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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#1244
Positioning
Market Dominance
Manufacturing
Chemicals
$567M
Mark T. Behrman
LSB Industries, Inc. engages in the manufacture, marketing, and sale of chemical products. The company provides nitrogen-based fertilizers, such as ammonia, fertilizer grade ammonium nitrate (HDAN), and urea ammonia nitrate. It sells its products through distributors, as well as directly to end customers in the United States, Mexico, and Canada.
Headcount
570
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| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$UL UNILEVER PLC | 78 | 96 | 98 | 59 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ASML ASML HOLDING NV | 77 | 89 | 86 | 83 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ESLT ELBIT SYSTEMS LTD | 76 | 81 | 87 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$MT ArcelorMittal | 75 | 71 | 98 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$AMAT APPLIED MATERIALS INC /DE | 75 | 85 | 87 | 84 | 20.9x | 13.6x | 32.9% | 20.5% | 48.8% | 30.6% | 24.4% | 7.7% | 0.9% | 32.0x | $148.6B | VS | |
$SIMO Silicon Motion Technology CORP | 75 | 84 | 86 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$CODA Coda Octopus Group, Inc. | 74 | 83 | 90 | 79 | 16.3x | 11.9x | 7.4% | 7.5% | 68.3% | 19.5% | 18.2% | 29.0% | 0.0% | 0.0x | $84M | VS | |
$GSK GSK plc | 74 | 84 | 90 | 70 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$EFXT Enerflex Ltd. | 74 | 80 | 91 | 83 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$BUD Anheuser-Busch InBev SA/NV | 74 | 84 | 97 | 63 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$LXU LSB INDUSTRIES, INC. | 55 | 47 | 74 | 57 | 100.7x | 189.8x | -3.4% | -1.5% | 8.6% | -0.6% | -4.5% | 11.0% | 0.0% | 89.0x | $567M | ||
| SECTOR BENCH | - | - | - | - | - | 22.3x | 11.5x | -1.9% | 0.9% | 44.1% | 2.5% | 1.0% | 6.7% | 0.0% | 0.2x | - | REF |
LSB INDUSTRIES, INC. (LXU) receives a "Hold" rating with a composite score of 55.2/100. It ranks #1244 out of 7,333 stocks in our coverage universe and carries a 3-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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HQ Base
Dover, Oklahoma
In-line with peers — no strong momentum signal
Trading at a discount to fundamentals — favorable entry valuation
Average quality profile
Low volatility — smoother ride and historically better risk-adjusted returns
Moderate investment profile
Mid-range overall rating
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Relative valuation derived from Manufacturing sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for LXU.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 47 | 38 | +9ALPHA |
| MOMENTUM | 57 | 55 | +2NEUTRAL |
| VALUATION | 74 | 76 | -2NEUTRAL |
| INVESTMENT | 36 | 65 | -29DRAG |
| STABILITY | 63 | 60 | +3NEUTRAL |
| SHORT INT | 52 | 57 | -5NEUTRAL |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROIC 2.6% vs WACC 6.5% (spread -3.9%)
GM 9% vs sector 44%, OM -1% vs sector 3%
Capital turnover 0.37x
Rev growth 11%, 10yr history
Interest coverage 2.1x, Net debt/EBITDA 26.9x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate LSB INDUSTRIES, INC. (LXU) as a Hold with a composite score of 55.2/100 at a current price of $10.05. The stock presents a mixed quantitative picture — neither compelling enough to warrant new accumulation nor weak enough to justify selling.
LSB INDUSTRIES, INC. holds a top-quartile position (#0 of 50) within the Manufacturing sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 55.2/100 places it at rank #1244 in our full universe.
No Moat
High
Poor
Undervalued
Value factor score of 74 suggests attractive pricing.
Stable competitive position in a defensive sector.
Elevated P/E ratio of 100.7x leaves little room for execution misses.
Vulnerability to macroeconomic shocks and interest rate volatility.
LSB INDUSTRIES, INC. represents a hold based on multi-factor quantitative performance.
Our model assigns LSB INDUSTRIES, INC. a Hold rating, with a composite score of 55.2/100 and 3 out of 5 stars. Ranked #1244 of 7,333 stocks, LXU presents a mixed quantitative picture — neither compelling enough to initiate new positions nor weak enough to warrant selling. Investors already holding may consider maintaining their position while monitoring for changes in the factor profile.
With a quality score of 47/100, LXU shows adequate but unremarkable business quality. The company reports a return on equity of -3.4% (sector avg: -1.9%), gross margins of 8.6% (sector avg: 44.1%), net margins of -4.5% (sector avg: 1.0%). This suggests the company generates acceptable returns but may lack the competitive positioning or operational efficiency to stand out from peers.
LXU carries a solid value score of 74/100, pointing to an attractively priced stock relative to peers. Key valuation metrics include a P/E ratio of 100.70x, an EV/EBITDA of 189.84x, a P/B ratio of 1.43x. This score suggests reasonable compensation for the risks involved, with potential upside if the market recognizes the stock's underlying worth.
LSB INDUSTRIES, INC.'s investment score of 36/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 11.0% vs. a sector average of 6.7% and a return on assets of -1.5% (sector: 0.9%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
LXU demonstrates moderate momentum with a score of 57/100, suggesting a neutral price trend without strong directional conviction. Revenue growth stands at 11.0% year-over-year, while a beta of 1.23 reflects its sensitivity to broader market moves. Moderate momentum may indicate the stock is consolidating or transitioning between trends, warranting close monitoring of upcoming catalysts.
With a stability score of 63/100, LXU exhibits average financial resilience. Key stability metrics include a beta of 1.23 and a debt-to-equity ratio of 89.00x (sector avg: 0.2x). While the balance sheet is not a major concern, the stock is subject to typical market volatility and may experience sharper drawdowns during risk-off episodes.
The short interest score of 52/100 for LXU suggests somewhat elevated bearish positioning by institutional traders. Specific risk factors include above-average market sensitivity (beta: 1.23), elevated leverage (D/E: 89.00x), small-cap liquidity risk. With a $567M market cap (small-cap), LSB INDUSTRIES, INC. may experience above-average volatility. Investors should consider whether the short thesis has merit or if it creates a potential short-squeeze opportunity.
LSB INDUSTRIES, INC. is a small-cap company in the Manufacturing sector, ranked #0 of 50 in its sector (100th percentile) and #1244 of 7,333 overall (83rd percentile). Key comparisons include ROE of -3.4% trailing the -1.9% sector median and operating margins of -0.6% below the 2.5% sector average. This top-quartile standing reflects exceptional competitive strength relative to Manufacturing peers.
While LXU currently exhibits a HOLD profile, superior opportunities exist within the MANUFACTURING sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Manufacturing Alpha →Quant Factor Profile
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Investment (36) is the limiting factor — improvement here would lift the composite score most.
EV/EBITDA 1557% ABOVE SECTOR MEDIAN
ROE 76% ABOVE SECTOR MEDIAN (FAVORABLE)
Gross Margin 80% BELOW SECTOR MEDIAN
Above 50MA
37.18%
Net New Highs
+51081

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