WESTERN MIDSTREAM PARTNERS L (WES) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WES - US9586691035
39.3 USD
+0.23 (+0.59%)
Taking everything into account, WES scores 6 out of 10 in our fundamental rating. WES was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. WES scores excellent on profitability, but 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.
Each year in the past 5 years WES has been profitable.
WES had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WES has a Return On Assets of 10.67%. This is amongst the best in the industry. WES outperforms 90.00% of its industry peers.
WES's Return On Equity of 40.64% is amongst the best of the industry. WES outperforms 94.29% of its industry peers.
WES's Return On Invested Capital of 11.36% is amongst the best of the industry. WES outperforms 87.14% of its industry peers.
WES had an Average Return On Invested Capital over the past 3 years of 9.49%. This is significantly below the industry average of 21.09%.
The 3 year average ROIC (9.49%) for WES is below the current ROIC(11.36%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.67% | ||
| ROE | 40.64% | ||
| ROIC | 11.36% |
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's Profit Margin of 34.57% is amongst the best of the industry. WES outperforms 91.43% of its industry peers.
WES's Profit Margin has improved in the last couple of years.
WES has a better Operating Margin (44.17%) than 89.05% of its industry peers.
WES's Operating Margin has improved in the last couple of years.
WES has a better Gross Margin (95.33%) than 98.57% of its industry peers.
WES's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 44.17% | ||
| PM (TTM) | 34.57% | ||
| GM | 95.33% |
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.
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
WES has a debt to FCF ratio of 4.70. This is a neutral value as WES would need 4.70 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.70, WES is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
A Debt/Equity ratio of 2.18 is on the high side and indicates that WES has dependencies on debt financing.
The Debt to Equity ratio of WES (2.18) is worse than 82.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.18 | ||
| Debt/FCF | 4.7 | ||
| Altman-Z | N/A |
ROIC/WACC1.43
WACC7.92%
2.3 Liquidity
A Current Ratio of 1.43 indicates that WES should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.43, WES is doing good in the industry, outperforming 64.76% of the companies in the same industry.
A Quick Ratio of 1.41 indicates that WES should not have too much problems paying its short term obligations.
The Quick ratio of WES (1.41) is better than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
WES shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.78%.
Measured over the past years, WES shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.90% on average per year.
The Revenue has been growing slightly by 5.81% in the past year.
WES shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.59% yearly.
EPS 1Y (TTM)-13.78%
EPS 3Y22.73%
EPS 5Y20.9%
EPS Q2Q%17.57%
Revenue 1Y (TTM)5.81%
Revenue growth 3Y7.81%
Revenue growth 5Y5.59%
Sales Q2Q%7.82%
3.2 Future
The Earnings Per Share is expected to grow by 0.16% on average over the next years.
The Revenue is expected to grow by 5.60% on average over the next years.
EPS Next Y-12.17%
EPS Next 2Y-3.58%
EPS Next 3Y0.16%
EPS Next 5YN/A
Revenue Next Year5.11%
Revenue Next 2Y6.03%
Revenue Next 3Y6.91%
Revenue Next 5Y5.6%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.63 indicates a reasonable valuation of WES.
Based on the Price/Earnings ratio, WES is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of WES to the average of the S&P500 Index (26.39), we can say WES is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.49, the valuation of WES can be described as reasonable.
Based on the Price/Forward Earnings ratio, WES is valued a bit cheaper than 71.90% of the companies in the same industry.
WES's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.63 | ||
| Fwd PE | 10.49 |
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.
Based on the Price/Free Cash Flow ratio, WES is valued a bit cheaper than 75.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.87 | ||
| EV/EBITDA | 9.75 |
4.3 Compensation for Growth
The excellent profitability rating of WES may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.56
EPS Next 2Y-3.58%
EPS Next 3Y0.16%
5. Dividend
5.1 Amount
WES has a Yearly Dividend Yield of 9.71%, which is a nice return.
WES's Dividend Yield is rather good when compared to the industry average which is at 3.95. WES pays more dividend than 88.10% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, WES pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.71% |
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
107.67% of the earnings are spent on dividend by WES. This is not a sustainable payout ratio.
The dividend of WES is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP107.67%
EPS Next 2Y-3.58%
EPS Next 3Y0.16%
NYSE:WES (12/22/2025, 11:27:20 AM)
39.3
+0.23 (+0.59%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners77.53%
Inst Owner Change3.67%
Ins Owners0.17%
Ins Owner Change1.28%
Market Cap16.03B
Revenue(TTM)3.74B
Net Income(TTM)1.29B
Analysts65.56
Price Target42.59 (8.37%)
Short Float %1.34%
Short Ratio3.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.71% |
Yearly Dividend3.28
Dividend Growth(5Y)2.35%
DP107.67%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.79%
Min EPS beat(2)-2.42%
Max EPS beat(2)4%
EPS beat(4)1
Avg EPS beat(4)-1.37%
Min EPS beat(4)-6.21%
Max EPS beat(4)4%
EPS beat(8)3
Avg EPS beat(8)8.47%
EPS beat(12)5
Avg EPS beat(12)5.89%
EPS beat(16)6
Avg EPS beat(16)3.83%
Revenue beat(2)0
Avg Revenue beat(2)-1.34%
Min Revenue beat(2)-2.17%
Max Revenue beat(2)-0.5%
Revenue beat(4)0
Avg Revenue beat(4)-1.75%
Min Revenue beat(4)-3.05%
Max Revenue beat(4)-0.5%
Revenue beat(8)1
Avg Revenue beat(8)-2.03%
Revenue beat(12)1
Avg Revenue beat(12)-3.79%
Revenue beat(16)3
Avg Revenue beat(16)-2.95%
PT rev (1m)2.66%
PT rev (3m)3.09%
EPS NQ rev (1m)2.23%
EPS NQ rev (3m)10.44%
EPS NY rev (1m)1.73%
EPS NY rev (3m)2.27%
Revenue NQ rev (1m)2.3%
Revenue NQ rev (3m)6.74%
Revenue NY rev (1m)1.24%
Revenue NY rev (3m)1.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.63 | ||
| Fwd PE | 10.49 | ||
| P/S | 4.29 | ||
| P/FCF | 10.87 | ||
| P/OCF | 7.22 | ||
| P/B | 5.04 | ||
| P/tB | 6.28 | ||
| EV/EBITDA | 9.75 |
EPS(TTM)3.38
EY8.6%
EPS(NY)3.75
Fwd EY9.53%
FCF(TTM)3.61
FCFY9.2%
OCF(TTM)5.44
OCFY13.84%
SpS9.17
BVpS7.8
TBVpS6.25
PEG (NY)N/A
PEG (5Y)0.56
Graham Number24.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.67% | ||
| ROE | 40.64% | ||
| ROCE | 14.38% | ||
| ROIC | 11.36% | ||
| ROICexc | 11.54% | ||
| ROICexgc | 12.22% | ||
| OM | 44.17% | ||
| PM (TTM) | 34.57% | ||
| GM | 95.33% | ||
| FCFM | 39.43% |
ROA(3y)10.08%
ROA(5y)8.51%
ROE(3y)40.66%
ROE(5y)34.2%
ROIC(3y)9.49%
ROIC(5y)9.22%
ROICexc(3y)9.97%
ROICexc(5y)9.61%
ROICexgc(3y)10.63%
ROICexgc(5y)10.29%
ROCE(3y)12.66%
ROCE(5y)12.26%
ROICexgc growth 3Y6.85%
ROICexgc 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 Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.18 | ||
| Debt/FCF | 4.7 | ||
| Debt/EBITDA | 2.97 | ||
| Cap/Depr | 110.16% | ||
| Cap/Sales | 19.91% | ||
| Interest Coverage | 4.44 | ||
| Cash Conversion | 95.34% | ||
| Profit Quality | 114.05% | ||
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z | N/A |
F-Score6
WACC7.92%
ROIC/WACC1.43
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)-13.78%
EPS 3Y22.73%
EPS 5Y20.9%
EPS Q2Q%17.57%
EPS Next Y-12.17%
EPS Next 2Y-3.58%
EPS Next 3Y0.16%
EPS Next 5YN/A
Revenue 1Y (TTM)5.81%
Revenue growth 3Y7.81%
Revenue growth 5Y5.59%
Sales Q2Q%7.82%
Revenue Next Year5.11%
Revenue Next 2Y6.03%
Revenue Next 3Y6.91%
Revenue Next 5Y5.6%
EBIT growth 1Y7.99%
EBIT growth 3Y10.5%
EBIT growth 5Y9.38%
EBIT Next Year42.86%
EBIT Next 3Y18.48%
EBIT Next 5Y12.27%
FCF growth 1Y48.23%
FCF growth 3Y-3.57%
FCF growth 5Y57.3%
OCF growth 1Y32.33%
OCF growth 3Y6.54%
OCF growth 5Y10.05%
WESTERN MIDSTREAM PARTNERS L / WES FAQ
What is the fundamental rating for WES stock?
ChartMill assigns a fundamental rating of 6 / 10 to WES.
Can you provide the valuation status for WESTERN MIDSTREAM PARTNERS L?
ChartMill assigns a valuation rating of 6 / 10 to WESTERN MIDSTREAM PARTNERS L (WES). This can be considered as Fairly Valued.
How profitable is WESTERN MIDSTREAM PARTNERS L (WES) stock?
WESTERN MIDSTREAM PARTNERS L (WES) has a profitability rating of 9 / 10.
What are the PE and PB ratios of WESTERN MIDSTREAM PARTNERS L (WES) stock?
The Price/Earnings (PE) ratio for WESTERN MIDSTREAM PARTNERS L (WES) is 11.63 and the Price/Book (PB) ratio is 5.04.
How financially healthy is WESTERN MIDSTREAM PARTNERS L?
The financial health rating of WESTERN MIDSTREAM PARTNERS L (WES) is 4 / 10.