NYSE:LYB

Stock Analysis Report

LyondellBasell Industries

Executive Summary

LyondellBasell Industries N.V. operates as a chemical company worldwide.

Snowflake

Fundamentals

Good value average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-2.2%

LYB

0.2%

US Chemicals

0.4%

US Market


1 Year Return

-8.0%

LYB

-5.4%

US Chemicals

6.9%

US Market

Return vs Industry: LYB underperformed the US Chemicals industry which returned -5.4% over the past year.

Return vs Market: LYB underperformed the US Market which returned 6.9% over the past year.


Shareholder returns

LYBIndustryMarket
7 Day-2.2%0.2%0.4%
30 Day-2.5%-1.9%-1.2%
90 Day2.2%-1.8%-0.4%
1 Year-3.3%-8.0%8.4%-5.4%9.3%6.9%
3 Year19.2%5.2%40.5%14.9%45.8%36.4%
5 Year13.6%-6.8%43.0%12.2%62.9%45.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is LyondellBasell Industries undervalued compared to its fair value and its price relative to the market?

43.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: LYB ($86.11) is trading below our estimate of fair value ($152.12)

Significantly Undervalued: LYB is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: LYB is good value based on its PE Ratio (9x) compared to the Chemicals industry average (19x).

PE vs Market: LYB is good value based on its PE Ratio (9x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: LYB is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: LYB is overvalued based on its PB Ratio (3x) compared to the US Chemicals industry average (2x).


Next Steps

Future Growth

How is LyondellBasell Industries forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

5.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LYB's forecast earnings growth (5.2% per year) is above the savings rate (2.7%).

Earnings vs Market: LYB's earnings (5.2% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: LYB's earnings are forecast to grow, but not significantly.

Revenue vs Market: LYB's revenue (4.9% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: LYB's revenue (4.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: LYB's Return on Equity is forecast to be high in 3 years time (36%)


Next Steps

Past Performance

How has LyondellBasell Industries performed over the past 5 years?

2.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: LYB's earnings have grown by 2.1% per year over the past 5 years.

Accelerating Growth: LYB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: LYB had negative earnings growth (-38%) over the past year, making it difficult to compare to the Chemicals industry average (-2.9%).


Return on Equity

High ROE: LYB's Return on Equity (33.4%) is considered high.


Return on Assets

ROA vs Industry: LYB has a higher Return on Assets than the Chemicals industry average last year.


Return on Capital Employed

ROCE Improving: LYB's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is LyondellBasell Industries's financial position?


Financial Position Analysis

Short Term Liabilities: LYB's short term assets ($11.1B) exceeds its short term liabilities ($7.5B)

Long Term Liabilities: LYB's short term assets (11.1B) do not cover its long term liabilities (12.8B)


Debt to Equity History and Analysis

Debt Level: LYB's debt to equity ratio (96.3%) is considered high

Reducing Debt: LYB's debt to equity ratio has increased from 63.3% to 96.3% over the past 5 years.

Debt Coverage: LYB's debt is well covered by operating cash flow (43.8%).

Interest Coverage: LYB's interest payments on its debt are well covered by EBIT (13.6x coverage).


Balance Sheet

Inventory Level: LYB has a high level of physical assets or inventory.

Debt Coverage by Assets: LYB's debt is covered by short term assets (assets are 1.060030x debt).


Next Steps

Dividend

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

4.88%

Current Dividend Yield


Dividend Yield vs Market

company4.9%marketbottom25%1.4%markettop25%3.7%industryaverage2.2%forecastin3Years5.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: LYB's dividend (4.88%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: LYB's dividend (4.88%) is in the top 25% of dividend payers in the US market (3.73%)

Stable Dividend: LYB has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: LYB's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (42.3%), LYB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LYB's dividends in 3 years are forecast to be well covered by earnings (35% payout ratio).


Next Steps

Management

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

4.2yrs

Average management tenure


CEO

Bob Patel (52yo)

4.8yrs

Tenure

US$18,206,797

Compensation

Mr. Bhavesh V. Patel, also known as Bob, has been President, Chief Executive Officer, and Director of Schulman, Inc. since August 21, 2018. Mr. Patel has been Chief Executive Officer of LyondellBasell Indu ...


CEO Compensation Analysis

Compensation vs. Market: Bob's total compensation ($USD18.21M) is about average for companies of similar size in the US market ($USD11.18M).

Compensation vs Earnings: Bob's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.2yrs

Average Tenure

56yo

Average Age

Experienced Management: LYB's management team is considered experienced (4.2 years average tenure).


Board Age and Tenure

5.9yrs

Average Tenure

66yo

Average Age

Experienced Board: LYB's board of directors are considered experienced (5.9 years average tenure).


Insider Trading

Insider Buying: LYB insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$57,042,26704 Sep 19
Access Industries, Inc.
EntityCompany
Shares764,501
Max PriceUS$74.87
BuyUS$498,87326 Aug 19
Bhavesh Patel
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares7,246
Max PriceUS$68.85
BuyUS$99,93514 Aug 19
Jagjeet Bindra
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,360
Max PriceUS$73.48
BuyUS$443,15007 Dec 18
Robin William Buchanan
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$88.63
BuyUS$209,076,19913 Nov 18
Access Industries, Inc.
EntityCompany
Shares2,186,973
Max PriceUS$96.18
BuyUS$153,273,19508 Nov 18
Access Industries, Inc.
EntityCompany
Shares1,602,455
Max PriceUS$96.80
BuyUS$121,035,73505 Nov 18
Access Industries, Inc.
EntityCompany
Shares1,310,572
Max PriceUS$93.10

Ownership Breakdown


Management Team

  • Thomas Aebischer (58yo)

    Executive VP & CFO

    • Tenure: 3.8yrs
    • Compensation: US$4.62m
  • Douglas Pike

    Head of Investor Relations

    • Tenure: 0yrs
  • Massimo Covezzi (61yo)

    Senior Vice President of Research & Development

    • Tenure: 14.2yrs
  • Bob Patel (52yo)

    CEO & Director

    • Tenure: 4.8yrs
    • Compensation: US$18.21m
  • Dan Coombs (62yo)

    Executive Vice President of Global Manufacturing

    • Tenure: 1yrs
    • Compensation: US$3.95m
  • Mike VanDerSnick (54yo)

    Senior Vice President of Americas Manufacturing

    • Tenure: 7.3yrs
  • Jacinth Smiley

    Chief Accounting Officer

    • Tenure: 1.5yrs
  • Jeff Kaplan (50yo)

    Executive VP & Chief Legal Officer

    • Tenure: 4.6yrs
    • Compensation: US$3.42m
  • Jim Seward

    Senior Vice President of Research & Development

    • Tenure: 0.8yrs

Board Members

  • Steve Cooper (73yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$314.48k
  • Rudy van der Meer (74yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$309.30k
  • Claire Farley (60yo)

    Independent Director

    • Tenure: 5.7yrs
    • Compensation: US$337.11k
  • Nance Dicciani (71yo)

    Independent Director

    • Tenure: 6.1yrs
    • Compensation: US$320.48k
  • Jacques Alfred Aigrain (65yo)

    Independent Chairman

    • Tenure: 1.1yrs
    • Compensation: US$612.44k
  • Rob Buchanan (67yo)

    Independent Director

    • Tenure: 8.4yrs
    • Compensation: US$310.09k
  • Jeet Bindra (71yo)

    Independent Director

    • Tenure: 8.4yrs
    • Compensation: US$347.11k
  • Bob Patel (52yo)

    CEO & Director

    • Tenure: 4.8yrs
    • Compensation: US$18.21m
  • Lincoln Benet (56yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$320.09k
  • Michael Hanley (53yo)

    Independent Director

    • Tenure: 0.9yrs
    • Compensation: US$97.56k

Company Information

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


Key Information

  • Name: LyondellBasell Industries N.V.
  • Ticker: LYB
  • Exchange: NYSE
  • Founded: 2005
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: US$28.868b
  • Shares outstanding: 335.25m
  • Website: https://www.lyondellbasell.com

Number of Employees


Location

  • LyondellBasell Industries N.V.
  • One Vine Street
  • 4th Floor
  • London
  • Greater London
  • W1J0AH
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LYBNYSE (New York Stock Exchange)YesClass A Ordinary SharesUSUSDApr 2010
DLYDB (Deutsche Boerse AG)YesClass A Ordinary SharesDEEURApr 2010
0EDDLSE (London Stock Exchange)YesClass A Ordinary SharesGBUSDApr 2010

Biography

LyondellBasell Industries N.V. operates as a chemical company worldwide. The company operates in six segments: Olefins and Polyolefins—Americas; Olefins and Polyolefins—Europe, Asia, International; Interme ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 00:08
End of Day Share Price2019/10/18 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.