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 5 out of 10. We evaluated LYB against 85 industry peers in the Chemicals industry. LYB has an average financial health and profitability rating. LYB has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally LYB also has an excellent dividend rating. These ratings could make LYB a good candidate for dividend investing.
1. Profitability
1.1 Basic Checks
In the past year LYB was profitable.
LYB had a positive operating cash flow in the past year.
LYB had positive earnings in 4 of the past 5 years.
LYB had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 5.75%, LYB is doing good in the industry, outperforming 79.52% of the companies in the same industry.
Looking at the Return On Equity, with a value of 15.61%, LYB belongs to the top of the industry, outperforming 81.93% of the companies in the same industry.
LYB's Return On Invested Capital of 7.86% is fine compared to the rest of the industry. LYB outperforms 77.11% of its industry peers.
LYB had an Average Return On Invested Capital over the past 3 years of 14.60%. This is significantly above the industry average of 6.65%.
The 3 year average ROIC (14.60%) for LYB is well above the current ROIC(7.86%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.75% | ||
| ROE | 15.61% | ||
| ROIC | 7.86% |
ROA(3y)10.55%
ROA(5y)9.36%
ROE(3y)31.46%
ROE(5y)30.87%
ROIC(3y)14.6%
ROIC(5y)12.53%
1.3 Margins
LYB has a Profit Margin of 5.26%. This is in the better half of the industry: LYB outperforms 61.45% of its industry peers.
In the last couple of years the Profit Margin of LYB has declined.
LYB has a Operating Margin (7.46%) which is in line with its industry peers.
LYB's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 11.79%, LYB is doing worse than 78.31% of the companies in the same industry.
In the last couple of years the Gross Margin of LYB has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.46% | ||
| PM (TTM) | 5.26% | ||
| GM | 11.79% |
OM growth 3Y4.04%
OM growth 5Y-8.32%
PM growth 3Y0.06%
PM growth 5Y-15.65%
GM growth 3Y1.51%
GM growth 5Y-5.08%
2. Health
2.1 Basic Checks
LYB has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
LYB has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 2.61 indicates that LYB is not a great score, but indicates only limited risk for bankruptcy at the moment.
LYB has a Altman-Z score of 2.61. This is in the better half of the industry: LYB outperforms 74.70% of its industry peers.
LYB has a debt to FCF ratio of 7.09. This is a slightly negative value and a sign of low solvency as LYB would need 7.09 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.09, LYB is in the better half of the industry, outperforming 63.86% of the companies in the same industry.
A Debt/Equity ratio of 0.82 indicates that LYB is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.82, LYB is not doing good in the industry: 60.24% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 7.09 | ||
| Altman-Z | 2.61 |
ROIC/WACC1.05
WACC7.51%
2.3 Liquidity
LYB has a Current Ratio of 2.13. This indicates that LYB is financially healthy and has no problem in meeting its short term obligations.
LYB has a Current ratio (2.13) which is comparable to the rest of the industry.
LYB has a Quick Ratio of 1.25. This is a normal value and indicates that LYB is financially healthy and should not expect problems in meeting its short term obligations.
LYB has a Quick ratio (1.25) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
The earnings per share for LYB have decreased strongly by -27.27% in the last year.
Measured over the past years, LYB shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.75% on average per year.
EPS 1Y (TTM)-27.27%
EPS 3Y-29.4%
EPS 5Y-7.75%
EPS Q2Q%-46.04%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-4.35%
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 12.47% yearly.
Based on estimates for the next years, LYB will show a decrease in Revenue. The Revenue will decrease by -4.35% on average per year.
EPS Next Y-3.77%
EPS Next 2Y13.63%
EPS Next 3Y12.74%
EPS Next 5Y12.47%
Revenue Next Year-19.19%
Revenue Next 2Y-8.56%
Revenue Next 3Y-4.6%
Revenue Next 5Y-4.35%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.02, which indicates a correct valuation of LYB.
LYB's Price/Earnings ratio is rather cheap when compared to the industry. LYB is cheaper than 83.13% 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 29.63.
The Price/Forward Earnings ratio is 12.50, which indicates a correct valuation of LYB.
72.29% of the companies in the same industry are more expensive than LYB, based on the Price/Forward Earnings ratio.
LYB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.02 | ||
| Fwd PE | 12.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LYB is valued cheaper than 81.93% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LYB indicates a somewhat cheap valuation: LYB is cheaper than 69.88% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.69 | ||
| EV/EBITDA | 7.4 |
4.3 Compensation for Growth
The decent profitability rating of LYB may justify a higher PE ratio.
LYB's earnings are expected to grow with 12.74% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y13.63%
EPS Next 3Y12.74%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.91%, LYB is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.27, LYB pays a better dividend. On top of this LYB pays more dividend than 92.77% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, LYB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.91% |
5.2 History
The dividend of LYB has a limited annual growth rate of 4.19%.
LYB has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)4.19%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
78.89% of the earnings are spent on dividend by LYB. This is not a sustainable payout ratio.
The dividend of LYB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP78.89%
EPS Next 2Y13.63%
EPS Next 3Y12.74%
76.96
-0.65 (-0.84%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners73.27%
Inst Owner Change1.47%
Ins Owners0.15%
Ins Owner Change0.01%
Market Cap24.94B
Analysts67.14
Price Target87.43 (13.6%)
Short Float %1.97%
Short Ratio1.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.91% |
Yearly Dividend4.95
Dividend Growth(5Y)4.19%
DP78.89%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.32%
Min EPS beat(2)-5.89%
Max EPS beat(2)-0.76%
EPS beat(4)2
Avg EPS beat(4)2.29%
Min EPS beat(4)-5.89%
Max EPS beat(4)10.97%
EPS beat(8)6
Avg EPS beat(8)10.28%
EPS beat(12)8
Avg EPS beat(12)5.3%
EPS beat(16)11
Avg EPS beat(16)8.96%
Revenue beat(2)1
Avg Revenue beat(2)-1.75%
Min Revenue beat(2)-3.6%
Max Revenue beat(2)0.09%
Revenue beat(4)2
Avg Revenue beat(4)-0.65%
Min Revenue beat(4)-3.6%
Max Revenue beat(4)0.99%
Revenue beat(8)3
Avg Revenue beat(8)-1.93%
Revenue beat(12)6
Avg Revenue beat(12)-0.08%
Revenue beat(16)9
Avg Revenue beat(16)1.48%
PT rev (1m)-4.26%
PT rev (3m)-15.18%
EPS NQ rev (1m)-43.9%
EPS NQ rev (3m)-44.29%
EPS NY rev (1m)-4.01%
EPS NY rev (3m)-7.8%
Revenue NQ rev (1m)-4.39%
Revenue NQ rev (3m)-5.19%
Revenue NY rev (1m)-0.41%
Revenue NY rev (3m)-0.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.02 | ||
| Fwd PE | 12.5 | ||
| P/S | 0.61 | ||
| P/FCF | 15.69 | ||
| P/OCF | 7.32 | ||
| P/B | 1.82 | ||
| P/tB | 2.17 | ||
| EV/EBITDA | 7.4 |
EPS(TTM)6.4
EY8.32%
EPS(NY)6.16
Fwd EY8%
FCF(TTM)4.9
FCFY6.37%
OCF(TTM)10.52
OCFY13.67%
SpS125.72
BVpS42.33
TBVpS35.44
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.75% | ||
| ROE | 15.61% | ||
| ROCE | 9.71% | ||
| ROIC | 7.86% | ||
| ROICexc | 8.57% | ||
| ROICexgc | 9.3% | ||
| OM | 7.46% | ||
| PM (TTM) | 5.26% | ||
| GM | 11.79% | ||
| FCFM | 3.9% |
ROA(3y)10.55%
ROA(5y)9.36%
ROE(3y)31.46%
ROE(5y)30.87%
ROIC(3y)14.6%
ROIC(5y)12.53%
ROICexc(3y)15.73%
ROICexc(5y)13.41%
ROICexgc(3y)17.27%
ROICexgc(5y)14.81%
ROCE(3y)18.16%
ROCE(5y)15.62%
ROICexcg growth 3Y20.37%
ROICexcg growth 5Y-11.2%
ROICexc growth 3Y20.81%
ROICexc growth 5Y-10.44%
OM growth 3Y4.04%
OM growth 5Y-8.32%
PM growth 3Y0.06%
PM growth 5Y-15.65%
GM growth 3Y1.51%
GM growth 5Y-5.08%
F-Score5
Asset Turnover1.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 7.09 | ||
| Debt/EBITDA | 2.47 | ||
| Cap/Depr | 120.23% | ||
| Cap/Sales | 4.47% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.9% | ||
| Profit Quality | 74.22% | ||
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 2.61 |
F-Score5
WACC7.51%
ROIC/WACC1.05
Cap/Depr(3y)129.87%
Cap/Depr(5y)147.1%
Cap/Sales(3y)3.9%
Cap/Sales(5y)5.3%
Profit Quality(3y)124.36%
Profit Quality(5y)108.51%
High Growth Momentum
Growth
EPS 1Y (TTM)-27.27%
EPS 3Y-29.4%
EPS 5Y-7.75%
EPS Q2Q%-46.04%
EPS Next Y-3.77%
EPS Next 2Y13.63%
EPS Next 3Y12.74%
EPS Next 5Y12.47%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-4.35%
Revenue Next Year-19.19%
Revenue Next 2Y-8.56%
Revenue Next 3Y-4.6%
Revenue Next 5Y-4.35%
EBIT growth 1Y-13.28%
EBIT growth 3Y18.59%
EBIT growth 5Y-7.35%
EBIT Next Year17.01%
EBIT Next 3Y10.89%
EBIT Next 5Y10.96%
FCF growth 1Y-71.12%
FCF growth 3Y32.78%
FCF growth 5Y0.27%
OCF growth 1Y-55.12%
OCF growth 3Y13.23%
OCF growth 5Y-2.01%