LyondellBasell (LYB) AI Stock Analysis

• Market Cap: $18.30B
• Dividend Yield: 9.41%
• Average Volume (3M): 4.61M
• Price to Earnings (P/E): 17.6
• Beta (1Y): 0.76
• Revenue Growth: -6.53%
• EPS Growth: -50.08%
• Country: US
• Employees: 20,000
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Chemicals - Specialty
• EPS (TTM): 0.33
• Shares Outstanding: 321,400,020
• 10 Day Avg. Volume: 3,542,136
• 30 Day Avg. Volume: 4,608,410
• PEG Ratio: -0.79
• Price to Book (P/B): 1.51
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.08
• Enterprise Value/Market Cap: 1.59
• Enterprise Value/Revenue: 0.18
• Enterprise Value/Gross Profit: 7.47
• Enterprise Value/Ebitda: 1.82
• 1Y Price Target: $65.93
• Price Target Upside: 8.65% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 15

LyondellBasell's overall stock score reflects a mix of strengths and challenges. Strong cash flow and strategic cost management initiatives are significant positives, but declining revenue, market volatility, and bearish technical indicators weigh heavily on the score. Although the high dividend yield and reasonable valuation offer some compensation, current market conditions and operational challenges present ongoing risks that require careful management.

Positive Factors

Dividends

Management exuded confidence around the financial health of the company and underscored its intention to keep increasing dividends as it has done through past ups and downs.

Financial Health

LyondellBasell is in a relatively good position with cash on hand, manageable leverage, and capex needs despite entering a downturn phase.

Negative Factors

Earnings

Earnings are depressed with a record low projected EBITDA for 2025.

Market Conditions

The company faces headwinds from a slowdown in demand due to macroeconomic conditions and steep US tariffs on China.

LyondellBasell Business Overview & Revenue Model

Company Description

LyondellBasell Industries N.V. operates as a chemical company in the United States, Germany, Mexico, Italy, Poland, France, Japan, China, the Netherlands, and internationally. The company operates in six segments: Olefins and Polyolefins Americas; Olefins and Polyolefins Europe, Asia, International; Intermediates and Derivatives; Advanced Polymer Solutions; Refining; and Technology. It produces and markets olefins and co-products; polyolefins; polyethylene products, which consist of high density polyethylene, low density polyethylene, and linear low density polyethylene; and polypropylene (PP) products, such as PP homopolymers and copolymers. The company also produces and sells propylene oxide and its derivatives; oxyfuels and related products; and intermediate chemicals, such as styrene monomers, acetyls, ethylene glycols, and ethylene oxides and derivatives. In addition, it produces and markets compounds and solutions, such as polypropylene compounds, engineered plastics, masterbatches, engineered composites, colors, and powders; and advanced polymers. Further, the company refines crude oil and other crude oils of varied types and sources into gasoline and distillates; develops and licenses chemical and polyolefin process technologies; and manufactures and sells polyolefin catalysts. LyondellBasell Industries N.V. was incorporated in 2009 and is headquartered in Houston, Texas.

How the Company Makes Money

LyondellBasell makes money primarily through the production and sale of chemical and plastic products. Its revenue model is centered around three main business segments: Olefins and Polyolefins, Intermediates and Derivatives, and Refining. Olefins and Polyolefins is the largest segment, generating revenue from the sale of basic chemicals and plastic resins like polyethylene and polypropylene. The Intermediates and Derivatives segment contributes through the production of propylene oxide and its derivatives, acetyls, and other chemicals that are key ingredients in numerous industrial processes. The Refining segment adds to the company's earnings by processing crude oil into refined products, such as gasoline and diesel. LyondellBasell's diverse portfolio and strategic partnerships with key industry players enhance its market presence and contribute significantly to its profitability.

LyondellBasell Financial Statement Overview

Summary

LyondellBasell faces challenges in revenue and profit margins, impacting its income statement. The balance sheet demonstrates a balanced capital structure with moderate leverage. Cash flow remains strong, highlighting efficient cash management. While the company shows some resilience, it must address revenue and profitability concerns to improve its financial standing.

Income Statement

LyondellBasell has experienced a decrease in revenue, with a TTM revenue of $38.04 billion compared to $40.30 billion in 2024. The gross profit margin for TTM is 10.24%, showing a decline from previous periods, indicating cost pressures or pricing challenges. The net profit margin stands at 2.41% for TTM, reflecting a decrease from the previous year, highlighting profitability concerns. However, the EBITDA margin of 6.82% for TTM is relatively stable, showing resilience in operational efficiency despite the revenue drop.

Balance Sheet

The debt-to-equity ratio for TTM is 1.03, indicating a balanced capital structure, though slightly leveraged. The return on equity (ROE) for TTM is 7.52%, showing a moderate return on shareholder investment. The equity ratio of 34.71% for TTM suggests a stable proportion of equity financing. Overall, the balance sheet reflects moderate leverage and reasonable equity financing, though the decline in equity compared to previous years is notable.

Cash Flow

The free cash flow for TTM is $1.998 billion, showing stability compared to previous periods. The operating cash flow to net income ratio is 3.65 for TTM, indicating strong cash generation relative to net income. The free cash flow to net income ratio of 2.18 for TTM supports the company's ability to generate sufficient cash. Overall, cash flow remains robust, supporting ongoing operations and potential investments.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
38.04B	40.30B	41.11B	50.45B	46.17B	27.75B
	Gross Profit
3.90B	4.56B	5.26B	6.60B	8.78B	3.39B
	EBIT
1.17B	1.82B	3.05B	5.10B	6.77B	2.49B
	EBITDA
2.97B	3.57B	4.64B	6.10B	8.94B	3.61B
	Net Income Common Stockholders
1.07B	1.36B	2.11B	3.88B	5.61B	1.42B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.87B	3.38B	3.39B	2.15B	1.48B	2.46B
	Total Assets
35.19B	35.75B	37.00B	36.37B	36.74B	35.40B
	Total Debt
12.66B	12.92B	13.00B	13.18B	13.60B	17.49B
	Net Debt
10.80B	9.55B	9.61B	11.02B	12.13B	15.73B
	Total Liabilities
22.85B	23.16B	23.94B	23.74B	24.87B	27.41B
	Stockholders Equity
12.21B	12.46B	12.93B	12.62B	11.86B	7.97B
Cash Flow		Free Cash Flow
1.51B	1.98B	3.41B	4.23B	5.74B	1.46B
	Operating Cash Flow
3.35B	3.82B	4.94B	6.12B	7.70B	3.40B
	Investing Cash Flow
-1.77B	-1.85B	-1.78B	-1.98B	-1.50B	-4.91B
	Financing Cash Flow
-2.03B	-1.89B	-1.95B	-3.41B	-6.38B	2.27B

LyondellBasell Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 60.68
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LYB, the sentiment is Neutral. The current price of 60.68 is above the 20-day moving average (MA) of 57.64, below the 50-day MA of 64.54, and below the 200-day MA of 78.57, indicating a neutral trend. The MACD of -1.63 indicates Negative momentum. The RSI at 52.99 is Neutral, neither overbought nor oversold. The STOCH value of 50.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LYB.

LyondellBasell Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EMN	68 Neutral	$8.95B	9.87	16.16%	4.23%	2.78%	1.50%
AVTR	66 Neutral	$8.19B	11.47	12.52%	―	-2.64%	173.69%
LYB	63 Neutral	$18.30B	17.61	7.19%	9.41%	-6.53%	-50.08%
PPG	63 Neutral	$24.84B	18.54	18.47%	2.46%	-7.67%	-0.58%
DD	63 Neutral	$27.94B	40.24	0.06%	2.32%	4.51%	-121.68%
WLK	56 Neutral	$10.26B	26.90	3.71%	2.59%	-1.27%	48.34%
Sector *	49 Neutral	$1.97B	-1.18	-21.24%	3.71%	1.29%	-31.16%

LyondellBasell Corporate Events

LyondellBasell Announces $500 Million Notes Offering

On May 6, 2025, LyondellBasell Industries and its subsidiary entered into an Underwriting Agreement with BofA Securities and Wells Fargo Securities for a $500 million public offering of 6.150% Guaranteed Notes due 2035. The issuance of these Notes, fully guaranteed by LyondellBasell, is expected to close on May 15, 2025, potentially strengthening the company’s financial position and market presence.

Spark’s Take on LYB Stock

According to Spark, TipRanks’ AI Analyst, LYB is a Neutral.

LyondellBasell’s stock reflects a cautious outlook with strengths in cash flow and strategic cost management initiatives. However, challenges in revenue decline, market volatility, and bearish technical indicators weigh on the score. The high dividend yield and reasonable valuation offer some compensation to investors amidst these challenges.

To see Spark’s full report on LYB stock, click here.

LyondellBasell Announces New Chief Accounting Officer

On March 11, 2025, LyondellBasell Industries N.V. announced the resignation of Chukwuemeka A. Oyolu, their Senior Vice President and Chief Accounting Officer, effective March 24, 2025. Matthew D. Hayes has been appointed to fill the role, bringing extensive experience from within the company and previous roles at Halliburton. This leadership change is expected to maintain the company’s robust financial management and reporting standards.