LYONDELLBASELL INDU-CL A (LYB) Stock Fundamental Analysis
NYSE:LYB - New York Stock Exchange, Inc. - NL0009434992 - Common Stock - Currency: USD
Taking everything into account, LYB scores 4 out of 10 in our fundamental rating. LYB was compared to 85 industry peers in the Chemicals industry. LYB has an average financial health and profitability rating. 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
LYB had positive earnings in the past year.
LYB had a positive operating cash flow in the past year.
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
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.
With a decent Return On Equity value of 8.66%, LYB is doing good in the industry, outperforming 70.59% of the companies in the same industry.
LYB has a better Return On Invested Capital (6.21%) than 63.53% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital 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
LYB has a Profit Margin (2.78%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of LYB has declined.
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.
LYB's Operating Margin has declined in the last couple of years.
The Gross Margin of LYB (10.38%) is worse than 81.18% of its industry peers.
In the last couple of years the Gross Margin of LYB has declined.
| 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
LYB has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
LYB has about the same amout of shares outstanding than it did 1 year ago.
LYB has less shares outstanding than it did 5 years ago.
LYB has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.31 indicates that LYB is not a great score, but indicates only limited risk for bankruptcy at the moment.
LYB has a Altman-Z score of 2.31. This is in the better half of the industry: LYB outperforms 62.35% 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.
LYB's Debt to Equity ratio of 0.88 is on the low side compared to the rest of the industry. LYB is outperformed by 61.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 7.41 | ||
| Altman-Z | 2.31 |
ROIC/WACC0.8
WACC7.8%
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.
LYB has a Current ratio (1.83) which is in line with 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 in line compared to the rest of the industry. LYB outperforms 41.18% of its industry peers.
| 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.
LYB shows a decrease in Revenue. In the last year, the revenue decreased by -6.70%.
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
Based on estimates for the next years, LYB will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.28% on average per year.
LYB is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.15% yearly.
EPS Next Y-40.01%
EPS Next 2Y-4.27%
EPS Next 3Y5.68%
EPS Next 5Y8.28%
Revenue Next Year-23.64%
Revenue Next 2Y-11.39%
Revenue Next 3Y-6.69%
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.
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 11.65, which indicates a very decent valuation of LYB.
Compared to the rest of the industry, the Price/Earnings ratio of LYB indicates a rather cheap valuation: LYB is cheaper than 83.53% of the companies listed in the same industry.
LYB is valuated cheaply when we compare the Price/Earnings ratio to 26.59, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 10.33, the valuation of LYB can be described as reasonable.
Based on the Price/Forward Earnings ratio, LYB is valued a bit cheaper than 75.29% of the companies in the same industry.
LYB is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.39, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.65 | ||
| Fwd PE | 10.33 |
4.2 Price Multiples
74.12% of the companies in the same industry are more expensive than LYB, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, LYB is valued cheaply inside the industry as 85.88% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.85 | ||
| EV/EBITDA | 7.67 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.27%
EPS Next 3Y5.68%
5. Dividend
5.1 Amount
LYB has a Yearly Dividend Yield of 9.86%, which is a nice return.
LYB's Dividend Yield is rather good when compared to the industry average which is at 3.74. LYB pays more dividend than 94.12% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, LYB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.86% |
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.
LYB has decreased its dividend 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-4.27%
EPS Next 3Y5.68%
60.58
+2.1 (+3.59%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners73.27%
Inst Owner Change1.29%
Ins Owners0.15%
Ins Owner Change0.51%
Market Cap19.47B
Analysts63.57
Price Target71.28 (17.66%)
Short Float %3.77%
Short Ratio2.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.86% |
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)-5.82%
PT rev (3m)-18.48%
EPS NQ rev (1m)-2.6%
EPS NQ rev (3m)-36.44%
EPS NY rev (1m)-27.22%
EPS NY rev (3m)-37.66%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)-4.67%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-3.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.65 | ||
| Fwd PE | 10.33 | ||
| P/S | 0.51 | ||
| P/FCF | 12.85 | ||
| P/OCF | 5.81 | ||
| P/B | 1.59 | ||
| P/tB | 1.94 | ||
| EV/EBITDA | 7.67 |
EPS(TTM)5.2
EY8.58%
EPS(NY)5.87
Fwd EY9.68%
FCF(TTM)4.71
FCFY7.78%
OCF(TTM)10.44
OCFY17.23%
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 | 2.31 |
F-Score4
WACC7.8%
ROIC/WACC0.8
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-40.01%
EPS Next 2Y-4.27%
EPS Next 3Y5.68%
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-23.64%
Revenue Next 2Y-11.39%
Revenue Next 3Y-6.69%
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%