LyondellBasell Industries NV Stock Buy Recommendation Reiterated (LYB)

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

NEW YORK ( TheStreet) -- LyondellBasell Industries (NYSE: LYB) has been reiterated by TheStreet Ratings as a buy with a ratings score of B+. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins.

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Highlights from the ratings report include:
  • Powered by its strong earnings growth of 2180.00% and other important driving factors, this stock has surged by 34.83% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, LYB should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • LYONDELLBASELL INDUSTRIES NV reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, LYONDELLBASELL INDUSTRIES NV increased its bottom line by earning $4.97 versus $4.25 in the prior year. This year, the market expects an improvement in earnings ($6.05 versus $4.97).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Chemicals industry. The net income increased by 396.7% when compared to the same quarter one year prior, rising from -$213.00 million to $632.00 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 1.5%. Since the same quarter one year prior, revenues slightly increased by 1.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.40, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.36, which illustrates the ability to avoid short-term cash problems.

LyondellBasell Industries N.V., together with its subsidiaries, manufacturers and sells chemicals and polymers; refines crude oil; produces gasoline blending components; and develops and licenses technologies for the production of polymers. LyondellBasell has a market cap of $35.1 billion and is part of the basic materials sector and chemicals industry. The company has a P/E ratio of 12.00, below the S&P 500 P/E ratio of 18.00. Shares are up 5.3% year to date as of the close of trading on Monday.

You can view the full LyondellBasell Ratings Report or get investment ideas from our investment research center.

--Written by a member of TheStreet Ratings Staff.

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