LYONDELLBASELL INDU-CL A (LYB) Stock Fundamental Analysis
NYSE:LYB - New York Stock Exchange, Inc. - NL0009434992 - Common Stock - Currency: USD
Taking everything into account, LYB scores 4 out of 10 in our fundamental rating. LYB was compared to 85 industry peers in the Chemicals industry. LYB has an average financial health and profitability rating. LYB is valued correctly, but it does not seem to be growing.
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.
Each year in the past 5 years LYB has been profitable.
Each year in the past 5 years LYB had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.00%, LYB is in the better half of the industry, outperforming 63.53% of the companies in the same industry.
LYB's Return On Equity of 8.66% is fine compared to the rest of the industry. LYB outperforms 70.59% of its industry peers.
LYB's Return On Invested Capital of 6.21% is fine compared to the rest of the industry. LYB outperforms 63.53% of its industry peers.
LYB had an Average Return On Invested Capital over the past 3 years of 10.69%. This is above the industry average of 6.84%.
The 3 year average ROIC (10.69%) for LYB is well above the current ROIC(6.21%). The reason for the recent decline needs to be investigated.
| 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 has a Profit Margin (2.78%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of LYB has declined.
The Operating Margin of LYB (5.72%) is worse than 63.53% of its industry peers.
In the last couple of years the Operating Margin of LYB has declined.
The Gross Margin of LYB (10.38%) is worse than 81.18% 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.
LYB has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for LYB has been reduced compared to 5 years ago.
The debt/assets ratio for LYB is higher compared to a year ago.
2.2 Solvency
LYB has an Altman-Z score of 2.37. 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.
LYB has a Altman-Z score of 2.37. This is in the better half of the industry: LYB outperforms 64.71% of its industry peers.
LYB has a debt to FCF ratio of 7.41. This is a slightly negative value and a sign of low solvency as LYB would need 7.41 years to pay back of all of its debts.
The Debt to FCF ratio of LYB (7.41) is better than 69.41% of its industry peers.
A Debt/Equity ratio of 0.88 indicates that LYB is somewhat dependend on debt financing.
LYB has a Debt to Equity ratio of 0.88. This is in the lower half of the industry: LYB underperforms 61.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 7.41 | ||
| Altman-Z | 2.37 |
ROIC/WACC0.81
WACC7.7%
2.3 Liquidity
A Current Ratio of 1.83 indicates that LYB should not have too much problems paying its short term obligations.
LYB has a Current ratio (1.83) which is in line with its industry peers.
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 in line compared to the rest of the industry. LYB outperforms 41.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
The earnings per share for LYB have decreased strongly by -33.50% in the last year.
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 decrease in Revenue. In the last year, the revenue decreased by -6.70%.
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
LYB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.28% yearly.
Based on estimates for the next years, LYB will show a decrease in Revenue. The Revenue will decrease by -4.15% on average per year.
EPS Next Y-41.95%
EPS Next 2Y-5.88%
EPS Next 3Y5.19%
EPS Next 5Y8.28%
Revenue Next Year-24%
Revenue Next 2Y-11.56%
Revenue Next 3Y-6.75%
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.
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
A Price/Earnings ratio of 12.41 indicates a correct valuation of LYB.
Based on the Price/Earnings ratio, LYB is valued cheaper than 82.35% of the companies in the same industry.
LYB's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
LYB is valuated reasonably with a Price/Forward Earnings ratio of 11.38.
Based on the Price/Forward Earnings ratio, LYB is valued a bit cheaper than the industry average as 69.41% of the companies are valued more expensively.
LYB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.41 | ||
| Fwd PE | 11.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LYB is valued a bit cheaper than 70.59% of the companies in the same industry.
LYB's Price/Free Cash Flow ratio is rather cheap when compared to the industry. LYB is cheaper than 82.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.69 | ||
| EV/EBITDA | 8.27 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.88%
EPS Next 3Y5.19%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.84%, LYB is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.57, LYB pays a better dividend. On top of this LYB pays more dividend than 91.76% 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 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.84% |
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
165.09% of the earnings are spent on dividend by LYB. 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-5.88%
EPS Next 3Y5.19%
64.55
-0.77 (-1.18%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners74.82%
Inst Owner Change0%
Ins Owners0.19%
Ins Owner Change0.49%
Market Cap20.75B
Analysts64.62
Price Target71.89 (11.37%)
Short Float %4.37%
Short Ratio2.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.84% |
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)0.82%
PT rev (3m)-16.34%
EPS NQ rev (1m)-13.99%
EPS NQ rev (3m)-43.99%
EPS NY rev (1m)-3.22%
EPS NY rev (3m)-39.56%
Revenue NQ rev (1m)-1.62%
Revenue NQ rev (3m)-6.09%
Revenue NY rev (1m)-0.47%
Revenue NY rev (3m)-4.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.41 | ||
| Fwd PE | 11.38 | ||
| P/S | 0.55 | ||
| P/FCF | 13.69 | ||
| P/OCF | 6.19 | ||
| P/B | 1.7 | ||
| P/tB | 2.07 | ||
| EV/EBITDA | 8.27 |
EPS(TTM)5.2
EY8.06%
EPS(NY)5.67
Fwd EY8.78%
FCF(TTM)4.71
FCFY7.3%
OCF(TTM)10.44
OCFY16.17%
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 | 2.37 |
F-Score4
WACC7.7%
ROIC/WACC0.81
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-41.95%
EPS Next 2Y-5.88%
EPS Next 3Y5.19%
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%
Revenue Next 2Y-11.56%
Revenue Next 3Y-6.75%
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%