Lsb Industries (LXU) AI Stock Analysis

• Market Cap: $587.07M
• Dividend Yield: N/A
• Average Volume (3M): 373.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.13
• Revenue Growth: 12.49%
• EPS Growth: 95.48%
• Country: US
• Employees: 583
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 0.10
• Shares Outstanding: 71,944,496
• 10 Day Avg. Volume: 411,777
• 30 Day Avg. Volume: 373,176
• PEG Ratio: 0.16
• Price to Book (P/B): 1.11
• Price to Sales (P/S): 1.05
• P/FCF Ratio: -95.53
• Enterprise Value/Market Cap: 1.58
• Enterprise Value/Revenue: 1.59
• Enterprise Value/Gross Profit: 13.42
• Enterprise Value/Ebitda: 8.29
• 1Y Price Target: $9.75
• Price Target Upside: 9.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: $9.00 ▲(1.12% Upside)

The overall stock score of 58 reflects a mixed financial performance with signs of recovery but ongoing profitability challenges. The positive sentiment from the earnings call and strategic initiatives provide some optimism, but valuation concerns and technical indicators suggest caution. The company's ability to improve operational efficiency and cash flow management will be crucial for future performance.

Positive Factors

Revenue Growth

The company's ability to rebound with positive revenue growth indicates resilience and potential for sustained market demand across its segments.

Free Cash Flow Generation

Resuming free cash flow generation after investment phases enhances financial flexibility, supporting future growth and operational initiatives.

Improved Financial Stability

Significant reduction in leverage indicates improved financial stability, reducing risk and enhancing the company's ability to invest in growth opportunities.

Negative Factors

Profitability Challenges

Persistent profitability issues, despite revenue growth, suggest operational inefficiencies that could hinder long-term financial health and investor confidence.

Declining Free Cash Flow Growth

A significant decline in free cash flow growth indicates potential liquidity constraints, impacting the company's ability to fund operations and strategic initiatives.

Higher Operating Costs

Rising operating costs can pressure margins and profitability, challenging the company's ability to maintain competitive pricing and operational efficiency.

Lsb Industries Business Overview & Revenue Model

Company Description

LSB Industries, Inc. engages in the manufacture, marketing, and sale of chemical products. The company provides nitrogen-based fertilizers, such as ammonia, fertilizer grade ammonium nitrate (HDAN), and urea ammonia nitrate for fertilizer and fertilizer blends for corn and other crops, and NPK fertilizer blends applications. It also offers high purity and commercial grade ammonia, high purity ammonium nitrate, sulfuric acids, mixed nitrating acids, carbon dioxide, and diesel exhaust fluids, as well as concentrated, and blended and regular nitric acids for various applications, including semi-conductor and polyurethane intermediates; pulp and paper, alum, water treatment, metals, and vanadium processing; power plant emissions abatement, water treatment, refrigerants, and metals processing; exhaust stream additive, and horticulture/greenhouse applications; and refrigeration. In addition, the company provides industrial grade ammonium nitrate, ammonium nitrate, and HDAN solutions for ammonium nitrate fuel oil and specialty emulsions for mining, surface mining, quarries, and construction applications. It sells its products through distributors, as well as directly to end customers in the United States, Mexico, and Canada. The company serves to the agricultural, industrial, and mining markets. LSB Industries, Inc. was founded in 1968 and is headquartered in Oklahoma City, Oklahoma.

How the Company Makes Money

Lsb Industries generates revenue primarily through the sale of its nitrogen-based fertilizers and industrial chemicals. The company’s key revenue streams include the production and distribution of ammonia, urea, and other related nitrogen products, which are sold to agricultural producers and industrial customers. Additionally, the Climate Control segment contributes to revenue through the sale of HVAC systems and related services. Significant factors affecting its earnings include the fluctuating prices of raw materials, demand for agricultural products, and the overall economic conditions affecting the construction and industrial sectors. Partnerships with agricultural cooperatives and distributors also enhance its market reach and sales volume.

Lsb Industries Financial Statement Overview

Summary

Lsb Industries shows signs of financial recovery with improved revenue growth and reduced leverage. However, persistent profitability challenges and declining free cash flow growth highlight areas of concern. The company must focus on enhancing operational efficiency and cash flow management to sustain its financial health.

Income Statement

The income statement shows a mixed performance. Gross profit margin improved to 11.82% in TTM, up from 9.15% in 2024, indicating better cost management. However, the net profit margin remains negative at -0.11%, reflecting ongoing profitability challenges. Revenue growth is positive at 8.58% TTM, recovering from a decline in 2024. The EBIT margin improved slightly to 2.25% TTM, but remains low, suggesting operational efficiency issues. Overall, the company shows signs of recovery but still faces profitability hurdles.

Balance Sheet

The balance sheet indicates a strong equity position with a low debt-to-equity ratio of 0.07 TTM, significantly reduced from 1.07 in 2024. This suggests improved financial stability and reduced leverage risk. However, the return on equity is negative at -0.12% TTM, highlighting profitability challenges. The equity ratio is strong, indicating a solid capital structure. Overall, the balance sheet reflects improved financial health but with ongoing profitability concerns.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth at -201.60% TTM, indicating cash generation issues. The operating cash flow to net income ratio is 0.48, suggesting moderate cash flow efficiency. The free cash flow to net income ratio is negative, reflecting cash flow challenges relative to profitability. Despite a strong operating cash flow in previous years, the recent decline in free cash flow growth is concerning.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	585.07M	522.40M	593.71M	901.71M	556.24M	351.32M
Gross Profit	69.15M	47.80M	86.26M	348.37M	138.98M	17.05M
EBITDA	111.94M	82.69M	120.70M	378.60M	158.31M	55.31M
Net Income	-668.00K	-19.35M	27.92M	230.35M	43.55M	-61.91M
Balance Sheet
Total Assets	1.15B	1.19B	1.30B	1.44B	1.13B	1.05B
Cash, Cash Equivalents and Short-Term Investments	151.97M	184.20M	305.93M	394.32M	82.14M	16.26M
Total Debt	486.36M	526.22M	619.99M	743.28M	559.93M	517.61M
Total Liabilities	644.94M	695.55M	779.85M	923.95M	672.35M	631.56M
Stockholders Equity	504.61M	491.64M	518.33M	515.87M	460.49M	421.74M
Cash Flow
Free Cash Flow	-2.98M	-5.72M	69.92M	299.82M	52.50M	-32.98M
Operating Cash Flow	81.55M	86.58M	137.52M	345.65M	87.63M	-2.51M
Investing Cash Flow	-51.64M	-53.08M	57.40M	-369.74M	-34.69M	-28.43M
Financing Cash Flow	-44.24M	-114.30M	-157.66M	5.71M	12.95M	24.41M

Lsb Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.90
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LXU, the sentiment is Positive. The current price of 8.9 is below the 20-day moving average (MA) of 9.00, below the 50-day MA of 8.92, and above the 200-day MA of 7.80, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 49.10 is Neutral, neither overbought nor oversold. The STOCH value of 18.37 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LXU.

Lsb Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ASIX	59 Neutral	$448.63M	8.69	6.62%	3.93%	-5.05%	35.01%
LXU	58 Neutral	$587.07M	-769.81	-0.13%	―	12.49%	95.48%
TROX	57 Neutral	$608.84M	―	-18.65%	7.49%	-7.81%	-334.15%
HUN	54 Neutral	$1.84B	―	-10.65%	9.43%	-3.46%	-191.77%
RYAM	49 Neutral	$409.40M	―	-78.11%	―	-9.75%	-386.63%
VHI	47 Neutral	$356.89M	3.66	1.78%	2.52%	-0.65%	-79.35%

Lsb Industries Corporate Events

LSB Industries Reports Strong Q3 2025 Financial Results

On October 30, 2025, LSB Industries released its financial results for the third quarter ending September 30, 2025, highlighting solid performance amidst a robust market environment. The company reported strong free cash flow generation and a positive outlook for its fertilizer and industrial end markets, driven by increased demand for ammonium nitrate and nitric acid. The company’s strategic initiatives, such as the Stockholder Rights Plan, aim to protect its net operating losses and tax attributes, while its ongoing investments in safety, reliability, and low carbon projects position it for long-term growth and shareholder value creation.