LyondellBasell (LYB) AI Stock Analysis

• Market Cap: $17.96B
• Dividend Yield: 9.98%
• Average Volume (3M): 5.28M
• Price to Earnings (P/E): 73.3
• Beta (1Y): 0.80
• Revenue Growth: -14.12%
• EPS Growth: -89.22%
• Country: US
• Employees: 20,000
• Sector: Basic Materials
• Sector Strength: 64
• Industry: Chemicals - Specialty
• EPS (TTM): 0.62
• Shares Outstanding: 321,648,440
• 10 Day Avg. Volume: 4,248,297
• 30 Day Avg. Volume: 5,276,946
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.69
• Enterprise Value/Revenue: 0.80
• Enterprise Value/Gross Profit: 7.67
• Enterprise Value/Ebitda: 10.07
• 1Y Price Target: $58.54
• Price Target Upside: 7.81% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 14

• Rating: 61 Neutral
• Price Target: $62.00 ▲(14.18% Upside)

LyondellBasell's overall stock score reflects a mix of strengths and challenges. Strong cash flow management and strategic repositioning efforts are positive, but significant market challenges and high valuation concerns weigh on the score. The company's ability to navigate these challenges while maintaining shareholder returns will be crucial for future performance.

Positive Factors

Cost Management

Lyondell announced actions to preserve cash and its balance sheet, adding $600MM in incremental cash in 2025 and $500MM in 2026.

Dividend Commitment

Lyondell is committed to maintaining its dividend, offering an attractive yield for investors.

Financial Performance

The Americas Polyolefins business matched estimates, with higher prices and lower maintenance setting it up for better performance.

Negative Factors

Dividend Risk

Risks remain for Lyondell's dividend despite current safety, particularly if earnings decelerate.

Earnings Decline

Earnings are down significantly from previous years, with a 43% year-over-year decrease in EBITDA.

Market Headwinds

Ongoing headwinds have negatively impacted the second quarter, including a decline in polyethylene prices and lower volumes due to tariff uncertainty.

LyondellBasell Business Overview & Revenue Model

Company Description

LyondellBasell Industries N.V. is one of the largest plastics, chemicals, and refining companies in the world, headquartered in Houston, Texas. The company operates through two primary segments: Olefins and Polyolefins, which produce a range of products including polyethylene, polypropylene, and advanced polymer solutions, and Intermediates and Derivatives, which include products such as acetyls and propylene oxide. LyondellBasell serves various sectors, including packaging, automotive, construction, and consumer products, focusing on innovation and sustainability in its offerings.

How the Company Makes Money

LyondellBasell generates revenue primarily through the production and sale of its chemical and polymer products. The company's key revenue streams include the sale of olefins and polyolefins, which are used to manufacture a variety of everyday items. Additionally, the company earns income from its intermediates and derivatives segment, providing essential chemicals for numerous applications. Significant partnerships with major players in various industries enhance LyondellBasell's market reach and stability. The company's profitability is influenced by global demand for its products, fluctuations in raw material prices, and operational efficiencies, with a focus on maintaining competitive cost structures and optimizing production processes.

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	38.05B	40.30B	41.11B	50.45B	46.17B	27.75B
Gross Profit	3.95B	4.56B	5.26B	6.60B	8.78B	3.39B
EBITDA	3.01B	3.61B	4.64B	6.33B	8.70B	3.30B
Net Income	1.07B	1.36B	2.11B	3.88B	5.61B	1.42B
Balance Sheet
Total Assets	35.19B	35.75B	37.00B	36.37B	36.74B	35.40B
Cash, Cash Equivalents and Short-Term Investments	1.87B	3.38B	3.39B	2.15B	1.48B	2.46B
Total Debt	12.66B	12.92B	13.00B	13.18B	13.60B	17.49B
Total Liabilities	22.85B	23.16B	23.94B	23.74B	24.75B	27.30B
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	-1.90B	-1.95B	-3.41B	-6.38B	2.27B

LyondellBasell Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 54.30
• 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 Negative. The current price of 54.3 is above the 20-day moving average (MA) of 53.28, below the 50-day MA of 56.86, and below the 200-day MA of 63.34, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 47.44 is Neutral, neither overbought nor oversold. The STOCH value of 21.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LYB.

LyondellBasell Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EMN	69 Neutral	$7.97B	9.75	14.52%	4.81%	1.60%	-3.97%
DD	67 Neutral	$31.73B	40.24	0.31%	2.09%	4.55%	-130.25%
SQM	65 Neutral	$12.19B	26.11	9.29%	0.47%	-23.20%	1226.72%
PPG	64 Neutral	$24.73B	19.43	16.88%	2.51%	-10.59%	-7.79%
Sector *	61 Neutral	$10.27B	6.37	0.76%	2.91%	3.10%	-36.03%
LYB	61 Neutral	$17.96B	73.25	1.08%	9.98%	-14.12%	-89.22%
WLK	54 Neutral	$11.10B	25.36	-0.64%	2.40%	-3.00%	-124.79%

LyondellBasell Corporate Events

LyondellBasell Announces Sale of European Businesses

On June 5, 2025, LyondellBasell announced an agreement with AEQUITA for the sale of its olefins and polyolefins businesses in Europe, including sites in the UK, Spain, Germany, and France. This move is part of LyondellBasell’s strategic review and transformation plan to focus on core operations and value creation through circular and renewable solutions. The transaction, expected to close in the first half of 2026, involves a put option agreement and exclusive negotiations, with a potential loss on sale estimated between $700 million to $900 million due to various financial adjustments. The sale is anticipated to enhance LyondellBasell’s industry positioning by allowing it to concentrate on profitable leadership in the European market.