LYONDELLBASELL INDU-CL A (LYB) Stock Fundamental Analysis
NYSE:LYB - New York Stock Exchange, Inc. - NL0009434992 - Common Stock - Currency: USD
LYB gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 85 industry peers in the Chemicals industry. LYB has an average financial health and profitability rating. LYB is valued correctly, but it does not seem to be growing.
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.
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
Looking at the Return On Assets, with a value of 3.00%, LYB is in the better half of the industry, outperforming 63.53% of the companies in the same industry.
The Return On Equity of LYB (8.66%) is better than 70.59% of its industry peers.
LYB has a better Return On Invested Capital (6.21%) than 63.53% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LYB is above the industry average of 6.84%.
The 3 year average ROIC (10.69%) for LYB is well above the current ROIC(6.21%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3% | ||
| ROE | 8.66% | ||
| ROIC | 6.21% |
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
The Profit Margin of LYB (2.78%) is comparable to the rest of the industry.
LYB's Profit Margin has declined in the last couple of years.
LYB's Operating Margin of 5.72% is on the low side compared to the rest of the industry. LYB is outperformed by 63.53% of its industry peers.
In the last couple of years the Operating Margin of LYB has declined.
LYB has a Gross Margin of 10.38%. This is amonst the worse of the industry: LYB underperforms 81.18% of its industry peers.
LYB's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.72% | ||
| PM (TTM) | 2.78% | ||
| GM | 10.38% |
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.
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.
Compared to 1 year ago, LYB has a worse debt to assets ratio.
2.2 Solvency
LYB has an Altman-Z score of 2.34. 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 2.34. This is in the better half of the industry: LYB outperforms 63.53% of its industry peers.
LYB has a debt to FCF ratio of 7.41. This is a slightly negative value and a sign of low solvency as LYB would need 7.41 years to pay back of all of its debts.
The Debt to FCF ratio of LYB (7.41) is better than 69.41% of its industry peers.
LYB has a Debt/Equity ratio of 0.88. This is a neutral value indicating LYB is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.88, LYB is doing worse than 61.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 7.41 | ||
| Altman-Z | 2.34 |
ROIC/WACC0.82
WACC7.61%
2.3 Liquidity
LYB has a Current Ratio of 1.83. This is a normal value and indicates that LYB is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.83, LYB is in line with its industry, outperforming 42.35% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 1.04, LYB is in line with its industry, outperforming 41.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
The earnings per share for LYB have decreased strongly by -33.50% in the last year.
LYB shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.75% yearly.
The Revenue has decreased by -6.70% in the past year.
Measured over the past years, LYB shows a small growth in Revenue. The Revenue has been growing by 3.02% on average per year.
EPS 1Y (TTM)-33.5%
EPS 3Y-29.4%
EPS 5Y-7.75%
EPS Q2Q%-78.43%
Revenue 1Y (TTM)-6.7%
Revenue growth 3Y-4.43%
Revenue growth 5Y3.02%
Sales Q2Q%-22.65%
3.2 Future
LYB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.28% yearly.
Based on estimates for the next years, LYB will show a decrease in Revenue. The Revenue will decrease by -4.15% on average per year.
EPS Next Y-41.95%
EPS Next 2Y-5.88%
EPS Next 3Y5.19%
EPS Next 5Y8.28%
Revenue Next Year-24%
Revenue Next 2Y-11.56%
Revenue Next 3Y-6.75%
Revenue Next 5Y-4.15%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 11.77, which indicates a very decent valuation of LYB.
Based on the Price/Earnings ratio, LYB is valued cheaply inside the industry as 84.71% of the companies are valued more expensively.
LYB's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
The Price/Forward Earnings ratio is 10.79, which indicates a very decent valuation of LYB.
69.41% of the companies in the same industry are more expensive than LYB, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of LYB to the average of the S&P500 Index (21.70), we can say LYB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.77 | ||
| Fwd PE | 10.79 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LYB indicates a somewhat cheap valuation: LYB is cheaper than 72.94% of the companies listed in the same industry.
84.71% of the companies in the same industry are more expensive than LYB, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.98 | ||
| EV/EBITDA | 7.91 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.88%
EPS Next 3Y5.19%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.38%, LYB is a good candidate for dividend investing.
LYB's Dividend Yield is rather good when compared to the industry average which is at 3.69. LYB pays more dividend than 92.94% of the companies in the same industry.
LYB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.38% |
5.2 History
The dividend of LYB has a limited annual growth rate of 5.17%.
LYB has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of LYB decreased recently.
Dividend Growth(5Y)5.17%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
LYB pays out 165.09% of its income as dividend. This is not a sustainable payout ratio.
LYB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP165.09%
EPS Next 2Y-5.88%
EPS Next 3Y5.19%
61.2
+3.34 (+5.77%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners74.82%
Inst Owner Change1.29%
Ins Owners0.19%
Ins Owner Change0.49%
Market Cap19.67B
Analysts63.57
Price Target71.89 (17.47%)
Short Float %4.37%
Short Ratio2.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.38% |
Yearly Dividend5.31
Dividend Growth(5Y)5.17%
DP165.09%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-9.96%
Min EPS beat(2)-23.38%
Max EPS beat(2)3.46%
EPS beat(4)1
Avg EPS beat(4)-6.64%
Min EPS beat(4)-23.38%
Max EPS beat(4)3.46%
EPS beat(8)5
Avg EPS beat(8)1.85%
EPS beat(12)8
Avg EPS beat(12)3.39%
EPS beat(16)10
Avg EPS beat(16)2.68%
Revenue beat(2)2
Avg Revenue beat(2)1.85%
Min Revenue beat(2)1.76%
Max Revenue beat(2)1.93%
Revenue beat(4)3
Avg Revenue beat(4)0.05%
Min Revenue beat(4)-3.6%
Max Revenue beat(4)1.93%
Revenue beat(8)5
Avg Revenue beat(8)-0.02%
Revenue beat(12)6
Avg Revenue beat(12)-0.64%
Revenue beat(16)10
Avg Revenue beat(16)1.04%
PT rev (1m)0.82%
PT rev (3m)-17.37%
EPS NQ rev (1m)-5.61%
EPS NQ rev (3m)-36.89%
EPS NY rev (1m)-3.22%
EPS NY rev (3m)-39.56%
Revenue NQ rev (1m)-0.42%
Revenue NQ rev (3m)-4.81%
Revenue NY rev (1m)-0.51%
Revenue NY rev (3m)-4.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.77 | ||
| Fwd PE | 10.79 | ||
| P/S | 0.52 | ||
| P/FCF | 12.98 | ||
| P/OCF | 5.86 | ||
| P/B | 1.61 | ||
| P/tB | 1.96 | ||
| EV/EBITDA | 7.91 |
EPS(TTM)5.2
EY8.5%
EPS(NY)5.67
Fwd EY9.26%
FCF(TTM)4.71
FCFY7.7%
OCF(TTM)10.44
OCFY17.05%
SpS118.4
BVpS37.99
TBVpS31.22
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3% | ||
| ROE | 8.66% | ||
| ROCE | 7.52% | ||
| ROIC | 6.21% | ||
| ROICexc | 6.64% | ||
| ROICexgc | 7.21% | ||
| OM | 5.72% | ||
| PM (TTM) | 2.78% | ||
| GM | 10.38% | ||
| FCFM | 3.98% |
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 Turnover1.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 7.41 | ||
| Debt/EBITDA | 2.93 | ||
| Cap/Depr | 124.26% | ||
| Cap/Sales | 4.83% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 91.74% | ||
| Profit Quality | 143.33% | ||
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 2.34 |
F-Score4
WACC7.61%
ROIC/WACC0.82
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)-33.5%
EPS 3Y-29.4%
EPS 5Y-7.75%
EPS Q2Q%-78.43%
EPS Next Y-41.95%
EPS Next 2Y-5.88%
EPS Next 3Y5.19%
EPS Next 5Y8.28%
Revenue 1Y (TTM)-6.7%
Revenue growth 3Y-4.43%
Revenue growth 5Y3.02%
Sales Q2Q%-22.65%
Revenue Next Year-24%
Revenue Next 2Y-11.56%
Revenue Next 3Y-6.75%
Revenue Next 5Y-4.15%
EBIT growth 1Y-34.26%
EBIT growth 3Y-27.96%
EBIT growth 5Y-7.79%
EBIT Next Year10.24%
EBIT Next 3Y17.3%
EBIT Next 5Y12.54%
FCF growth 1Y-54.13%
FCF growth 3Y-29.85%
FCF growth 5Y-2.67%
OCF growth 1Y-34.22%
OCF growth 3Y-20.83%
OCF growth 5Y-5.1%