LYONDELLBASELL INDU-CL A (LYB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LYB - NL0009434992 - Common Stock
50.43 USD
-0.43 (-0.85%)
50.53 USD
+0.1 (+0.2%)
Overall LYB gets a fundamental rating of 3 out of 10. We evaluated LYB against 83 industry peers in the Chemicals industry. LYB may be in some trouble as it scores bad on both profitability and health. 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.
- In the past 5 years LYB always reported a positive cash flow from operatings.
1.2 Ratios
- LYB has a worse Return On Assets (-3.59%) than 67.47% of its industry peers.
- LYB's Return On Equity of -11.44% is on the low side compared to the rest of the industry. LYB is outperformed by 67.47% of its industry peers.
- The Return On Invested Capital of LYB (3.64%) is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years for LYB is above the industry average of 6.11%.
- The 3 year average ROIC (10.69%) for LYB is well above the current ROIC(3.64%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.59% | ||
| ROE | -11.44% | ||
| ROIC | 3.64% |
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
- In the last couple of years the Profit Margin of LYB has declined.
- LYB has a worse Operating Margin (3.65%) than 63.86% of its industry peers.
- In the last couple of years the Operating Margin of LYB has declined.
- The Gross Margin of LYB (9.19%) is worse than 84.34% of its industry peers.
- In the last couple of years the Gross Margin of LYB has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.65% | ||
| PM (TTM) | N/A | ||
| GM | 9.19% |
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
- An Altman-Z score of 1.95 indicates that LYB is not a great score, but indicates only limited risk for bankruptcy at the moment.
- LYB has a Altman-Z score (1.95) which is comparable to the rest of the industry.
- The Debt to FCF ratio of LYB is 16.07, which is on the high side as it means it would take LYB, 16.07 years of fcf income to pay off all of its debts.
- With a Debt to FCF ratio value of 16.07, LYB perfoms like the industry average, outperforming 54.22% of the companies in the same industry.
- LYB has a Debt/Equity ratio of 1.02. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of LYB (1.02) is worse than 67.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 16.07 | ||
| Altman-Z | 1.95 |
ROIC/WACC0.46
WACC7.85%
2.3 Liquidity
- LYB has a Current Ratio of 1.57. 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 1.57, LYB is not doing good in the industry: 67.47% of the companies in the same industry are doing better.
- A Quick Ratio of 0.93 indicates that LYB may have some problems paying its short term obligations.
- With a Quick ratio value of 0.93, LYB is not doing good in the industry: 66.27% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
- LYB shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -61.51%.
- 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 -20.07% 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)-61.51%
EPS 3Y-29.4%
EPS 5Y-7.75%
EPS Q2Q%-46.28%
Revenue 1Y (TTM)-20.07%
Revenue growth 3Y-4.43%
Revenue growth 5Y3.02%
Sales Q2Q%-25.14%
3.2 Future
- The Earnings Per Share is expected to grow by 5.03% on average over the next years.
- The Revenue is expected to decrease by -6.25% on average over the next years.
EPS Next Y-65.6%
EPS Next 2Y-29.09%
EPS Next 3Y-11.23%
EPS Next 5Y5.03%
Revenue Next Year-25.58%
Revenue Next 2Y-14.15%
Revenue Next 3Y-9.55%
Revenue Next 5Y-6.25%
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 18.61, LYB is valued on the expensive side.
- LYB's Price/Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 28.87, LYB is valued a bit cheaper.
- Based on the Price/Forward Earnings ratio of 15.67, the valuation of LYB can be described as correct.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of LYB indicates a somewhat cheap valuation: LYB is cheaper than 62.65% of the companies listed in the same industry.
- LYB's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.96.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.61 | ||
| Fwd PE | 15.67 |
4.2 Price Multiples
- LYB's Enterprise Value to EBITDA is on the same level as the industry average.
- LYB's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LYB is cheaper than 68.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.99 | ||
| EV/EBITDA | 10.19 |
4.3 Compensation for Growth
- LYB's earnings are expected to decrease with -11.23% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-29.09%
EPS Next 3Y-11.23%
5. Dividend
5.1 Amount
- LYB has a Yearly Dividend Yield of 10.63%, which is a nice return.
- Compared to an average industry Dividend Yield of 2.23, 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 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.63% |
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 has negative earnings and hence a negative payout ratio. The dividend may be in danger.
- LYB's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP-144.93%
EPS Next 2Y-29.09%
EPS Next 3Y-11.23%
LYONDELLBASELL INDU-CL A / LYB FAQ
Can you provide the ChartMill fundamental rating for LYONDELLBASELL INDU-CL A?
ChartMill assigns a fundamental rating of 3 / 10 to LYB.
What is the valuation status of LYONDELLBASELL INDU-CL A (LYB) stock?
ChartMill assigns a valuation rating of 4 / 10 to LYONDELLBASELL INDU-CL A (LYB). This can be considered as Fairly Valued.
How profitable is LYONDELLBASELL INDU-CL A (LYB) stock?
LYONDELLBASELL INDU-CL A (LYB) has a profitability rating of 3 / 10.
How financially healthy is LYONDELLBASELL INDU-CL A?
The financial health rating of LYONDELLBASELL INDU-CL A (LYB) is 3 / 10.
What is the earnings growth outlook for LYONDELLBASELL INDU-CL A?
The Earnings per Share (EPS) of LYONDELLBASELL INDU-CL A (LYB) is expected to decline by -65.6% in the next year.