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LYB

LyondellBasell Industries NYSE:LYB Stock Report

Last Price

US$86.03

Market Cap

US$27.9b

7D

-2.1%

1Y

-14.3%

Updated

06 Jul, 2022

Data

Company Financials +
LYB fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance5/6
Financial Health4/6
Dividends5/6

LYB Stock Overview

LyondellBasell Industries N.V. operates as a chemical company in the United States, Germany, Mexico, Italy, Poland, France, Japan, China, the Netherlands, and internationally.

LyondellBasell Industries Competitors

Price History & Performance

Summary of all time highs, changes and price drops for LyondellBasell Industries
Historical stock prices
Current Share PriceUS$86.03
52 Week HighUS$117.22
52 Week LowUS$83.09
Beta1.26
1 Month Change-21.67%
3 Month Change-14.14%
1 Year Change-14.31%
3 Year Change2.32%
5 Year Change0.36%
Change since IPO291.05%

Recent News & Updates

Jun 29

LyondellBasell signs first two U.S. renewable energy power purchase deals

LyondellBasell (NYSE:LYB) said Wednesday it signed its first two U.S. power purchase agreements, for 216 MW of renewable energy, estimated to generate 628K MWh/year of clean power, which the company said will advance its goal of procuring at least 50% of electricity from renewable sources by 2030. LyondellBasell signed a 12-year PPA with Engie North America (OTCPK:ENGIY) for 100 MW of renewable electricity sourced from Engie's new Limestone wind project in Texas, and a 10-year PPA with Buckeye Partners for 116 MW of renewable electricity sourced from its Files solar project in Texas. The company said ~15% of its scope 1 and 2 greenhouse gas emissions come from its electricity consumption, and the agreements will reduce its carbon dioxide emissions by 225K metric tons/year.

May 20

Why We Just Sold LyondellBasell Industries Stock

LYB has had strong performance momentum lately and is returning a lot of cash to shareholders while also deleveraging that balance sheet. While there is a lot to like about LYB, we want a portfolio of our highest conviction picks. We share why LYB is no longer a high conviction buy for us.

Shareholder Returns

LYBUS ChemicalsUS Market
7D-2.1%-1.8%0.7%
1Y-14.3%-12.5%-18.4%

Return vs Industry: LYB underperformed the US Chemicals industry which returned -12.2% over the past year.

Return vs Market: LYB exceeded the US Market which returned -18.4% over the past year.

Price Volatility

Is LYB's price volatile compared to industry and market?
LYB volatility
LYB Average Weekly Movement5.7%
Chemicals Industry Average Movement7.2%
Market Average Movement8.2%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.4%

Stable Share Price: LYB is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: LYB's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
200919,100Peter Z. Vanackerhttps://www.lyondellbasell.com

LyondellBasell Industries N.V. operates as a chemical company in the United States, Germany, Mexico, Italy, Poland, France, Japan, China, the Netherlands, and internationally. The company operates in six segments: Olefins and Polyolefins—Americas; Olefins and Polyolefins—Europe, Asia, International; Intermediates and Derivatives; Advanced Polymer Solutions; Refining; and Technology. It produces and markets olefins and co-products; polyolefins; polyethylene products, which consist of high density polyethylene, low density polyethylene, and linear low density polyethylene; and polypropylene (PP) products, such as PP homopolymers and copolymers.

LyondellBasell Industries Fundamentals Summary

How do LyondellBasell Industries's earnings and revenue compare to its market cap?
LYB fundamental statistics
Market CapUS$27.88b
Earnings (TTM)US$5.85b
Revenue (TTM)US$50.25b

4.8x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LYB income statement (TTM)
RevenueUS$50.25b
Cost of RevenueUS$40.86b
Gross ProfitUS$9.39b
Other ExpensesUS$3.54b
EarningsUS$5.85b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)17.86
Gross Margin18.69%
Net Profit Margin11.64%
Debt/Equity Ratio89.4%

How did LYB perform over the long term?

See historical performance and comparison

Dividends

5.5%

Current Dividend Yield

26%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings 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 LYB?

Other financial metrics that can be useful for relative valuation.

LYB 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/Revenue0.8x
Enterprise Value/EBITDA4.3x
PEG Ratio-0.7x

Price to Earnings Ratio vs Peers

How does LYB's PE Ratio compare to its peers?

LYB PE Ratio vs Peers
The above table shows the PE ratio for LYB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average6.8x
DOW Dow
5.4x-7.7%US$36.9b
WLK Westlake
4.9x-12.9%US$12.1b
OLN Olin
4.7x-3.6%US$6.8b
VVV Valvoline
12.1xn/aUS$5.3b
LYB LyondellBasell Industries
4.8x-6.5%US$27.9b

Price-To-Earnings vs Peers: LYB is good value based on its Price-To-Earnings Ratio (4.8x) compared to the peer average (6.8x).


Price to Earnings Ratio vs Industry

How does LYB's PE Ratio compare vs other companies in the US Chemicals Industry?

Price-To-Earnings vs Industry: LYB is good value based on its Price-To-Earnings Ratio (4.8x) compared to the US Chemicals industry average (14.9x)


Price to Earnings Ratio vs Fair Ratio

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

LYB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio4.8x
Fair PE Ratio14.1x

Price-To-Earnings vs Fair Ratio: LYB is good value based on its Price-To-Earnings Ratio (4.8x) compared to the estimated Fair Price-To-Earnings Ratio (14.1x).


Share Price vs Fair Value

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

Below Fair Value: LYB ($86.03) is trading below our estimate of fair value ($287.92)

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


Price to Earnings Growth Ratio

PEG Ratio: LYB's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


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Future Growth

How is LyondellBasell Industries forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-6.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LYB's earnings are forecast to decline over the next 3 years (-6.5% per year).

Earnings vs Market: LYB's earnings are forecast to decline over the next 3 years (-6.5% per year).

High Growth Earnings: LYB's earnings are forecast to decline over the next 3 years.

Revenue vs Market: LYB's revenue is expected to decline over the next 3 years (-7.2% per year).

High Growth Revenue: LYB's revenue is forecast to decline over the next 3 years (-7.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LYB's Return on Equity is forecast to be high in 3 years time (38.6%)


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Past Performance

How has LyondellBasell Industries performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-2.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: LYB has high quality earnings.

Growing Profit Margin: LYB's current net profit margins (11.6%) are higher than last year (8%).


Past Earnings Growth Analysis

Earnings Trend: LYB's earnings have declined by 2.7% per year over the past 5 years.

Accelerating Growth: LYB's earnings growth over the past year (149.3%) exceeds its 5-year average (-2.7% per year).

Earnings vs Industry: LYB earnings growth over the past year (149.3%) exceeded the Chemicals industry 30.2%.


Return on Equity

High ROE: LYB's Return on Equity (45.7%) is considered outstanding.


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Financial Health

How is LyondellBasell Industries's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: LYB's short term assets ($13.3B) exceed its short term liabilities ($7.5B).

Long Term Liabilities: LYB's short term assets ($13.3B) do not cover its long term liabilities ($17.5B).


Debt to Equity History and Analysis

Debt Level: LYB's net debt to equity ratio (75.4%) is considered high.

Reducing Debt: LYB's debt to equity ratio has reduced from 138.5% to 89.4% over the past 5 years.

Debt Coverage: LYB's debt is well covered by operating cash flow (75.2%).

Interest Coverage: LYB's interest payments on its debt are well covered by EBIT (16.6x coverage).


Balance Sheet


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Dividend

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

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


5.53%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: LYB's dividend (5.53%) is higher than the bottom 25% of dividend payers in the US market (1.61%).

High Dividend: LYB's dividend (5.53%) is in the top 25% of dividend payers in the US market (4.27%)


Stability and Growth of Payments

Stable Dividend: LYB's dividend payments have been volatile in the past 10 years.

Growing Dividend: LYB's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (25.7%), LYB's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (23.8%), LYB's dividend payments are well covered by cash flows.


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Management

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

2.8yrs

Average management tenure


CEO

Peter Z. Vanacker (56 yo)

0.17

Tenure

Mr. Peter Z. E. Vanacker is an Executive Director at LyondellBasell Industries N.V. since February 25, 2022. He has been Supervisory Board Member at Symrise AG since June 17, 2020. Mr. Vanacker was Preside...


Leadership Team

Experienced Management: LYB's management team is considered experienced (2.8 years average tenure).


Board Members

Experienced Board: LYB's board of directors are considered experienced (5.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: LYB insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

LyondellBasell Industries N.V.'s employee growth, exchange listings and data sources


Key Information

  • Name: LyondellBasell Industries N.V.
  • Ticker: LYB
  • Exchange: NYSE
  • Founded: 2009
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Implied Market Cap: US$27.884b
  • Shares outstanding: 327.62m
  • Website: https://www.lyondellbasell.com

Number of Employees


Location

  • LyondellBasell Industries N.V.
  • LyondellBasell Tower
  • 1 Houston Center
  • Houston
  • Texas
  • 77010
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/06 00:00
End of Day Share Price2022/07/06 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.