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Albemarle Corporation (NYSE:ALB) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of ALB, it is a financially-sound , dividend-paying company with a a strong history of performance. Below, I've touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, take a look at the report on Albemarle here.
Solid track record established dividend payer
ALB delivered a triple-digit bottom-line expansion over the past couple of years, with its most recent earnings level surpassing its average level over the last five years. In addition to beating its historical values, ALB also outperformed its industry, which delivered a growth of 16%. This is an notable feat for the company. ALB's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. ALB seems to have put its debt to good use, generating operating cash levels of 0.32x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
For those seeking income streams from their portfolio, ALB is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 1.7%.
For Albemarle, there are three important aspects you should look at:
- Future Outlook: What are well-informed industry analysts predicting for ALB’s future growth? Take a look at our free research report of analyst consensus for ALB’s outlook.
- Valuation: What is ALB worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether ALB is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ALB? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.