LYONDELLBASELL INDU-CL A (LYB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LYB - NL0009434992 - Common Stock
50.99 USD
-0.55 (-1.07%)
51.01 USD
+0.02 (+0.04%)
We assign a fundamental rating of 3 out of 10 to LYB. LYB was compared to 82 industry peers in the Chemicals industry. Both the profitability and financial health of LYB have multiple concerns. 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.
- In the past year LYB had a positive cash flow from operations.
- Each year in the past 5 years LYB has been profitable.
- Each year in the past 5 years LYB had a positive operating cash flow.
1.2 Ratios
- With a Return On Assets value of -3.59%, LYB is not doing good in the industry: 67.07% of the companies in the same industry are doing better.
- The Return On Equity of LYB (-11.44%) is worse than 67.07% of its industry peers.
- The Return On Invested Capital of LYB (3.64%) is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for LYB is above the industry average of 6.11%.
- The last Return On Invested Capital (3.64%) 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 | -3.59% | ||
| ROE | -11.44% | ||
| ROIC | 3.64% |
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
- LYB's Profit Margin has declined in the last couple of years.
- LYB has a Operating Margin of 3.65%. This is in the lower half of the industry: LYB underperforms 64.63% of its industry peers.
- LYB's Operating Margin has declined in the last couple of years.
- With a Gross Margin value of 9.19%, LYB is not doing good in the industry: 84.15% of the companies in the same industry are doing better.
- LYB's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.65% | ||
| PM (TTM) | N/A | ||
| GM | 9.19% |
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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), LYB is creating some value.
- Compared to 1 year ago, LYB has about the same amount of shares outstanding.
- LYB has less shares outstanding than it did 5 years ago.
- LYB has a worse debt/assets ratio than last year.
2.2 Solvency
- LYB has an Altman-Z score of 1.95. This is not the best score and indicates that LYB is in the grey zone with still only limited risk for bankruptcy at the moment.
- LYB has a Altman-Z score of 1.95. This is comparable to the rest of the industry: LYB outperforms 56.10% of its industry peers.
- The Debt to FCF ratio of LYB is 16.07, which is on the high side as it means it would take LYB, 16.07 years of fcf income to pay off all of its debts.
- LYB has a Debt to FCF ratio (16.07) which is in line with its industry peers.
- A Debt/Equity ratio of 1.02 is on the high side and indicates that LYB has dependencies on debt financing.
- LYB has a Debt to Equity ratio of 1.02. This is in the lower half of the industry: LYB underperforms 67.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 16.07 | ||
| Altman-Z | 1.95 |
ROIC/WACC0.46
WACC7.93%
2.3 Liquidity
- A Current Ratio of 1.57 indicates that LYB should not have too much problems paying its short term obligations.
- LYB has a Current ratio of 1.57. This is in the lower half of the industry: LYB underperforms 67.07% of its industry peers.
- A Quick Ratio of 0.93 indicates that LYB may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.93, LYB is doing worse than 65.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
- The earnings per share for LYB have decreased strongly by -61.51% in the last year.
- The Earnings Per Share has been decreasing by -7.75% on average over the past years.
- LYB shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -20.07%.
- LYB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.02% yearly.
EPS 1Y (TTM)-61.51%
EPS 3Y-29.4%
EPS 5Y-7.75%
EPS Q2Q%-46.28%
Revenue 1Y (TTM)-20.07%
Revenue growth 3Y-4.43%
Revenue growth 5Y3.02%
Sales Q2Q%-25.14%
3.2 Future
- LYB is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.03% yearly.
- Based on estimates for the next years, LYB will show a decrease in Revenue. The Revenue will decrease by -6.25% on average per year.
EPS Next Y-63.95%
EPS Next 2Y-27.89%
EPS Next 3Y-10.79%
EPS Next 5Y5.03%
Revenue Next Year-25.58%
Revenue Next 2Y-14.15%
Revenue Next 3Y-9.56%
Revenue Next 5Y-6.25%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- 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
- The Price/Earnings ratio is 18.82, which indicates a rather expensive current valuation of LYB.
- LYB's Price/Earnings is on the same level as the industry average.
- When comparing the Price/Earnings ratio of LYB to the average of the S&P500 Index (27.21), we can say LYB is valued slightly cheaper.
- With a Price/Forward Earnings ratio of 15.32, LYB is valued correctly.
- Based on the Price/Forward Earnings ratio, LYB is valued a bit cheaper than 63.41% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of LYB to the average of the S&P500 Index (24.26), we can say LYB is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.82 | ||
| Fwd PE | 15.32 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as LYB.
- LYB's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LYB is cheaper than 68.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.24 | ||
| EV/EBITDA | 10.28 |
4.3 Compensation for Growth
- LYB's earnings are expected to decrease with -10.79% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-27.89%
EPS Next 3Y-10.79%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 10.77%, LYB is a good candidate for dividend investing.
- LYB's Dividend Yield is rather good when compared to the industry average which is at 2.28. LYB pays more dividend than 95.12% of the companies in the same industry.
- LYB's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.77% |
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
- The earnings of LYB are negative and hence is the payout ratio. LYB will probably not be able to sustain this dividend level.
- The dividend of LYB is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP-144.93%
EPS Next 2Y-27.89%
EPS Next 3Y-10.79%
LYONDELLBASELL INDU-CL A / LYB FAQ
Can you provide the ChartMill fundamental rating for LYONDELLBASELL INDU-CL A?
ChartMill assigns a fundamental rating of 3 / 10 to LYB.
What is the valuation status of LYONDELLBASELL INDU-CL A (LYB) stock?
ChartMill assigns a valuation rating of 4 / 10 to LYONDELLBASELL INDU-CL A (LYB). This can be considered as Fairly Valued.
How profitable is LYONDELLBASELL INDU-CL A (LYB) stock?
LYONDELLBASELL INDU-CL A (LYB) has a profitability rating of 3 / 10.
How financially healthy is LYONDELLBASELL INDU-CL A?
The financial health rating of LYONDELLBASELL INDU-CL A (LYB) is 3 / 10.
What is the earnings growth outlook for LYONDELLBASELL INDU-CL A?
The Earnings per Share (EPS) of LYONDELLBASELL INDU-CL A (LYB) is expected to decline by -63.95% in the next year.