📊 LXU Key Takeaways
Is LXU a Good Investment? Thesis Analysis
LSB Industries demonstrates solid revenue growth of 17.8% YoY and maintains healthy liquidity metrics (2.78x current ratio), but profitability quality is concerning with declining net margins (4.0%) despite top-line expansion. The company's weak interest coverage ratio (1.9x) and significant debt burden ($441.1M) relative to equity create financial stress that limits financial flexibility.
Why Buy LXU? Key Strengths
- Strong revenue growth of 17.8% YoY indicates solid demand and market position
- Excellent liquidity position with current ratio of 2.78x and quick ratio of 2.61x provides operational flexibility
- Positive operating cash flow of $95.5M demonstrates ability to generate cash from core operations
LXU Investment Risks to Consider
- Deteriorating profitability despite revenue growth suggests operational margin compression and rising costs
- Weak interest coverage ratio of 1.9x indicates limited ability to service debt obligations, creating refinancing risk
- Low net margin of 4.0% and minimal free cash flow of $18.1M (2.9% FCF margin) constrain reinvestment and shareholder returns
- High debt-to-equity ratio of 0.85x with $441.1M long-term debt limits financial flexibility for growth investments or adverse conditions
Key Metrics to Watch
- Operating margin trends - monitor whether cost pressures continue to compress profitability
- Interest coverage ratio - track ability to service debt as it approaches critical 1.5x threshold
- Free cash flow conversion - assess whether company can improve FCF margin to support debt reduction
- Gross margin sustainability - determine if 17.0% margin can be maintained or if pricing power deteriorates
LXU Financial Metrics
💡 AI Analyst Insight
The relatively thin 2.9% FCF margin may limit capital allocation flexibility. Strong liquidity with a 2.78x current ratio provides a solid financial cushion.
LXU Profitability Ratios
LXU vs Industrial Sector
How LSB INDUSTRIES, INC. compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is LXU Overvalued or Undervalued?
Based on fundamental analysis, LSB INDUSTRIES, INC. shows some fundamental concerns relative to the Industrial 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.
LXU Balance Sheet & Liquidity
LXU 5-Year Financial Trend & Growth Analysis
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 Growth Metrics (YoY)
LXU Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| 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 |
| Q2 2023 | $165.8M | $15.9M | $0.33 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
LXU Capital Allocation
LXU SEC 10-K & 10-Q Filing 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 an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.
What are LXU's key strengths?
Claude: Strong revenue growth of 17.8% YoY indicates solid demand and market position. Excellent liquidity position with current ratio of 2.78x and quick ratio of 2.61x provides operational flexibility.
What are the risks of investing in LXU?
Claude: Deteriorating profitability despite revenue growth suggests operational margin compression and rising costs. Weak interest coverage ratio of 1.9x indicates limited ability to service debt obligations, creating refinancing risk.
What is LXU's revenue and growth?
LSB INDUSTRIES, INC. reported revenue of $615.2M.
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 $0.34.
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 April 2026, LSB INDUSTRIES, INC. has a HOLD rating with 62% 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 4.7% (sector avg: 15%), net margin of 4.0% (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 at or below sector average. Always conduct your own research.
What is LXU's free cash flow?
LSB INDUSTRIES, INC.'s operating cash flow is $95.5M, with capital expenditures of $77.5M. FCF margin is 2.9%.
How does LXU compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 4.0% (avg: 10%), ROE 4.7% (avg: 15%), current ratio 2.78 (avg: 1.8).