📊 LXU Key Takeaways
Is Lsb Industries, Inc.. (LXU) a Good Investment?
LSB Industries demonstrates solid revenue growth (17.8% YoY) and strong free cash flow generation (20.5% FCF margin) with excellent liquidity, but profitability trends are concerning with net income flat despite topline expansion. Extremely low returns on equity (3.6%) and ROA (1.7%) combined with significant debt burden ($441.2M) indicate capital deployment challenges that offset positive operational cash generation.
LSB Industries shows improving top-line momentum and a meaningful rebound in diluted EPS, supported by positive operating cash flow and adequate short-term liquidity. However, growth quality is mixed because net income was flat, free cash flow remains thin after heavy capital spending, and interest coverage is weak for a leveraged balance sheet. The fundamentals support a neutral view until margin expansion and cash generation become more durable.
Why Buy Lsb Industries, Inc.. Stock? LXU Key Strengths
- Strong revenue growth of 17.8% YoY demonstrating market demand and competitive positioning
- Excellent free cash flow generation of $34.8M with 20.5% FCF margin indicating quality earnings and operational efficiency
- Robust liquidity position with current ratio of 3.07x and quick ratio of 2.85x providing financial flexibility
- Revenue growth of 17.8% YoY indicates solid demand or pricing improvement
- Current ratio of 2.78x and quick ratio of 2.61x suggest strong near-term liquidity
- Positive operating cash flow of $95.52M and positive free cash flow show the business is still cash generative
LXU Stock Risks: Lsb Industries, Inc.. Investment Risks
- Net income flat at +0.0% YoY despite 17.8% revenue growth signals margin compression or rising operational expenses eroding profitability
- Critically low return on equity of 3.6% and ROA of 1.7% indicate poor capital efficiency and shareholder value creation
- High debt burden of $441.2M with moderate interest coverage of 3.3x limits financial flexibility and increases refinancing risk
- Net margin of 4.0% and ROE of 4.7% indicate modest profitability relative to the asset and equity base
- Interest coverage of 1.9x leaves limited cushion if earnings weaken or borrowing costs stay elevated
- Free cash flow margin of 2.9% is low, with capital expenditures consuming most operating cash flow
Key Metrics to Watch
- Net income growth trajectory and operating margin trends relative to revenue growth
- Return on equity and asset returns - critical indicators of capital deployment effectiveness
- Debt reduction progress and interest coverage ratio given leverage constraints
- Operating margin and interest coverage
- Free cash flow after capital expenditures
Lsb Industries, Inc.. (LXU) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 20.5% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 3.07x current ratio provides a solid financial cushion.
LXU Profit Margin, ROE & Profitability Analysis
LXU vs Materials Sector: How Lsb Industries, Inc.. Compares
How Lsb Industries, Inc.. compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Lsb Industries, Inc.. Stock Overvalued? LXU Valuation Analysis 2026
Based on fundamental analysis, Lsb Industries, Inc.. has mixed fundamental signals relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Lsb Industries, Inc.. Balance Sheet: LXU Debt, Cash & Liquidity
LXU Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Lsb Industries, Inc..'s revenue has grown significantly by 11% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.37 reflects profitable operations.
LXU Revenue Growth, EPS Growth & YoY Performance
LXU Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $143.4M | -$1.6M | $-0.02 |
| Q3 2025 | $109.2M | -$1.6M | $0.10 |
| Q2 2025 | $140.1M | $1.4M | $0.02 |
| Q1 2025 | $138.2M | -$1.6M | $-0.02 |
| Q3 2024 | $109.2M | $5.6M | $-0.10 |
| Q2 2024 | $140.1M | $5.6M | $0.13 |
| Q1 2024 | $138.2M | $5.6M | $0.08 |
| Q3 2023 | $114.3M | $2.3M | $0.03 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Lsb Industries, Inc.. Dividends, Buybacks & Capital Allocation
LXU SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Lsb Industries, Inc.. (CIK: 0000060714)
📋 Recent SEC Filings
❓ Frequently Asked Questions about LXU
What is the AI rating for LXU?
Lsb Industries, Inc.. (LXU) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 73% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are LXU's key strengths?
Claude: Strong revenue growth of 17.8% YoY demonstrating market demand and competitive positioning. Excellent free cash flow generation of $34.8M with 20.5% FCF margin indicating quality earnings and operational efficiency. ChatGPT: Revenue growth of 17.8% YoY indicates solid demand or pricing improvement. Current ratio of 2.78x and quick ratio of 2.61x suggest strong near-term liquidity.
What are the risks of investing in LXU?
Claude: Net income flat at +0.0% YoY despite 17.8% revenue growth signals margin compression or rising operational expenses eroding profitability. Critically low return on equity of 3.6% and ROA of 1.7% indicate poor capital efficiency and shareholder value creation. ChatGPT: Net margin of 4.0% and ROE of 4.7% indicate modest profitability relative to the asset and equity base. Interest coverage of 1.9x leaves limited cushion if earnings weaken or borrowing costs stay elevated.
What is LXU's revenue and growth?
Lsb Industries, Inc.. reported revenue of $169.5M.
Does LXU pay dividends?
Lsb Industries, Inc.. does not currently pay dividends.
Where can I find LXU SEC filings?
Official SEC filings for Lsb Industries, Inc.. (CIK: 0000060714) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is LXU's EPS?
Lsb Industries, Inc.. has a diluted EPS of $0.27.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is LXU a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Lsb Industries, Inc.. has a HOLD rating with 73% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is LXU stock overvalued or undervalued?
Valuation metrics for LXU: ROE of 3.6% (sector avg: 14%), net margin of 11.6% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy LXU stock in 2026?
Our dual AI analysis gives Lsb Industries, Inc.. a combined HOLD rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is LXU's free cash flow?
Lsb Industries, Inc..'s operating cash flow is $51.8M, with capital expenditures of $17.0M. FCF margin is 20.5%.
How does LXU compare to other Materials stocks?
Vs Materials sector averages: Net margin 11.6% (avg: 10%), ROE 3.6% (avg: 14%), current ratio 3.07 (avg: 1.6).