LyondellBasell Industries N.V. (LYB) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: LyondellBasell Industries N.V.

Updated on October 31, 2026 · accounts published on October 30, 2026

A cyclical business under pressure, with shrinking sales, weak returns and stretched debt

LyondellBasell Industries trades at a P/E of 41.6 over the last 12 months, 319 % above its ten-year median of 9.9, while revenue fell 25 %.

• Is LyondellBasell Industries expensive or cheap? The P/E of 41.6 sits 319 % above its ten-year median of 9.9 and 121 % above the sector median of 18.8.
• How is the business doing? Revenue fell 25 % over the last 12 months, after a fiscal 2025 operating margin of −1.1 %, the lowest in 12 years.
• How strong is the balance sheet? Net debt equals 59 % of the share price (fiscal 2025), and the Altman Z of 1.7 sits in the danger zone.
• Can the balance sheet withstand the bottom of the cycle? Net debt reached 10.6× EBITDA in fiscal 2025, against a healthy ceiling of 3.0× for basic materials.
• What to expect from the next earnings? Analysts expect EPS of $1.79 on January 29, 2027, and the 2026 EPS consensus is steady at $9.19.

Is LyondellBasell Industries expensive or cheap?

LyondellBasell Industries trades at a P/E of 41.6 over the last 12 months. That is close to its decade high of 42.1 and far above the 9.9 median it has held over ten years. Against the median P/E of 18.8 for 156 basic-materials companies, the premium is 121 %. Much of that premium comes from a collapse in earnings: EPS fell 157 % over the last 12 months, so the multiple has inflated. Cash-based measures look calmer. EV/EBITDA of 10.7× is in line with its seven-year average of 10.5×, and the free cash flow yield is 11.6 %. The stock is up 60 % over 12 months and sits 16 % below its 52-week high of $82.38.

How is the business doing?

The operating margin over the last 12 months is 12.0 %, above the 2014-2025 average of 10.9 %. That points to a recovery from fiscal 2025, when the margin turned negative at −1.1 %, the weakest of those twelve years. Sales have not followed: revenue is down 25 % and EPS down 157 % over the last 12 months. Returns on capital are worse still. ROIC stands at −36.4 % over the last 12 months, 45.6 points below the sector median of 9.2 %, although it cleared 10 % in six of the last ten fiscal years. A net margin of 5.6 % and an ROE of 12.5 % show the company is still profitable, but only thinly.

How strong is the balance sheet?

A debt-to-equity ratio of 1.18 over the last 12 months looks manageable on its own. The other measures are less comfortable. At the end of fiscal 2025, net debt was $40.43 per share ($51.15 of debt minus $10.71 of cash), equal to 59 % of today's price. The Altman Z of 1.7 is below the 1.81 line that marks the danger zone. The Piotroski score of 3 out of 9 is a weak reading on the company's financial trend. The dividend yield of 5.0 % looks generous, but in fiscal 2025 free cash flow covered the dividend only 0.2 times.

Can the balance sheet withstand the bottom of the cycle?

In basic materials, earnings track commodity prices, so the P/E swings sharply and says little at the bottom of the cycle. That is why the sector is judged on cost position, leverage and whether the dividend is sustainable. LyondellBasell Industries passes four of eight tests: a free cash flow yield of 11.6 % (healthy from 8 %), capex at 1.4× depreciation, a P/B of 2.0× and an EV/EBITDA near its seven-year average. It fails the other four: a fiscal 2025 gross margin of 9.0 % against a 30 % benchmark, net debt of 10.6× EBITDA (measured on fiscal 2025, not across the cycle), dividend cover of 0.2× against 1.3×, and an Altman Z in the danger zone. The weak points are exactly the ones that matter when the cycle stays low.

What to expect from the next earnings?

The last report, on October 30, 2026, showed EPS of $2.54, 1.2 % below the $2.57 analysts expected. The company has beaten estimates in only 4 of the last 8 quarters. For the next quarter, due January 29, 2027, analysts expect $1.79, a clear step down from the latest result. Estimates have barely moved: over the last 30 days the 2026 EPS consensus went from $9.20 to $9.19 among 10 analysts, and revenue forecasts rose 0.5 %. The 40 analysts who cover the stock are split, with 17 at buy, 18 at hold and 4 at sell. The number to watch is whether margins hold up while sales keep falling.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.