
Address
4250 Congress Street, Suite 900, Charlotte, NC, USA, 28209
Albemarle is the world's largest lithium producer. Our outlook for robust lithium demand is predicated upon increased demand for electric vehicle batteries. Albemarle produces lithium from its salt brine deposits in Chile and the U.S. and its hard rock joint venture mines in Australia. Albemarle is also a global leader in the production of bromine, used in flame retardants. The company is also a major producer of oil refining catalysts.
Executives
Cramer Ralf Hans director MIERENDORSFSTRASSE 26 BENSHEIM 2M 64625
Anderson Melissa H. officer: SVP, Chief HR Officer ALBEMARLE CORPORATION 4250 CONGRESS ST. SUITE 900 CHARLOTTE NC 28209
Barichivich John Clarence Iii officer: VP, Controller & CAO 4250 CONGRESS ST. SUITE 900 CHARLOTTE NC 28209
Minor Glenda J director 17000 ROTUNDA DRIVE DEARBORN MI 48120
Van Deursen Holly director 21211 NORDHOFF STREET CHATSWORTH CA 91311
Johnson Netha N. officer: President, Bromine Specialties 3489 CRESTMOOR DRIVE WOODBURY MN 55125
Crawford Raphael Goszcz officer: President, Catalysts 4311 GREENBRIAR HILLS PLANTATION RD CHARLOTTE NC 28277
Marlow Deeanne J officer: SVP, Chief HR Officer 4250 CONGRESS STREET SUITE 900 CHARLOTTE NC 28209
Norris Eric officer: President, Lithium 1519 AUDUBON ROAD CHARLOTTE NC 28211
Ryan David Terrence officer: VP, Corp. Strategy & IR 8904 HIGHFIELD ROAD RICHMOND VA 23229
Maine Douglas L director ALBEMARLE CORP 451 FLORIDA ST BATON ROUGE LA 70801
Hernandez William H director 5500 WAYZATA BLVD. SUITE 800 GOLDEN VALLEY MN 55416
Wolff Alejandro Daniel director ALBEMARLE CORP. 451 FLORIDA ST BATON ROUGE LA 70801
Masters J Kent director ALBEMARLE CORP. 451 FLORIDA ST BATON ROUGE LA 70801
Brlas Laurie director C/O ALBEMARLE CORPORATION 4250 CONGRESS ST STE 900 CHARLOTTE NC 28209

Albemarle Headlines

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