LYONDELLBASELL INDU-CL A (LYB) Stock Fundamental Analysis
NYSE:LYB - New York Stock Exchange, Inc. - NL0009434992 - Common Stock - Currency: USD
Overall LYB gets a fundamental rating of 4 out of 10. We evaluated LYB against 85 industry peers in the Chemicals industry. LYB has only an average score on both its financial health and profitability. 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.
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
LYB has a Return On Assets of 3.00%. This is in the better half of the industry: LYB outperforms 64.71% of its industry peers.
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.
The Average Return On Invested Capital over the past 3 years for LYB is above the industry average of 6.78%.
The last Return On Invested Capital (6.21%) 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% | ||
| 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's Profit Margin of 2.78% is in line compared to the rest of the industry. LYB outperforms 56.47% of its industry peers.
LYB's Profit Margin has declined in the last couple of years.
The Operating Margin of LYB (5.72%) is worse than 63.53% of its industry peers.
LYB's Operating Margin has declined in the last couple of years.
LYB's Gross Margin of 10.38% is on the low side compared to the rest of the industry. LYB is outperformed by 80.00% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LYB is still 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.
Compared to 1 year ago, LYB has a worse debt to assets ratio.
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 better Altman-Z score (2.31) than 64.71% of its industry peers.
The Debt to FCF ratio of LYB is 7.41, which is on the high side as it means it would take LYB, 7.41 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 7.41, LYB is doing good in the industry, outperforming 69.41% of the companies in the same industry.
A Debt/Equity ratio of 0.88 indicates that LYB is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.88, LYB is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 7.41 | ||
| Altman-Z | 2.31 |
ROIC/WACC0.83
WACC7.5%
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.
The Current ratio of LYB (1.83) is comparable to the rest of the 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.
LYB's Quick ratio of 1.04 is on the low side compared to the rest of the industry. LYB is outperformed by 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.83 | ||
| 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 -33.50%.
LYB shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.75% yearly.
Looking at the last year, LYB shows a decrease in Revenue. The Revenue has decreased by -6.70% in the last 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
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-47.46%
EPS Next 2Y-9.15%
EPS Next 3Y3.73%
EPS Next 5Y8.28%
Revenue Next Year-24.6%
Revenue Next 2Y-12%
Revenue Next 3Y-7.03%
Revenue Next 5Y-4.15%
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.
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
With a Price/Earnings ratio of 10.27, the valuation of LYB can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of LYB indicates a rather cheap valuation: LYB is cheaper than 84.71% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of LYB to the average of the S&P500 Index (26.82), we can say LYB is valued rather cheaply.
LYB is valuated reasonably with a Price/Forward Earnings ratio of 10.11.
Based on the Price/Forward Earnings ratio, LYB is valued a bit cheaper than 68.24% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of LYB to the average of the S&P500 Index (36.21), we can say LYB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.27 | ||
| Fwd PE | 10.11 |
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 74.12% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, LYB is valued cheaper than 83.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.33 | ||
| EV/EBITDA | 7.62 |
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 9.03%, which is a nice return.
LYB's Dividend Yield is rather good when compared to the industry average which is at 3.64. LYB pays more dividend than 92.94% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, LYB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.03% |
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-9.15%
EPS Next 3Y3.73%
53.42
-4.51 (-7.79%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners74.82%
Inst Owner Change-0.18%
Ins Owners0.19%
Ins Owner Change0.49%
Market Cap17.17B
Analysts64.62
Price Target71.46 (33.77%)
Short Float %4.95%
Short Ratio3.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.03% |
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)-0.6%
PT rev (3m)-5.58%
EPS NQ rev (1m)-22.63%
EPS NQ rev (3m)-47.25%
EPS NY rev (1m)-9.49%
EPS NY rev (3m)-36.25%
Revenue NQ rev (1m)-2.19%
Revenue NQ rev (3m)-6.68%
Revenue NY rev (1m)-0.78%
Revenue NY rev (3m)-3.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.27 | ||
| Fwd PE | 10.11 | ||
| P/S | 0.45 | ||
| P/FCF | 11.33 | ||
| P/OCF | 5.12 | ||
| P/B | 1.41 | ||
| P/tB | 1.71 | ||
| EV/EBITDA | 7.62 |
EPS(TTM)5.2
EY9.73%
EPS(NY)5.28
Fwd EY9.89%
FCF(TTM)4.71
FCFY8.82%
OCF(TTM)10.44
OCFY19.54%
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
WACC7.5%
ROIC/WACC0.83
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-47.46%
EPS Next 2Y-9.15%
EPS Next 3Y3.73%
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-24.6%
Revenue Next 2Y-12%
Revenue Next 3Y-7.03%
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%