LSB Industries Inc. Common Stock (LXU)

FairStock Score: 46/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at LSB Industries as a small, cyclical commodity chemical producer, not a franchise with a wide moat. It sells ammonia and urea ammonium nitrate to farmers and various industrial acids and gases to manufacturers. The numbers show the cyclicality. In fiscal 2025, revenue was $615.2M and net income was $24.6M, or $0.34 per diluted share. That followed fiscal 2024 revenue of $522.4M and a net loss of $19.4M, or a loss of $0.27 per diluted share. Fiscal 2023 was profitable, with $593.7M of revenue and $27.9M of net income, or $0.37 per diluted share. More recently, in fiscal Q2 2026, the quarter ended 2026-06-30, revenue rose to $168.1M from $151.3M in fiscal Q2 2025, but net income swung from $3.0M to a loss of $6.2M, or a loss of $0.09 per diluted share. That is not the trajectory of a stable compounder. At the 2026-10-13 close of $10.23, FairStock calculates a P/E of 20.46, P/B of 1.37, ROE of 7.10%, ROCE of 3.54%, D/E of 0.91, and an Altman Z-Score of 1.25. The Piotroski F-Score is 3/9, and the Graham Number is $9.19, implying a margin of safety of -11.32%. So the price is not a Graham bargain. The strong point is cash: trailing free cash flow is $86.5M, an 11.7% FCF yield. FairStock labels it a TURNAROUND because it returned to profit after a loss within three years. But low returns on capital, high leverage, and volatile earnings make me want a larger discount before calling it attractive.

In plain English: LSB Industries makes ammonia and other chemicals used by farmers and industry. The business is cyclical and just posted a quarterly loss, though it was profitable in fiscal 2025. At $10.23, the price looks full compared with recent profits and slightly above a conservative value estimate, so it is not an obvious bargain.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer