LSB Industries, Inc.

NYSE:LXU Stock Report

Market Cap: US$607.3m

LSB Industries Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • 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 LXU when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LXU ($8.42) is trading below our estimate of fair value ($14.5)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for LXU. This is calculated by dividing LXU's market cap by their current revenue.
What is LXU's PS Ratio?
PS Ratio1.2x
SalesUS$520.11m
Market CapUS$607.35m

Price to Sales Ratio vs Peers

How does LXU's PS Ratio compare to its 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.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.8x
CC Chemours
0.5x4.8%US$2.9b
HUN Huntsman
0.6x5.7%US$3.3b
UAN CVR Partners
1.5xn/aUS$764.4m
WLKP Westlake Chemical Partners
0.7x6.7%US$791.6m
LXU LSB Industries
1.2x5.7%US$607.3m

Price-To-Sales vs Peers: LXU is expensive based on its Price-To-Sales Ratio (1.2x) compared to the peer average (0.8x).

Price to Sales Ratio vs Industry

How does LXU's PS Ratio compare vs other companies in the US Chemicals Industry?

11 CompaniesPrice / SalesEstimated GrowthMarket Cap
TSE Trinseo
0.03x5.0%US$129.22m
ALTO Alto Ingredients
0.1x3.1%US$105.77m
CGA China Green Agriculture
0.3xn/aUS$24.85m
BON Bon Natural Life
0.2xn/aUS$5.35m
LXU 1.2xIndustry Avg. 1.4xNo. of Companies15PS01.22.43.64.86+
11 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: LXU is good value based on its Price-To-Sales Ratio (1.2x) compared to the US Chemicals industry average (1.4x).

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 Ratio1.2x
Fair PS Ratio0.6x

Price-To-Sales vs Fair Ratio: LXU is expensive based on its Price-To-Sales Ratio (1.2x) compared to the estimated Fair Price-To-Sales Ratio (0.6x).

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 LXU forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$8.42
US$10.50
+24.7%
21.1%US$15.00US$8.00n/a6
Nov ’25US$8.31
US$10.50
+26.4%
21.1%US$15.00US$8.00n/a6
Oct ’25US$8.12
US$9.79
+20.5%
22.8%US$15.00US$8.00n/a7
Sep ’25US$7.93
US$10.07
+27.0%
22.3%US$15.00US$8.00n/a7
Aug ’25US$9.36
US$10.11
+8.1%
21.7%US$15.00US$8.00n/a7
Jul ’25US$7.95
US$10.08
+26.8%
21.9%US$15.00US$8.00n/a7
Jun ’25US$9.81
US$10.09
+2.9%
20.3%US$15.00US$8.00n/a8
May ’25US$8.47
US$9.66
+14.0%
22.5%US$15.00US$8.00n/a8
Apr ’25US$8.74
US$9.53
+9.1%
23.3%US$15.00US$7.75n/a8
Mar ’25US$7.29
US$11.56
+58.6%
38.6%US$23.00US$8.00n/a8
Feb ’25US$7.76
US$12.00
+54.6%
35.5%US$23.00US$9.00n/a8
Jan ’25US$9.31
US$12.63
+35.6%
31.5%US$23.00US$10.00n/a8
Dec ’24US$9.05
US$12.63
+39.5%
31.5%US$23.00US$10.00n/a8
Nov ’24US$9.18
US$14.19
+54.5%
27.0%US$24.00US$11.00US$8.318
Oct ’24US$10.23
US$14.19
+38.7%
27.0%US$24.00US$11.00US$8.128
Sep ’24US$10.56
US$14.19
+34.4%
27.0%US$24.00US$11.00US$7.938
Aug ’24US$11.04
US$14.31
+29.6%
26.8%US$24.00US$11.00US$9.368
Jul ’24US$9.85
US$14.38
+45.9%
27.6%US$24.00US$10.00US$7.958
Jun ’24US$9.55
US$14.50
+51.8%
27.6%US$24.00US$10.00US$9.818
May ’24US$8.94
US$16.75
+87.4%
24.8%US$24.00US$10.00US$8.478
Apr ’24US$10.33
US$19.25
+86.4%
14.4%US$24.00US$16.00US$8.748
Mar ’24US$13.81
US$19.71
+42.8%
13.5%US$24.00US$16.00US$7.297
Feb ’24US$12.51
US$21.00
+67.9%
14.6%US$26.00US$18.00US$7.767
Jan ’24US$13.30
US$21.67
+62.9%
10.2%US$26.00US$20.00US$9.316
Dec ’23US$14.77
US$22.00
+49.0%
10.0%US$26.00US$20.00US$9.057
Nov ’23US$17.66
US$22.59
+27.9%
10.3%US$26.00US$20.00US$9.185

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.

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