LSB Industries Story

LXU -- USA Stock

USD 3.68 0.03 0.81%

Macroaxis Story

LSB Industries Receivables Turnover is comparatively stable at the moment as compared to the past year. LSB Industries reported Receivables Turnover of 7.87 in 2020. Accounts Payable Turnover is likely to gain to 9.07 in 2021, whereas Average Assets are likely to drop slightly above 1.2 B in 2021. As many millenniums are excited about basic materials space, it is only fair to review LSB Industries. I will take a closer look at this stock and the newest sentiment generated by private investors. Here I will also expose some primary fundamental factors affecting LSB Industries' services, and outline how it will impact the outlook for investors this year.

Published over two weeks ago

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LSB Industries (NYSE:LXU) continues to gain

LSB Industries reported the last year's revenue of 336.31 M. Reported Net Loss for the year was (104.26 M) with profit before taxes, overhead, and interest of 4.99 M. The company has Net Profit Margin of (20.2) %, which means that it does not effectively control expenditures or properly executes on its pricing strategies. This is way below average. In the same way, it shows Net Operating Margin of 12.81 %, which entails that for every 100 dollars of revenue, it generated 0.13 of operating income.

How important is LSB Industries's Liquidity

LSB Industries financial leverage refers to using borrowed capital as a funding source to finance LSB Industries ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. LSB Industries financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between LSB Industries's total debt and its cash.

How LSB Industries utilizes its cash?

To perform a cash flow analysis of LSB Industries, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash LSB Industries is receiving and how much cash it distributes out in a given period. The LSB Industries cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. LSB Industries Net Cash Flow from Operations is comparatively stable at the moment as compared to the past year. LSB Industries reported Net Cash Flow from Operations of 1.89 Million in 2020

Breaking down the case for LSB Industries

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. LSB Industries has an asset utilization ratio of 24.7 percent. This implies that the company is making $0.25 for each dollar of assets. An increasing asset utilization means that LSB Industries is more efficient with each dollar of assets it utilizes for everyday operations.

Are LSB Industries technical ratios showing a correction?

Newest value at risk is at -7.96. LSB Industries is displaying above-average volatility over the selected time horizon. Investors should scrutinize LSB Industries independently to ensure intended market timing strategies are aligned with expectations about LSB Industries volatility.

Our Final Take On LSB Industries

Whereas some companies within the chemicals industry are still a little expensive, even after the recent corrections, LSB Industries may offer a potential longer-term growth to private investors. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither buy nor quit any shares of LSB Industries at this time. The LSB Industries risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to LSB Industries.

About Contributor

Achuva Shats is a Member of Macroaxs Editorial Board. Achuva writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce View Profile

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of LSB Industries. Please refer to our Terms of Use for any information regarding our disclosure principles.

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