30 Nov

How Has LyondellBasell’s Stock Performed?

WRITTEN BY Steve Ariel

LyondellBasell outperformed peers

LyondellBasell has outperformed its major peers as well as the largest chemical ETF, the Materials Select Sector SPDR (XLB), over the last five years. LYB’s share price rose at a compounded annual growth rate (or CAGR) of 26% while the chemical ETF XLB rose by a CAGR of only 7% between November 2010 and November 2015. LYB’s major peers such as Dow Chemical (DOW), DuPont (DD), and Eastman Chemical (EMN) underperformed LYB but outperformed XLB. DOW, DD, and EMN’s share prices increased at a CAGR of 11%, 9%, and 12%, respectively, over the last five years.

How Has LyondellBasell’s Stock Performed?

LYB continued its strong share performance in 2015

LyondellBasell has continued with its strong performance in 2015 and outperformed major peers as well as XLB. LYB’s share prices rose 19% while XLB has fallen 10% since the beginning of the year. Dow, the largest chemical company, has appreciated 14% year-to-date. DuPont and Eastman’s stocks underperformed LYB and DOW to fall 4% and 7%, respectively. LYB’s strong share performance was driven by strong results in the first nine months of 2015 and a better future outlook. LYB’s EBITDA rose 13% and returned total cash of $4.5 billion to shareholders in the first nine months of 2015.

LYB at a glance

LyondellBasell has significantly enhanced its position in the olefins and polyolefins product segment with a huge capacity addition and the increased use of low cost feedstock across American as well as European operations. With its strong performance in olefins and polyolefins, LYB has significantly improved its financial performance over the last five years. LYB has also increased its focus on shareholder returns. Among its major peers, LYB has returned the most cash to its shareholders through dividends and share repurchases. LYB has continued with its strong operational performance and cash return strategy in 2015 too. LYB’s solid financial performance is reflected in its share price, which has appreciated 19% year-to-date.

The iShares U.S. Basic Materials ETF (IYM) tracks the performance of US-listed basic material and chemical companies. LyondellBasell forms 6.5% of IYM’s total holdings.

Latest articles

Kinder Morgan (KMI) currently trades at an attractive yield of about 5%. It expects to raise its dividends by 25% in 2020.

Tech stocks eBay (EBAY), PayPal (PYPL), and Lam Research (LRCX) are moving in after-hours trading after today's earnings reports.

Ford plans to produce autonomous cars for ridesharing by 2021. GM acquired Cruise, a self-driving startup, to kickstart its autonomous driving plans.

PayPal stock (PYPL) is trading down today. With earnings due after the market closes, you should buy PayPal stock on the current dip.

This year has been rough for cannabis companies, including Aurora Cannabis (ACB), whose stock is already down 27.82% year-to-date.

The road for Netflix is getting rockier by the day. As it prepares for the imminent streaming wars, it's been caught off guard by a new development.