Is ALB a high-quality business?

AlphaMadera's AlphaQuality grade scores Albemarle Corporation on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how ALB compares to a Buffett-style quality bar.

What is Albemarle Corporation's AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to ALB based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes ALB a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

ALB - Albemarle Corporation

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $209.75 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Platform & Compounding FCF

AlphaQuality — archetype-weighted quantitative grade

F 30.0 / 100 pillar composite

Composite Grade

Composite of six pillars weighted for platform & compounding fcf businesses. Purely quantitative — no stock price or analyst input.

⚠ 2 of the last 5 fiscal years showed negative net income — AlphaQuality will not grade above F for persistent unprofitability in a platform & compounding fcf business.

Grade overrides the 30.0 pillar composite because hard gates always win. Use the pillar breakdown below to see where the underlying numbers sit.

Profitability

Weight: 25%

D- 27.9

5yr Avg ROIC 6.0% 40/100
Operating Margin Trend -7.44 pp/yr 0/100

Capital Efficiency

Weight: 15%

C- 45.9

5yr Avg ROE 5.7% 38/100
5yr Share-Count CAGR 0.2% 60/100

Growth Quality

Weight: 25%

A- 84.7

5yr Revenue CAGR 11.5% 84/100
5yr EPS CAGR 255.0% 100/100
Revenue-Growth Years (5) 3/5 60/100

Cash Generation

Weight: 20%

F 1.1

5yr FCF Margin -4.6% 2/100
5yr FCF/NI Conversion -1.74x 0/100

Balance Sheet

Weight: 10%

D+ 40.9

Net Debt / EBITDA 3.00x 50/100
Interest Coverage (EBIT/Int) -0.48x 0/100
Altman Z-Score 2.87 74/100

Stability

Weight: 5%

D- 31.7

EPS Volatility (σ/μ) 1.04 0/100
Piotroski F-Score 5 56/100
Negative-Revenue Years (5) 2/5 60/100

4 of 4 gurus held; 1 new buy; 1 added; 2 trimmed.

Holders: 4 +1
Avg Δ position: +35.2%
New buys: 1
Full exits: 0

Dalio new
Greenblatt increased +246%
Wood decreased -76%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (25%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (25%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (20%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (10%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (5%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.