LYONDELLBASELL INDU-CL A (LYB) Stock Fundamental Analysis
USA - NYSE:LYB - NL0009434992 - Common Stock
52.69 USD
-0.83 (-1.55%)
52.69 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to LYB. LYB was compared to 83 industry peers in the Chemicals industry. While LYB is still in line with the averages on profitability rating, there are concerns on its financial health. LYB is valued correctly, 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.
Each year in the past 5 years LYB had a positive operating cash flow.
1.2 Ratios
LYB has a Return On Assets (0.71%) which is comparable to the rest of the industry.
LYB has a Return On Equity (2.10%) which is in line with its industry peers.
LYB's Return On Invested Capital of 4.32% is in line compared to the rest of the industry. LYB outperforms 53.01% of 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
LYB has a Profit Margin (0.71%) which is comparable to the rest of the industry.
LYB's Profit Margin has declined in the last couple of years.
LYB's Operating Margin of 4.33% is on the low side compared to the rest of the industry. LYB is outperformed by 65.06% of its industry peers.
LYB's Operating Margin has declined in the last couple of years.
LYB has a Gross Margin of 9.47%. This is amonst the worse of the industry: LYB underperforms 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
LYB has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for LYB remains at a similar level compared to 1 year ago.
LYB has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, LYB has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.08 indicates that LYB is not a great score, but indicates only limited risk for bankruptcy at the moment.
LYB has a Altman-Z score (2.08) which is in line with its industry peers.
LYB has a debt to FCF ratio of 25.54. This is a negative value and a sign of low solvency as LYB would need 25.54 years to pay back of all of its debts.
With a Debt to FCF ratio value of 25.54, LYB perfoms like the industry average, outperforming 44.58% of the companies in the same industry.
A Debt/Equity ratio of 0.95 indicates that LYB is somewhat dependend on debt financing.
LYB has a Debt to Equity ratio of 0.95. This is in the lower half of the industry: LYB underperforms 66.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 25.54 | ||
| Altman-Z | 2.08 |
ROIC/WACC0.55
WACC7.81%
2.3 Liquidity
A Current Ratio of 1.77 indicates that LYB should not have too much problems paying its short term obligations.
LYB has a Current ratio (1.77) which is in line with its industry peers.
A Quick Ratio of 1.04 indicates that LYB should not have too much problems paying 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.
The Revenue for LYB has decreased by -14.34% in the past year. This is quite bad
The Revenue has been growing slightly by 3.02% on average over the past years.
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
Based on estimates for the next years, LYB will show a small growth in Earnings Per Share. The EPS will grow by 6.00% on average per year.
LYB is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -6.12% yearly.
EPS Next Y-57.89%
EPS Next 2Y-16.2%
EPS Next 3Y-3.28%
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
The Price/Earnings ratio is 14.72, which indicates a correct valuation of LYB.
Compared to the rest of the industry, the Price/Earnings ratio of LYB indicates a somewhat cheap valuation: LYB is cheaper than 71.08% of the companies listed in the same industry.
LYB's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.41.
Based on the Price/Forward Earnings ratio of 11.72, the valuation of LYB can be described as reasonable.
Based on the Price/Forward Earnings ratio, LYB is valued a bit cheaper than the industry average as 74.70% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.88, LYB is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.72 | ||
| Fwd PE | 11.72 |
4.2 Price Multiples
LYB's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LYB is cheaper than 63.86% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as LYB.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.6 | ||
| EV/EBITDA | 9.14 |
4.3 Compensation for Growth
A cheap valuation may be justified as LYB's earnings are expected to decrease with -3.28% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-16.2%
EPS Next 3Y-3.28%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.88%, LYB is a good candidate for dividend investing.
LYB's Dividend Yield is rather good when compared to the industry average which is at 3.43. LYB pays more dividend than 93.98% of the companies in the same industry.
LYB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.88% |
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
700.80% of the earnings are spent on dividend by LYB. 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-16.2%
EPS Next 3Y-3.28%
52.69
-0.83 (-1.55%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners74.61%
Inst Owner Change-0.11%
Ins Owners0.19%
Ins Owner Change0.01%
Market Cap16.95B
Analysts63.85
Price Target62.62 (18.85%)
Short Float %5.84%
Short Ratio3.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.88% |
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)-7.65%
PT rev (3m)-12.14%
EPS NQ rev (1m)-4.67%
EPS NQ rev (3m)-34.63%
EPS NY rev (1m)-19.86%
EPS NY rev (3m)-29.8%
Revenue NQ rev (1m)-0.47%
Revenue NQ rev (3m)-5.25%
Revenue NY rev (1m)-1.19%
Revenue NY rev (3m)-2.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.72 | ||
| Fwd PE | 11.72 | ||
| P/S | 0.48 | ||
| P/FCF | 36.6 | ||
| P/OCF | 7.19 | ||
| P/B | 1.42 | ||
| P/tB | 1.75 | ||
| EV/EBITDA | 9.14 |
EPS(TTM)3.58
EY6.79%
EPS(NY)4.49
Fwd EY8.53%
FCF(TTM)1.44
FCFY2.73%
OCF(TTM)7.33
OCFY13.91%
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 | 2.08 |
F-Score4
WACC7.81%
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-57.89%
EPS Next 2Y-16.2%
EPS Next 3Y-3.28%
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-2.84%
EBIT Next 3Y11.6%
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%