AlbemarleALB -1.43%75 Gross Margin % is 35.06% as of Mar. 2026, which is 5% above its 10-year median of 33.42. GuruFocus rates ALB with a GF Score™ of 75/100 and a GF Value™ of $83.50 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 1,564 Chemicals companies, Albemarle ranks worse than 63.11% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Albemarle's Gross Profit for the
three
months ended in Mar. 2026 was $501 Mil. Albemarle's Revenue for the
three
months ended in Mar. 2026 was $1,429 Mil. Therefore, Albemarle's Gross Margin % for the quarter that ended in Mar. 2026 was 35.06%.
Warning Sign:
Albemarle Corp gross margin has been in long-term decline. The average rate of decline per year is -35.7%.
The historical rank and industry rank for Albemarle's Gross Margin % or its related term are showing as below:
ALB'
s Gross Margin % Range Over the Past 10 Years
Min: 1.16 Med: 33.42 Max: 42
Current: 18.44
During the past 13 years, the highestGross Margin % of Albemarle was 42.00%. The lowest was 1.16%. And the median was 33.42%.
ALB's Gross Margin % is ranked worse than 63.11% of 1564
companies
in the Chemicals industry
Industry Median: 23.375
vs ALB: 18.44
Albemarle had a gross margin of 35.06% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Albemarle was -35.70% per year.
Albemarle (NYSE:ALB) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Albemarle had a gross margin of 35.06% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Albemarle Gross Margin % Related Terms
Albemarle Gross Margin % Historical Data
* Premium members only.
The historical data trend for Albemarle's Gross Margin % 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.
For the Specialty Chemicals subindustry, Albemarle's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Albemarle's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Albemarle's Gross Margin % falls into.
* 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Albemarle (ALB) has a Gross Margin % of 35.06% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Albemarle and its competitors. This is near median its historical median of 33.42. Over the past decade, Albemarle's Gross Margin % has ranged from 1.16 to 42.00. According to the industry distribution chart, Albemarle ranks #987 out of 1564 companies in the Chemicals industry, placing it in the top 63.1%.
Is Albemarle's Gross Margin % too high?
Albemarle's current Gross Margin % of 35.06% is near median its 10-year median of 33.42. Over the past 10 years, this metric has ranged from a low of 1.16 to a high of 42.00. The Chemicals industry median Gross Margin % is 23.38. Albemarle's value of 35.06% is 50% above this industry median. Based on the distribution chart, Albemarle ranks #987 out of 1564 companies in the Chemicals industry, which is below the industry midpoint. Overall, Albemarle has a GF Score™ of 75/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Albemarle's Gross Margin % compare to LYB and DD?
According to the Chemicals industry distribution chart, Albemarle ranks #987 out of 1564 companies for Gross Margin %. This places Albemarle in the lower half of its industry. The industry median Gross Margin % is 23.38. Albemarle's value of 35.06% is 50% above this benchmark. Historically, Albemarle's own Gross Margin % has ranged from 1.16 to 42.00 over the past decade. While the company's 10-year median is 33.42 vs. the industry median of 23.38, Albemarle has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Chemicals company?
The median Gross Margin % among Chemicals companies is 23.38, based on 1,564 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Albemarle's current Gross Margin % of 35.06% is 50% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Albemarle and its competitors. For the Chemicals industry, the median Gross Margin % is 23.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Albemarle's current Gross Margin % is 35.06%, which is near median its own 10-year median of 33.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Albemarle stock overvalued right now?
Based on GuruFocus' analysis, Albemarle (ALB) is currently considered Significantly Overvalued. The stock's GF Value™ is $83.50, compared to a current price of $147.84 — trading 77.1% above its estimated fair value. The current Gross Margin % is 35.06%, which is near median its 10-year median of 33.42 and 50% above the Chemicals industry median of 23.38. Albemarle's overall GF Score™ is 75/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Albemarle (ALB), the current Gross Margin % is 35.06% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Albemarle (ALB) Overvalued in 2026?
Based on GuruFocus' analysis, Albemarle stock appears to be overvalued.
The current stock price of $147.84 is trading 77.1% above its estimated GF Value™ of $83.50.
GuruFocus considers Albemarle to be Significantly Overvalued.
Key valuation signals for ALB:
Gross Margin %: 35.06% (near median its 10-year median of 33.42)
GF Value™: $83.50 vs. price of $147.84 (77.1% above fair value)
Industry Position: 50% above the Chemicals median (#987 of 1564)
No single metric tells the full story. See the ALB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Albemarle is one of the world's largest lithium producers. In the lithium industry, the majority of demand comes from batteries, where lithium is used as the energy storage material, particularly in electric vehicles. Albemarle is a fully integrated lithium producer. Its upstream resources include salt brine deposits in Chile and the US and two hard rock mines in Australia, both of which are joint ventures. The company operates lithium refining plants in Chile, the US, Australia, and China. Albemarle is a global leader in the production of bromine, used in flame retardants.
75GF Score
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