Download PDF

1. Company Snapshot

1.a. Company Description

LyondellBasell Industries N.V. operates as a chemical company in the United States, Germany, Mexico, Italy, Poland, France, Japan, China, the Netherlands, and internationally.The company operates in six segments: Olefins and Polyolefins—Americas; Olefins and Polyolefins—Europe, Asia, International; Intermediates and Derivatives; Advanced Polymer Solutions; Refining; and Technology.It produces and markets olefins and co-products; polyolefins; polyethylene products, which consist of high density polyethylene, low density polyethylene, and linear low density polyethylene; and polypropylene (PP) products, such as PP homopolymers and copolymers.


The company also produces and sells propylene oxide and its derivatives; oxyfuels and related products; and intermediate chemicals, such as styrene monomers, acetyls, ethylene glycols, and ethylene oxides and derivatives.In addition, it produces and markets compounds and solutions, such as polypropylene compounds, engineered plastics, masterbatches, engineered composites, colors, and powders; and advanced polymers.Further, the company refines crude oil and other crude oils of varied types and sources into gasoline and distillates; develops and licenses chemical and polyolefin process technologies; and manufactures and sells polyolefin catalysts.


LyondellBasell Industries N.V. was incorporated in 2009 and is headquartered in Houston, Texas.

Show Full description

1.b. Last Insights on LYB

Breaking News: LyondellBasell Industries N.V. presented at the Goldman Sachs Industrials and Materials Conference 2025. The company's management discussed their strategy and outlook. No recent earnings release was mentioned in the transcript. Analysts at Goldman Sachs have a buy recommendation on the stock. Other analysts at various firms have a hold or buy recommendation. The company's presentation focused on their industry position and growth plans. Management addressed questions from analysts. The conference call transcript provides insights into the company's views on the market. Several firms have a positive outlook on the stock.

1.c. Company Highlights

2. LyondellBasell's Q3 Earnings: A Strong Cash Generation and Improving Demand Trends

LyondellBasell's (LYB) third-quarter results showed a significant improvement in financial performance, with earnings per share (EPS) coming in at $1.01, beating analyst estimates of $0.8. The company's revenue growth was not explicitly stated, but the cash generation capabilities were impressive, with a cash conversion rate of 135% in the third quarter, well above its long-term target of 80%. The company generated $983 million of cash from operating activities, an improvement of over 2.5x relative to the prior quarter.

Publication Date: Nov -04

📋 Highlights
  • Cash Conversion Rate Surpasses Target:: Reached 135%, exceeding the long-term target of 80%.
  • Operating Cash Flow Growth:: Generated $983 million in Q3, a 2.5x increase from the prior quarter.
  • Shareholder Returns:: Returned $443 million via dividends, supported by a $3.4 billion cash balance.
  • Cash Improvement Plan Progress:: On track to deliver $600 million incremental cash flow by 2025.
  • Capital Expenditure Reduction:: Cut 2026 CapEx to $1.2 billion, down from $1.4 billion, prioritizing cost efficiency.

Segment Performance

The company's Olefins and Polyolefins Americas segment showed improved profitability due to lower ethylene costs and reduced downtime. However, the segment is expected to face softer demand and higher costs in the fourth quarter. The Intermediates and Derivatives segment reported EBITDA of $303 million, with improved oxyfuels margins partially offset by planned maintenance downtime at the La Porte acetyls assets.

Cash Generation and Dividend

The company's cash improvement plan is on track to deliver $600 million of incremental cash flow by the end of 2025. LYB's CEO, Peter Vanacker, highlighted the improving demand trends in polyethylene markets, with North American demand up 2.5% year-over-year and European demand up 3% year-over-year. The company's dividend is secure, with a robust cash balance of $3.4 billion, providing a cushion. The dividend yield stands at 11.71%, an attractive return for investors.

Valuation Metrics

LYB's valuation metrics indicate a relatively high EV/EBITDA ratio of 82.97, suggesting that the company's EBITDA is not currently reflected in its enterprise value. However, the P/S Ratio is 0.46, indicating a relatively low revenue multiple. The company's ROE is negative, but the ROIC is 14.88%, indicating a return on invested capital.

Outlook

The company expects typical year-end seasonality and headwinds across most businesses, resulting in lower fourth-quarter profitability. However, LYB is optimistic about 2026, with potential for market share improvement, acetyls investments showing improvement, and additional PO/TBA capacity coming online. The company's strong balance sheet and focus on cash conversion will help navigate the downturn and capture market growth.

3. NewsRoom

Card image cap

LyondellBasell Industries N.V. (LYB) Presents at Goldman Sachs Industrials and Materials Conference 2025 Transcript

Dec -03

Source: seekingalpha.com

Card image cap

Undercovered Dozen: LyondellBasell, Block, Galaxy Digital And More

Dec -01

Source: seekingalpha.com

Card image cap

The Dark Side Of High-Yield CEFs And Covered Call ETFs

Nov -30

Source: seekingalpha.com

Card image cap

Investors Purchase High Volume of LyondellBasell Industries Call Options (NYSE:LYB)

Nov -29

Source: defenseworld.net

Card image cap

8 'Safer' Dividend Buys In Barron's 23 Better November Bets Than T-Bills

Nov -28

Source: seekingalpha.com

Card image cap

Should You Buy the 3 Highest Dividend-Paying Stocks in the S&P 500?

Nov -26

Source: fool.com

Card image cap

LyondellBasell to address 2025 Goldman Sachs Industrials and Materials Conference

Nov -25

Source: globenewswire.com

Card image cap

LyondellBasell: Post Buy Call Analysis - Lessons In Cyclical Timing And Dividend Sustainability

Nov -22

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.21%)

6. Segments

Olefins and Polyolefins - Americas

Expected Growth: 4.5%

Growing demand for polyethylene and polypropylene from packaging, automotive, and construction industries, driven by increasing urbanization, consumer spending, and substituting traditional materials with lighter and more sustainable options, will drive LyondellBasell's Olefins and Polyolefins growth in the Americas region.

Olefins and Polyolefins - Europe, Asia and International

Expected Growth: 4.5%

LyondellBasell's polyolefins and olefins production is driven by increasing demand for packaging materials in e-commerce and rising automotive production in Europe and Asia.

Intermediates & Derivatives

Expected Growth: 4.2%

Driven by increasing demand in packaging and construction, LyondellBasell Industries N.V. is expected to benefit from growth in the plastics and materials industry, supported by innovative product offerings and expanding production capacities

Refining

Expected Growth: 3.5%

Strong demand for transportation fuels and petrochemicals drives growth in LyondellBasell’s refining segment, supported by the company’s strategic investments in refining and capacity expansion.

Advanced Polymer Solutions

Expected Growth: 4.5%

Growing demand for advanced polymer solutions in automotive, construction, and packaging industries, driven by increasing focus on sustainability and efficiency, is expected to drive LyondellBasell's polymer business.

Technology

Expected Growth: 4.5%

LyondellBasell’s technology segment will benefit from growing global demand for polyolefins, driven by increasing use in packaging, automotive, and construction applications.

Other

Expected Growth: 4.5%

LyondellBasell’s miscellaneous business benefits from a diversified product portfolio, strong distribution networks, and a growing demand for industrial materials, driving growth in this segment.

7. Detailed Products

Olefins

LyondellBasell produces olefins, which are the building blocks of plastics, through the cracking of petroleum-based feedstocks.

Polyolefins

LyondellBasell produces polyolefins, including polyethylene and polypropylene, which are used in packaging, plastics, and other applications.

Intermediates

LyondellBasell produces intermediates, including propylene oxide, styrene, and butadiene, which are used to manufacture a range of chemicals and plastics.

Refinery Products

LyondellBasell produces refinery products, including diesel fuel, gasoline, and jet fuel, through its refining operations.

Lubricants

LyondellBasell produces lubricants, including base oils and finished lubricants, for use in automotive, industrial, and marine applications.

Fuel Oils

LyondellBasell produces fuel oils, including marine fuels, heating oils, and other specialty fuels.

8. LyondellBasell Industries N.V.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for LyondellBasell Industries N.V. is medium due to the availability of alternative products and technologies in the petrochemical industry.

Bargaining Power Of Customers

The bargaining power of customers for LyondellBasell Industries N.V. is low due to the company's strong market position and diversified customer base.

Bargaining Power Of Suppliers

The bargaining power of suppliers for LyondellBasell Industries N.V. is medium due to the company's dependence on a few key suppliers for raw materials.

Threat Of New Entrants

The threat of new entrants for LyondellBasell Industries N.V. is low due to the high barriers to entry in the petrochemical industry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry for LyondellBasell Industries N.V. is high due to the competitive nature of the petrochemical industry, with many established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 50.14%
Debt Cost 4.53%
Equity Weight 49.86%
Equity Cost 9.89%
WACC 7.20%
Leverage 100.55%

11. Quality Control: LyondellBasell Industries N.V. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Air Products

A-Score: 5.2/10

Value: 3.6

Growth: 5.4

Quality: 4.2

Yield: 6.0

Momentum: 2.5

Volatility: 9.3

1-Year Total Return ->

View Full Report
Stock-Card
Ecolab

A-Score: 5.1/10

Value: 1.4

Growth: 5.1

Quality: 6.2

Yield: 2.0

Momentum: 6.0

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
PPG

A-Score: 4.7/10

Value: 3.7

Growth: 2.8

Quality: 6.2

Yield: 5.0

Momentum: 2.0

Volatility: 8.3

1-Year Total Return ->

View Full Report
Stock-Card
Sherwin-Williams

A-Score: 4.6/10

Value: 1.4

Growth: 6.4

Quality: 5.9

Yield: 2.0

Momentum: 3.0

Volatility: 9.0

1-Year Total Return ->

View Full Report
Stock-Card
IFF

A-Score: 4.3/10

Value: 5.1

Growth: 2.3

Quality: 3.4

Yield: 6.0

Momentum: 1.0

Volatility: 8.0

1-Year Total Return ->

View Full Report
Stock-Card
LyondellBasell

A-Score: 4.2/10

Value: 4.0

Growth: 2.7

Quality: 2.6

Yield: 10.0

Momentum: 0.0

Volatility: 6.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

43.35$

Current Price

43.35$

Potential

-0.00%

Expected Cash-Flows