2024-06-11 18:40:40 ET
Summary
- Albemarle Corporation is the industry leader in lithium and lithium derivatives.
- Lithium prices have fallen significantly over the past few months as supply has entered the market.
- I argue why, at current prices, Albemarle has trouble generating free cash flow and the stock price isn't reflecting that.
Thesis Summary
At current lithium prices, Albemarle has trouble generating positive FCF and high enough margins to sustain itself, which doesn't seem to be fully reflected in the stock price. If lithium prices remain at their current range, this could spell trouble for the company.
Company Overview
Founded in 1993, Albemarle Corporation is the industry leader in lithium and lithium derivatives. It has its headquarters in Charlotte, North Carolina. Along with its joint ventures, it operates 25 production and R&D facilities around the world, with over 1,900 customers in 70 countries. They have over 9,000 employees. Approximately 41% of the employees are in the U.S., 36% in Asia Pacific, 17% in Europe, and 6% in the Middle East. They currently own more than 1,600 patents, with 550 pending....
Read the full article on Seeking Alpha
For further details see:
Albemarle Corporation: Current Lithium Prices Spell Trouble