LYONDELLBASELL INDU-CL A (LYB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LYB - NL0009434992 - Common Stock
50.99 USD
-0.55 (-1.07%)
51.01 USD
+0.02 (+0.04%)
LYB gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 83 industry peers in the Chemicals industry. LYB has a bad profitability rating. Also its financial health evaluation is rather negative. 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.
- In the past year LYB had a positive cash flow from operations.
- LYB had positive earnings in each of the past 5 years.
- LYB had a positive operating cash flow in each of the past 5 years.
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.
- With a Return On Invested Capital value of 3.64%, LYB perfoms like the industry average, outperforming 53.01% of the companies in the same 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.
- The Operating Margin of LYB (3.65%) is worse than 63.86% of its industry peers.
- In the last couple of years the Operating Margin of LYB has declined.
- LYB's Gross Margin of 9.19% is on the low side compared to the rest of the industry. LYB is outperformed by 84.34% of its industry peers.
- LYB's Gross Margin has declined in the last couple of years.
| 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
- LYB has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, LYB has about the same amount of shares outstanding.
- Compared to 5 years ago, LYB has less shares outstanding
- The debt/assets ratio for LYB is higher compared to a year ago.
2.2 Solvency
- LYB has an Altman-Z score of 1.95. 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 1.95. This is comparable to the rest of the industry: LYB outperforms 53.01% of its industry peers.
- LYB has a debt to FCF ratio of 16.07. This is a negative value and a sign of low solvency as LYB would need 16.07 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 16.07, LYB is in line with its industry, outperforming 54.22% of the companies in the same industry.
- A Debt/Equity ratio of 1.02 is on the high side and indicates that LYB has dependencies on debt financing.
- LYB has a worse Debt to Equity ratio (1.02) 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.
- Looking at the Current ratio, with a value of 1.57, LYB is doing worse than 67.47% of the companies in the same industry.
- LYB has a Quick Ratio of 1.57. This is a bad value and indicates that LYB is not financially healthy enough and could expect problems in meeting its short term obligations.
- LYB's Quick ratio of 0.93 is on the low side compared to the rest of the industry. LYB is outperformed by 66.27% of its industry peers.
| 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
- LYB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.02% yearly.
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
- Based on estimates for the next years, LYB will show a small growth in Earnings Per Share. The EPS will grow by 5.03% on average per year.
- LYB is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -6.25% yearly.
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
- 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
- With a Price/Earnings ratio of 18.82, LYB is valued on the expensive side.
- LYB's Price/Earnings is on the same level as the industry average.
- When comparing the Price/Earnings ratio of LYB to the average of the S&P500 Index (27.21), we can say LYB is valued slightly cheaper.
- LYB is valuated correctly with a Price/Forward Earnings ratio of 15.84.
- LYB's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LYB is cheaper than 63.86% of the companies in the same industry.
- LYB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.82 | ||
| Fwd PE | 15.84 |
4.2 Price Multiples
- LYB's Enterprise Value to EBITDA ratio is in line with the industry average.
- Based on the Price/Free Cash Flow ratio, LYB is valued a bit cheaper than the industry average as 68.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.24 | ||
| EV/EBITDA | 10.21 |
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.
- Compared to an average S&P500 Dividend Yield of 1.81, LYB pays a better dividend.
| 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.
- The dividend of LYB decreased recently.
Dividend Growth(5Y)5.17%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- The earnings of LYB are negative and hence is the payout ratio. LYB will probably not be able to sustain this dividend level.
- The dividend of LYB is growing, but the earnings are growing slower. 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.