LYB
Lyondellbasell Industries N.V.
Industrial/Transportation
04/17/2015
Presented
| Date | 04/13/2015 |
| Price | $91.10 |
| Market Cap | $43.50B |
| Ent Value | $47.97B |
| P/E Ratio | 11.4x |
| Book Value | $17.07 |
| Div Yield | 3.07% |
| Shares O/S | 477.00M |
| Ave Daily Vol | 4,660,000 |
| Short Int | 2.05% |
Current
| Price | $92.07 |
| Market Cap | $29.93B |
| LyondellBasell Industries N.V. operates as a manufacturer of chemicals and polymers, refiner of crude oil, producer of gasoline blending components, and developer and licensor of technologies for production of polymers. The company operates in five segments: Olefins and Polyolefins—Americas; Olefins and Polyolefins—Europe, Asia, International; Intermediates and Derivatives; Refining; and Technology. It produces and markets olefins, including ethylene, propylene, and butadiene; polyolefins, which consist of 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 also produces and markets 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; and ethylene derivatives, such as ethylene oxide, ethylene glycol, ethylene glycol ethers, and ethanol. In addition, it refines gasoline and components, ultra low sulfur diesel, jet fuel, lube oils, and aromatics. Further, the company develops and licenses chemical, polyolefin, and other process technologies, as well as provides associated engineering and other services; and develops, manufactures, and sells polyolefin catalysts. LyondellBasell Industries N.V. was founded in 2005 and is based in Rotterdam, the Netherlands. |
Publicly traded companies mentioned herein: LyondellBasell Industries NV (LYB)
Highlights
The presenter is “very excited” about the upside potential for shares of LyondellBasell (LYB) over the coming 12-24 months. He is long the stock, and explained his view that a combination of the company’s earnings power and capital deployment strategy justify a substantially higher stock price ($140). LYB appears to be generating what he considers to be trough EBITDA and EPS of $6.5 - $7 billion, and at ~$91 the FCF yield is ~8%. If oil stays in the low $50s per barrel, he thinks the company can generate $10 of EPS in 2017, but with the share repurchase activity and any recovery in Crude, the earnings power could be above $12 - $13 per share (in 2017).
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