LSB Industries

LXU

Chemicals · Basic Materials

Price

$11.12

+0.43 (+4.02%)

Market Cap

$800.0M

Winston Score

Winston is serious

Mixed quality — meaningful strengths and weaknesses.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Weak

Growth

Mixed

Cash Flow

Strong

Stability

Good

Valuation

Strong

Dividends

Weak

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Share count rising — dilution

+44.9% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 50.0M (2021) → 72.4M (2025)

Winston Score History

The full picture

LSB Industries makes chemical fertilizers and industrial chemicals at factories in the United States. Its main products are ammonia, urea ammonium nitrate (UAN), and nitric acid, which it sells to farmers, mining companies, and industrial manufacturers. The company is a mid-sized North American producer in the nitrogen chemicals industry, with plants in Oklahoma, Arkansas, and Alabama.

LSB makes money by selling these chemicals directly to customers, so its revenue rises and falls with commodity prices for nitrogen products. It operates entirely in the United States and generates roughly $500–600 million in annual revenue. The company's main competitive advantage is its network of strategically located plants that keep shipping costs low for regional customers. The biggest risk the business faces is the price of natural gas, which is the key raw material used to make nitrogen chemicals — when natural gas prices spike, profit margins can shrink quickly.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+11.1% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

-315.3% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

0.0% of revenue

Below sector average (3%)

Research and development spending

Insider Activity

17.9%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$218M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

LSB Industries is a rare growth stock that's already generating positive cash flow while growing at 11%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

6.8%

Thin — 6.8% gross margin

Profit after running costs

Operating Margin

-0.9%

Losing money on operations — -0.9%

Return on the money invested

ROCE

6.9%

Weak — 6.9% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth

Sales YoY

+22.1%

Fast-growing sales (+22.1% YoY)

Profit growth

EPS YoY

N/A

Data not available

How steady the profit is

EPS Consistency

3/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash

Cash Conversion

494%

Turns 494% of profit into real cash

Spare cash per sale

FCF Margin

7.8%

Modest free cash flow (7.8%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns

Debt / Equity

0.83

Moderate — manageable debt (0.83)

Covers its interest

Interest Cover

2.36x

Tight — interest eats into profit (2.4x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

Price vs profit

P/E Ratio (TTM)

22.3x

Growth-priced — P/E 22.3

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year

P/E vs Forward

+7.8

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (22.3 → 14.5)

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Dividends

Dividend

Dividend Yield

0.18%

Small dividend — 0.18% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record

Dividend Growth

-33.3%

Dividend cut (-33.3% YoY) — warning sign

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