Lsb Industries (LXU) AI Stock Analysis

• Market Cap: $552.47M
• Dividend Yield: N/A
• Average Volume (3M): 450.80K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.12
• Revenue Growth: 2.60%
• EPS Growth: -1506.69%
• Country: US
• Employees: 583
• Sector: Basic Materials
• Sector Strength: 57
• Industry: Chemicals
• EPS (TTM): 0.04
• Shares Outstanding: 71,936,050
• 10 Day Avg. Volume: 418,956
• 30 Day Avg. Volume: 450,797
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.68
• Enterprise Value/Revenue: 1.76
• Enterprise Value/Gross Profit: 23.26
• Enterprise Value/Ebitda: 12.23
• 1Y Price Target: $8.75
• Price Target Upside: 6.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 50 Neutral
• Price Target: $8.00 ▼(-2.32% Downside)

The overall stock score of 50 reflects significant challenges in financial performance, particularly in profitability and cash flow management. Technical indicators suggest mixed momentum, while valuation metrics highlight concerns with a negative P/E ratio. Despite positive strategic shifts noted in the earnings call, the stock faces considerable headwinds.

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 chemical products, particularly nitrogen fertilizers, which are sold to agricultural producers and distributors. The company benefits from a diversified customer base, which includes farmers, agricultural cooperatives, and industrial clients. Key revenue streams include the sale of ammonia, ammonium nitrate, and other nitrogen-based products that are critical for crop production. Additionally, the Climate Control segment contributes to revenue through the sale and servicing of HVAC equipment. The company's financial performance is influenced by factors such as commodity prices, agricultural demand, and production capacity. Strategic partnerships with agricultural distributors and participation in the agricultural supply chain further enhance its revenue generation capabilities.

Lsb Industries Financial Statement Overview

Summary

The financial performance of LSB Industries shows challenges, with negative revenue growth and profitability issues. The company faces negative free cash flow, indicating struggles in cash management. The balance sheet is moderately leveraged, but overall financial stability and profitability need improvement.

Income Statement

The income statement indicates challenges with profitability. The TTM gross profit margin is approximately 7.56%, and the net profit margin is -5.04%, both reflecting a decline in profitability from prior periods. Revenue growth is negative compared to previous years, indicating potential demand issues or competitive pressures.

Balance Sheet

The balance sheet shows a moderately leveraged position, with a debt-to-equity ratio of around 1.06 in TTM. The equity ratio is 41.7%, suggesting some reliance on debt but still a fair amount of equity financing. ROE has declined, indicating reduced return on shareholders' equity.

Cash Flow

Cash flow analysis reveals negative free cash flow in TTM, indicating cash outflows surpassing inflows from operations and investments. The operating cash flow to net income ratio shows operational cash generation, but free cash flow to net income is negative, highlighting cash management challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	527.63M	522.40M	593.71M	901.71M	556.24M	351.32M
Gross Profit	39.90M	47.80M	86.26M	348.37M	138.98M	17.05M
EBITDA	75.92M	82.69M	120.70M	378.60M	170.99M	55.31M
Net Income	-26.62M	-19.35M	27.92M	230.35M	43.55M	-61.91M
Balance Sheet
Total Assets	1.18B	1.19B	1.30B	1.44B	1.13B	1.05B
Cash, Cash Equivalents and Short-Term Investments	163.55M	184.20M	305.93M	394.32M	82.14M	16.26M
Total Debt	527.17M	526.22M	619.99M	743.28M	559.93M	517.61M
Total Liabilities	685.38M	695.55M	779.85M	923.95M	672.35M	631.56M
Stockholders Equity	490.56M	491.64M	518.33M	515.87M	460.49M	421.74M
Cash Flow
Free Cash Flow	-26.35M	-5.72M	69.92M	299.82M	52.50M	-32.98M
Operating Cash Flow	68.53M	86.58M	137.52M	345.65M	87.63M	-2.51M
Investing Cash Flow	-106.25M	-53.08M	57.40M	-369.74M	-34.69M	-28.43M
Financing Cash Flow	-75.77M	-114.30M	-157.66M	5.71M	12.95M	24.41M

Lsb Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.19
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 8.19 is above the 20-day moving average (MA) of 7.77, above the 50-day MA of 8.08, and above the 200-day MA of 7.70, indicating a bullish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 57.02 is Neutral, neither overbought nor oversold. The STOCH value of 88.36 is Negative, 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
ASIX	67 Neutral	$546.55M	7.17	9.85%	3.06%	1.31%	796.76%
ASPI	58 Neutral	$829.98M	―	-551.61%	―	99.57%	-126.31%
FF	54 Neutral	$162.51M	11.43	-13.48%	6.20%	-51.14%	-165.98%
LXU	50 Neutral	$552.47M	―	-6.51%	―	2.60%	-1506.69%
RYAM	50 Neutral	$339.69M	―	-81.36%	―	-4.90%	-458.80%
TROX	45 Neutral	$581.79M	―	-14.11%	10.19%	0.20%	-292.54%
Sector *	44 Neutral	AU$1.54B	-7.28	-18.84%	4.39%	-0.73%	-40.90%

Lsb Industries Corporate Events

LSB Industries Reports Q2 2025 Financial Results

On July 30, 2025, LSB Industries released its financial results for the second quarter ending June 30, 2025, highlighting a 4% increase in sales volumes compared to Q1 2024, despite higher natural gas costs impacting adjusted EBITDA. The company is progressing with its El Dorado low carbon ammonia project, which has achieved pre-certification status for low carbon ammonia production, and is on track for a late 2026 startup, reflecting its strategic focus on sustainable product offerings.