WESTERN MIDSTREAM PARTNERS L (WES) Stock Fundamental Analysis
NYSE:WES - New York Stock Exchange, Inc. - US9586691035 - Currency: USD
Taking everything into account, WES scores 6 out of 10 in our fundamental rating. WES was compared to 208 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 valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
WES had positive earnings in the past year.
WES had a positive operating cash flow in the past year.
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
WES has a better Return On Assets (10.22%) than 84.62% of its industry peers.
WES's Return On Equity of 38.98% is amongst the best of the industry. WES outperforms 93.75% of its industry peers.
WES's Return On Invested Capital of 10.95% is amongst the best of the industry. WES outperforms 82.21% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WES is significantly below the industry average of 23.51%.
The 3 year average ROIC (9.49%) for WES is below the current ROIC(10.95%), indicating increased profibility in the last year.
| 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
WES has a better Profit Margin (33.86%) than 87.50% 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 43.29%, WES belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
In the last couple of years the Operating Margin of WES has grown nicely.
WES has a Gross Margin of 95.74%. This is amongst the best in the industry. WES outperforms 99.52% of its industry peers.
In the last couple of years the Gross Margin of WES has grown nicely.
| 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
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 4.78, 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.
Looking at the Debt to FCF ratio, with a value of 4.78, WES is in the better half of the industry, outperforming 62.98% of the companies in the same industry.
WES has a Debt/Equity ratio of 2.17. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.17, WES is not doing good in the industry: 82.21% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.17 | ||
| Debt/FCF | 4.78 | ||
| Altman-Z | N/A |
ROIC/WACC1.3
WACC8.41%
2.3 Liquidity
A Current Ratio of 1.30 indicates that WES should not have too much problems paying its short term obligations.
WES has a Current ratio (1.30) which is in line with its industry peers.
A Quick Ratio of 1.29 indicates that WES should not have too much problems paying its short term obligations.
WES has a better Quick ratio (1.29) than 65.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
WES shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.24%.
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 7.11% in the past year.
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 decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.02% yearly.
Based on estimates for the next years, WES will show a small growth in Revenue. The Revenue will grow by 3.85% on average per year.
EPS Next Y-15.38%
EPS Next 2Y-4.79%
EPS Next 3Y-1.02%
EPS Next 5YN/A
Revenue Next Year2.66%
Revenue Next 2Y3.28%
Revenue Next 3Y3.85%
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 11.89 indicates a reasonable valuation of WES.
Compared to the rest of the industry, the Price/Earnings ratio of WES indicates a somewhat cheap valuation: WES is cheaper than 64.90% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of WES to the average of the S&P500 Index (26.93), we can say WES is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.58, the valuation of WES can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WES indicates a somewhat cheap valuation: WES is cheaper than 63.46% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.31, WES is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.89 | ||
| Fwd PE | 10.58 |
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 the industry average as 76.44% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.15 | ||
| EV/EBITDA | 9.54 |
4.3 Compensation for Growth
WES has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.57
EPS Next 2Y-4.79%
EPS Next 3Y-1.02%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.15%, WES is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.34, WES pays a better dividend. On top of this WES pays more dividend than 86.54% 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 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.15% |
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
WES pays out 110.84% of its income as dividend. This is not a sustainable payout ratio.
WES's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP110.84%
EPS Next 2Y-4.79%
EPS Next 3Y-1.02%
38.64
-0.05 (-0.13%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners84.11%
Inst Owner Change-0.47%
Ins Owners0.18%
Ins Owner Change7.53%
Market Cap14.73B
Analysts65.56
Price Target40.71 (5.36%)
Short Float %1.39%
Short Ratio5.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.15% |
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)-0.45%
PT rev (3m)-2%
EPS NQ rev (1m)1.25%
EPS NQ rev (3m)-1.63%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.92%
Revenue NQ rev (1m)0.77%
Revenue NQ rev (3m)-1.45%
Revenue NY rev (1m)0.58%
Revenue NY rev (3m)-0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.89 | ||
| Fwd PE | 10.58 | ||
| P/S | 4.01 | ||
| P/FCF | 10.15 | ||
| P/OCF | 6.7 | ||
| P/B | 4.62 | ||
| P/tB | 5.78 | ||
| EV/EBITDA | 9.54 |
EPS(TTM)3.25
EY8.41%
EPS(NY)3.65
Fwd EY9.45%
FCF(TTM)3.81
FCFY9.85%
OCF(TTM)5.77
OCFY14.93%
SpS9.63
BVpS8.36
TBVpS6.69
PEG (NY)N/A
PEG (5Y)0.57
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
WACC8.41%
ROIC/WACC1.3
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-15.38%
EPS Next 2Y-4.79%
EPS Next 3Y-1.02%
EPS Next 5YN/A
Revenue 1Y (TTM)7.11%
Revenue growth 3Y7.81%
Revenue growth 5Y5.59%
Sales Q2Q%4.05%
Revenue Next Year2.66%
Revenue Next 2Y3.28%
Revenue Next 3Y3.85%
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 5Y9.43%
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%