Lsb Industries (LXU) AI Stock Analysis

• Market Cap: $613.12M
• Dividend Yield: N/A
• Average Volume (3M): 484.58K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.09
• Revenue Growth: -4.23%
• EPS Growth: -259.01%
• Country: US
• Employees: 583
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Chemicals
• EPS (TTM): -0.02
• Shares Outstanding: 71,877,950
• 10 Day Avg. Volume: 447,687
• 30 Day Avg. Volume: 484,582
• PEG Ratio: 0.02
• Price to Book (P/B): 2.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.76
• Enterprise Value/Market Cap: 2.95
• Enterprise Value/Revenue: 0.86
• Enterprise Value/Gross Profit: 45.28
• Enterprise Value/Ebitda: 5.36
• 1Y Price Target: $9.00
• Price Target Upside: 3.93% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 57 Neutral
• Price Target: $8.50 ▼(-1.85%Downside)

The overall stock score is primarily affected by financial performance challenges, with profitability and cash flow issues being significant concerns. Technical analysis shows a positive trend, providing some support. The valuation remains a weakness due to the negative P/E ratio. Earnings call and corporate events offer a mix of positive developments and challenges, influencing the final score.

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 makes money through the production and distribution of its nitrogen-based chemical products. The company's primary revenue streams are derived from the sale of fertilizers to agricultural customers and chemical products to industrial and mining clients. By operating manufacturing facilities strategically located to serve key markets efficiently, LSB Industries can optimize distribution costs and leverage economies of scale. Additionally, the company may engage in strategic partnerships and long-term supply agreements with key customers to secure a stable revenue base and enhance market reach. Fluctuations in commodity prices, agricultural demand, and industrial activity are significant factors influencing the company's earnings.

Lsb Industries Financial Statement Overview

Summary

LSB Industries faces profitability and cash flow challenges, with declining margins and negative free cash flow in the TTM. The balance sheet shows moderate leverage, but the company's financial position indicates pressures in maintaining profitability and liquidity. Continued focus on enhancing operational efficiency and cost control will be crucial moving forward.

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
	EBIT
-10.83M	-5.50M	51.78M	308.38M	28.68M	-15.54M
	EBITDA
75.92M	82.69M	120.70M	378.60M	170.99M	55.31M
	Net Income Common Stockholders
-26.62M	-19.35M	27.92M	230.35M	43.55M	-61.91M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
163.55M	184.20M	305.93M	394.32M	82.14M	16.26M
	Total Assets
1.18B	1.19B	1.30B	1.44B	1.13B	1.05B
	Total Debt
519.81M	518.81M	619.99M	743.28M	559.93M	517.61M
	Net Debt
504.78M	498.58M	521.49M	679.52M	477.78M	501.35M
	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: 8.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 8.66 is above the 20-day moving average (MA) of 7.82, above the 50-day MA of 6.79, and above the 200-day MA of 7.73, indicating a bullish trend. The MACD of 0.42 indicates Negative momentum. The RSI at 73.82 is Negative, neither overbought nor oversold. The STOCH value of 86.77 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	70 Neutral	$638.68M	7.63	11.26%	2.69%	6.03%	5079.05%
RYAM	61 Neutral	$259.09M	―	-10.12%	―	2.20%	34.71%
LXU	57 Neutral	$613.12M	―	-5.28%	―	-4.23%	-259.01%
ASPI	57 Neutral	$655.07M	―	-127.59%	―	245.97%	-16.23%
TROX	56 Neutral	$869.96M	―	-8.44%	9.09%	4.15%	57.25%
FF	54 Neutral	$190.98M	11.43	-3.29%	5.50%	-33.92%	-58.53%
Sector *	51 Neutral	$2.01B	-1.27	-21.11%	5.15%	2.92%	-30.46%

Lsb Industries Corporate Events

LSB Industries Holds Annual Stockholders Meeting

On May 15, 2025, LSB Industries, Inc. conducted its annual meeting of stockholders where key decisions were made, including the election of three directors to the board for terms ending in 2028, and the approval of a new long-term incentive plan. Additionally, Ernst & Young LLP was ratified as the company’s independent accounting firm for 2025, and a non-binding advisory vote approved the compensation for the company’s executive officers, reflecting shareholder support for the company’s strategic direction and governance.

The most recent analyst rating on (LXU) stock is a Buy with a $11.00 price target. To see the full list of analyst forecasts on Lsb Industries stock, see the LXU Stock Forecast page.

LSB Industries Reports Q1 2025 Financial Results

On April 30, 2025, LSB Industries, Inc. released its financial results for the first quarter of 2025, highlighting a 4% increase in sales volumes compared to the previous year, despite challenges posed by higher natural gas costs. The company reported strong demand for its fertilizer and industrial products, with UAN pricing and overall demand remaining robust. LSB is also progressing with its El Dorado low carbon ammonia project, which is on track for a late 2026 startup, and has achieved pre-certification status for low carbon ammonia production.

LSB Industries Appoints Riccardo Bertocco to Board

On April 9, 2025, Richard S. Sanders, Jr. announced his decision not to seek reelection to LSB Industries’ Board of Directors, with his term ending at the 2025 Annual Meeting. Concurrently, the Board appointed Riccardo Bertocco as a new director, effective immediately, who brings extensive experience in management consulting and a focus on energy transition and renewables. This change reflects LSB’s strategic focus on enhancing operational excellence and exploring future opportunities in low carbon markets.

LSB Industries Announces Leadership Changes Amidst Growth Plans

In August 2024, LSB Industries announced the immediate retirement of Richard Roedel as Chairman of the Board due to personal health reasons. Mark Behrman, the company’s President and CEO, has been elected as the new Chairman, while Lynn White has been appointed as Lead Independent Director. This leadership transition aims to maintain stability and continue the company’s growth trajectory, particularly in its pursuit of becoming a leader in the global energy transition. Roedel will remain on the board until a successor is found, ensuring an orderly transition.