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Lsb Industries (LXU)
NYSE:LXU
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Lsb Industries
(NYSE:LXU)54Neutral
Lsb Industries (LXU) vs. S&P 500 (SPY)
Market Cap
$482.11M
Dividend YieldN/A
Average Volume (3M)380.81K
Price to Earnings (P/E)―
Beta (1Y)1.13
Revenue Growth-12.01%
EPS Growth-174.13%
CountryUS
Employees586
SectorBasic Materials
Sector Strength56
IndustryChemicals
Share Statistics
EPS (TTM)-0.27
Shares Outstanding71,849,396
10 Day Avg. Volume462,361
30 Day Avg. Volume380,812
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.96
Price to Cash Flow (P/CF)7.30
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$10.00Price Target Upside49.03% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Lsb Industries Business Overview & Revenue Model
Company DescriptionLSB Industries, Inc. (LXU) is an American company primarily engaged in the manufacturing and sale of chemical products. The company operates in the chemical sector and is known for producing agricultural and industrial chemicals. Its core products include nitrogen-based fertilizers, which are essential for crop production, and industrial chemicals used in various processes across different industries.
How the Company Makes MoneyLSB Industries generates revenue through the sale of its chemical products. The company's revenue streams are primarily derived from its two main segments: the agricultural market and the industrial market. In the agricultural sector, LSB Industries sells nitrogen-based fertilizers, which are crucial for enhancing crop yields and meeting global food demands. This segment includes products like ammonia, urea ammonia nitrate (UAN), and ammonium nitrate fertilizers. In the industrial sector, the company produces and sells chemicals like nitric acid and sulfuric acid, which are used in manufacturing processes, mining, and other industrial applications. Strategic partnerships and long-term supply agreements with agricultural and industrial enterprises contribute significantly to its earnings. The company's financial performance is influenced by factors such as commodity prices, seasonal demand for fertilizers, and the economic health of the industrial sectors it serves.
Lsb Industries Financial Statement Overview
Summary
Lsb Industries faces challenges with declining revenue and profitability, but improved its financial leverage and cash flow management. The company reduced debt, enhancing balance sheet stability, and generated strong cash flows despite operational losses. However, negative profit margins and declining returns on equity highlight areas for improvement. The company should focus on cost control and revenue growth to enhance profitability and shareholder returns.Income Statement
Lsb Industries has experienced a significant decline in revenue and profitability over the last year. The gross profit margin decreased from 14.5% in 2023 to 9.1% in 2024, reflecting higher costs or lower sales prices. Net income turned negative, leading to a net profit margin of -3.7% compared to 4.7% in the previous year. The EBIT and EBITDA margins also dropped to negative values, indicating operational challenges. The revenue growth rate declined by 12%, following a previous decline from 2022 to 2023.45
Neutral
Balance Sheet
The company's financial stability is mixed. The debt-to-equity ratio improved significantly to 0.04 in 2024 from 1.20 in 2023 due to debt reduction and increased equity, suggesting improved financial leverage. However, the return on equity turned negative at -2.7%, down from 5.4% in 2023, indicating inefficiencies in generating returns for shareholders. The equity ratio improved to 60.8%, showing a solid capital structure with a higher proportion of equity financing.60
Neutral
Cash Flow
Lsb Industries showed resilience in cash flow management. Operating cash flow remained robust at $86.58 million in 2024, contributing to a strong free cash flow position. The free cash flow growth rate surged by 23.8% from the previous year, indicating efficient cash management. The operating cash flow to net income ratio is high due to negative net income, suggesting a disconnect between accounting profit and cash generation.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 522.40M | 593.71M | 901.71M | 556.24M | 351.32M | Gross Profit |
| 47.80M | 86.26M | 348.37M | 138.98M | 17.05M | EBIT |
| -5.50M | 51.78M | 308.38M | 28.68M | -15.54M | EBITDA |
| 82.69M | 120.70M | 378.60M | 170.99M | 55.31M | Net Income Common Stockholders |
| -19.35M | 27.92M | 230.35M | 43.55M | -61.91M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 184.20M | 305.93M | 394.32M | 82.14M | 16.26M | Total Assets |
| 1.19B | 1.30B | 1.44B | 1.13B | 1.05B | Total Debt |
| 30.50M | 619.99M | 743.28M | 559.93M | 517.61M | Net Debt |
| 10.27M | 521.49M | 679.52M | 477.78M | 501.35M | Total Liabilities |
| 465.83M | 779.85M | 923.95M | 672.35M | 631.56M | Stockholders Equity |
| 721.36M | 518.33M | 515.87M | 460.49M | 421.74M |
| Cash Flow | Free Cash Flow | |||
| 86.58M | 69.92M | 299.82M | 52.50M | -32.98M | Operating Cash Flow |
| 86.58M | 137.52M | 345.65M | 87.63M | -2.51M | Investing Cash Flow |
| -53.08M | 57.40M | -369.74M | -34.69M | -28.43M | Financing Cash Flow |
| -114.30M | -157.66M | 5.71M | 12.95M | 24.41M |
Lsb Industries Technical Analysis
Negative
6.71
Price Trends
8.08
Negative
8.43
Negative
8.36
Negative
Market Momentum
-0.34
Positive
26.81
Positive
14.64
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LXU, the sentiment is Negative. The current price of 6.71 is below the 20-day moving average (MA) of 7.85, below the 50-day MA of 8.08, and below the 200-day MA of 8.36, indicating a bearish trend. The MACD of -0.34 indicates Positive momentum. The RSI at 26.81 is Positive, neither overbought nor oversold. The STOCH value of 14.64 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LXU.
Lsb Industries Risk Analysis
Lsb Industries disclosed 41 risk factors in its most recent earnings report. Lsb Industries reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Lsb Industries Peers Comparison
Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $13.74B | 12.02 | 24.43% | 2.56% | -10.48% | -13.78% | |
68 Neutral | $822.21M | 13.50 | 15.06% | 8.96% | -22.91% | -64.68% | |
63 Neutral | $7.33B | 42.32 | 1.52% | 3.60% | -18.79% | -84.24% | |
55 Neutral | $7.16B | 507.35 | 0.20% | 1.14% | -10.25% | -70.81% | |
54 Neutral | $482.11M | ― | -2.68% | ― | -12.01% | -174.13% | |
54 Neutral | $319.17M | ― | -44.87% | ― | -8.74% | -492.08% | |
47 Neutral | $2.64B | -4.00 | -31.55% | 3.33% | 2.93% | -29.90% |
* Basic Materials Sector Average
Performance Comparison
LXU
Lsb Industries
6.71
-0.43
-6.02%
CF
Cf Industries Holdings
75.28
-2.28
-2.94%
UAN
CVR Partners
72.23
15.09
26.41%
IPI
Intrepid Potash
24.13
2.99
14.14%
MOS
Mosaic Co
23.08
-7.25
-23.90%
YARIY
Yara International
13.95
-1.84
-11.65%
Lsb Industries Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -12.74% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant improvements in financial performance, production rates, and market demand, while addressing challenges related to planned turnarounds, regulatory uncertainties, and market conditions.Highlights
Significant Increase in Adjusted EBITDA
Adjusted EBITDA increased to $38 million in Q4 2024, up from $25 million in Q4 2023, despite a $7 million impact from a planned turnaround.
Record Production Rates and Safety Milestones
The Cherokee facility achieved record daily production rates for urea and UAN, and both Cherokee and Baytown facilities reported zero recordable injuries for 2024.
Strong Demand and Pricing in Industrial Markets
The company benefited from strong demand in industrial markets with increased sales volumes of ammonium nitrate solution, stable nitric acid pricing, and opportunities for future growth.
Enhanced Cash Flow and Reduced Leverage
Cash flow remains strong, with a leverage ratio below target, supported by $222 million in debt repurchases and the repurchase of 4.6 million shares over two years.
Lowlights
Impact of Planned Turnarounds
The planned turnaround at the Cherokee ammonia plant impacted Q4 EBITDA by an estimated $7 million.
Tariff and Market Uncertainties
Potential tariffs on Canadian imports may impact pricing, and uncertainties around European legislation and low-carbon ammonia demand could affect future business.
Challenges in EPA Permit Approval
The EPA's approval process for the Class 6 permit remains a key gating item for the El Dorado CCS project, affecting project timelines.
Company Guidance
During the LSB Industries Fourth Quarter 2024 Earnings Conference Call, the company reported a significant year-over-year increase in adjusted EBITDA, reaching $38 million, despite a $7 million impact from a planned turnaround at the Cherokee facility. The Cherokee site achieved a noteworthy milestone with zero recordable injuries for the year, while the Baytown nitric acid facility extended its injury-free record to nine years. The company also highlighted its ongoing investment in facility reliability and safety, with a total capital expenditure of $92 million for 2024, including $25 million for growth. Looking ahead, LSB forecasts increased ammonia production and sales volumes for 2025, alongside growth in downstream products like AN, nitric acid, and UAN. The company remains focused on enhancing margins through cost-plus pricing arrangements and expects capital expenditures to be between $80 million and $90 million in 2025. Additionally, LSB is closely monitoring energy transition projects and broader market dynamics, including tariffs and pricing trends in the nitrogen market.Lsb Industries Corporate Events
Business Operations and StrategyFinancial Disclosures
LSB Industries Reports Strong Q4 2024 Financial Results
Positive
Feb 27, 2025
On February 27, 2025, LSB Industries released its financial results for Q4 and the full year ending December 31, 2024. The company reported increased sales volumes of nitric acid and ammonium nitrate, supported by favorable nitrogen demand and pricing. The company also completed a turnaround of its Cherokee ammonia plant without injuries, and its low carbon ammonia projects are progressing. The stockholder rights plan remains in place to protect net operating losses, and the company has a solid balance sheet with a focus on capital allocation.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.