LyondellBasell (LYB) AI Stock Analysis

• Market Cap: $15.31B
• Dividend Yield: 11.04%
• Average Volume (3M): 4.79M
• Price to Earnings (P/E): 62.4
• Beta (1Y): 0.84
• Revenue Growth: -14.12%
• EPS Growth: -89.22%
• Country: US
• Employees: 20,000
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.62
• Shares Outstanding: 321,648,440
• 10 Day Avg. Volume: 4,179,958
• 30 Day Avg. Volume: 4,791,355
• PEG Ratio: -0.50
• Price to Book (P/B): 1.94
• Price to Sales (P/S): 0.60
• P/FCF Ratio: 12.19
• Enterprise Value/Market Cap: 1.98
• Enterprise Value/Revenue: 0.86
• Enterprise Value/Gross Profit: 9.06
• Enterprise Value/Ebitda: 14.81
• 1Y Price Target: $54.67
• Price Target Upside: 11.37% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 13

• Rating: 48 Neutral
• Price Target: $45.00 ▼(-8.33% Downside)

LyondellBasell's overall stock score is primarily impacted by weak financial performance and bearish technical indicators. The high P/E ratio suggests overvaluation, but the attractive dividend yield provides some support. The company's strategic focus on cash flow improvements is positive, but significant market challenges remain.

Positive Factors

Cash Improvement Plan

The focus on cash flow improvements through working capital and cost reductions indicates a strategic approach to enhance financial resilience and operational efficiency.

Strategic Portfolio Repositioning

By focusing on low-cost feedstocks and renewable resources, LyondellBasell is positioning itself for long-term sustainability and competitive advantage in the global market.

Resilient Shareholder Returns

Maintaining strong cash returns to shareholders despite market challenges demonstrates the company's commitment to shareholder value and financial stability.

Negative Factors

Challenging Market Conditions

The prolonged downturn in the petrochemical cycle poses risks to cash flow and earnings, necessitating strategic adjustments to navigate these challenges.

Pressure on Oxyfuels Margins

Sustained low margins in oxyfuels due to market conditions can impact profitability, requiring the company to seek alternative revenue streams or cost efficiencies.

European Market Challenges

The high costs and regulatory challenges in Europe threaten competitiveness, necessitating strategic shifts to mitigate regional risks and maintain market position.

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	35.15B	40.30B	41.11B	50.45B	46.17B	27.75B
Gross Profit	3.34B	4.56B	5.26B	6.60B	8.78B	3.39B
EBITDA	2.04B	3.61B	4.64B	6.33B	8.70B	3.30B
Net Income	261.00M	1.36B	2.11B	3.88B	5.61B	1.42B
Balance Sheet
Total Assets	35.35B	35.75B	37.00B	36.37B	36.74B	35.40B
Cash, Cash Equivalents and Short-Term Investments	1.70B	3.38B	3.39B	2.15B	1.48B	2.46B
Total Debt	13.23B	12.92B	13.00B	13.18B	13.60B	17.49B
Total Liabilities	23.32B	23.16B	23.94B	23.74B	24.75B	27.30B
Stockholders Equity	11.91B	12.46B	12.93B	12.62B	11.86B	7.97B
Cash Flow
Free Cash Flow	463.00M	1.98B	3.41B	4.23B	5.74B	1.46B
Operating Cash Flow	2.36B	3.82B	4.94B	6.12B	7.70B	3.40B
Investing Cash Flow	-1.96B	-1.85B	-1.78B	-1.98B	-1.50B	-4.91B
Financing Cash Flow	-1.60B	-1.90B	-1.95B	-3.41B	-6.38B	2.27B

LyondellBasell Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 49.09
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 49.09 is above the 20-day moving average (MA) of 47.33, below the 50-day MA of 51.12, and below the 200-day MA of 59.15, indicating a neutral trend. The MACD of -1.14 indicates Negative momentum. The RSI at 53.53 is Neutral, neither overbought nor oversold. The STOCH value of 88.77 is Negative, 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	―	$7.20B	8.81	14.52%	5.21%	1.60%	-3.97%
DD	―	$33.92B	―	0.31%	1.98%	4.55%	-130.25%
PPG	―	$23.36B	18.35	16.88%	2.61%	-10.59%	-7.79%
SQM	―	$12.65B	26.52	9.29%	―	-23.20%	1226.72%
Sector *	―	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
WLK	―	$10.16B	―	-0.64%	2.64%	-3.00%	-124.79%
LYB	―	$15.31B	62.43	1.08%	11.04%	-14.12%	-89.22%

LyondellBasell Corporate Events

LyondellBasell Amends Credit Agreement with Citibank

On September 10, 2025, LyondellBasell Industries N.V. and LYB Americas Finance Company LLC amended their Third Amended and Restated Credit Agreement with Citibank, N.A. as Administrative Agent, and Wells Fargo Bank as Syndication Agent. This amendment involves various lending institutions, potentially impacting the company’s financial operations and stakeholder relationships.

The most recent analyst rating on (LYB) stock is a Buy with a $65.00 price target. To see the full list of analyst forecasts on LyondellBasell stock, see the LYB Stock Forecast page.

LyondellBasell Reports Q2 2025 Earnings and Strategic Moves

LyondellBasell Industries is a global leader in the chemical industry, known for producing polymers and polyolefin technologies that contribute to sustainable living solutions. In its second quarter of 2025, LyondellBasell reported a net income of $115 million, with earnings per share of $0.34. Excluding identified items, net income rose to $202 million, or $0.62 per share. The company generated $606 million in EBITDA, which increased to $715 million when excluding identified items. LyondellBasell returned $536 million to shareholders through dividends and share repurchases, while maintaining a focus on operational and financial discipline. Key strategic moves included the planned sale of select European assets and deferring the Flex-2 project to optimize the business portfolio and preserve capital. The company also expanded its Cash Improvement Plan, aiming for significant cash improvements over 2025 and 2026. Looking ahead, LyondellBasell anticipates improved margins in North America and stable demand in Europe, while remaining cautious about global trade developments. The company is well-positioned to leverage market opportunities and continue creating long-term value for shareholders.

LyondellBasell Earnings Call: Safety Gains Amid Market Challenges

LyondellBasell Industries recently held its earnings call, revealing a mixed sentiment among stakeholders. While the company has made commendable strides in safety and cash flow improvements, it continues to grapple with challenging market conditions that have led to deferred investments and asset sales. Despite these hurdles, LyondellBasell has managed to maintain strong shareholder returns and operational enhancements, although broader market pressures persist.