LyondellBasell Industries NV -- The Essentials

Now trading at a price of $96.61, LyondellBasell Industries NV has moved 0.6% so far today.

LyondellBasell Industries NV returned gains of 14.0% last year, with its stock price reaching a high of $101.3 and a low of $71.46. Over the same period, the stock outperformed the S&P 500 index by 4.0%. More recently, the company's 50-day average price was $93.85. LyondellBasell Industries N.V. operates as a chemical company in the United States, Germany, Mexico, Italy, Poland, France, Japan, China, the Netherlands, and internationally. Based in Houston, TX, the large-cap Industrials company has 19,300 full time employees. LyondellBasell Industries NV has offered a 5.0% dividend yield over the last 12 months.

Shareholders Are Confronted With a Declining EPS Growth Trend:

2018-02-22 2019-02-21 2020-02-20 2021-02-25 2022-02-24 2023-02-23
Revenue (MM) $34,484 $39,004 $34,727 $27,753 $46,173 $50,451
Gross Margins 19.0% 17.0% 16.0% 12.0% 19.0% 13.0%
Operating Margins 16% 13% 12% 8% 16% 10%
Net Margins 14.0% 12.0% 10.0% 5.0% 12.0% 8.0%
Net Income (MM) $4,879 $4,688 $3,390 $1,420 $5,610 $3,882
Net Interest Expense (MM) -$467 -$315 -$328 -$514 -$510 -$258
Depreciation & Amort. (MM) -$1,174 -$1,241 -$1,312 -$1,385 -$1,393 -$1,267
Earnings Per Share $12.35 $12.6 $9.11 $4.25 $16.8 $11.62
EPS Growth n/a 2.02% -27.7% -53.35% 295.29% -30.83%
Diluted Shares (MM) 395 372 372 334 334 334
Free Cash Flow (MM) $6,753 $7,576 $8,182 $5,351 $9,654 $8,009
Capital Expenditures (MM) -$1,547 -$2,105 -$2,694 -$1,947 -$1,959 -$1,890
Net Current Assets (MM) -$5,518 -$7,316 -$12,746 -$15,665 -$12,537 -$11,777
Long Term Debt (MM) $8,549 $8,497 $11,614 $15,286 $11,246 $10,540
Net Debt / EBITDA 0.87 1.26 2.03 3.83 1.15 1.42

LyondellBasell Industries NV has weak revenue growth and a flat capital expenditure trend, irregular cash flows, and a decent current ratio. We also note that the company benefits from average operating margins with a negative growth trend and healthy leverage. However, the firm suffers from slimmer gross margins than its peers and declining EPS growth.

LyondellBasell Industries NV's Earnings and Assets May Be Undervalued:

LyondellBasell Industries NV has a trailing twelve month P/E ratio of 14.5, compared to an average of 20.49 for the Industrials sector. Based on its EPS guidance of $9.95, the company has a forward P/E ratio of 9.4. The company doesn't issue forward earnings guidance, and the compound average growth rate of its last 6 years of reported EPS is -10.2%. On this basis, the company's PEG ratio is -1.42, which indicates that its shares are overpriced. In contrast, the market is likely undervaluing LyondellBasell Industries NV in terms of its equity because its P/B ratio is 2.42 while the sector average is 3.78. The company's shares are currently trading -3.3% below their Graham number.

There's an Analyst Consensus of Some Upside Potential for LyondellBasell Industries NV:

The 22 analysts following LyondellBasell Industries NV have set target prices ranging from $85.0 to $116.0 per share, for an average of $100.19 with a hold rating. As of April 2023, the company is trading -6.3% away from its average target price, indicating that there is an analyst consensus of some upside potential.

LyondellBasell Industries NV has an average amount of shares sold short because 2.0% of the company's shares are sold short. Institutions own 72.4% of the company's shares, and the insider ownership rate stands at 20.64%, suggesting a large amount of insider shareholders. The largest shareholder is Vanguard Group Inc, whose 10% stake in the company is worth $3,024,644,838.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.