LSB Industries Inc. Common Stock (LXU)

FairStock Score: 46/100 — MIXED

Key Financials

Strengths

• Strong Piotroski F-Score of 8/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Revenue growth of 22.3% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($7) with negative 89% margin of safety—limited downside protection
• Altman Z-Score of 1.6 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

LSB Industries Inc. Common Stock is a micro-cap basic materials company valued at $1.0 billion. The business generates $615 million in annual revenue with a 2.6% net margin. From a quality standpoint, LSB shows near-perfect Piotroski F-Score of 8/9 indicating exceptional financial health and distressed Altman Z-Score of 1.6 warrants caution. On valuation, the stock is commanding a steep 42.9x multiple, with trades above its Graham Number with a negative 89% margin. Growth dynamics show revenue growing at 22.3% and profit growth of 276.3%. Our composite FairStock Score of 46/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

LSB's 22% revenue growth trajectory could accelerate as it captures additional market share in the basic materials sector. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

At 43x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer