Stock fact sheet · data as of
LSB Industries, Inc. (LXU): fair value, margin of safety and Wheel Score
Basic Materials · Chemicals · United States · Blend
Is LXU undervalued?
LXU closed at 10.46 on 16 Oct 2026, 28% below the GLS average fair value of 14.45 from 8 models (3 of them above the price). That is a moderate margin of safety: the stock passes the "below fair value" rule of the Sunday Scan, and the Wheel Score gives it 24 of the 25 Value points.
There is a wide gap between Lynch (0.4148) and 10 Cap (47.28). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files LXU under Blend.
Nine valuation models for LXU
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 22.50 | +115% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 9.16 | -12% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 5.00 | -52% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 0.4148 | -96% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 1.48 | -86% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 47.28 | +352% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 24.15 | +131% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 5.60 | -46% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -5.00 | -148% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 14.50 | +39% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
LSB Industries, Inc. scores 6 of 9 on the Piotroski F-score: a middling result that passes the Sunday Scan's "6 or more" rule. Some of the nine tests on profitability, leverage and efficiency are failed, so the accounts are worth a look before selling a put on the name. A GLS Moat score of 1.2/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.
Returns on capital are thin or negative - ROIC 2.4%, ROE 4.7%, ROA 2.1% - with debt at 0.94 times equity and a free-cash-flow yield of 21.8%.
LSB Industries, Inc. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Chemical 100% (quarter Q2 FY2026).
Institutional ownership scores 9/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 6 / 9 | ROIC | 2.4% |
|---|---|---|---|
| GLS Moat | 1.2 / 10 | ROE | 4.7% |
| Debt / equity | 0.94 | ROA | 2.1% |
| Free-cash-flow yield | 21.8% | Payout ratio | 0% |
| Institutions | 9 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 74: Good
With a Wheel Score of 74 - the Good band - LSB Industries, Inc. clears the Sunday Scan's "70 or higher" rule. The parts: Value 24/25, Health 13/20, Moat 2/15, Premium 20/20, Stability 15/20; Moat (2/15) scores lowest.
Implied volatility is 58% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 22,594 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 1.4M shares a day on a market cap of $753M, with a beta of 0.31 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 15 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 24 / 25 | 28% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 2 / 15 | moat 1.2/10 | |
| Premium | 20 / 20 | implied volatility 58% | |
| Stability | 15 / 20 | 1.4M shares/day, $753M cap, beta 0.31 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
LSB Industries, Inc. reports earnings on 28 Oct 2026 (after the close) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Chemicals
The 12 companies below are the closest to LSB Industries, Inc. by market cap within the Chemicals industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| WLKP Westlake Chemical Partners LP | 20.92 | 56.92 | +63% | 72Good | $737M |
| BAK Braskem S.A. | 1.81 | 20.04 | +91% | 39No options | $721M |
| GPRE Green Plains Inc. | 14.29 | 21.71 | +34% | 77Good | $1.0B |
| TROX Tronox Holdings plc | 3.45 | 9.21 | +63% | 45Weak | $551M |
| REX REX American Resources Corporation | 41.77 | 97.42 | +57% | 78Good | $1.4B |
| VHI Valhi, Inc. | 14.33 | 34.73 | +59% | 39No options | $406M |
| HUN Huntsman Corporation | 8.56 | 29.56 | +71% | 45Weak | $1.5B |
| OLN Olin Corporation | 15.55 | 35.37 | +56% | 45Weak | $1.8B |
| MEOH Methanex Corporation | 63.61 | 50.41 | -26% | 57Fair | $4.9B |
| CE Celanese Corporation | 46.44 | 104.18 | +55% | 45Weak | $5.1B |
| SSL Sasol Limited | 15.63 | 127.65 | +88% | 83Prime | $10.0B |
| NPT Texxon Holding Limited Ordinary shares | 2.03 | 1.65 | -23% | 16No options | $45M |
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A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the same eight-rule screen, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about LXU
Is LXU undervalued right now?
By the GLS models, moderately: at 10.46 the stock trades 28% below the average fair value of 14.45 (data as of 16 Oct 2026).
What is the Wheel Score of LXU and what does it mean?
LXU scores 74 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for LXU?
14.45 per share as of 16 Oct 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does LSB Industries, Inc. report earnings next?
The next earnings report is due on 28 Oct 2026 (after the close), 12 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does LXU have listed options, and how liquid are they?
Yes. The nightly snapshot found 132 listed contracts with 22,594 open interest across all expiries and implied volatility of 58% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.