LSB INDUSTRIES INC (LXU) Stock Fundamental Analysis
NYSE:LXU - New York Stock Exchange, Inc. - US5021601043 - Common Stock - Currency: USD
Overall LXU gets a fundamental rating of 3 out of 10. We evaluated LXU against 85 industry peers in the Chemicals industry. While LXU seems to be doing ok healthwise, there are quite some concerns on its profitability. LXU does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
LXU had positive earnings in the past year.
In the past year LXU had a positive cash flow from operations.
In multiple years LXU reported negative net income over the last 5 years.
Of the past 5 years LXU 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -1.31%, LXU is doing worse than 72.29% of the companies in the same industry.
Looking at the Return On Equity, with a value of -3.12%, LXU is doing worse than 67.47% of the companies in the same industry.
LXU has a worse Return On Invested Capital (0.78%) than 75.90% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LXU is above the industry average of 6.61%.
The 3 year average ROIC (10.55%) for LXU is well above the current ROIC(0.78%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.31% | ||
| ROE | -3.12% | ||
| ROIC | 0.78% |
ROA(3y)-0.42%
ROA(5y)-3.91%
ROE(3y)0.75%
ROE(5y)-8.26%
ROIC(3y)10.55%
ROIC(5y)N/A
1.3 Margins
LXU's Operating Margin of 1.90% is on the low side compared to the rest of the industry. LXU is outperformed by 74.70% of its industry peers.
With a Gross Margin value of 10.34%, LXU is not doing good in the industry: 83.13% of the companies in the same industry are doing better.
LXU's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.9% | ||
| PM (TTM) | N/A | ||
| GM | 10.34% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y44.26%
GM growth 5Y28.31%
2. Health
2.1 Basic Checks
LXU has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
LXU has less shares outstanding than it did 1 year ago.
The number of shares outstanding for LXU has been increased compared to 5 years ago.
LXU has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.41, we must say that LXU is in the distress zone and has some risk of bankruptcy.
LXU has a worse Altman-Z score (1.41) than 67.47% of its industry peers.
The Debt to FCF ratio of LXU is 54.09, which is on the high side as it means it would take LXU, 54.09 years of fcf income to pay off all of its debts.
LXU's Debt to FCF ratio of 54.09 is on the low side compared to the rest of the industry. LXU is outperformed by 62.65% of its industry peers.
LXU has a Debt/Equity ratio of 0.96. This is a neutral value indicating LXU is somewhat dependend on debt financing.
LXU has a Debt to Equity ratio of 0.96. This is in the lower half of the industry: LXU underperforms 68.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | 54.09 | ||
| Altman-Z | 1.41 |
ROIC/WACC0.09
WACC9.19%
2.3 Liquidity
A Current Ratio of 2.53 indicates that LXU has no problem at all paying its short term obligations.
LXU has a Current ratio of 2.53. This is in the better half of the industry: LXU outperforms 66.27% of its industry peers.
LXU has a Quick Ratio of 2.36. This indicates that LXU is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of LXU (2.36) is better than 84.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.53 | ||
| Quick Ratio | 2.36 |
3. Growth
3.1 Past
LXU shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -71.54%.
The Revenue for LXU has decreased by -25.14% in the past year. This is quite bad
Measured over the past years, LXU shows a quite strong growth in Revenue. The Revenue has been growing by 9.44% on average per year.
EPS 1Y (TTM)-71.54%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%100%
Revenue 1Y (TTM)-25.14%
Revenue growth 3Y19.11%
Revenue growth 5Y9.44%
Sales Q2Q%-4.44%
3.2 Future
Based on estimates for the next years, LXU will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.21% on average per year.
The Revenue is expected to grow by 4.94% on average over the next years.
EPS Next Y-57.47%
EPS Next 2Y14.9%
EPS Next 3Y9.21%
EPS Next 5YN/A
Revenue Next Year-13.64%
Revenue Next 2Y-4.17%
Revenue Next 3Y-0.18%
Revenue Next 5Y4.94%
3.3 Evolution
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
LXU is valuated rather expensively with a Price/Earnings ratio of 22.49.
LXU's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 30.30. LXU is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 15.69, LXU is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as LXU.
LXU's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.06.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.49 | ||
| Fwd PE | 15.69 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LXU is valued a bit cheaper than the industry average as 71.08% of the companies are valued more expensively.
60.24% of the companies in the same industry are cheaper than LXU, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 62.41 | ||
| EV/EBITDA | 8.55 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y14.9%
EPS Next 3Y9.21%
5. Dividend
5.1 Amount
LXU does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7.87
-0.06 (-0.76%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners52.77%
Inst Owner Change-4.31%
Ins Owners4.64%
Ins Owner Change-0.53%
Market Cap563.65M
Analysts77.78
Price Target10.61 (34.82%)
Short Float %3.5%
Short Ratio5.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)104.22%
Min EPS beat(2)100%
Max EPS beat(2)108.44%
EPS beat(4)3
Avg EPS beat(4)55.19%
Min EPS beat(4)-154%
Max EPS beat(4)166.32%
EPS beat(8)5
Avg EPS beat(8)16.86%
EPS beat(12)7
Avg EPS beat(12)37.09%
EPS beat(16)8
Avg EPS beat(16)18.81%
Revenue beat(2)1
Avg Revenue beat(2)3.09%
Min Revenue beat(2)-6.62%
Max Revenue beat(2)12.81%
Revenue beat(4)3
Avg Revenue beat(4)4.15%
Min Revenue beat(4)-6.62%
Max Revenue beat(4)12.81%
Revenue beat(8)6
Avg Revenue beat(8)2.22%
Revenue beat(12)9
Avg Revenue beat(12)2.92%
Revenue beat(16)10
Avg Revenue beat(16)2.29%
PT rev (1m)6.12%
PT rev (3m)10.64%
EPS NQ rev (1m)-4%
EPS NQ rev (3m)-27.27%
EPS NY rev (1m)-4.76%
EPS NY rev (3m)-69.81%
Revenue NQ rev (1m)-3.3%
Revenue NQ rev (3m)-3.3%
Revenue NY rev (1m)-0.47%
Revenue NY rev (3m)-0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.49 | ||
| Fwd PE | 15.69 | ||
| P/S | 1.08 | ||
| P/FCF | 62.41 | ||
| P/OCF | 5.66 | ||
| P/B | 1.13 | ||
| P/tB | 1.13 | ||
| EV/EBITDA | 8.55 |
EPS(TTM)0.35
EY4.45%
EPS(NY)0.5
Fwd EY6.37%
FCF(TTM)0.13
FCFY1.6%
OCF(TTM)1.39
OCFY17.67%
SpS7.26
BVpS6.97
TBVpS6.95
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.31% | ||
| ROE | -3.12% | ||
| ROCE | 0.93% | ||
| ROIC | 0.78% | ||
| ROICexc | 0.96% | ||
| ROICexgc | 0.97% | ||
| OM | 1.9% | ||
| PM (TTM) | N/A | ||
| GM | 10.34% | ||
| FCFM | 1.74% |
ROA(3y)-0.42%
ROA(5y)-3.91%
ROE(3y)0.75%
ROE(5y)-8.26%
ROIC(3y)10.55%
ROIC(5y)N/A
ROICexc(3y)14.03%
ROICexc(5y)N/A
ROICexgc(3y)14.07%
ROICexgc(5y)N/A
ROCE(3y)12.72%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y44.26%
GM growth 5Y28.31%
F-Score4
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | 54.09 | ||
| Debt/EBITDA | 5.88 | ||
| Cap/Depr | 127.04% | ||
| Cap/Sales | 17.41% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 122.69% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.53 | ||
| Quick Ratio | 2.36 | ||
| Altman-Z | 1.41 |
F-Score4
WACC9.19%
ROIC/WACC0.09
Cap/Depr(3y)71.9%
Cap/Depr(5y)62.11%
Cap/Sales(3y)7.59%
Cap/Sales(5y)8.27%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-71.54%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%100%
EPS Next Y-57.47%
EPS Next 2Y14.9%
EPS Next 3Y9.21%
EPS Next 5YN/A
Revenue 1Y (TTM)-25.14%
Revenue growth 3Y19.11%
Revenue growth 5Y9.44%
Sales Q2Q%-4.44%
Revenue Next Year-13.64%
Revenue Next 2Y-4.17%
Revenue Next 3Y-0.18%
Revenue Next 5Y4.94%
EBIT growth 1Y-92.59%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year103.32%
EBIT Next 3Y38.93%
EBIT Next 5YN/A
FCF growth 1Y-96.23%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-64.6%
OCF growth 3YN/A
OCF growth 5Y50.82%