I’ve been keeping an eye on LyondellBasell Industries NV (NYSE:LYB) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe LYB has a lot to offer. Basically, it is a financially-sound , dividend-paying company with a a strong history of performance. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on LyondellBasell Industries here.
Solid track record with adequate balance sheet and pays a dividend
Over the past year, LYB has grown its earnings by 60%, with its most recent figure exceeding its annual average over the past five years. This illustrates a strong track record, leading to a satisfying return on equity of 55%. which is an notable feat for the company. LYB’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that LYB has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. LYB’s has produced operating cash levels of 0.66x total debt over the past year, which implies that LYB’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
LYB’s high dividend payments make it one of the best dividend stocks on the market, and its profitability ensures that dividends are well-covered by its net income.
For LyondellBasell Industries, there are three pertinent aspects you should look at:
- Future Outlook: What are well-informed industry analysts predicting for LYB’s future growth? Take a look at our free research report of analyst consensus for LYB’s outlook.
- Valuation: What is LYB worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether LYB is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of LYB? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.