📊 LYB Key Takeaways
Is LyondellBasell Industries N.V. (LYB) a Good Investment?
LyondellBasell exhibits severe operational deterioration with negative operating cash flow of -$269M, collapsed profitability (net income down 154% YoY), and flat revenue growth. The company carries substantial debt ($11.2B) with dangerously weak interest coverage (1.9x) while destroying shareholder value with ROE of 1.2% and ROA of 0.4%.
LyondellBasell’s latest fundamentals show a sharp deterioration in earnings quality, with revenue flat but margins collapsing into operating and net losses. While liquidity remains adequate and operating cash flow is still positive, free cash flow is thin relative to revenue and leverage looks uncomfortable given negative interest coverage. The business appears financially stable in the near term, but current profitability and cash generation do not support a stronger fundamental view.
LyondellBasell Industries N.V. Key Strengths (LYB)
- Adequate current ratio (1.54x) provides near-term liquidity buffer
- Cash position of $2.6B provides some operational flexibility
- Gross margins of 17% indicate underlying product pricing power
- Adequate near-term liquidity, with a 1.77x current ratio and $3.44B in cash
- Operating cash flow remained positive at $2.26B despite net losses
- Large asset base and equity of $10.08B provide some balance sheet support
LYB Stock Risks: LyondellBasell Industries N.V. Investment Risks
- Negative operating cash flow of -$269M indicates core business is not generating cash
- Negative free cash flow of -$538M with no evident path to recovery
- High leverage (1.12x debt/equity) with insufficient interest coverage (1.9x) creates vulnerability
- Profitability collapsed 154% YoY while revenue grew 0% - operational crisis
- Abysmal returns on equity and assets (1.2% and 0.4%) destroying shareholder capital
- Profitability has weakened materially, with negative operating margin, net margin, ROE, and ROA
- Interest coverage of -3.3x indicates debt servicing is pressured by weak earnings
- Free cash flow is only $384M, leaving limited cushion after capital spending
Key Metrics to Watch
- Operating cash flow trend - must return to positive territory
- Interest coverage ratio - current 1.9x leaves no margin for error
- Debt/equity ratio - must trend downward to reduce leverage risk
- Quarterly revenue and margin trends - need to stabilize decline
- Operating margin recovery and gross margin improvement
- Free cash flow generation relative to capex and debt burden
LyondellBasell Industries N.V. (LYB) Financial Metrics & Key Ratios
💡 AI Analyst Insight
LyondellBasell Industries N.V. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
LYB Profit Margin, ROE & Profitability Analysis
LYB vs Materials Sector: How LyondellBasell Industries N.V. Compares
How LyondellBasell Industries N.V. compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is LyondellBasell Industries N.V. Stock Overvalued? LYB Valuation Analysis 2026
Based on fundamental analysis, LyondellBasell Industries N.V. 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.
LyondellBasell Industries N.V. Balance Sheet: LYB Debt, Cash & Liquidity
LYB Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: LyondellBasell Industries N.V.'s revenue has declined by 26% over the 5-year period, indicating business contraction. The most recent EPS of $6.46 reflects profitable operations.
LYB Revenue Growth, EPS Growth & YoY Performance
LYB Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $7.2B | $125.0M | $0.38 |
| Q3 2025 | $7.7B | $573.0M | $1.75 |
| Q2 2025 | $7.7B | $115.0M | $0.34 |
| Q1 2025 | $7.7B | $177.0M | $0.54 |
| Q3 2024 | $10.3B | $573.0M | $1.75 |
| Q2 2024 | $10.3B | $715.0M | $2.18 |
| Q1 2024 | $9.9B | $473.0M | $1.44 |
| Q2 2023 | $10.1B | $715.0M | $2.18 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
LyondellBasell Industries N.V. Dividends, Buybacks & Capital Allocation
LYB SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for LyondellBasell Industries N.V. (CIK: 0001489393)
📋 Recent SEC Filings
❓ Frequently Asked Questions about LYB
What is the AI rating for LYB?
LyondellBasell Industries N.V. (LYB) has a Combined AI Grade of C from Claude (D) and ChatGPT (C) with 84% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are LYB's key strengths?
Claude: Adequate current ratio (1.54x) provides near-term liquidity buffer. Cash position of $2.6B provides some operational flexibility. ChatGPT: Adequate near-term liquidity, with a 1.77x current ratio and $3.44B in cash. Operating cash flow remained positive at $2.26B despite net losses.
What are the risks of investing in LYB?
Claude: Negative operating cash flow of -$269M indicates core business is not generating cash. Negative free cash flow of -$538M with no evident path to recovery. ChatGPT: Profitability has weakened materially, with negative operating margin, net margin, ROE, and ROA. Interest coverage of -3.3x indicates debt servicing is pressured by weak earnings.
What is LYB's revenue and growth?
LyondellBasell Industries N.V. reported revenue of $7.2B.
Does LYB pay dividends?
LyondellBasell Industries N.V. pays dividends, with $224.0M distributed to shareholders in the trailing twelve months.
Where can I find LYB SEC filings?
Official SEC filings for LyondellBasell Industries N.V. (CIK: 0001489393) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is LYB's EPS?
LyondellBasell Industries N.V. has a diluted EPS of $0.38.
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 grade reflects both perspectives for balanced insights.
What is LYB's fundamental grade?
Based on our AI fundamental analysis in June 2026, LyondellBasell Industries N.V. has a C grade with 84% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is LYB stock overvalued or undervalued?
Valuation metrics for LYB: ROE of 1.2% (sector avg: 14%), net margin of 1.7% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is LYB's AI grade for 2026?
Our dual AI analysis gives LyondellBasell Industries N.V. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is LYB's free cash flow?
LyondellBasell Industries N.V.'s operating cash flow is $-269.0M, with capital expenditures of $269.0M. FCF margin is -7.5%.
How does LYB compare to other Materials stocks?
Vs Materials sector averages: Net margin 1.7% (avg: 10%), ROE 1.2% (avg: 14%), current ratio 1.54 (avg: 1.6).