WESTERN MIDSTREAM PARTNERS L (WES)
US9586691035
We assign a fundamental rating of 4 out of 10 to WES. WES was compared to 214 industry peers in the Oil, Gas & Consumable Fuels industry. While WES has a great profitability rating, there are quite some concerns on its financial health. WES has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
WES had positive earnings in the past year.
In the past year WES had a positive cash flow from operations.
WES had positive earnings in each of the past 5 years.
In the past 5 years WES always reported a positive cash flow from operatings.
1.2 Ratios
WES has a Return On Assets (8.01%) which is comparable to the rest of the industry.
The Return On Equity of WES (34.46%) is better than 81.69% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.65%, WES is in line with its industry, outperforming 49.30% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for WES is significantly below the industry average of 45.80%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.01% | ||
| ROE | 34.46% | ||
| ROIC | 8.65% |
ROA(3y)8.84%
ROA(5y)7.25%
ROE(3y)34.93%
ROE(5y)28.84%
ROIC(3y)9.05%
ROIC(5y)8.57%
1.3 Margins
WES's Profit Margin of 32.14% is fine compared to the rest of the industry. WES outperforms 74.18% of its industry peers.
In the last couple of years the Profit Margin of WES has grown nicely.
WES has a Operating Margin of 41.51%. This is in the better half of the industry: WES outperforms 76.53% of its industry peers.
In the last couple of years the Operating Margin of WES has remained more or less at the same level.
The Gross Margin of WES (94.70%) is better than 99.06% of its industry peers.
In the last couple of years the Gross Margin of WES has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 41.51% | ||
| PM (TTM) | 32.14% | ||
| GM | 94.7% |
OM growth 3Y-3.69%
OM growth 5Y1.3%
PM growth 3Y19.99%
PM growth 5Y14.88%
GM growth 3Y0.53%
GM growth 5Y2.94%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WES is still creating some value.
WES has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, WES has more shares outstanding
Compared to 1 year ago, WES has a worse debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of WES is 8.53, which is on the high side as it means it would take WES, 8.53 years of fcf income to pay off all of its debts.
WES has a Debt to FCF ratio (8.53) which is in line with its industry peers.
A Debt/Equity ratio of 2.72 is on the high side and indicates that WES has dependencies on debt financing.
The Debt to Equity ratio of WES (2.72) is worse than 86.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.72 | ||
| Debt/FCF | 8.53 | ||
| Altman-Z | N/A |
ROIC/WACC1.19
WACC7.25%
2.3 Liquidity
A Current Ratio of 0.76 indicates that WES may have some problems paying its short term obligations.
WES has a Current ratio of 0.76. This is in the lower half of the industry: WES underperforms 76.06% of its industry peers.
A Quick Ratio of 0.76 indicates that WES may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.76, WES is doing worse than 67.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
The earnings per share for WES have decreased strongly by -13.33% in the last year.
WES shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.00% yearly.
The Revenue has decreased by -4.47% in the past year.
WES shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.20% yearly.
EPS 1Y (TTM)-13.33%
EPS 3Y0.91%
EPS 5Y9%
EPS growth Q2Q-12.94%
Revenue 1Y (TTM)-4.47%
Revenue growth 3Y3.86%
Revenue growth 5Y6.2%
Revenue growth Q2Q10.11%
3.2 Future
The Earnings Per Share is expected to grow by 13.59% on average over the next years. This is quite good.
WES is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.25% yearly.
EPS Next Y29.78%
EPS Next 2Y16.69%
EPS Next 3Y13.59%
EPS Next 5YN/A
Revenue Next Year12.91%
Revenue Next 2Y8.19%
Revenue Next 3Y7.25%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
WES is valuated correctly with a Price/Earnings ratio of 13.82.
WES's Price/Earnings ratio is a bit more expensive when compared to the industry. WES is more expensive than 60.09% of the companies in the same industry.
When comparing the Price/Earnings ratio of WES to the average of the S&P500 Index (25.25), we can say WES is valued slightly cheaper.
A Price/Forward Earnings ratio of 10.65 indicates a reasonable valuation of WES.
Based on the Price/Forward Earnings ratio, WES is valued a bit cheaper than the industry average as 64.32% of the companies are valued more expensively.
WES's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.67.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.82 | ||
| Fwd PE | 10.65 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WES is valued a bit more expensive than 69.01% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as WES.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.76 | ||
| EV/EBITDA | 10.88 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
WES has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as WES's earnings are expected to grow with 13.59% in the coming years.
PEG (NY)0.46
PEG (5Y)1.54
EPS Next 2Y16.69%
EPS Next 3Y13.59%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.64%, WES is a good candidate for dividend investing.
WES's Dividend Yield is a higher than the industry average which is at 5.79.
Compared to an average S&P500 Dividend Yield of 2.45, WES pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.64% |
5.2 History
The dividend of WES has a limited annual growth rate of 2.24%.
WES has paid a dividend for at least 10 years, which is a reliable track record.
WES has decreased its dividend in the last 3 years.
Dividend Growth(5Y)2.24%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
97.99% of the earnings are spent on dividend by WES. This is not a sustainable payout ratio.
The dividend of WES is growing, but earnings are growing more, so the dividend growth is sustainable.
DP97.99%
EPS Next 2Y16.69%
EPS Next 3Y13.59%
WESTERN MIDSTREAM PARTNERS L
NYSE:WES (4/24/2024, 7:04:00 PM)
After market: 36.25 +0.31 (+0.86%)35.94
+0.34 (+0.96%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap13.67B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.64% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.82 | ||
| Fwd PE | 10.65 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.46
PEG (5Y)1.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.01% | ||
| ROE | 34.46% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 41.51% | ||
| PM (TTM) | 32.14% | ||
| GM | 94.7% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.72 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-13.33%
EPS 3Y0.91%
EPS 5Y
EPS growth Q2Q
EPS Next Y29.78%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-4.47%
Revenue growth 3Y3.86%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y