Is Albemarle Stock a Value Opportunity?
Lithium miner (NYSE: ALB) has struggled since hitting an all-time high in 2022, with shares down about 64% since. A primary cause of the decline is likely profit-taking after an intense run-up during the pandemic, but slowing adoption of electric vehicles (EVs) and reduced expectations for future EV demand are also significant factors.
Multiple automakers -- including Ford Motor Company (NYSE: F), General Motors (NYSE: GM), Volkswagen (OTC: VWAP.Y), and Jaguar -- have pulled back on plans to electrify their fleets. For Albemarle, which generates 74% of its revenue from the production of lithium compounds used in battery production, this development has turned a long-running tailwind into an unexpected headwind. However, the market is overlooking the company's solid financial performance.
While the news and market sentiment are bearish right now, Albemarle has consistently turned a profit and paid a dividend. For 2023, the company reported net income of $1.6 billion, or $13.36 per diluted share. Gross profit declined year over year due to an increase in cost of goods sold. The company reported a $604 million charge due to a reduction in the market price of lithium products. On the positive side, revenue rose by more than $2 billion. Despite slowing demand, Albemarle is growing its top line; any future increases in the market price for lithium products will only boost its margins and profits.
Source Fool.com
Albemarle Corp Aktie
Die Community unterstützt Albemarle Corp leicht, mit mehr Buy- als Sell-Einschätzungen.
Für Albemarle Corp sieht die Community ein Kursziel von 145 €, was eine erhebliche Steigerung um über 50% gegenüber dem aktuellen Kurs von 86.0 € bedeutet.
