ALBCAUTIOUS

Return on Equity (ROE)

-5.4%

Higher than 0% of Basic Materials sector peers

Updated 1926h ago

Sector Performance

0th percentile

ALB

-5.4%

Sector Median

12.5%

Sector Avg

12.6%

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Deep Analysis

Albemarle Corporation's current Return on Equity (ROE) of -5.4% means that for every dollar of shareholder equity, the company generated a loss of 5.4 cents — a sign of unprofitability.

This is far below the Basic Materials sector median of 13.3%, placing Albemarle in the 7th percentile among its peers, meaning 93% of sector companies have a higher ROE. Trend data is not available: the year-over-year and quarter-over-quarter changes are both marked N/A, and no historical values beyond the current -5.4% are reported. The combination of a deeply negative ROE and the absence of any trend information leaves investors unable to gauge whether the company is improving or worsening, creating uncertainty. This metric directly supports the overall CAUTIOUS verdict, as the negative return on equity indicates the company is destroying shareholder value relative to its capital base.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about ALB?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does ALB's Return on Equity (ROE) compare to its sector?

ALB's Return on Equity (ROE) of -5.4% compares to a Basic Materials sector median of 12.5%, placing it in the 0th percentile.

Who are ALB's closest peers by Return on Equity (ROE)?

The closest Basic Materials peers by Return on Equity (ROE) include: MAG (12.5%), CDE (12.1%), RGLD (12.0%), RIO (16.4%), AEM (18.0%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.