LyondellBasell Industries N.V. (NYSE: LYB)

Sector: Basic Materials Industry: Specialty Chemicals CIK: 0001489393
Market Cap 17.46 Bn
P/B 2.21
P/E 5.03
P/S 0.49
ROIC (Qtr) -3.93
Div Yield % 42.47
Rev 1y % (Qtr) -10.19
Total Debt (Qtr) 13.22 Bn
Debt/Equity (Qtr) 1.25

About

Price action

Investment thesis

Bull case

  • Operating cash flow of 2.67B provides strong 29.67x coverage of stock compensation 90M, indicating sustainable incentive practices.
  • Strong operating cash flow of 2.67B provides 1.61x coverage of SG&A expenses 1.66B, showing efficient operational cost management.
  • Operating cash flow of 2.67B provides exceptional 1335x coverage of minority interest expenses 2M, showing strong core operations.
  • Robust tangible asset base of 32.63B provides 8.35x coverage of working capital 3.90B, indicating strong operational backing.
  • Tangible assets of 32.63B provide robust 12.05x coverage of other current liabilities 2.71B, indicating strong asset backing.

Bear case

  • Operating cash flow of 2.67B barely covers its investment activities of (1.92B), with a coverage ratio of -1.39, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (1.92B) provide weak support for R&D spending of 142M, which is -13.52x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 2.67B provides thin coverage of dividend payments of (1.76B) with a -1.52 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 1.80B provide limited coverage of acquisition spending of (7M), which is -257.29x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of 2.67B provides minimal -14.28x coverage of tax expenses of (187M), suggesting potential tax planning inefficiencies or unsustainable tax positions.

Valuation allowances on net deferred tax assets by jurisdiction Breakdown of Revenue (2024)

Product and Service Breakdown of Revenue (2024)

Peer comparison

Companies in the Specialty Chemicals
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 LIN Linde Plc 218.63 Bn 38.41 6.61 25.93 Bn
2 SHW Sherwin Williams Co 110.34 Bn 170.54 11.54 13.58 Bn
3 ECL Ecolab Inc. 80.35 Bn 80.18 5.93 8.67 Bn
4 APD Air Products & Chemicals, Inc. 56.37 Bn 48.29 5.86 18.31 Bn
5 PPG Ppg Industries Inc 34.00 Bn 31.05 2.58 7.91 Bn
6 LYB LyondellBasell Industries N.V. 17.46 Bn 5.03 0.49 13.22 Bn
7 DD DuPont de Nemours, Inc. 16.63 Bn 3.65 0.32 8.90 Bn
8 ALB Albemarle Corp 14.44 Bn 48.94 6.36 3.63 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.82 1.52
EV to Cash from Ops. EV/CFO 5.55 12.52
EV to Debt EV to Debt 2.11 13.65
EV to EBIT EV/EBIT 6.29 21.45
EV to EBITDA EV/EBITDA 5.14 14.82
EV to Free Cash Flow [EV/FCF] EV/FCF 11.83 29.24
EV to Market Cap EV to Market Cap 1.60 3.84
EV to Revenue EV/Rev 0.79 89.11
Price to Book Value [P/B] P/B 2.21 5.48
Price to Earnings [P/E] P/E 5.03 16.02
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -0.69 -5.31
Dividend Payout Ratio % Div Payout % (Qtr) -144.50 -75.74
Dividend per Basic Share Div per Share (Qtr) 5.42 1.25
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 236.27 23.50
Interest Coverage Int. cover (Qtr) -1.95 -8.92
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -6.21 -1.67
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -31.65 72.99
Dividend Growth (1y) % Div 1y % (Qtr) 4.63 -3.00
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -131.24 -31.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -90.72 51.49
EBIT Growth (1y) % EBIT 1y % (Qtr) -129.21 0.57
EBT Growth (1y) % EBT 1y % (Qtr) -152.26 -80.35
EPS Growth (1y) % EPS 1y % (Qtr) -156.90 -90.82
FCF Growth (1y) % FCF 1y % (Qtr) -53.56 -50.40
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -38.03 219.02
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.96 0.70
Cash Payout Ratio Cash Payout (Qtr) 0.38 0.41
Cash Ratio Cash Ratio (Qtr) 0.26 1.28
Current Ratio Curr Ratio (Qtr) 1.57 3.42
Debt to Equity Ratio Debt/Equity (Qtr) 1.25 0.92
Interest Cover Ratio Int Coverage (Qtr) -1.95 -8.92
Times Interest Earned Times Interest Earned (Qtr) -1.95 -8.92
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 1.50 -333.97
EBIT Margin % EBIT Margin % (Qtr) -2.82 -374.34
EBT Margin % EBT Margin % (Qtr) -4.27 -379.75
Gross Margin % Gross Margin % (Qtr) 9.20 29.26
Net Profit Margin % Net Margin % (Qtr) -3.70 -380.67