WESTERN MIDSTREAM PARTNERS L (WES) Stock Fundamental Analysis
NYSE:WES - New York Stock Exchange, Inc. - US9586691035 - Currency: USD
WES gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 213 industry peers in the Oil, Gas & Consumable Fuels industry. WES has an excellent profitability rating, but there are some minor concerns on its financial health. WES has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
In the past 5 years WES has always been profitable.
WES had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of WES (10.27%) is better than 82.16% of its industry peers.
WES has a better Return On Equity (40.06%) than 92.49% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.43%, WES is in the better half of the industry, outperforming 75.59% of the companies in the same industry.
WES had an Average Return On Invested Capital over the past 3 years of 9.49%. This is significantly below the industry average of 25.88%.
The last Return On Invested Capital (10.43%) for WES is above the 3 year average (9.49%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.27% | ||
| ROE | 40.06% | ||
| ROIC | 10.43% |
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
WES has a Profit Margin of 35.20%. This is amongst the best in the industry. WES outperforms 88.26% of its industry peers.
In the last couple of years the Profit Margin of WES has grown nicely.
Looking at the Operating Margin, with a value of 42.78%, WES belongs to the top of the industry, outperforming 88.26% of the companies in the same industry.
WES's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 95.39%, WES belongs to the best of the industry, outperforming 99.53% of the companies in the same industry.
In the last couple of years the Gross Margin of WES has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 42.78% | ||
| PM (TTM) | 35.2% | ||
| GM | 95.39% |
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
WES has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for WES remains at a similar level compared to 1 year ago.
Compared to 5 years ago, WES has less shares outstanding
The debt/assets ratio for WES has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of WES is 4.90, which is a neutral value as it means it would take WES, 4.90 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.90, WES is in the better half of the industry, outperforming 68.08% of the companies in the same industry.
A Debt/Equity ratio of 2.27 is on the high side and indicates that WES has dependencies on debt financing.
The Debt to Equity ratio of WES (2.27) is worse than 84.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.27 | ||
| Debt/FCF | 4.9 | ||
| Altman-Z | N/A |
ROIC/WACC1.08
WACC9.63%
2.3 Liquidity
A Current Ratio of 1.18 indicates that WES should not have too much problems paying its short term obligations.
WES has a Current ratio (1.18) which is in line with its industry peers.
A Quick Ratio of 1.17 indicates that WES should not have too much problems paying its short term obligations.
WES's Quick ratio of 1.17 is fine compared to the rest of the industry. WES outperforms 60.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
The earnings per share for WES have decreased by -5.63% in the last year.
WES shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.90% yearly.
Looking at the last year, WES shows a quite strong growth in Revenue. The Revenue has grown by 11.48% in the last year.
The Revenue has been growing slightly by 5.59% on average over the past years.
EPS 1Y (TTM)-5.63%
EPS 3Y22.73%
EPS 5Y20.9%
EPS Q2Q%-46.26%
Revenue 1Y (TTM)11.48%
Revenue growth 3Y7.81%
Revenue growth 5Y5.59%
Sales Q2Q%3.31%
3.2 Future
The Earnings Per Share is expected to decrease by -0.21% on average over the next years.
Based on estimates for the next years, WES will show a small growth in Revenue. The Revenue will grow by 4.40% on average per year.
EPS Next Y-14.37%
EPS Next 2Y-3.98%
EPS Next 3Y-0.21%
EPS Next 5YN/A
Revenue Next Year3.17%
Revenue Next 2Y3.42%
Revenue Next 3Y4.4%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.68 indicates a reasonable valuation of WES.
Based on the Price/Earnings ratio, WES is valued a bit cheaper than the industry average as 62.91% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.60, WES is valued rather cheaply.
WES is valuated reasonably with a Price/Forward Earnings ratio of 10.53.
Based on the Price/Forward Earnings ratio, WES is valued a bit cheaper than the industry average as 62.91% of the companies are valued more expensively.
WES is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.68 | ||
| Fwd PE | 10.53 |
4.2 Price Multiples
WES's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, WES is valued a bit cheaper than 76.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.05 | ||
| EV/EBITDA | 9.68 |
4.3 Compensation for Growth
WES has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.56
EPS Next 2Y-3.98%
EPS Next 3Y-0.21%
5. Dividend
5.1 Amount
WES has a Yearly Dividend Yield of 9.20%, which is a nice return.
Compared to an average industry Dividend Yield of 7.05, WES pays a better dividend. On top of this WES pays more dividend than 85.45% of the companies listed in the same industry.
WES's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.2% |
5.2 History
The dividend of WES has a limited annual growth rate of 2.35%.
WES has been paying a dividend for at least 10 years, so it has 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
106.59% of the earnings are spent on dividend by WES. This is not a sustainable payout ratio.
The Dividend Rate of WES has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP106.59%
EPS Next 2Y-3.98%
EPS Next 3Y-0.21%
39.14
-0.11 (-0.28%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners85.01%
Inst Owner Change-2.87%
Ins Owners0.17%
Ins Owner Change7.53%
Market Cap14.92B
Analysts65.56
Price Target41.54 (6.13%)
Short Float %1.28%
Short Ratio3.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.2% |
Yearly Dividend3.28
Dividend Growth(5Y)2.35%
DP106.59%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.54%
Min EPS beat(2)-6.21%
Max EPS beat(2)-0.86%
EPS beat(4)1
Avg EPS beat(4)-2.47%
Min EPS beat(4)-12%
Max EPS beat(4)9.22%
EPS beat(8)3
Avg EPS beat(8)8.89%
EPS beat(12)4
Avg EPS beat(12)4.31%
EPS beat(16)5
Avg EPS beat(16)3.15%
Revenue beat(2)0
Avg Revenue beat(2)-2.17%
Min Revenue beat(2)-3.05%
Max Revenue beat(2)-1.3%
Revenue beat(4)0
Avg Revenue beat(4)-3.11%
Min Revenue beat(4)-6.34%
Max Revenue beat(4)-1.3%
Revenue beat(8)1
Avg Revenue beat(8)-3.62%
Revenue beat(12)2
Avg Revenue beat(12)-3.25%
Revenue beat(16)5
Avg Revenue beat(16)-2.33%
PT rev (1m)0%
PT rev (3m)1.24%
EPS NQ rev (1m)-0.2%
EPS NQ rev (3m)0.2%
EPS NY rev (1m)-0.74%
EPS NY rev (3m)-2.11%
Revenue NQ rev (1m)-0.25%
Revenue NQ rev (3m)1.55%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.68 | ||
| Fwd PE | 10.53 | ||
| P/S | 4.11 | ||
| P/FCF | 10.05 | ||
| P/OCF | 6.58 | ||
| P/B | 4.67 | ||
| P/tB | 5.86 | ||
| EV/EBITDA | 9.68 |
EPS(TTM)3.35
EY8.56%
EPS(NY)3.72
Fwd EY9.49%
FCF(TTM)3.9
FCFY9.95%
OCF(TTM)5.95
OCFY15.2%
SpS9.53
BVpS8.37
TBVpS6.68
PEG (NY)N/A
PEG (5Y)0.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.27% | ||
| ROE | 40.06% | ||
| ROCE | 13.58% | ||
| ROIC | 10.43% | ||
| ROICexc | 10.84% | ||
| ROICexgc | 11.49% | ||
| OM | 42.78% | ||
| PM (TTM) | 35.2% | ||
| GM | 95.39% | ||
| FCFM | 40.87% |
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 Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.27 | ||
| Debt/FCF | 4.9 | ||
| Debt/EBITDA | 3.27 | ||
| Cap/Depr | 118.04% | ||
| Cap/Sales | 21.53% | ||
| Interest Coverage | 4.44 | ||
| Cash Conversion | 102.26% | ||
| Profit Quality | 116.12% | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | N/A |
F-Score6
WACC9.63%
ROIC/WACC1.08
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)-5.63%
EPS 3Y22.73%
EPS 5Y20.9%
EPS Q2Q%-46.26%
EPS Next Y-14.37%
EPS Next 2Y-3.98%
EPS Next 3Y-0.21%
EPS Next 5YN/A
Revenue 1Y (TTM)11.48%
Revenue growth 3Y7.81%
Revenue growth 5Y5.59%
Sales Q2Q%3.31%
Revenue Next Year3.17%
Revenue Next 2Y3.42%
Revenue Next 3Y4.4%
Revenue Next 5YN/A
EBIT growth 1Y11.79%
EBIT growth 3Y10.5%
EBIT growth 5Y9.38%
EBIT Next Year38.81%
EBIT Next 3Y14.93%
EBIT Next 5Y9.54%
FCF growth 1Y29.06%
FCF growth 3Y-3.57%
FCF growth 5Y57.3%
OCF growth 1Y31.3%
OCF growth 3Y6.54%
OCF growth 5Y10.05%