Company Overview
LyondellBasell Industries N.V. operates as a chemical company with a significant international footprint, maintaining operations across the United States, Germany, China, Mexico, Italy, Japan, France, Poland, the Netherlands, and other global markets. The enterprise functions within the Basic Materials sector, specifically targeting the Specialty Chemicals industry, which implies a focus on producing specialized chemical compounds and materials rather than bulk commodities. The company demonstrates substantial scale with a market capitalization of $25.92B and generates annual revenue of $30.15B, supported by a workforce of 18,970 employees. These financial magnitudes indicate that LyondellBasell is a major player in the chemical industry, commanding a significant valuation that reflects its extensive operational reach and established presence in global supply chains.
Financial Health
The company reported a trailing twelve-month revenue of $30.15B alongside a net income loss of $799,000,000, while maintaining an EBITDA of $2.18B. The substantial gap between the positive EBITDA of $2.18B and the negative net income of $-799,000,000 reveals a cost structure where significant non-operating expenses or interest costs are eroding operating profits to the point of a net loss. Despite the net income deficit, the entity generated free cash flow of $447.00M, which provides a critical buffer for financial flexibility and indicates that core operations are capable of generating cash even when accounting for expenses exceeds earnings. The gross margin stands at 9.0%, suggesting that after the cost of goods sold, the company retains a modest portion of revenue as gross profit. The operating margin is reported at -0.9%, indicating that operating expenses have exceeded gross profits, while the profit margin sits at -2.5%, confirming the overall unprofitability on a net basis. Regarding liquidity and leverage, the company holds $3.44B in cash against total debt of $14.71B, resulting in a debt-to-equity ratio of 144.16, which characterizes a highly leveraged balance sheet. The current ratio of 1.77 indicates that the company possesses sufficient short-term assets to cover its short-term liabilities, suggesting adequate liquidity management despite the high leverage. Return on Equity is -6.9% and Return on Assets is 1.7%, metrics that reveal management is currently destroying shareholder value relative to equity and generating minimal returns on the total asset base utilized.
Valuation Assessment
Valuation metrics for LyondellBasell show a trailing P/E ratio listed as N/A due to the reported net losses, while the forward P/E is projected at 17.74, implying expectations for future earnings recovery to support a price-to-earnings multiple. The price-to-book ratio is 2.57, indicating that the market values the company at a significant premium over its tangible book value, likely reflecting intangible assets or strategic positioning not captured on the balance sheet. Alternative valuation measures include a price-to-sales ratio of 0.86 and an EV/EBITDA of 17.12, which suggest the company is trading at a discount relative to sales but maintains a valuation consistent with its cash-flow-generating capabilities when measured against earnings before interest, taxes, depreciation, and amortization. The stock has traded within a range defined by a 52-week high of $81.26 and a 52-week low of $41.58, with the current share price situated between these bounds. The beta value of 0.67 indicates that the stock price exhibits lower volatility relative to the broader market, moving less sharply than the overall market index during periods of fluctuation.
Growth & Income
Revenue growth year-over-year has declined by 9.2%, while earnings growth is listed as N/A due to the current period losses, suggesting that earnings are not growing in tandem with revenue and are instead contracting or absent. For dividend payers, the company offers a dividend yield of 6.0%, yet the payout ratio is 1146.8%, which indicates that the dividend payments far exceed the reported net income and are not sustainable based on current earnings performance. Given the negative net income, the company currently reinvests earnings—or rather, covers dividend obligations—through cash flow reserves rather than distributing actual profits generated from operations. The overall growth and income profile is characterized by negative revenue momentum and a highly leveraged balance sheet, yet it retains a high-yield dividend that investors must evaluate against the risk of payout sustainability given the financial constraints.