LSB Industries, Inc.

DB:LS3 Stock Report

Market Cap: €572.8m

LSB Industries Valuation

Is LS3 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of LS3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LS3 (€7.9) is trading below our estimate of fair value (€14.24)

Significantly Below Fair Value: LS3 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LS3?

Key metric: As LS3 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for LS3. This is calculated by dividing LS3's market cap by their current revenue.
What is LS3's PS Ratio?
PS Ratio1.2x
SalesUS$520.11m
Market CapUS$603.05m

Price to Sales Ratio vs Peers

How does LS3's PS Ratio compare to its peers?

The above table shows the PS ratio for LS3 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.6x
LXS LANXESS
0.3x2.9%€2.1b
ACT AlzChem Group
1x7.5%€582.1m
BAS BASF
0.6x4.5%€38.5b
SIM0 SIMONA
0.6xn/a€342.0m
LS3 LSB Industries
1.2x5.7%€603.0m

Price-To-Sales vs Peers: LS3 is expensive based on its Price-To-Sales Ratio (1.2x) compared to the peer average (0.6x).

Price to Sales Ratio vs Industry

How does LS3's PS Ratio compare vs other companies in the DE Chemicals Industry?

3 CompaniesPrice / SalesEstimated GrowthMarket Cap
2HRA H&R GmbH KGaA
0.1x2.7%US$135.97m
NSAK OTI Greentech
0.03xn/aUS$743.21k
B7Y Byotrol
0.04xn/aUS$246.97k
No more companies available in this PS range
LS3 1.2xIndustry Avg. 1.0xNo. of Companies6PS00.40.81.21.62+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: LS3 is expensive based on its Price-To-Sales Ratio (1.2x) compared to the European Chemicals industry average (1x).

Price to Sales Ratio vs Fair Ratio

What is LS3's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LS3 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.2x
Fair PS Ratio0.2x

Price-To-Sales vs Fair Ratio: LS3 is expensive based on its Price-To-Sales Ratio (1.2x) compared to the estimated Fair Price-To-Sales Ratio (0.2x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst LS3 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€7.90
€9.73
+23.1%
21.1%€13.89€7.41n/a6
Nov ’25€7.35
€9.65
+31.3%
21.1%€13.79€7.36n/a6
Oct ’25€7.20
€8.86
+23.1%
22.8%€13.59€7.25n/a7
Sep ’25€7.05
€9.22
+30.8%
22.3%€13.74€7.33n/a7
Aug ’25€8.45
€9.37
+10.9%
21.7%€13.90€7.41n/a7
Jul ’25€7.25
€9.39
+29.5%
21.9%€13.97€7.45n/a7
Jun ’25€8.90
€9.35
+5.0%
20.3%€13.89€7.41n/a8
May ’25€8.55
€9.05
+5.8%
22.5%€14.05€7.49n/a8
Apr ’25€7.97
€8.84
+10.9%
23.3%€13.91€7.18n/a8
Mar ’25€6.65
€10.70
+60.9%
38.6%€21.28€7.40n/a8
Feb ’25€7.07
€11.11
+57.1%
35.5%€21.29€8.33n/a8
Jan ’25€8.39
€11.57
+38.0%
31.5%€21.09€9.17n/a8
Dec ’24€8.21
€11.57
+41.0%
31.5%€21.09€9.17n/a8
Nov ’24€8.09
€13.55
+67.5%
27.0%€22.92€10.51€7.358
Oct ’24€9.58
€12.94
+35.1%
27.0%€21.90€10.04€7.208
Sep ’24€9.48
€12.94
+36.5%
27.0%€21.90€10.04€7.058
Aug ’24€9.95
€13.03
+31.0%
26.8%€21.85€10.02€8.458
Jul ’24€9.23
€13.17
+42.7%
27.6%€21.99€9.16€7.258
Jun ’24€8.72
€13.35
+53.1%
27.6%€22.10€9.21€8.908
May ’24€7.85
€15.27
+94.5%
24.8%€21.88€9.12€8.558
Apr ’24€9.45
€17.84
+88.7%
14.4%€22.24€14.82€7.978
Mar ’24€12.90
€18.63
+44.4%
13.5%€22.68€15.12€6.657
Feb ’24€11.30
€19.32
+71.0%
14.6%€23.92€16.56€7.077
Jan ’24€12.60
€20.23
+60.6%
10.2%€24.28€18.68€8.396
Dec ’23€13.90
€21.12
+51.9%
10.0%€24.95€19.20€8.217
Nov ’23€18.10
€22.67
+25.2%
10.3%€26.09€20.07€8.095

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

Discover undervalued companies

Stanmore Resources

AU$2.8b

Engages in the exploration, development, production, and sale of metallurgical coal in Australia.

S0D

AU$1.82

7D

-4.2%

1Y

-18.0%

Arkema

€5.9b

Manufactures and sells specialty chemicals and advanced materials worldwide.

V1S

€78.00

7D

-1.9%

1Y

-16.1%

African Rainbow Minerals

R31.4b

Through its subsidiaries, operates as a diversified mining and minerals company in South Africa and Switzerland.

EB9

R8.25

7D

-11.8%

1Y

0.6%