Quality Investor

LSB Industries, Inc.

Rank #453Op. Leverage

LXU · NYSE · Basic Materials

LSB Industries, Inc. (LXU) — Rank #453 by gross profitability (GP/assets 0.09) · ROE 4.6% · Piotroski F-Score 8 / 9.

As-of 2026-09-15 · CIK 0000060714 · all metrics point-in-time as of the filing date.

About

LSB Industries, Inc. manufactures, markets, and sells chemical products in the United States.

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The company offers ammonia and urea ammonia nitrate for agricultural applications. It also provides high purity and commercial grade ammonia, high purity ammonium nitrate, sulfuric acids, concentrated, blended and regular nitric acid, mixed nitrating acids, carbon dioxide, industrial grade ammonium nitrate, and ammonium nitrate for industrial applications. It sells its products to farmers, ranchers, fertilizer dealers, and distributors primarily in the ranch land and grain production markets, as well as industrial users of acids and explosive manufacturers. LSB Industries, Inc.

was founded in 1968 and is headquartered in Oklahoma City, Oklahoma.

Industry
Chemicals
Sector
Basic Materials
State
DE
Filer Category
Accelerated filer
Fiscal Year End
December 31

Price History

LXU+81.6% · +12.7% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

$815.73M

P/E (annual)

33.3

P/S (annual)

1.3

P/B

1.5

P/OCF (annual)

8.5

Shareholder Yield

-0.5%

Employees

513

Industry

Chemicals

Exchange

NYSE

Signal Flags

1 green
Revenue growth acceleratingGrowth rate increasing year over year

Quality Profile

Profitability

1/1 pass
GP / assets
0.09
Return on equity
4.6%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.27
Current ratio
2.43×
Net cash
-$226.99M

Cash Flow

2/3 pass
Positive FCF
PASS
Cash-backed earnings
WARN
Accruals healthy
PASS
SBC / revenue
1.2%

Growth

2/2 pass
Revenue growth
17.8%
Piotroski F-Score
8 / 9
Share dilution
0.5%

Terry Smith quality gate

Passes 0/5 Terry Smith thresholds

What Growth Is Priced In

Implied revenue growth (10Y)

18.9%

fairly valued

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 0.5% — per-share value needs a total required return of 19.4% once share-count change is priced in.

vs. own 6-year median revenue growth: 7.0%

priced above its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

13.9%

r = 10% (base)

18.9%

r = 12%

23.2%

Net debt / market cap: 27.7%

Base FCF: $18.1M3Y mean FCF: $27.4M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

33.9xExpensive
2.3xmed 12.4x33.9x

P / S

Price / revenue per share

1.4xExpensive
0.4xmed 1.1x1.5x

P / B

Price / book value per share

1.6xFair
0.3xmed 1.3x2.2x

P / GP

Price / gross profit per share

8.0xExpensive
3.3xmed 6.4x11.1x

P / FCF

Price / free cash flow per share

46.2xExpensive
3.8xmed 11.6x46.2x

Operating margin expansion and free cash flow are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.09

Primary signal (Novy-Marx).

12th pctl of 34 SIC 28 peers

Return on equity

4.6%

Gross margin

17.0%

12th pctl of 34 SIC 28 peers

Revenue growth (YoY)

17.8%

RPO growth (YoY)

4.3%

Remaining performance obligations growth — RPO > revenue = forward demand building.

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

-12.0%

Revenue CAGR (5Y)

11.9%

Earnings CAGR (3Y)

-52.5%

FCF CAGR (3Y)

-60.8%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.27

27th pctl of 31 SIC 28 peers (best = lowest)

Current ratio

2.43×

55th pctl of 34 SIC 28 peers

Quick ratio

1.90×

Net cash

-$226.99M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$18.06M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

-0.27

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

WARN

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

1.2%

Stock-based comp intensity.

Piotroski F-Score

F-Score

8 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20202025
Startup
Hypergrowth
Decline
Op. Leverage