WESTERN MIDSTREAM PARTNERS L (WES) Stock Fundamental Analysis
USA - NYSE:WES - US9586691035
39.42 USD
+0.06 (+0.15%)
39.42 USD
0 (0%)
Overall WES gets a fundamental rating of 6 out of 10. We evaluated WES against 210 industry peers in the Oil, Gas & Consumable Fuels industry. While WES belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. WES has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year WES was profitable.
In the past year WES had a positive cash flow from operations.
WES had positive earnings in each of the past 5 years.
WES had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WES has a better Return On Assets (10.22%) than 87.62% of its industry peers.
WES's Return On Equity of 38.98% is amongst the best of the industry. WES outperforms 93.81% of its industry peers.
WES's Return On Invested Capital of 10.95% is amongst the best of the industry. WES outperforms 83.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WES is significantly below the industry average of 21.71%.
The last Return On Invested Capital (10.95%) for WES is above the 3 year average (9.49%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.22% | ||
| ROE | 38.98% | ||
| ROIC | 10.95% |
ROA(3y)10.08%
ROA(5y)8.51%
ROE(3y)40.66%
ROE(5y)34.2%
ROIC(3y)9.49%
ROIC(5y)9.22%
1.3 Margins
With an excellent Profit Margin value of 33.86%, WES belongs to the best of the industry, outperforming 88.57% of the companies in the same industry.
WES's Profit Margin has improved in the last couple of years.
The Operating Margin of WES (43.29%) is better than 88.57% of its industry peers.
In the last couple of years the Operating Margin of WES has grown nicely.
The Gross Margin of WES (95.74%) is better than 99.52% of its industry peers.
WES's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 43.29% | ||
| PM (TTM) | 33.86% | ||
| GM | 95.74% |
OM growth 3Y2.49%
OM growth 5Y3.58%
PM growth 3Y11.02%
PM growth 5Y12.07%
GM growth 3Y2.36%
GM growth 5Y2.58%
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 about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for WES has been reduced compared to 5 years ago.
Compared to 1 year ago, WES has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of WES is 4.78, which is a neutral value as it means it would take WES, 4.78 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of WES (4.78) is better than 66.67% of its industry peers.
A Debt/Equity ratio of 2.17 is on the high side and indicates that WES has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.17, WES is doing worse than 81.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.17 | ||
| Debt/FCF | 4.78 | ||
| Altman-Z | N/A |
ROIC/WACC1.35
WACC8.13%
2.3 Liquidity
WES has a Current Ratio of 1.30. This is a normal value and indicates that WES is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.30, WES is doing good in the industry, outperforming 60.95% of the companies in the same industry.
A Quick Ratio of 1.29 indicates that WES should not have too much problems paying its short term obligations.
WES has a Quick ratio of 1.29. This is in the better half of the industry: WES outperforms 65.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
The earnings per share for WES have decreased strongly by -16.24% in the last year.
The Earnings Per Share has been growing by 20.90% on average over the past years. This is a very strong growth
WES shows a small growth in Revenue. In the last year, the Revenue has grown by 7.11%.
The Revenue has been growing slightly by 5.59% on average over the past years.
EPS 1Y (TTM)-16.24%
EPS 3Y22.73%
EPS 5Y20.9%
EPS Q2Q%-10.31%
Revenue 1Y (TTM)7.11%
Revenue growth 3Y7.81%
Revenue growth 5Y5.59%
Sales Q2Q%4.05%
3.2 Future
WES is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.03% yearly.
Based on estimates for the next years, WES will show a small growth in Revenue. The Revenue will grow by 5.23% on average per year.
EPS Next Y-14.12%
EPS Next 2Y-3.53%
EPS Next 3Y0.03%
EPS Next 5YN/A
Revenue Next Year3.09%
Revenue Next 2Y5.4%
Revenue Next 3Y5.23%
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 decreasing.
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
A Price/Earnings ratio of 12.13 indicates a correct valuation of WES.
67.62% of the companies in the same industry are more expensive than WES, based on the Price/Earnings ratio.
WES is valuated cheaply when we compare the Price/Earnings ratio to 27.32, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 10.51, the valuation of WES can be described as reasonable.
68.57% of the companies in the same industry are more expensive than WES, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of WES to the average of the S&P500 Index (22.89), we can say WES is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.13 | ||
| Fwd PE | 10.51 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WES is on the same level as its industry peers.
76.67% of the companies in the same industry are more expensive than WES, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.36 | ||
| EV/EBITDA | 9.65 |
4.3 Compensation for Growth
WES has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.58
EPS Next 2Y-3.53%
EPS Next 3Y0.03%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.57%, WES is a good candidate for dividend investing.
WES's Dividend Yield is rather good when compared to the industry average which is at 6.00. WES pays more dividend than 88.10% of the companies in the same industry.
WES's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.57% |
5.2 History
The dividend of WES has a limited annual growth rate of 2.35%.
WES has paid a dividend for at least 10 years, which is a reliable track record.
WES has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)2.35%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
110.84% of the earnings are spent on dividend by WES. This is not a sustainable payout ratio.
WES's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP110.84%
EPS Next 2Y-3.53%
EPS Next 3Y0.03%
39.42
+0.06 (+0.15%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners84.11%
Inst Owner Change-5.9%
Ins Owners0.18%
Ins Owner Change0%
Market Cap15.03B
Analysts65.88
Price Target41.31 (4.79%)
Short Float %2.18%
Short Ratio7.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.57% |
Yearly Dividend3.28
Dividend Growth(5Y)2.35%
DP110.84%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.1%
Min EPS beat(2)-6.21%
Max EPS beat(2)4%
EPS beat(4)1
Avg EPS beat(4)-3.77%
Min EPS beat(4)-12%
Max EPS beat(4)4%
EPS beat(8)4
Avg EPS beat(8)9.9%
EPS beat(12)5
Avg EPS beat(12)5.04%
EPS beat(16)6
Avg EPS beat(16)3.72%
Revenue beat(2)0
Avg Revenue beat(2)-1.77%
Min Revenue beat(2)-3.05%
Max Revenue beat(2)-0.5%
Revenue beat(4)0
Avg Revenue beat(4)-2.8%
Min Revenue beat(4)-6.34%
Max Revenue beat(4)-0.5%
Revenue beat(8)1
Avg Revenue beat(8)-2.51%
Revenue beat(12)1
Avg Revenue beat(12)-3.92%
Revenue beat(16)4
Avg Revenue beat(16)-2.64%
PT rev (1m)1.48%
PT rev (3m)1.02%
EPS NQ rev (1m)-0.66%
EPS NQ rev (3m)2.54%
EPS NY rev (1m)0%
EPS NY rev (3m)1.52%
Revenue NQ rev (1m)0.55%
Revenue NQ rev (3m)0.89%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.13 | ||
| Fwd PE | 10.51 | ||
| P/S | 4.09 | ||
| P/FCF | 10.36 | ||
| P/OCF | 6.83 | ||
| P/B | 4.71 | ||
| P/tB | 5.89 | ||
| EV/EBITDA | 9.65 |
EPS(TTM)3.25
EY8.24%
EPS(NY)3.75
Fwd EY9.51%
FCF(TTM)3.81
FCFY9.65%
OCF(TTM)5.77
OCFY14.64%
SpS9.63
BVpS8.36
TBVpS6.69
PEG (NY)N/A
PEG (5Y)0.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.22% | ||
| ROE | 38.98% | ||
| ROCE | 13.86% | ||
| ROIC | 10.95% | ||
| ROICexc | 11.08% | ||
| ROICexgc | 11.74% | ||
| OM | 43.29% | ||
| PM (TTM) | 33.86% | ||
| GM | 95.74% | ||
| FCFM | 39.53% |
ROA(3y)10.08%
ROA(5y)8.51%
ROE(3y)40.66%
ROE(5y)34.2%
ROIC(3y)9.49%
ROIC(5y)9.22%
ROICexc(3y)9.97%
ROICexc(5y)9.61%
ROICexgc(3y)10.63%
ROICexgc(5y)10.29%
ROCE(3y)12.66%
ROCE(5y)12.26%
ROICexcg growth 3Y6.85%
ROICexcg growth 5Y8.96%
ROICexc growth 3Y7.4%
ROICexc growth 5Y10.13%
OM growth 3Y2.49%
OM growth 5Y3.58%
PM growth 3Y11.02%
PM growth 5Y12.07%
GM growth 3Y2.36%
GM growth 5Y2.58%
F-Score6
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.17 | ||
| Debt/FCF | 4.78 | ||
| Debt/EBITDA | 3.06 | ||
| Cap/Depr | 111.56% | ||
| Cap/Sales | 20.41% | ||
| Interest Coverage | 4.17 | ||
| Cash Conversion | 97.33% | ||
| Profit Quality | 116.74% | ||
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z | N/A |
F-Score6
WACC8.13%
ROIC/WACC1.35
Cap/Depr(3y)111.42%
Cap/Depr(5y)95.45%
Cap/Sales(3y)20.59%
Cap/Sales(5y)17.59%
Profit Quality(3y)93.2%
Profit Quality(5y)135.41%
High Growth Momentum
Growth
EPS 1Y (TTM)-16.24%
EPS 3Y22.73%
EPS 5Y20.9%
EPS Q2Q%-10.31%
EPS Next Y-14.12%
EPS Next 2Y-3.53%
EPS Next 3Y0.03%
EPS Next 5YN/A
Revenue 1Y (TTM)7.11%
Revenue growth 3Y7.81%
Revenue growth 5Y5.59%
Sales Q2Q%4.05%
Revenue Next Year3.09%
Revenue Next 2Y5.4%
Revenue Next 3Y5.23%
Revenue Next 5YN/A
EBIT growth 1Y7.33%
EBIT growth 3Y10.5%
EBIT growth 5Y9.38%
EBIT Next Year37.8%
EBIT Next 3Y14.44%
EBIT Next 5Y12.08%
FCF growth 1Y29.49%
FCF growth 3Y-3.57%
FCF growth 5Y57.3%
OCF growth 1Y25.66%
OCF growth 3Y6.54%
OCF growth 5Y10.05%