LYB

Considering an Investment in LyondellBasell Industries NV (LYB)? Read This!

Today we're going to take a closer look at large-cap Industrials company LyondellBasell Industries NV, whose shares are currently trading at $93.83. We've been asking ourselves whether the company is under or over valued at today's prices... let's perform a brief value analysis to find out!

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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 belongs to the Industrials sector, which has an average price to earnings (P/E) ratio of 20.49 and an average price to book (P/B) ratio of 3.78. In contrast, LyondellBasell Industries NV has a trailing 12 month P/E ratio of 13.4 and a P/B ratio of 2.3.

When we divide LyondellBasell Industries NV's P/E ratio by its expected EPS growth rate of the next five years, we obtain its PEG ratio of -3.35. Since it's negative, the company has negative growth expectations, and most investors will probably avoid the stock unless it has an exceptionally low P/E and P/B ratio.

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Year 2018 2019 2020 \ Revenue (MM) $39,004 $34,727 $27,753
Gross Margins 13% 12% 6%
Operating Margins 14% 12% 6%
Net Margins 12% 10% 9%
Net Income (MM) $4,698 $3,404 $2,580
Net Interest Expense (MM) $360 $347 $526
Depreciation & Amort. (MM) $1,241 $1,312 $1,385
Earnings Per Share $12.01 $9.58 $4.24

Year 2021 2022 2023
Revenue (MM) $46,173 $50,451 $42,265
Gross Margins 15% 10% 10%
Operating Margins 15% 10% 8%
Net Margins 12% 8% 5%
Net Income (MM) $5,623 $3,894 $2,295
Net Interest Expense (MM) $519 $287 $441
Depreciation & Amort. (MM) $1,393 $1,267 $1,488
Earnings Per Share $16.75 $11.81 $6.99

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.

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