AlbemarleALB -1.56%75 Operating Margin % is 24.80% as of Mar. 2026, which is 43% above its 10-year median of 17.37. 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 1,584 Chemicals companies, Albemarle ranks better than 56.06% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Albemarle's Operating Income for the
three
months ended in Mar. 2026 was $354 Mil. Albemarle's Revenue for the
three
months ended in Mar. 2026 was $1,429 Mil. Therefore, Albemarle's Operating Margin % for the quarter that ended in Mar. 2026 was 24.80%.
The historical rank and industry rank for Albemarle's Operating Margin % or its related term are showing as below:
ALB'
s Operating Margin % Range Over the Past 10 Years
Min: -11.94 Med: 17.37 Max: 33.86
Current: 7.33
ALB's Operating Margin % is ranked better than 56.06% of 1584
companies
in the Chemicals industry
Industry Median: 6.025
vs ALB: 7.33
Albemarle's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
Albemarle's Operating Income for the
three
months ended in Mar. 2026 was $354 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $403 Mil.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Albemarle Operating Margin % Related Terms
Albemarle Operating Margin % Historical Data
* Premium members only.
The historical data trend for Albemarle's Operating 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.
ALB vs LYB, DD, IFF: Operating Margin % Comparison
For the Specialty Chemicals subindustry, Albemarle's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Albemarle's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Albemarle's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Albemarle's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
Albemarle (ALB) has a Operating Margin % of 24.80% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Albemarle and its competitors. This is 43% above median its historical median of 17.37. According to the industry distribution chart, Albemarle ranks #696 out of 1584 companies in the Chemicals industry, placing it in the top 43.9%.
Is Albemarle's Operating Margin % too high?
Albemarle's current Operating Margin % of 24.80% is 43% above median its 10-year median of 17.37. The Chemicals industry median Operating Margin % is 6.03. Albemarle's value of 24.80% is 311.6% above this industry median. Based on the distribution chart, Albemarle ranks #696 out of 1584 companies in the Chemicals industry, which is above 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 Operating Margin % compare to LYB and DD?
According to the Chemicals industry distribution chart, Albemarle ranks #696 out of 1584 companies for Operating Margin %. This puts Albemarle in the upper half of its industry. The industry median Operating Margin % is 6.03. Albemarle's value of 24.80% is 311.6% above this benchmark. While the company's 10-year median is 17.37 vs. the industry median of 6.03, 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 Operating Margin % for a Chemicals company?
The median Operating Margin % among Chemicals companies is 6.03, based on 1,584 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Albemarle's current Operating Margin % of 24.80% is 311.6% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Albemarle and its competitors. For the Chemicals industry, the median Operating Margin % is 6.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Albemarle's current Operating Margin % is 24.80%, which is 43% above median its own 10-year median of 17.37. 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 $147.64 — trading 76.8% above its estimated fair value. The current Operating Margin % is 24.80%, which is 43% above median its 10-year median of 17.37 and 311.6% above the Chemicals industry median of 6.03. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Albemarle (ALB), the current Operating Margin % is 24.80% 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 $147.64 is trading 76.8% above its estimated GF Value™ of $83.50.
GuruFocus considers Albemarle to be Significantly Overvalued.
Key valuation signals for ALB:
Operating Margin %: 24.80% (43% above median its 10-year median of 17.37)
GF Value™: $83.50 vs. price of $147.64 (76.8% above fair value)
Industry Position: 311.6% above the Chemicals median (#696 of 1584)
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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