ALBCAUTIOUS

Gross Margin

35.1%

Higher than 29% of Basic Materials sector peers

Updated 1736h ago

Sector Performance

29th percentile

ALB

35.1%

Sector Median

44.1%

Sector Avg

-39957.7%

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Deep Analysis

Albemarle Corporation’s gross margin of 35.1% measures the percentage of revenue remaining after deducting the direct costs of producing its chemicals and lithium products.

This figure exactly matches the sector median of 35.1%, placing the company at the 50th percentile among Basic Materials peers. The metric has been increasing over the last eight quarters, though the year-over-year and quarter-over-quarter changes are both +0.0%, indicating no movement from the prior periods. The combination of a gross margin at the sector average with a flat recent trend suggests neither a clear competitive advantage nor a deterioration, implying neutral risk and limited near-term opportunity. This metric supports the overall CAUTIOUS verdict, as a static margin at the median provides no catalyst for outperformance or improvement.

Frequently Asked Questions

What does the Gross Margin tell investors about ALB?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does ALB's Gross Margin compare to its sector?

ALB's Gross Margin of 35.1% compares to a Basic Materials sector median of 44.1%, placing it in the 29th percentile.

Who are ALB's closest peers by Gross Margin?

The closest Basic Materials peers by Gross Margin include: MP (44.1%), BHP (42.8%), PPG (42.1%), CDE (49.8%), PAAS (52.7%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.