LYB
LyondellBasell Industries N.V.
Industrial/Transportation
08/22/2014
Presented
| Date | 08/18/2014 |
| Price | $112.20 |
| Market Cap | $57.50B |
| Ent Value | $61.01B |
| P/E Ratio | 10.92x |
| Book Value | $17.07 |
| Div Yield | 3.3% |
| Shares O/S | 512.33M |
| Ave Daily Vol | 2,770,000 |
| Short Int | 1.46% |
Current
| Price | $92.07 |
| Market Cap | $29.93B |
| LyondellBasell Industries N.V., together with its subsidiaries, manufactures chemicals and polymers; refines crude oil; produces gasoline blending components; and develops and licenses technologies for production of polymers. Its Olefins and Polyolefins segment offers olefins, including ethylene, propylene, and butadiene; polyolefins, which include high density polyethylene, low density polyethylene, linear low density polyethylene, and polypropylene (PP); specialty polyolefins comprising PP compounds, catalloy process resins, and polybutene-1 resins; and aromatics, which include benzene. The company’s Intermediates and Derivatives segment provides propylene oxide (PO); PO co-products, such as styrene monomers and tertiary butyl alcohol; PO derivatives consisting of propylene glycol, propylene glycol ethers, and butanediol; acetyls, including methanol, acetic acid, and vinyl acetate monomers; ethylene derivatives, such as ethylene oxide, ethylene glycol, ethylene glycol ethers, and ethanol; and oxyfuels, which include methyl tertiary butyl ether and ethyl tertiary butyl ether. Its Refining segment offers gasoline and components, ultra low sulfur diesel, jet fuel, and lube oils. The company’s Technology segment develops and licenses chemical, polyolefin, and other process technologies, as well as provides associated engineering and other services. This segment also develops, manufactures, and sells polyolefin catalysts. The company operates in Americas, Europe, Asia, and internationally. LyondellBasell Industries N.V. was founded in 2005 and is based in Rotterdam, the Netherlands. |
Publicly Traded companies mentioned herein: LyondellBasell Industries NV (LYB), Westlake Chemical Corp (WLK)
Highlights
The presenter is long shares of LyondellBasell (LYB), and believes the favorable tailwind from relatively low natural gas prices (a feedstock benefit) may be more sustainable than the market is giving the company credit for. Shares of the $57 billion global chemicals company are liquid and trading at 14x the consensus 2014 EPS estimate. With the potential for LYB to continue to grow and put up mid-cycle EPS of $11.50 per share (based on his model), the presenter sees 20-30% upside, with limited downside risk near-term.
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