LXULSB Industries, Inc.
Is the business good?
The checks split: earnings fully cash-backed (3.1×), but margins compressing.
Operating profit is fully backed by cash.
Operating margin has narrowed over the past few years, profitability per dollar of sales is eroding.
A balanced mix of margins, efficiency, and leverage. ROE 5% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is LXU?
LSB Industries, Inc. earns 6.5% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 2.5 points below what the capital costs: growth destroys value
- Operating margin
- 9.5%
Operating margin · Chemicals median −1.6% · 12 months to Q2 2026
- Cash conversion
- 3.14×
Cash conversion · operating cash flow covers the operating profit after tax
- Share count, year on year
- +0.41%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | −4.4% |
| FY2021 | 18% |
| FY2022 | 34% |
| FY2023 | 8.7% |
| FY2024 | −1.1% |
| FY2025 | 9.3% |
Details›
- Gross margin12 months to Q2 2026
- 17%
- Operating margin12 months to Q2 2026
- 9.5%
- Net margin12 months to Q2 2026
- 5.6%
- Free cash flow margin
- 15%
- Revenue, trailing twelve months
- $658M
- Free cash flow, trailing twelve months
- $97M
- Net income, trailing twelve months
- $37M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 6.5%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.