LYONDELLBASELL INDU-CL A (LYB) Stock Fundamental Analysis
NYSE:LYB - NL0009434992 - Common Stock
55.47 USD
+0.14 (+0.25%)
55.75 USD
+0.28 (+0.5%)
LYB gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 84 industry peers in the Chemicals industry. While LYB is still in line with the averages on profitability rating, there are concerns on its financial health. LYB has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year LYB was profitable.
LYB had a positive operating cash flow in the past year.
In the past 5 years LYB has always been profitable.
In the past 5 years LYB always reported a positive cash flow from operatings.
1.2 Ratios
LYB has a Return On Assets of 0.71%. This is comparable to the rest of the industry: LYB outperforms 52.38% of its industry peers.
LYB has a Return On Equity of 2.10%. This is comparable to the rest of the industry: LYB outperforms 53.57% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.32%, LYB is in line with its industry, outperforming 51.19% of the companies in the same industry.
LYB had an Average Return On Invested Capital over the past 3 years of 10.69%. This is above the industry average of 6.53%.
The last Return On Invested Capital (4.32%) for LYB is well below the 3 year average (10.69%), which needs to be investigated, but indicates that LYB had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.71% | ||
| ROE | 2.1% | ||
| ROIC | 4.32% |
ROA(3y)6.72%
ROA(5y)7.89%
ROE(3y)19.31%
ROE(5y)24.61%
ROIC(3y)10.69%
ROIC(5y)11.69%
1.3 Margins
Looking at the Profit Margin, with a value of 0.71%, LYB is in line with its industry, outperforming 51.19% of the companies in the same industry.
In the last couple of years the Profit Margin of LYB has declined.
LYB has a worse Operating Margin (4.33%) than 64.29% of its industry peers.
LYB's Operating Margin has declined in the last couple of years.
LYB has a Gross Margin of 9.47%. This is amonst the worse of the industry: LYB underperforms 80.95% of its industry peers.
In the last couple of years the Gross Margin of LYB has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.33% | ||
| PM (TTM) | 0.71% | ||
| GM | 9.47% |
OM growth 3Y-24.61%
OM growth 5Y-10.5%
PM growth 3Y-34.85%
PM growth 5Y-19.21%
GM growth 3Y-15.85%
GM growth 5Y-6.35%
2. Health
2.1 Basic Checks
LYB has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for LYB remains at a similar level compared to 1 year ago.
The number of shares outstanding for LYB has been reduced compared to 5 years ago.
LYB has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.10 indicates that LYB is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.10, LYB is in line with its industry, outperforming 55.95% of the companies in the same industry.
LYB has a debt to FCF ratio of 25.54. This is a negative value and a sign of low solvency as LYB would need 25.54 years to pay back of all of its debts.
LYB's Debt to FCF ratio of 25.54 is in line compared to the rest of the industry. LYB outperforms 46.43% of its industry peers.
LYB has a Debt/Equity ratio of 0.95. This is a neutral value indicating LYB is somewhat dependend on debt financing.
LYB's Debt to Equity ratio of 0.95 is on the low side compared to the rest of the industry. LYB is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 25.54 | ||
| Altman-Z | 2.1 |
ROIC/WACC0.55
WACC7.8%
2.3 Liquidity
A Current Ratio of 1.77 indicates that LYB should not have too much problems paying its short term obligations.
LYB has a Current ratio of 1.77. This is comparable to the rest of the industry: LYB outperforms 40.48% of its industry peers.
LYB has a Quick Ratio of 1.04. This is a normal value and indicates that LYB is financially healthy and should not expect problems in meeting its short term obligations.
LYB's Quick ratio of 1.04 is on the low side compared to the rest of the industry. LYB is outperformed by 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
The earnings per share for LYB have decreased strongly by -53.02% in the last year.
Measured over the past years, LYB shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.75% on average per year.
The Revenue for LYB has decreased by -14.34% in the past year. This is quite bad
The Revenue has been growing slightly by 3.02% on average over the past years.
EPS 1Y (TTM)-53.02%
EPS 3Y-29.4%
EPS 5Y-7.75%
EPS Q2Q%-72.32%
Revenue 1Y (TTM)-14.34%
Revenue growth 3Y-4.43%
Revenue growth 5Y3.02%
Sales Q2Q%-27.47%
3.2 Future
LYB is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.00% yearly.
Based on estimates for the next years, LYB will show a decrease in Revenue. The Revenue will decrease by -6.12% on average per year.
EPS Next Y-47.46%
EPS Next 2Y-9.15%
EPS Next 3Y3.73%
EPS Next 5Y6%
Revenue Next Year-24.56%
Revenue Next 2Y-11.94%
Revenue Next 3Y-7.49%
Revenue Next 5Y-6.12%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 15.49 indicates a correct valuation of LYB.
Compared to the rest of the industry, the Price/Earnings ratio of LYB indicates a somewhat cheap valuation: LYB is cheaper than 70.24% of the companies listed in the same industry.
LYB's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.76.
With a Price/Forward Earnings ratio of 10.50, the valuation of LYB can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LYB indicates a somewhat cheap valuation: LYB is cheaper than 77.38% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.91. LYB is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.49 | ||
| Fwd PE | 10.5 |
4.2 Price Multiples
64.29% of the companies in the same industry are more expensive than LYB, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LYB is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.51 | ||
| EV/EBITDA | 9.44 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-9.15%
EPS Next 3Y3.73%
5. Dividend
5.1 Amount
LYB has a Yearly Dividend Yield of 10.28%, which is a nice return.
LYB's Dividend Yield is rather good when compared to the industry average which is at 3.59. LYB pays more dividend than 95.24% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, LYB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.28% |
5.2 History
The dividend of LYB has a limited annual growth rate of 5.17%.
LYB has been paying a dividend for at least 10 years, so it has a reliable track record.
LYB has decreased its dividend recently.
Dividend Growth(5Y)5.17%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
LYB pays out 700.80% of its income as dividend. This is not a sustainable payout ratio.
The dividend of LYB is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP700.8%
EPS Next 2Y-9.15%
EPS Next 3Y3.73%
55.47
+0.14 (+0.25%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners74.61%
Inst Owner Change-0.1%
Ins Owners0.19%
Ins Owner Change0.45%
Market Cap17.83B
Analysts64.62
Price Target67.81 (22.25%)
Short Float %4.71%
Short Ratio2.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.28% |
Yearly Dividend5.31
Dividend Growth(5Y)5.17%
DP700.8%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-23.41%
Min EPS beat(2)-23.45%
Max EPS beat(2)-23.38%
EPS beat(4)1
Avg EPS beat(4)-12.31%
Min EPS beat(4)-23.45%
Max EPS beat(4)3.46%
EPS beat(8)4
Avg EPS beat(8)-1.81%
EPS beat(12)7
Avg EPS beat(12)0.59%
EPS beat(16)9
Avg EPS beat(16)0.66%
Revenue beat(2)2
Avg Revenue beat(2)1.26%
Min Revenue beat(2)0.76%
Max Revenue beat(2)1.76%
Revenue beat(4)3
Avg Revenue beat(4)0.22%
Min Revenue beat(4)-3.6%
Max Revenue beat(4)1.93%
Revenue beat(8)6
Avg Revenue beat(8)0.75%
Revenue beat(12)6
Avg Revenue beat(12)-1.17%
Revenue beat(16)10
Avg Revenue beat(16)0.87%
PT rev (1m)-5.68%
PT rev (3m)-4.91%
EPS NQ rev (1m)-23.5%
EPS NQ rev (3m)-56.24%
EPS NY rev (1m)0%
EPS NY rev (3m)-12.41%
Revenue NQ rev (1m)-3.62%
Revenue NQ rev (3m)-10.23%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-1.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.49 | ||
| Fwd PE | 10.5 | ||
| P/S | 0.51 | ||
| P/FCF | 38.51 | ||
| P/OCF | 7.56 | ||
| P/B | 1.5 | ||
| P/tB | 1.85 | ||
| EV/EBITDA | 9.44 |
EPS(TTM)3.58
EY6.45%
EPS(NY)5.28
Fwd EY9.52%
FCF(TTM)1.44
FCFY2.6%
OCF(TTM)7.33
OCFY13.22%
SpS109.38
BVpS37.05
TBVpS30.06
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.71% | ||
| ROE | 2.1% | ||
| ROCE | 5.23% | ||
| ROIC | 4.32% | ||
| ROICexc | 4.59% | ||
| ROICexgc | 5% | ||
| OM | 4.33% | ||
| PM (TTM) | 0.71% | ||
| GM | 9.47% | ||
| FCFM | 1.32% |
ROA(3y)6.72%
ROA(5y)7.89%
ROE(3y)19.31%
ROE(5y)24.61%
ROIC(3y)10.69%
ROIC(5y)11.69%
ROICexc(3y)11.83%
ROICexc(5y)12.68%
ROICexgc(3y)12.95%
ROICexgc(5y)13.92%
ROCE(3y)12.98%
ROCE(5y)14.24%
ROICexcg growth 3Y-25.81%
ROICexcg growth 5Y-9.22%
ROICexc growth 3Y-25.6%
ROICexc growth 5Y-8.64%
OM growth 3Y-24.61%
OM growth 5Y-10.5%
PM growth 3Y-34.85%
PM growth 5Y-19.21%
GM growth 3Y-15.85%
GM growth 5Y-6.35%
F-Score4
Asset Turnover0.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 25.54 | ||
| Debt/EBITDA | 3.84 | ||
| Cap/Depr | 132.91% | ||
| Cap/Sales | 5.39% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.95% | ||
| Profit Quality | 185.2% | ||
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 2.1 |
F-Score4
WACC7.8%
ROIC/WACC0.55
Cap/Depr(3y)123.27%
Cap/Depr(5y)130.2%
Cap/Sales(3y)4.01%
Cap/Sales(5y)4.66%
Profit Quality(3y)139.02%
Profit Quality(5y)124.38%
High Growth Momentum
Growth
EPS 1Y (TTM)-53.02%
EPS 3Y-29.4%
EPS 5Y-7.75%
EPS Q2Q%-72.32%
EPS Next Y-47.46%
EPS Next 2Y-9.15%
EPS Next 3Y3.73%
EPS Next 5Y6%
Revenue 1Y (TTM)-14.34%
Revenue growth 3Y-4.43%
Revenue growth 5Y3.02%
Sales Q2Q%-27.47%
Revenue Next Year-24.56%
Revenue Next 2Y-11.94%
Revenue Next 3Y-7.49%
Revenue Next 5Y-6.12%
EBIT growth 1Y-53.41%
EBIT growth 3Y-27.96%
EBIT growth 5Y-7.79%
EBIT Next Year-2.84%
EBIT Next 3Y11.6%
EBIT Next 5Y12.54%
FCF growth 1Y-85.64%
FCF growth 3Y-29.85%
FCF growth 5Y-2.67%
OCF growth 1Y-50.79%
OCF growth 3Y-20.83%
OCF growth 5Y-5.1%