LyondellBasell Story

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LYB -- USA Stock  

USD 69.62  0.60  0.85%

LyondellBasell Industries Average Assets are projected to increase significantly based on the last few years of reporting. The past year's Average Assets were at 30.4 Billion. The current year Earnings Before Interest Taxes and Depreciation Amortization EBITDA is expected to grow to about 6.3 B, whereas Invested Capital is forecasted to decline to about 33.9 B. LyondellBasell Industries is scheduled to announce its earnings today. The next earnings report is expected on the 6th of November 2020. As some conservatives are trying to avoid basic materials space, we'll go over LyondellBasell Industries NV a little further and explain its current market possibilities. We will evaluate if LyondellBasell Industries shares are reasonably priced going into August. We currently estimate LyondellBasell Industries as fairly valued. The real value is approaching 66.88 per share.
Published over a month ago
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Does LyondellBasell Industries (NYSE:LYB) has strong fundamental indicators based on the current build up?
Macroaxis provides unbiased advice on LyondellBasell Industries that should be used to complement current analysts and expert consensus on LyondellBasell Industries. Our investment recommendation engine determines the firm's potential to grow exclusively from the perspective of an investors' current risk tolerance and investing horizon.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include LyondellBasell Industries income statement, its balance sheet, and the statement of cash flows. Potential LyondellBasell Industries investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although LyondellBasell Industries investors may use each financial statement separately, they are all related. The changes in LyondellBasell Industries's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on LyondellBasell Industries's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages. The goal of LyondellBasell Industries fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of LyondellBasell Industries performance into the future periods or doing a reasonable stock valuation. The intrinsic value of LyondellBasell Industries shares is the value that is considered the true value of the share. If the intrinsic value LyondellBasell is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares LyondellBasell Industries. Please read more on our fundamental analysis page.

What is LyondellBasell Asset Breakdown?

LyondellBasell Industries NV reports assets on its Balance Sheet. It represents the amount of LyondellBasell resources that either has an existing economic value or will provide some form of benefits in the future. To get a better handle on how balance sheet or income statements item affect LyondellBasell volatility, please check the breakdown of all its fundamentals

Are LyondellBasell Industries Earnings Expected to grow?

The future earnings power of LyondellBasell Industries involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of LyondellBasell Industries factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. LyondellBasell Industries stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of LyondellBasell expected earnings.

And What about dividends?

A dividend is the distribution of a portion of LyondellBasell Industries earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. LyondellBasell Industries dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. LyondellBasell one year expected dividend income is about $7.77 per share.
LyondellBasell Industries Dividend Yield is projected to increase slightly based on the last few years of reporting. The past year's Dividend Yield was at 0.20. The current year Dividends per Basic Common Share is expected to grow to 20.66, whereas Preferred Dividends Income Statement Impact is forecasted to decline to about 6.3 M.
Last ReportedProjected for 2020
Preferred Dividends Income Statement ImpactM6.3 M
Payment of Dividends and Other Cash Distributions-1.5 B-1.6 B
Dividend Yield 0.20  0.22 
Dividends per Basic Common Share 19.15  20.66 
Investing in dividend-paying stocks, such as LyondellBasell Industries NV is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in LyondellBasell Industries must own a stock before its ex-dividend date to receive its next dividend. This type of analysis is very useful when you want to generate a past dividend schedule and payout information for LyondellBasell Industries. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for LyondellBasell Industries, but it might be worth checking our own buy vs. sell analysis

LyondellBasell Industries Gross Profit

LyondellBasell Industries Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing LyondellBasell Industries previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show LyondellBasell Industries Gross Profit growth over the last 10 years. Please check Gross Profit in more details.

Acquisition by Kim Foley of 1304 shares of LyondellBasell Industries subject to Rule 16b-3

Legal trades by LyondellBasell Industries insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
LyondellBasell insider trading alert for grant of stock options (right to buy) by Kim Foley, VP HSE Glob Eng & Turnarounds, on 4th of August 2020. This event was filed by Lyondellbasell Industries with SEC on 2020-08-04. Statement of changes in beneficial ownership - SEC Form 4. Kim Foley currently serves as vice president - health, safety and environment of LyondellBasell Industries [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Is LyondellBasell Industries valued fairly by the market?

Although in the United States, the Securities and Exchange Commission has enforced strong rules to prevent insiders from engaging in insider trading, finding insiders among active shareholders of LyondellBasell Industries is not uncomon. Institutional investors typically avoid acquiring a high percentage of LyondellBasell Industries stocks because performing such an act may violate securities laws. They are usually not investing their own money, but rather making investments on behalf of their clients. Let's take a look at how the ownership of LyondellBasell is distributed among investors.

Ownership Allocation

LyondellBasell Industries maintains a total of three hundred thirty-three million six hundred twenty thousand outstanding shares. Over half of LyondellBasell Industries outstanding shares are owned by institutional investors. These institutional investors are typically referred to corporate investors that shop for positions in a given instrument to benefit from reduced trade commissions. Consequently, these institutions are subject to different rules and regulation than regular investors in LyondellBasell Industries. Please watch out for any change in the institutional holdings of LyondellBasell Industries NV as this could mean something significant has changed or about to change at the company. Please note that no matter how much assets the company has, if the real value of the firm is less than the current market value, you may not be able to make money on it.

Retail Investors
6.98%
Insiders
23.42%
Institutions
69.6%
Retail Investors6.98
Insiders23.42
Institutions69.6
 2017 2018 2019 2020 (projected)
Interest Expense491 M360 M347 M434.63 M
Gross Profit6.42 B6.47 B5.43 B6.14 B

Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. LyondellBasell Industries has an asset utilization ratio of 146.94 percent. This suggests that the company is making $1.47 for each dollar of assets. An increasing asset utilization means that LyondellBasell Industries NV is more efficient with each dollar of assets it utilizes for everyday operations.

Current Assets
9.6 B
Assets Non Current
19.6 B
Current Assets9.61 Billion30.39
Assets Non Current19.58 Billion61.9
Goodwill2.44 Billion7.71

Our perspective of the current LyondellBasell Industries slip

Current Skewness is up to -0.08. Price may slip again. As of the 31st of July, LyondellBasell Industries secures the Risk Adjusted Performance of 0.1412, downside deviation of 3.89, and Mean Deviation of 2.71. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of LyondellBasell Industries, as well as the relationship between them. Strictly speaking, you can use this information to find out if the firm will indeed mirror its model of past prices, or the prices will eventually revert. We were able to break down nineteen technical drivers for LyondellBasell Industries, which can be compared to its peers in the industry. Please verify LyondellBasell Industries treynor ratio, as well as the relationship between the downside variance and kurtosis to decide if LyondellBasell Industries NV is priced some-what accurately, providing market reflects its recent price of 65.29 per share. Given that LyondellBasell Industries has jensen alpha of 0.0425, we recommend you to check LyondellBasell Industries's last-minute market performance to make sure the company can sustain itself at a future point.

Our Final Take On LyondellBasell Industries

Whereas some other entities within the specialty chemicals industry are still a little expensive, even after the recent corrections, LyondellBasell Industries may offer a potential longer-term growth to investors. Taking everything into account, as of the 31st of July 2020, our up-to-date 30 days buy-hold-sell advice on the company is Hold. We believe LyondellBasell Industries is fairly valued with below average probability of distress for the next two years.

About Contributor

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 Raphi Shpitalnik do not own shares of LyondellBasell Industries NV. Please refer to our Terms of Use for any information regarding our disclosure principles.

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