NYSE:LXU

Stock Analysis Report

Executive Summary

LSB Industries, Inc. manufactures and sells chemical products for the agricultural, mining, and industrial markets in the United States.

Snowflake

Fundamentals

Adequate balance sheet and fair value.

Risks

  • LSB Industries has significant price volatility in the past 3 months.
  • LSB Industries is covered by less than 3 analysts.

Similar Companies

Share Price & News

How has LSB Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-8.7%

NYSE:LXU

-0.05%

US Chemicals

0.2%

US Market


1 Year Return

-37.6%

NYSE:LXU

-16.1%

US Chemicals

-0.7%

US Market

LXU underperformed the Chemicals industry which returned -15.3% over the past year.

LXU underperformed the Market in United States of America which returned 0.3% over the past year.


Share holder returns

LXUIndustryMarket
7 Day-8.7%-0.05%0.2%
30 Day39.3%-4.5%-2.7%
90 Day5.1%-1.3%1.6%
1 Year-37.6%-37.6%-2.8%-16.1%1.6%-0.7%
3 Year-62.8%-62.8%33.9%9.3%40.0%30.9%
5 Year-88.6%-88.6%29.6%1.3%53.8%36.8%

Price Volatility Vs. Market

How volatile is LSB Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is LSB Industries undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

LSB Industries's share price is below the future cash flow value, and at a moderate discount (> 20%).

LSB Industries's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

LSB Industries is loss making, we can't compare its value to the US Chemicals industry average.

LSB Industries is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for LSB Industries, we can't assess if its growth is good value.


Price Based on Value of Assets

LSB Industries is good value based on assets compared to the US Chemicals industry average.


Next Steps

Future Growth

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

41.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

LSB Industries's revenue is expected to grow by 14.7% yearly, however this is not considered high growth (20% yearly).

LSB Industries is not considered high growth as it is expected to be loss making for the next 1-3 years.

LSB Industries's revenue growth is expected to exceed the United States of America market average.

Unable to compare LSB Industries's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.

Unable to compare LSB Industries's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if LSB Industries will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has LSB Industries performed over the past 5 years?

-36.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

LSB Industries does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare LSB Industries's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare LSB Industries's 1-year growth to the US Chemicals industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if LSB Industries has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if LSB Industries has efficiently used its assets last year compared to the US Chemicals industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if LSB Industries improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is LSB Industries's financial position?


Financial Position Analysis

LSB Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

LSB Industries's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

LSB Industries's level of debt (85.2%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (107% vs 85.2% today).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.4x debt.


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.

LSB Industries has sufficient cash runway for 1.9 years based on current free cash flow.

LSB Industries has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -107% each year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate LSB Industries's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate LSB Industries's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as LSB Industries has not reported any payouts.

Unable to verify if LSB Industries's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as LSB Industries has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of LSB Industries's salary, the management and board of directors tenure and is there insider trading?

3.0yrs

Average management tenure


CEO

Mark Behrman (56yo)

0.7yrs

Tenure

US$2,600,136

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 a ...


CEO Compensation Analysis

Mark's remuneration is higher than average for companies of similar size in United States of America.

Mark's compensation has increased whilst company is loss making.


Management Age and Tenure

3.0yrs

Average Tenure

59yo

Average Age

The tenure for the LSB Industries management team is about average.


Board Age and Tenure

4.3yrs

Average Tenure

64yo

Average Age

The tenure for the LSB Industries board of directors is about average.


Insider Trading

More shares have been bought than sold by LSB Industries individual insiders in the past 3 months.


Recent Insider Transactions

BuyUS$42,10019 Aug 19
Lynn White
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$4.21
BuyUS$99,20205 Aug 19
Mark Behrman
EntityIndividual
Role
Chief Executive Officer
President
Shares19,300
Max PriceUS$5.14
BuyUS$103,72701 Aug 19
Richard Roedel
EntityIndividual
Role
Chairman of the Board
Chairman & Lead Independent Director
Shares19,720
Max PriceUS$5.26
SellUS$10,21507 Nov 18
Richard Sanders
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,250
Max PriceUS$8.17

Ownership Breakdown


Management Team

  • Jack Golsen (90yo)

    Founder & Chairman Emeritus

    • Tenure: 0.0yrs
    • Compensation: US$484.44k
  • Mark Behrman (56yo)

    President

    • Tenure: 0.7yrs
    • Compensation: US$2.60m
  • John Diesch (62yo)

    Executive Vice President of Manufacturing

    • Tenure: 3.0yrs
    • Compensation: US$585.04k
  • Joe Rydlund

    Senior Vice President of Business Development

    • Tenure: 0.0yrs
  • Brian Haggart

    President of Trison Construction Inc

    • Tenure: 0.0yrs
  • Steve Golsen (66yo)

    President & COO of Climate Control Business

    • Tenure: 8.6yrs
    • Compensation: US$726.41k
  • Anne Rendon

    Senior VP of Industrial & Mining Sales

    • Tenure: 0.0yrs
  • Michael Foster (52yo)

    Executive VP

    • Tenure: 3.6yrs
    • Compensation: US$1.02m
  • Crystal Schroeder

    Vice President of Human Resources

    • Tenure: 2.3yrs
  • Cheryl Maguire (40yo)

    Senior VP & CFO

    • Tenure: 0.6yrs
    • Compensation: US$591.22k

Board Members

  • Jack Golsen (90yo)

    Founder & Chairman Emeritus

    • Tenure: 0.0yrs
    • Compensation: US$484.44k
  • Barry Golsen (68yo)

    Director

    • Tenure: 38.6yrs
    • Compensation: US$125.00k
  • Mark Behrman (56yo)

    President

    • Tenure: 0.7yrs
    • Compensation: US$2.60m
  • Rich Roedel (70yo)

    Chairman & Lead Independent Director

    • Tenure: 0.6yrs
    • Compensation: US$181.25k
  • Richard Sanders (62yo)

    Director

    • Tenure: 5.2yrs
    • Compensation: US$143.24k
  • Lynn White (66yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$160.00k
  • Jonathan Bobb (43yo)

    Director

    • Tenure: 4.6yrs
    • Compensation: US$132.50k
  • Kanna Kitamura (46yo)

    Director

    • Tenure: 0.7yrs

Company Information

LSB Industries, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: LSB Industries, Inc.
  • Ticker: LXU
  • Exchange: NYSE
  • Founded: 1968
  • Industry: Diversified Chemicals
  • Sector: Materials
  • Market Cap: US$129.526m
  • Shares outstanding: 28.78m
  • Website: https://www.lsbindustries.com

Number of Employees


Location

  • LSB Industries, Inc.
  • 3503 NW 63rd Street
  • Suite 500
  • Oklahoma City
  • Oklahoma
  • 73116
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LXUNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1969
LS3DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1969

Biography

LSB Industries, Inc. manufactures and sells chemical products for the agricultural, mining, and industrial markets in the United States. It provides nitrogen-based fertilizers, such as ammonia, fertilizer  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/20 23:38
End of Day Share Price2019/08/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.