LyondellBasell Industries may be undervalued with poor growth indicators, but the 21 analysts following the company give it an rating of hold. Their target prices range from $85.0 to $118.21 per share, for an average of $100.77. At today's price of $77.75, LyondellBasell Industries is trading -22.85% away from its average target price, suggesting there is an analyst consensus of strong upside potential for the stock.
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 20,000 full time employees. LyondellBasell Industries has provided a 6.4% dividend yield over the last 12 months.
LyondellBasell Industries has a trailing twelve month P/E ratio of 11.8, compared to an average of 25.42 for the Industrials sector. Considering its EPS guidance of $8.61, the company has a forward P/E ratio of 9.0.
On the other hand, the market is potentially undervaluing LyondellBasell Industries in terms of its book value because its P/B ratio is 1.84. In comparison, the sector average P/B ratio is 3.2. The company's shares are currently 2.4% below their Graham number, indicating that its shares have a margin of safety.
If analysts are giving the stock a bad rating, it's likely that they are looking beyond simple valaution metrics and attempting to forecast the company's growth potential. For example, LyondellBasell Industries has narrow margins as you can see in the financial summary below.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $39,004 | $34,727 | $27,753 | $46,173 | $50,451 | $41,107 |
| Operating Margins | 13% | 12% | 6% | 15% | 10% | 7% |
| Net Margins | 12% | 10% | 5% | 12% | 8% | 5% |
| Net Income (M) | $4,690 | $3,397 | $1,427 | $5,617 | $3,889 | $2,121 |
| Net Interest Expense (M) | $360 | $347 | $526 | $519 | $287 | $477 |
| Depreciation & Amort. (M) | $1,241 | $1,312 | $1,385 | $1,393 | $1,267 | $1,534 |
| Diluted Shares (M) | 395 | 372 | 334 | 334 | 328 | 326 |
| Earnings Per Share | $12.01 | $9.58 | $4.24 | $16.75 | $11.81 | $6.46 |
| EPS Growth | n/a | -20.23% | -55.74% | 295.05% | -29.49% | -45.3% |
| Avg. Price | $66.92 | $66.97 | $58.44 | $85.93 | $91.27 | $78.5 |
| P/E Ratio | 5.56 | 6.98 | 13.78 | 5.12 | 7.71 | 12.11 |
| Free Cash Flow (M) | $3,366 | $2,267 | $1,457 | $5,736 | $4,229 | $3,411 |
| CAPEX (M) | $2,105 | $2,694 | $1,947 | $1,959 | $1,890 | $1,531 |
| EV / EBITDA | 5.48 | 6.64 | 11.44 | 4.76 | 6.07 | 7.12 |
| Total Debt (M) | $9,382 | $12,059 | $15,949 | $11,608 | $10,889 | $10,450 |
| Net Debt / EBITDA | 1.4 | 2.06 | 4.82 | 1.24 | 1.37 | 1.54 |
| Current Ratio | 1.92 | 1.83 | 2.11 | 1.69 | 1.75 | 1.84 |
