LSB Industries (NYSE:LXU) - Share price, News & Analysis

LXU fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	3/6
Past Performance	0/6
Financial Health	3/6
Dividends	0/6

LXU Stock Overview

LSB Industries, Inc. engages in the manufacture, marketing, and sale of chemical products.

Rewards

Trading at 59.3% below our estimate of its fair value

Earnings are forecast to grow 84.75% per year

Risk Analysis

Shareholders have been substantially diluted in the past year

LSB Industries Competitors

Price History & Performance

Summary of all time highs, changes and price drops for LSB Industries
Historical stock prices
Current Share Price	US$13.44
52 Week High	US$27.45
52 Week Low	US$3.59
Beta	1.73
1 Month Change	-31.60%
3 Month Change	-42.42%
1 Year Change	176.02%
3 Year Change	348.00%
5 Year Change	69.14%
Change since IPO	898.40%

Recent News & Updates

Jun 22

LSB Industries (NYSE:LXU) Is Looking To Continue Growing Its Returns On Capital

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Ideally, a business...

May 29

LSB Industries: Still A Good Investment Against Inflation?

Volume decline offset by cost increases. Macro headwinds and strategic positioning play to LSB's favour. Volatile and at the mercy of commodities prices, we are neutral.

May 16

Why LSB Industries, Inc. (NYSE:LXU) Could Be Worth Watching

LSB Industries, Inc. ( NYSE:LXU ), is not the largest company out there, but it received a lot of attention from a...

Shareholder Returns

	LXU	US Chemicals	US Market
7D	-17.7%	3.6%	6.6%
1Y	176.0%	-8.3%	-18.5%

Return vs Industry: LXU exceeded the US Chemicals industry which returned -11.8% over the past year.

Return vs Market: LXU exceeded the US Market which returned -20.5% over the past year.

Price Volatility

Is LXU's price volatile compared to industry and market?
LXU volatility
LXU Average Weekly Movement	11.9%
Chemicals Industry Average Movement	6.8%
Market Average Movement	8.0%
10% most volatile stocks in US Market	16.6%
10% least volatile stocks in US Market	3.1%

Stable Share Price: LXU is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: LXU's weekly volatility (12%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1968	545	Mark Behrman	https://www.lsbindustries.com

LSB Industries, Inc. engages in the manufacture, marketing, and sale of chemical products. The company provides nitrogen-based fertilizers, such as ammonia, fertilizer grade ammonium nitrate (HDAN), and urea ammonia nitrate for fertilizer and fertilizer blends for corn and other crops, and NPK fertilizer blends applications. It also offers high purity and commercial grade ammonia, high purity ammonium nitrate, sulfuric acids, mixed nitrating acids, carbon dioxide, and diesel exhaust fluids, as well as concentrated, and blended and regular nitric acids for various applications, including semi-conductor and polyurethane intermediates; pulp and paper, alum, water treatment, metals, and vanadium processing; power plant emissions abatement, water treatment, refrigerants, and metals processing; exhaust stream additive, and horticulture/greenhouse applications; and refrigeration.

LSB Industries Fundamentals Summary

How do LSB Industries's earnings and revenue compare to its market cap?
LXU fundamental statistics
Market Cap	US$1.18b
Earnings (TTM)	-US$137.86m
Revenue (TTM)	US$657.10m

1.8x

P/S Ratio

-8.7x

P/E Ratio

Is LXU overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
LXU income statement (TTM)
Revenue	US$657.10m
Cost of Revenue	US$435.46m
Gross Profit	US$221.65m
Other Expenses	US$359.51m
Earnings	-US$137.86m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-1.54
Gross Margin	33.73%
Net Profit Margin	-20.98%
Debt/Equity Ratio	140.2%

How did LXU perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for LXU. This is calculated by dividing LXU's market cap by their current preferred multiple.
What is LXU's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$1.18b

LXU key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.4x
Enterprise Value/EBITDA	6.3x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

LXU PS Ratio vs Peers

The above table shows the PS ratio for LXU vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	0.8x

Forward PS

Price-To-Sales vs Peers: LXU is expensive based on its Price-To-Sales Ratio (1.8x) compared to the peer average (0.8x).

Price to Earnings Ratio vs Industry

How does LXU's PE Ratio compare vs other companies in the U.S. Chemicals Industry?

Price-To-Sales vs Industry: LXU is expensive based on its Price-To-Sales Ratio (1.8x) compared to the US Chemicals industry average (1.3x)

Price to Sales Ratio vs Fair Ratio

What is LXU'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.

LXU PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	1.8x
Fair PS Ratio	1.2x

Price-To-Sales vs Fair Ratio: LXU is expensive based on its Price-To-Sales Ratio (1.8x) compared to the estimated Fair Price-To-Sales Ratio (1.2x).

Share Price vs Fair Value

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

Below Fair Value: LXU ($13.44) is trading below our estimate of fair value ($33.03)

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

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate LXU's PEG Ratio to determine if it is good value.

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Future Growth

How is LSB Industries forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

84.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: LXU is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: LXU is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: LXU is expected to become profitable in the next 3 years.

Revenue vs Market: LXU's revenue is expected to decline over the next 3 years (-1.4% per year).

High Growth Revenue: LXU's revenue is forecast to decline over the next 3 years (-1.4% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if LXU's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has LSB Industries performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-15.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: LXU is currently unprofitable.

Growing Profit Margin: LXU is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: LXU is unprofitable, and losses have increased over the past 5 years at a rate of 15% per year.

Accelerating Growth: Unable to compare LXU's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: LXU is unprofitable, making it difficult to compare its past year earnings growth to the Chemicals industry (30.2%).

Return on Equity

High ROE: LXU has a negative Return on Equity (22.31%), as it is currently unprofitable.

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Financial Health

How is LSB Industries's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: LXU's short term assets ($529.4M) exceed its short term liabilities ($123.6M).

Long Term Liabilities: LXU's short term assets ($529.4M) do not cover its long term liabilities ($766.4M).

Debt to Equity History and Analysis

Debt Level: LXU's net debt to equity ratio (73.9%) is considered high.

Reducing Debt: LXU's debt to equity ratio has increased from 66.7% to 140.2% over the past 5 years.

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable LXU has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: LXU is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 62.2% per year.

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Dividend

What is LSB Industries's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate LXU's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate LXU's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if LXU's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LXU's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as LXU has not reported any payouts.

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Management

How experienced are the management team and are they aligned to shareholders interests?

2.9yrs

Average management tenure

CEO

Mark Behrman (58 yo)

3.5yrs

Tenure

US$3,482,297

Compensation

Mr. Mark T. Behrman has been President, Chief Executive Officer and Director of LSB Industries, Inc. since December 30, 2018. Mr. Behrman served as the Chief Financial Officer and Executive Vice President...

CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD3.48M) is about average for companies of similar size in the US market ($USD4.08M).

Compensation vs Earnings: Mark's compensation has increased whilst the company is unprofitable.

Leadership Team

Experienced Management: LXU's management team is considered experienced (2.9 years average tenure).

Board Members

Experienced Board: LXU's board of directors are considered experienced (7.2 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 129.4%.

Data	Last Updated (UTC time)
Company Analysis	2022/06/24 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31