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%)
51.06 USD
+0.07 (+0.14%)
LYB gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 83 industry peers in the Chemicals industry. LYB may be in some trouble as it scores bad on both profitability and 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
- The Return On Assets of LYB (-3.59%) is worse than 67.47% of its industry peers.
- LYB has a worse Return On Equity (-11.44%) than 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 last Return On Invested Capital (3.64%) for LYB is well below the 3 year average (10.69%), which needs to be investigated, but indicates that LYB had better years and this may not be a problem.
| 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
- LYB's Profit Margin has declined in the last couple of years.
- 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.
- Looking at the Gross Margin, with a value of 9.19%, LYB is doing worse than 84.34% of the companies in the same industry.
- 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
- 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.
- The number of shares outstanding for LYB has been reduced compared to 5 years ago.
- Compared to 1 year ago, LYB has a worse debt to assets ratio.
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 of 1.95. This is comparable to the rest of the industry: LYB outperforms 53.01% of its industry peers.
- 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
- A Current Ratio of 1.57 indicates that LYB should not have too much problems paying 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.
- The Quick ratio of LYB (0.93) is worse than 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%.
- 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.
- 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
- LYB is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.03% yearly.
- Based on estimates for the next years, LYB will show a decrease in Revenue. The Revenue will decrease by -6.25% on average per year.
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.
- LYB's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
- The Price/Forward Earnings ratio is 15.84, which indicates a correct valuation of LYB.
- Based on the Price/Forward Earnings ratio, LYB is valued a bit cheaper than the industry average as 63.86% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, LYB is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.82 | ||
| Fwd PE | 15.84 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LYB is on the same level as its industry peers.
- 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
- A cheap valuation may be justified as LYB's earnings are expected to decrease with -11.23% in the coming years.
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.
- LYB's Dividend Yield is rather good when compared to the industry average which is at 2.23. LYB pays more dividend than 98.80% of the companies in the same industry.
- LYB's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| 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.