LYONDELLBASELL INDU-CL A (LYB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LYB - NL0009434992 - Common Stock
50.47 USD
+0.04 (+0.08%)
50.42 USD
-0.05 (-0.1%)
Overall LYB gets a fundamental rating of 3 out of 10. We evaluated LYB against 83 industry peers in the Chemicals industry. Both the profitability and financial health of LYB have multiple concerns. LYB has a valuation in line with the averages, 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.
- In the past 5 years LYB has always been profitable.
- In the past 5 years LYB always reported a positive cash flow from operatings.
1.2 Ratios
- LYB's Return On Assets of -3.59% is on the low side compared to the rest of the industry. LYB is outperformed by 67.47% of its industry peers.
- LYB has a Return On Equity of -11.44%. This is in the lower half of the industry: LYB underperforms 67.47% of its industry peers.
- LYB's Return On Invested Capital of 3.64% is in line compared to the rest of the industry. LYB outperforms 53.01% 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 6.11%.
- 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.
- LYB's Operating Margin has declined in the last couple of years.
- LYB has a Gross Margin of 9.19%. This is amonst the worse of the industry: LYB underperforms 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
- 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.
- 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
- An Altman-Z score of 1.94 indicates that LYB is not a great score, but indicates only limited risk for bankruptcy at the moment.
- LYB's Altman-Z score of 1.94 is in line compared 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.
- LYB has a Debt to FCF ratio of 16.07. This is comparable to the rest of the industry: LYB outperforms 54.22% of its industry peers.
- LYB has a Debt/Equity ratio of 1.02. This is a high value indicating a heavy dependency on external financing.
- LYB has a Debt to Equity ratio of 1.02. This is in the lower half of the industry: LYB underperforms 67.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 16.07 | ||
| Altman-Z | 1.94 |
ROIC/WACC0.46
WACC7.86%
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.
- LYB's Current ratio of 1.57 is on the low side compared to the rest of the industry. LYB is outperformed by 67.47% of its industry peers.
- A Quick Ratio of 0.93 indicates that LYB may have some problems paying its short term obligations.
- With a Quick ratio value of 0.93, LYB is not doing good in the industry: 66.27% of the companies in the same industry are doing better.
| 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%.
- The Earnings Per Share has been decreasing by -7.75% on average over the past years.
- The Revenue for LYB has decreased by -20.07% in the past year. This is quite bad
- 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)-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.
- The Revenue is expected to decrease by -6.25% on average over the next years.
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
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 18.62, which indicates a rather expensive current valuation of LYB.
- LYB's Price/Earnings is on the same level as the industry average.
- LYB is valuated rather cheaply when we compare the Price/Earnings ratio to 28.82, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 15.68 indicates a correct valuation of LYB.
- Based on the Price/Forward Earnings ratio, LYB is valued a bit 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 25.95, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.62 | ||
| Fwd PE | 15.68 |
4.2 Price Multiples
- LYB's Enterprise Value to EBITDA ratio is in line with the industry average.
- LYB's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LYB is cheaper than 68.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.01 | ||
| EV/EBITDA | 10.14 |
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
- With a Yearly Dividend Yield of 10.63%, LYB is a good candidate for dividend investing.
- 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 1.82, 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.