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LyondellBasell Industries

Executive Summary

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


Snowflake Analysis

Undervalued 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

Stable Share Price: LYB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.7%

LYB

-1.3%

US Chemicals

2.2%

US Market


1 Year Return

-14.7%

LYB

4.6%

US Chemicals

16.2%

US Market

Return vs Industry: LYB underperformed the US Chemicals industry which returned 4% over the past year.

Return vs Market: LYB underperformed the US Market which returned 15.9% over the past year.


Shareholder returns

LYBIndustryMarket
7 Day-4.7%-1.3%2.2%
30 Day-5.0%4.6%4.9%
90 Day20.6%21.2%17.8%
1 Year-9.9%-14.7%6.9%4.6%18.7%16.2%
3 Year-16.8%-27.3%22.3%-0.4%41.1%32.0%
5 Year-10.1%-27.5%50.2%17.5%74.5%55.7%

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?

44.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LYB ($64.81) is trading below our estimate of fair value ($116.31)

Significantly Below Fair Value: 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 (10.7x) compared to the US Chemicals industry average (23.9x).

PE vs Market: LYB is good value based on its PE Ratio (10.7x) compared to the US market (18x).


Price to Earnings Growth Ratio

PEG Ratio: LYB is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: LYB is overvalued based on its PB Ratio (2.9x) 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 19 analysts?

21.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LYB's forecast earnings growth (21.5% per year) is above the savings rate (2.2%).

Earnings vs Market: LYB's earnings (21.5% per year) are forecast to grow slower than the US market (22.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: LYB's revenue (7.5% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: LYB's revenue (7.5% per year) is forecast to grow slower than 20% 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 (27.3%)


Next Steps

Past Performance

How has LyondellBasell Industries performed over the past 5 years?

-5.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LYB has high quality earnings.

Growing Profit Margin: LYB's current net profit margins (6.8%) are lower than last year (9.8%).


Past Earnings Growth Analysis

Earnings Trend: LYB's earnings have declined by 5.1% 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 (-44%) over the past year, making it difficult to compare to the Chemicals industry average (-19%).


Return on Equity

High ROE: Whilst LYB's Return on Equity (27.12%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is LyondellBasell Industries's financial position?


Financial Position Analysis

Short Term Liabilities: LYB's short term assets ($10.5B) exceed its short term liabilities ($4.4B).

Long Term Liabilities: LYB's short term assets ($10.5B) do not cover its long term liabilities ($19.6B).


Debt to Equity History and Analysis

Debt Level: LYB's debt to equity ratio (199.3%) is considered high.

Reducing Debt: LYB's debt to equity ratio has increased from 104.1% to 199.3% over the past 5 years.

Debt Coverage: LYB's debt is well covered by operating cash flow (33.2%).

Interest Coverage: LYB's interest payments on its debt are well covered by EBIT (7x coverage).


Balance Sheet


Next Steps

Dividend

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

6.48%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LYB's dividend (6.48%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: LYB's dividend (6.48%) is in the top 25% of dividend payers in the US market (4.54%)


Stability and Growth of Payments

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 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (69.3%), LYB's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LYB's dividends in 3 years are forecast to be well covered by earnings (47% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Bob Patel (53 yo)

5.58yrs

Tenure

US$15,943,313

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 ($USD15.94M) is above average for companies of similar size in the US market ($USD11.35M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Bhavesh Patel
CEO & Director5.58yrsUS$15.94m0.083%
$ 17.1m
Michael McMurray
Executive VP & CFO0.75yrUS$4.82mno data
Torkel Rhenman
Executive Vice President of Intermediates & Derivatives1.08yrsUS$2.77m0.0030%
$ 616.0k
Kenneth Lane
Executive Vice President of Global Olefins & Polyolefins1.08yrsUS$4.08m0.0024%
$ 499.9k
Jacinth Smiley
VP & Chief Accounting Officer2.33yrsno data0.00026%
$ 53.9k
James Seward
Senior Vice President of Research & Development1.08yrsno data0.0027%
$ 562.1k
David Kinney
Head of Investor Relationsno datano datano data
Jeffrey Kaplan
Executive VP & Chief Legal Officer5.42yrsUS$3.42m0.0074%
$ 1.5m
Dale Friedrichs
Senior Vice President of Human Resources0.83yrno data0.0012%
$ 248.9k
Michael VanDerSnick
Senior Vice President of Americas Manufacturing8.08yrsno datano data
Richard Roudeix
Senior Vice President of Olefins & Polyolefins5.42yrsno data0.0019%
$ 396.2k
Jean Gadbois
Senior Vice President of Europe5.17yrsno datano data

2.3yrs

Average Tenure

55yo

Average Age

Experienced Management: LYB's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bhavesh Patel
CEO & Director5.58yrsUS$15.94m0.083%
$ 17.1m
Stephen Cooper
Independent Director10.08yrsUS$321.24k0.0086%
$ 1.8m
Claire Farley
Independent Director6.5yrsUS$342.53k0.0040%
$ 831.7k
Nance Dicciani
Independent Director6.92yrsUS$354.34k0.0063%
$ 1.3m
Jacques Alfred Aigrain
Independent Chairman1.92yrsUS$685.94k0.0035%
$ 726.0k
Robin William Buchanan
Independent Director9.25yrsUS$314.55k0.013%
$ 2.6m
Jagjeet Bindra
Independent Director9.25yrsUS$332.04k0.0059%
$ 1.2m
Isabella Goren
Independent Director6.5yrsUS$332.04k0.0025%
$ 526.8k
Albert Manifold
Independent Director1.25yrsUS$257.50k0.00063%
$ 130.7k
Lincoln Benet
Independent Director5.17yrsUS$325.07k0.0014%
$ 300.8k
Michael Hanley
Independent Director1.75yrsUS$339.57k0.00041%
$ 85.0k

6.5yrs

Average Tenure

61yo

Average Age

Experienced Board: LYB's board of directors are considered experienced (6.5 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.


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 company bio, employee growth, exchange listings and data sources


Key Information

  • Name: LyondellBasell Industries N.V.
  • Ticker: LYB
  • Exchange: NYSE
  • Founded: 1955
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: US$20.741b
  • Shares outstanding: 333.84m
  • Website: https://www.lyondellbasell.com

Number of Employees


Location

  • LyondellBasell Industries N.V.
  • 1221 McKinney Street
  • Suite 300
  • Houston
  • Texas
  • 77010
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LYBNYSE (New York Stock Exchange)YesClass A Ordinary SharesUSUSDApr 2010
DLYDB (Deutsche Boerse AG)YesClass A Ordinary SharesDEEURApr 2010
LYB NBMV (Bolsa Mexicana de Valores)YesClass A Ordinary SharesMXMXNApr 2010
0EDDLSE (London Stock Exchange)YesClass A Ordinary SharesGBUSDApr 2010
L1YB34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 SHS UNSPONBRBRLJan 2020

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/05 00:24
End of Day Share Price2020/08/04 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.