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    15% Below Fair Value? LyondellBasell Industries (LYB) On Its Cost Cutting Push

    Simply Wall St·10/05/2026 13:18:04
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    LyondellBasell Industries (LYB) has drawn fresh attention after recent trading left the shares around $58.58, while the business reports annual revenue of $31.19 billion and a reported net loss of $265 million.

    Recent trading has been choppy for LyondellBasell Industries, with a 1-day share price return of 1.38% and a 90-day share price return of 7.29%. However, a 30-day share price return that fell 7.78% signals momentum has cooled after strong year-to-date gains of 31.97% on the share price and a 1-year total shareholder return of 27.92%. This is set against a 3-year total shareholder return that declined 23.33% and a 5-year total shareholder return that fell 15.26%.

    See how LyondellBasell Industries compares with other materials players that show resilient fundamentals by reviewing our curated list of solid balance sheet and fundamentals (25 results).

    LyondellBasell Industries has swung between solid gains and recent weakness, while revenue edges higher and net income remains in a loss. Is the latest pullback pointing to business reality, or just a mood swing in the market?

    Most Popular Narrative: 15% Undervalued

    LyondellBasell Industries is priced at $58.58 against a widely followed fair value estimate of about $68.59, which highlights a valuation gap that depends heavily on execution and on market tightness continuing to support the business.

    Company wide cost reduction and cash improvement measures, including a roughly 17% headcount reduction since early 2025, more than US$50 million of fixed cost savings and a target for US$500 million additional cash flow by the end of 2026, provide ongoing leverage to maintain or expand net margins and free cash flow.

    See why 87 investors see LyondellBasell Industries as 15% undervalued.

    Result: Fair Value of $68.59 (UNDERVALUED)

    Still, the bullish story on LyondellBasell Industries can unravel if petrochemical tightness eases faster than expected, or if major plants suffer further reliability setbacks.

    Find out about the key risks to this LyondellBasell Industries narrative.

    Next Steps

    Mixed signals around LyondellBasell Industries can easily skew your view. Consider acting promptly, reviewing the underlying metrics yourself, and weighing both sides of the story through 3 key rewards and 2 important warning signs

    Looking for more investment ideas beyond LyondellBasell Industries?

    Consider broadening your research beyond LyondellBasell Industries so you can test your thinking and refine your portfolio decisions across a wider set of ideas.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.