Aureus
AExcellent

Albemarle Corporation(ALB)

A

Financial data as of Dec 31, 2025Improving · Materials

FCF Margin13.5%Free Cash Flow / Revenue
Cash Conversion-251.1%Operating CF / Net Income
Free Cash Flow$692.5M
Revenue$5.1B
Net Cash-$1.7BNet debt position
Debt / FCF4.8xElevated debt burden
Current Ratio2.23Adequate short-term liquidity
YoY FCF Growth+100.0%3 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseA
→
+0.5Healthy FCF margin with manageable debt (13.5%, 4.8x)
→
+1Strong YoY FCF growth (100.0% YoY)
→
-0.5Highly volatile FCF (consistency: 3.95)
→
FinalA

Analysis Summary

Strengths

  • Healthy FCF margin (13.5%)
  • Strong liquidity (current ratio: 2.23)
  • Strong YoY FCF growth (+100.0%)

Concerns

  • Net debt position ($1.7B) — 4.8x FCF, manageable
  • Only 3 positive FCF quarters recently
  • Highly volatile quarterly FCF

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin13.5%
Net Margin-9.9%
Operating CF Margin24.9%
CapEx Ratio11.5%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$1.7BNet debt position
Debt / FCF4.8xElevated debt burden
Current Ratio2.23Strong liquidity
Debt / Equity0.45Low leverage

Quarterly FCF Trend

+100.0% YoYImproving (+100.0%)

Free cash flow per quarter

Sector Comparison — Materials

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameAlbemarle Corporation
SectorMaterials
Free Cash Flow$692.5M
Revenue$5.1B
Net Income-$510.6M
Operating Cash Flow$1.3B
Capital Expenditure$589.8M
FCF Margin13.5%
Cash Conversion Rate-251.1%
Net Margin-9.9%
Total Debt$3.3B
Total Cash$1.6B
Net Cash-$1.7B
Current Ratio2.23
Debt / Equity0.45
Debt / FCF4.8x
YoY FCF Growth+100.0%
Positive Quarters3 of 5
Trend DirectionImproving
Report DateDec 31, 2025
GradeA
Data SourceYahoo Finance

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Sector Report5 min read

Materials: Six A-Grades and Six Total Failures

The materials sector splits cleanly in half: six companies generating real cash, six burning through it. CF's 29.5% margin sits 1,800 basis points above the sector median.

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