LYONDELLBASELL INDU-CL A (LYB) Stock Fundamental Analysis
USA - NYSE:LYB - NL0009434992 - Common Stock
49.33 USD
+0.91 (+1.88%)
49.36 USD
+0.03 (+0.06%)
We assign a fundamental rating of 3 out of 10 to LYB. LYB was compared to 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.
LYB had positive earnings in each of the past 5 years.
LYB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LYB has a Return On Assets (0.71%) which is in line with its industry peers.
The Return On Equity of LYB (2.10%) is comparable to the rest of the industry.
LYB has a Return On Invested Capital (4.32%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LYB is above the industry average of 6.34%.
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
Looking at the Profit Margin, with a value of 0.71%, LYB is in line with its industry, outperforming 50.60% of the companies in the same industry.
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.
LYB's Operating Margin has declined in the last couple of years.
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.
LYB's Gross Margin has declined in the last couple of years.
| 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.
LYB has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, LYB has less shares outstanding
LYB has a worse debt/assets ratio than last year.
2.2 Solvency
LYB has an Altman-Z score of 2.04. 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.
With a Altman-Z score value of 2.04, LYB perfoms like the industry average, outperforming 53.01% 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 44.58% of its industry peers.
A Debt/Equity ratio of 0.95 indicates that LYB is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.95, LYB is not doing good in the industry: 66.27% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 25.54 | ||
| Altman-Z | 2.04 |
ROIC/WACC0.55
WACC7.92%
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.
With a Current ratio value of 1.77, LYB perfoms like the industry average, outperforming 40.96% 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.
With a Quick ratio value of 1.04, LYB is not doing good in the industry: 65.06% of the companies in the same industry are doing better.
| 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.
LYB shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -14.34%.
LYB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.02% yearly.
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.
Based on estimates for the next years, LYB will show a decrease in Revenue. The Revenue will decrease by -6.12% on average per year.
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-13.54%
Revenue Next 3Y-8.97%
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
With a Price/Earnings ratio of 13.78, LYB is valued correctly.
Based on the Price/Earnings ratio, LYB is valued a bit cheaper than the industry average as 74.70% 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 27.86.
LYB is valuated reasonably with a Price/Forward Earnings ratio of 11.65.
Based on the Price/Forward Earnings ratio, LYB is valued a bit cheaper than the industry average as 75.90% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.29. LYB is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.78 | ||
| Fwd PE | 11.65 |
4.2 Price Multiples
63.86% of the companies in the same industry are more expensive than LYB, based on the Enterprise Value to EBITDA ratio.
LYB's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.27 | ||
| EV/EBITDA | 8.68 |
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
LYB has a Yearly Dividend Yield of 11.19%, which is a nice return.
The stock price of LYB dropped by -20.45% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 3.59, LYB pays a better dividend. On top of this LYB pays more dividend than 98.80% of the companies listed in the same industry.
LYB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.19% |
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%
49.33
+0.91 (+1.88%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners74.62%
Inst Owner Change-0.11%
Ins Owners0.18%
Ins Owner Change0.01%
Market Cap15.87B
Analysts63.85
Price Target62.62 (26.94%)
Short Float %5.17%
Short Ratio2.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.19% |
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)-4.78%
PT rev (3m)-12.89%
EPS NQ rev (1m)-4.67%
EPS NQ rev (3m)-34.63%
EPS NY rev (1m)-6.17%
EPS NY rev (3m)-31.94%
Revenue NQ rev (1m)-0.47%
Revenue NQ rev (3m)-5.25%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)-1.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.78 | ||
| Fwd PE | 11.65 | ||
| P/S | 0.45 | ||
| P/FCF | 34.27 | ||
| P/OCF | 6.73 | ||
| P/B | 1.33 | ||
| P/tB | 1.64 | ||
| EV/EBITDA | 8.68 |
EPS(TTM)3.58
EY7.26%
EPS(NY)4.23
Fwd EY8.58%
FCF(TTM)1.44
FCFY2.92%
OCF(TTM)7.33
OCFY14.85%
SpS109.29
BVpS37.02
TBVpS30.03
PEG (NY)N/A
PEG (5Y)N/A
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%
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 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 | 2.04 |
F-Score4
WACC7.92%
ROIC/WACC0.55
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-13.54%
Revenue Next 3Y-8.97%
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%