LYONDELLBASELL INDU-CL A (LYB) Stock Fundamental Analysis
USA - NYSE:LYB - NL0009434992 - Common Stock
46.81 USD
+1.61 (+3.56%)
46.9 USD
+0.09 (+0.19%)
LYB gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 83 industry peers in the Chemicals industry. There are concerns on the financial health of LYB while its profitability can be described as average. LYB has a valuation in line with the averages, 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.
Each year in the past 5 years LYB had a positive operating cash flow.
1.2 Ratios
The Return On Assets of LYB (0.71%) is comparable to the rest of the industry.
The Return On Equity of LYB (2.10%) is comparable to the rest of the industry.
LYB's Return On Invested Capital of 4.32% is in line compared to the rest of the industry. LYB outperforms 53.01% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LYB is above the industry average of 6.30%.
The 3 year average ROIC (10.69%) for LYB is well above the current ROIC(4.32%). The reason for the recent decline needs to be investigated.
| 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
LYB's Profit Margin of 0.71% is in line compared to the rest of the industry. LYB outperforms 49.40% of its industry peers.
LYB's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 4.33%, LYB is doing worse than 65.06% of the companies in the same industry.
In the last couple of years the Operating Margin of LYB has declined.
LYB's Gross Margin of 9.47% is on the low side compared to the rest of the industry. LYB is outperformed by 80.72% 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
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.
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
An Altman-Z score of 2.02 indicates that LYB is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.02, LYB perfoms like the industry average, outperforming 55.42% of the companies in the same industry.
The Debt to FCF ratio of LYB is 25.54, which is on the high side as it means it would take LYB, 25.54 years of fcf income to pay off all of its debts.
LYB has a Debt to FCF ratio of 25.54. This is comparable to the rest of the industry: LYB outperforms 46.99% of its industry peers.
A Debt/Equity ratio of 0.95 indicates that LYB is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.95, LYB is doing worse than 66.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 25.54 | ||
| Altman-Z | 2.02 |
ROIC/WACC0.56
WACC7.71%
2.3 Liquidity
LYB has a Current Ratio of 1.77. 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 (1.77) which is comparable to the rest of the industry.
A Quick Ratio of 1.04 indicates that LYB should not have too much problems paying its short term obligations.
The Quick ratio of LYB (1.04) is worse than 65.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
LYB shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -53.02%.
LYB shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.75% yearly.
The Revenue for LYB has decreased by -14.34% in the past year. This is quite bad
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)-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
The Earnings Per Share is expected to grow by 6.00% on average over the next years.
LYB is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -6.12% yearly.
EPS Next Y-60.49%
EPS Next 2Y-18.66%
EPS Next 3Y-4.68%
EPS Next 5Y6%
Revenue Next Year-25.46%
Revenue Next 2Y-13.56%
Revenue Next 3Y-8.77%
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
LYB is valuated correctly with a Price/Earnings ratio of 13.08.
Based on the Price/Earnings ratio, LYB is valued a bit cheaper than 77.11% of the companies in the same industry.
When comparing the Price/Earnings ratio of LYB to the average of the S&P500 Index (27.67), we can say LYB is valued rather cheaply.
A Price/Forward Earnings ratio of 11.06 indicates a reasonable valuation of LYB.
78.31% of the companies in the same industry are more expensive than LYB, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.33, LYB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.08 | ||
| Fwd PE | 11.06 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LYB is valued a bit cheaper than the industry average as 63.86% of the companies are valued more expensively.
LYB's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.52 | ||
| EV/EBITDA | 8.33 |
4.3 Compensation for Growth
LYB's earnings are expected to decrease with -4.68% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-18.66%
EPS Next 3Y-4.68%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 11.95%, LYB is a good candidate for dividend investing.
In the last 3 months the price of LYB has falen by -26.87%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
LYB's Dividend Yield is rather good when compared to the industry average which is at 3.76. LYB pays more dividend than 100.00% of the companies in the same industry.
LYB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.95% |
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 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-18.66%
EPS Next 3Y-4.68%
46.81
+1.61 (+3.56%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners74.62%
Inst Owner Change-0.94%
Ins Owners0.18%
Ins Owner Change0.01%
Market Cap15.06B
Revenue(TTM)35.15B
Net Income(TTM)250.00M
Analysts63.85
Price Target61.21 (30.76%)
Short Float %5.17%
Short Ratio2.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.95% |
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)-2.26%
PT rev (3m)-14.35%
EPS NQ rev (1m)-2.53%
EPS NQ rev (3m)-28.92%
EPS NY rev (1m)-6.17%
EPS NY rev (3m)-24.8%
Revenue NQ rev (1m)0.27%
Revenue NQ rev (3m)-3.81%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.08 | ||
| Fwd PE | 11.06 | ||
| P/S | 0.43 | ||
| P/FCF | 32.52 | ||
| P/OCF | 6.39 | ||
| P/B | 1.26 | ||
| P/tB | 1.56 | ||
| EV/EBITDA | 8.33 |
EPS(TTM)3.58
EY7.65%
EPS(NY)4.23
Fwd EY9.05%
FCF(TTM)1.44
FCFY3.08%
OCF(TTM)7.33
OCFY15.65%
SpS109.29
BVpS37.02
TBVpS30.03
PEG (NY)N/A
PEG (5Y)N/A
Graham Number54.61
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%
ROICexgc growth 3Y-25.81%
ROICexgc 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 | 2.02 |
F-Score4
WACC7.71%
ROIC/WACC0.56
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-60.49%
EPS Next 2Y-18.66%
EPS Next 3Y-4.68%
EPS Next 5Y6%
Revenue 1Y (TTM)-14.34%
Revenue growth 3Y-4.43%
Revenue growth 5Y3.02%
Sales Q2Q%-27.47%
Revenue Next Year-25.46%
Revenue Next 2Y-13.56%
Revenue Next 3Y-8.77%
Revenue Next 5Y-6.12%
EBIT growth 1Y-53.41%
EBIT growth 3Y-27.96%
EBIT growth 5Y-7.79%
EBIT Next Year-5.52%
EBIT Next 3Y10.46%
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%