Albemarle Corporation — Earnings Quality Grade F
ALB · Basic Materials
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 42 days, change -8 days YoY
AR growth -20.0% vs revenue growth -4.4%
Revenue -4.4%, CFFO 86.4%. Cash follows revenue
Expense Quality
Inventory -21.5% vs COGS -15.8%. Normal
CapEx growth -64.9% vs revenue -4.4%. Normal
SG&A/Gross Profit = 82.3%, exceeds 70%
Gross margin swung +11.8pp (1.2% → 13.0%)
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
FCF $0.7B, FCF/NI = -1.36
Accruals ratio = -10.9%. Low accruals
Cash $1.6B covers only 49% of debt $3.3B
Balance Sheet Health
Goodwill+Intangibles $1.7B = 18% of equity. Manageable
Debt/EBITDA = 10.5x (>4x). Interest coverage = 0.3x (<2x). Financial stress
Other assets grew 481.6% vs revenue -4.4%
No write-off data
Acquisition Risk
FCF after acquisitions negative for 2/3 years
Goodwill+Intangibles change -5% YoY. Normal
Manipulation Score
M-Score = -3.62 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-10