LSB INDUSTRIES INC (LXU) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LXU - US5021601043 - Common Stock
8.83 USD
-0.28 (-3.07%)
8.83 USD
0 (0%)
Overall LXU gets a fundamental rating of 3 out of 10. We evaluated LXU against 82 industry peers in the Chemicals industry. Both the profitability and the financial health of LXU get a neutral evaluation. Nothing too spectacular is happening here. LXU is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
LXU had positive earnings in the past year.
In the past year LXU had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: LXU reported negative net income in multiple years.
Of the past 5 years LXU 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.06%, LXU is in line with its industry, outperforming 51.85% of the companies in the same industry.
LXU has a Return On Equity (-0.13%) which is comparable to the rest of the industry.
The Return On Invested Capital of LXU (2.77%) is comparable to the rest of the industry.
LXU had an Average Return On Invested Capital over the past 3 years of 7.85%. This is in line with the industry average of 6.05%.
The 3 year average ROIC (7.85%) for LXU is well above the current ROIC(2.77%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.06% | ||
| ROE | -0.13% | ||
| ROIC | 2.77% |
ROA(3y)5.51%
ROA(5y)-2.47%
ROE(3y)15.37%
ROE(5y)-5.05%
ROIC(3y)7.85%
ROIC(5y)N/A
1.3 Margins
LXU's Operating Margin of 6.06% is in line compared to the rest of the industry. LXU outperforms 44.44% of its industry peers.
In the last couple of years the Operating Margin of LXU has declined.
With a Gross Margin value of 12.46%, LXU is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of LXU has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.06% | ||
| PM (TTM) | N/A | ||
| GM | 12.46% |
OM growth 3Y-59.74%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-28.46%
GM growth 5Y46.21%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LXU is destroying value.
Compared to 1 year ago, LXU has less shares outstanding
The number of shares outstanding for LXU has been increased compared to 5 years ago.
LXU has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.65, we must say that LXU is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of LXU (1.65) is worse than 60.49% of its industry peers.
A Debt/Equity ratio of 0.89 indicates that LXU is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.89, LXU is not doing good in the industry: 60.49% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.65 |
ROIC/WACC0.31
WACC8.81%
2.3 Liquidity
A Current Ratio of 2.84 indicates that LXU has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.84, LXU belongs to the best of the industry, outperforming 80.25% of the companies in the same industry.
A Quick Ratio of 2.28 indicates that LXU has no problem at all paying its short term obligations.
LXU has a better Quick ratio (2.28) than 83.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.84 | ||
| Quick Ratio | 2.28 |
3. Growth
3.1 Past
LXU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.00%, which is quite impressive.
The Revenue has grown by 12.49% in the past year. This is quite good.
Measured over the past years, LXU shows a small growth in Revenue. The Revenue has been growing by 7.43% on average per year.
EPS 1Y (TTM)40%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%127.73%
Revenue 1Y (TTM)12.49%
Revenue growth 3Y-2.07%
Revenue growth 5Y7.43%
Sales Q2Q%42.31%
3.2 Future
Based on estimates for the next years, LXU will show a small growth in Earnings Per Share. The EPS will grow by 1.25% on average per year.
The Revenue is expected to grow by 3.57% on average over the next years.
EPS Next Y-38.68%
EPS Next 2Y-22.85%
EPS Next 3Y-11.07%
EPS Next 5Y1.25%
Revenue Next Year19.77%
Revenue Next 2Y7.77%
Revenue Next 3Y7.46%
Revenue Next 5Y3.57%
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 18.02, the valuation of LXU can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of LXU is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.49, LXU is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 26.49, the valuation of LXU can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as LXU.
The average S&P500 Price/Forward Earnings ratio is at 23.69. LXU is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.02 | ||
| Fwd PE | 26.49 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LXU indicates a somewhat cheap valuation: LXU is cheaper than 79.01% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.89 |
4.3 Compensation for Growth
LXU's earnings are expected to decrease with -11.07% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-22.85%
EPS Next 3Y-11.07%
5. Dividend
5.1 Amount
LXU does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
8.83
-0.28 (-3.07%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners60.74%
Inst Owner Change2.25%
Ins Owners4.13%
Ins Owner Change-0.22%
Market Cap635.23M
Revenue(TTM)585.07M
Net Income(TTM)-668.00K
Analysts75
Price Target10.07 (14.04%)
Short Float %2.85%
Short Ratio3.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.51%
Min EPS beat(2)-33.99%
Max EPS beat(2)35.01%
EPS beat(4)3
Avg EPS beat(4)51.48%
Min EPS beat(4)-33.99%
Max EPS beat(4)135.15%
EPS beat(8)6
Avg EPS beat(8)53.34%
EPS beat(12)8
Avg EPS beat(12)28.4%
EPS beat(16)10
Avg EPS beat(16)40.69%
Revenue beat(2)1
Avg Revenue beat(2)5.1%
Min Revenue beat(2)-4.79%
Max Revenue beat(2)14.99%
Revenue beat(4)3
Avg Revenue beat(4)7.5%
Min Revenue beat(4)-4.79%
Max Revenue beat(4)14.99%
Revenue beat(8)6
Avg Revenue beat(8)5.82%
Revenue beat(12)9
Avg Revenue beat(12)3.98%
Revenue beat(16)12
Avg Revenue beat(16)4.06%
PT rev (1m)12.06%
PT rev (3m)12.06%
EPS NQ rev (1m)40%
EPS NQ rev (3m)6.06%
EPS NY rev (1m)-9.74%
EPS NY rev (3m)-23.6%
Revenue NQ rev (1m)-9.34%
Revenue NQ rev (3m)-4.66%
Revenue NY rev (1m)3.43%
Revenue NY rev (3m)4.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.02 | ||
| Fwd PE | 26.49 | ||
| P/S | 1.09 | ||
| P/FCF | N/A | ||
| P/OCF | 7.79 | ||
| P/B | 1.26 | ||
| P/tB | 1.26 | ||
| EV/EBITDA | 6.89 |
EPS(TTM)0.49
EY5.55%
EPS(NY)0.33
Fwd EY3.77%
FCF(TTM)-0.04
FCFYN/A
OCF(TTM)1.13
OCFY12.84%
SpS8.13
BVpS7.01
TBVpS7
PEG (NY)N/A
PEG (5Y)N/A
Graham Number8.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.06% | ||
| ROE | -0.13% | ||
| ROCE | 3.36% | ||
| ROIC | 2.77% | ||
| ROICexc | 3.23% | ||
| ROICexgc | 3.23% | ||
| OM | 6.06% | ||
| PM (TTM) | N/A | ||
| GM | 12.46% | ||
| FCFM | N/A |
ROA(3y)5.51%
ROA(5y)-2.47%
ROE(3y)15.37%
ROE(5y)-5.05%
ROIC(3y)7.85%
ROIC(5y)N/A
ROICexc(3y)11.08%
ROICexc(5y)N/A
ROICexgc(3y)11.1%
ROICexgc(5y)N/A
ROCE(3y)9.64%
ROCE(5y)N/A
ROICexgc growth 3Y-59.46%
ROICexgc growth 5YN/A
ROICexc growth 3Y-59.42%
ROICexc growth 5YN/A
OM growth 3Y-59.74%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-28.46%
GM growth 5Y46.21%
F-Score7
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.83 | ||
| Cap/Depr | 103.35% | ||
| Cap/Sales | 14.45% | ||
| Interest Coverage | 1.15 | ||
| Cash Conversion | 69.57% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.84 | ||
| Quick Ratio | 2.28 | ||
| Altman-Z | 1.65 |
F-Score7
WACC8.81%
ROIC/WACC0.31
Cap/Depr(3y)96.58%
Cap/Depr(5y)76.59%
Cap/Sales(3y)11.38%
Cap/Sales(5y)9.83%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)40%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%127.73%
EPS Next Y-38.68%
EPS Next 2Y-22.85%
EPS Next 3Y-11.07%
EPS Next 5Y1.25%
Revenue 1Y (TTM)12.49%
Revenue growth 3Y-2.07%
Revenue growth 5Y7.43%
Sales Q2Q%42.31%
Revenue Next Year19.77%
Revenue Next 2Y7.77%
Revenue Next 3Y7.46%
Revenue Next 5Y3.57%
EBIT growth 1Y258.45%
EBIT growth 3Y-60.57%
EBIT growth 5YN/A
EBIT Next Year2325.63%
EBIT Next 3Y195.69%
EBIT Next 5Y92.24%
FCF growth 1Y-101.95%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-60.6%
OCF growth 3Y-0.4%
OCF growth 5Y110.4%
LSB INDUSTRIES INC / LXU FAQ
What is the fundamental rating for LXU stock?
ChartMill assigns a fundamental rating of 3 / 10 to LXU.
Can you provide the valuation status for LSB INDUSTRIES INC?
ChartMill assigns a valuation rating of 2 / 10 to LSB INDUSTRIES INC (LXU). This can be considered as Overvalued.
What is the profitability of LXU stock?
LSB INDUSTRIES INC (LXU) has a profitability rating of 3 / 10.
Can you provide the PE and PB ratios for LXU stock?
The Price/Earnings (PE) ratio for LSB INDUSTRIES INC (LXU) is 18.02 and the Price/Book (PB) ratio is 1.26.
How financially healthy is LSB INDUSTRIES INC?
The financial health rating of LSB INDUSTRIES INC (LXU) is 5 / 10.