On December 31, 2024, Dodge & Cox (Trades, Portfolio) executed a significant transaction involving LyondellBasell Industries NV, adding 851,365 shares to its holdings. This move increased the firm's position by 5.28% at a trade price of $74.27 per share. The addition of these shares reflects Dodge & Cox (Trades, Portfolio)'s strategic decision to bolster its investment in LyondellBasell, a leading player in the petrochemical industry. This transaction highlights the firm's confidence in the company's potential for long-term growth and value appreciation.

About Dodge & Cox (Trades, Portfolio)

Founded in 1930 by Van Duyn Dodge and E. Morris Cox, Dodge & Cox (Trades, Portfolio) is renowned for its team research approach in making investment decisions. The firm is guided by its Investment Policy Committees, which ensure continuity in its investing philosophy, research, and culture. Dodge & Cox (Trades, Portfolio) focuses on long-term ownership of undervalued companies, steering clear of popular choices that lack superior relative value. The firm believes in investing when valuations are low, creating greater potential for capital appreciation. Its top holdings include Fiserv Inc (FI, Financial), Johnson Controls International PLC (JCI, Financial), Charles Schwab Corp (SCHW, Financial), RTX Corp (RTX, Financial), and Wells Fargo & Co (WFC, Financial).

Overview of LyondellBasell Industries NV

LyondellBasell Industries NV is a leading petrochemical producer with operations across the United States, Europe, and Asia. The company is the world's largest producer of polypropylene and a major producer of polyethylene and propylene oxide. Its chemicals are used in various consumer and industrial end products, with a significant portion of production stemming from its North American operations. LyondellBasell's diverse segments include Advanced Polymer Solutions, Intermediates and Derivatives, Olefins and Polyolefins - Europe, Asia, International, and Olefins and Polyolefins-Americas.

Financial Metrics and Valuation

LyondellBasell has a market capitalization of $24.7 billion and a current stock price of $76.24. The company is considered modestly undervalued with a [GF Value](https://www.gurufocus.com/term/gf-value/LYB) of $86.62, indicating a price to GF Value ratio of 0.88. This suggests that the stock is trading below its intrinsic value, offering potential for future appreciation. The company's [Profitability Rank](https://www.gurufocus.com/term/rank-profitability/LYB) is 8/10, reflecting strong profitability metrics.

Performance and Growth Indicators

Since the transaction, LyondellBasell's stock has shown a 2.65% gain and a remarkable 242.65% increase since its IPO. The company's [GF Score](https://www.gurufocus.com/term/gf-score/LYB) is 76/100, suggesting likely average performance. Despite a modest [Growth Rank](https://www.gurufocus.com/term/rank-growth/LYB) of 5/10, the company has demonstrated solid revenue growth of 14.90% over the past three years. Its [Operating Margin](https://www.gurufocus.com/term/operating-margin/LYB) growth, however, has seen a decline of 5.20%.

Impact on Dodge & Cox (Trades, Portfolio)'s Portfolio

The addition of LyondellBasell shares represents 0.71% of Dodge & Cox (Trades, Portfolio)'s portfolio and 5.20% of the firm's holdings in the stock. With a total of 16,965,832 shares, Dodge & Cox (Trades, Portfolio) is the largest guru shareholder of LyondellBasell. This strategic move aligns with the firm's philosophy of investing in undervalued companies with promising future prospects.

Other Notable Investors

Besides Dodge & Cox (Trades, Portfolio), other notable investors such as Joel Greenblatt (Trades, Portfolio) and Jefferies Group (Trades, Portfolio) also hold positions in LyondellBasell. This indicates a broader confidence in the company's potential within the investment community.

Conclusion

The strategic addition of LyondellBasell shares by Dodge & Cox (Trades, Portfolio) reflects the firm's confidence in the company's long-term value and growth potential. This transaction is consistent with Dodge & Cox (Trades, Portfolio)'s investment philosophy of seeking undervalued companies with strong future prospects. As the largest guru shareholder, Dodge & Cox (Trades, Portfolio)'s increased stake in LyondellBasell underscores its commitment to capitalizing on the company's potential for future appreciation.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.