📊 LXU Key Takeaways
Is Lsb Industries, Inc.. (LXU) a Good Investment?
LSB Industries demonstrates solid revenue growth of 17.8% YoY and maintains healthy liquidity metrics (2.78x current ratio), but profitability quality is concerning with declining net margins (4.0%) despite top-line expansion. The company's weak interest coverage ratio (1.9x) and significant debt burden ($441.1M) relative to equity create financial stress that limits financial flexibility.
LSB Industries shows improving top-line momentum and a meaningful rebound in diluted EPS, supported by positive operating cash flow and adequate short-term liquidity. However, growth quality is mixed because net income was flat, free cash flow remains thin after heavy capital spending, and interest coverage is weak for a leveraged balance sheet. The fundamentals support a neutral view until margin expansion and cash generation become more durable.
Why Buy Lsb Industries, Inc.. Stock? LXU Key Strengths
- Strong revenue growth of 17.8% YoY indicates solid demand and market position
- Excellent liquidity position with current ratio of 2.78x and quick ratio of 2.61x provides operational flexibility
- Positive operating cash flow of $95.5M demonstrates ability to generate cash from core operations
- Revenue growth of 17.8% YoY indicates solid demand or pricing improvement
- Current ratio of 2.78x and quick ratio of 2.61x suggest strong near-term liquidity
- Positive operating cash flow of $95.52M and positive free cash flow show the business is still cash generative
LXU Stock Risks: Lsb Industries, Inc.. Investment Risks
- Deteriorating profitability despite revenue growth suggests operational margin compression and rising costs
- Weak interest coverage ratio of 1.9x indicates limited ability to service debt obligations, creating refinancing risk
- Low net margin of 4.0% and minimal free cash flow of $18.1M (2.9% FCF margin) constrain reinvestment and shareholder returns
- High debt-to-equity ratio of 0.85x with $441.1M long-term debt limits financial flexibility for growth investments or adverse conditions
- Net margin of 4.0% and ROE of 4.7% indicate modest profitability relative to the asset and equity base
- Interest coverage of 1.9x leaves limited cushion if earnings weaken or borrowing costs stay elevated
- Free cash flow margin of 2.9% is low, with capital expenditures consuming most operating cash flow
Key Metrics to Watch
- Operating margin trends - monitor whether cost pressures continue to compress profitability
- Interest coverage ratio - track ability to service debt as it approaches critical 1.5x threshold
- Free cash flow conversion - assess whether company can improve FCF margin to support debt reduction
- Gross margin sustainability - determine if 17.0% margin can be maintained or if pricing power deteriorates
- Operating margin and interest coverage
- Free cash flow after capital expenditures
Lsb Industries, Inc.. (LXU) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 2.9% FCF margin may limit capital allocation flexibility. Strong liquidity with a 2.78x current ratio provides a solid financial cushion.
LXU Profit Margin, ROE & Profitability Analysis
LXU vs Materials Sector: How Lsb Industries, Inc.. Compares
How Lsb Industries, Inc.. compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Lsb Industries, Inc.. Stock Overvalued? LXU Valuation Analysis 2026
Based on fundamental analysis, Lsb Industries, Inc.. shows some fundamental concerns relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Lsb Industries, Inc.. Balance Sheet: LXU Debt, Cash & Liquidity
LXU Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Lsb Industries, Inc..'s revenue has grown significantly by 11% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.37 reflects profitable operations.
LXU Revenue Growth, EPS Growth & YoY Performance
LXU Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $109.2M | -$1.6M | $0.10 |
| Q2 2025 | $140.1M | $1.4M | $0.02 |
| Q1 2025 | $138.2M | -$1.6M | $-0.02 |
| Q3 2024 | $109.2M | $5.6M | $-0.10 |
| Q2 2024 | $140.1M | $5.6M | $0.13 |
| Q1 2024 | $138.2M | $5.6M | $0.08 |
| Q3 2023 | $114.3M | $2.3M | $0.03 |
| Q2 2023 | $165.8M | $15.9M | $0.33 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Lsb Industries, Inc.. Dividends, Buybacks & Capital Allocation
LXU SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Lsb Industries, Inc.. (CIK: 0000060714)
📋 Recent SEC Filings
❓ Frequently Asked Questions about LXU
What is the AI rating for LXU?
Lsb Industries, Inc.. (LXU) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are LXU's key strengths?
Claude: Strong revenue growth of 17.8% YoY indicates solid demand and market position. Excellent liquidity position with current ratio of 2.78x and quick ratio of 2.61x provides operational flexibility. ChatGPT: Revenue growth of 17.8% YoY indicates solid demand or pricing improvement. Current ratio of 2.78x and quick ratio of 2.61x suggest strong near-term liquidity.
What are the risks of investing in LXU?
Claude: Deteriorating profitability despite revenue growth suggests operational margin compression and rising costs. Weak interest coverage ratio of 1.9x indicates limited ability to service debt obligations, creating refinancing risk. ChatGPT: Net margin of 4.0% and ROE of 4.7% indicate modest profitability relative to the asset and equity base. Interest coverage of 1.9x leaves limited cushion if earnings weaken or borrowing costs stay elevated.
What is LXU's revenue and growth?
Lsb Industries, Inc.. reported revenue of $615.2M.
Does LXU pay dividends?
Lsb Industries, Inc.. does not currently pay dividends.
Where can I find LXU SEC filings?
Official SEC filings for Lsb Industries, Inc.. (CIK: 0000060714) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is LXU's EPS?
Lsb Industries, Inc.. has a diluted EPS of $0.34.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is LXU a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Lsb Industries, Inc.. has a HOLD rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is LXU stock overvalued or undervalued?
Valuation metrics for LXU: ROE of 4.7% (sector avg: 14%), net margin of 4.0% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy LXU stock in 2026?
Our dual AI analysis gives Lsb Industries, Inc.. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is LXU's free cash flow?
Lsb Industries, Inc..'s operating cash flow is $95.5M, with capital expenditures of $77.5M. FCF margin is 2.9%.
How does LXU compare to other Materials stocks?
Vs Materials sector averages: Net margin 4.0% (avg: 10%), ROE 4.7% (avg: 14%), current ratio 2.78 (avg: 1.6).