WESTERN MIDSTREAM PARTNERS L (WES) Stock Fundamental Analysis
USA - NYSE:WES - US9586691035
37.6 USD
-0.48 (-1.26%)
37.8996 USD
+0.3 (+0.8%)
We assign a fundamental rating of 6 out of 10 to WES. WES was compared to 211 industry peers in the Oil, Gas & Consumable Fuels industry. While WES has a great profitability rating, there are some minor concerns on its financial health. WES is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year WES was profitable.
WES had a positive operating cash flow in the past year.
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's Return On Assets of 10.22% is amongst the best of the industry. WES outperforms 88.15% of its industry peers.
WES has a Return On Equity of 38.98%. This is amongst the best in the industry. WES outperforms 93.84% of its industry peers.
With an excellent Return On Invested Capital value of 10.95%, WES belongs to the best of the industry, outperforming 83.89% 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 21.53%.
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 Profit Margin of 33.86%. This is amongst the best in the industry. WES outperforms 89.10% of its industry peers.
WES's Profit Margin has improved in the last couple of years.
WES has a better Operating Margin (43.29%) than 88.63% of its industry peers.
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 99.53% 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.
WES has less shares outstanding than it did 5 years ago.
WES has a better debt/assets ratio than last year.
2.2 Solvency
WES has a debt to FCF ratio of 4.78. This is a neutral value as WES would need 4.78 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 4.78, WES is doing good in the industry, outperforming 66.35% 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.
Looking at the Debt to Equity ratio, with a value of 2.17, WES is doing worse than 82.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.17 | ||
| Debt/FCF | 4.78 | ||
| Altman-Z | N/A |
ROIC/WACC1.42
WACC7.7%
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.
WES has a Current ratio of 1.30. This is comparable to the rest of the industry: WES outperforms 59.72% of its industry peers.
WES has a Quick Ratio of 1.29. This is a normal value and indicates that WES is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.29, WES is in the better half of the industry, outperforming 63.98% of the companies in the same industry.
| 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.
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.
WES shows a small growth in Revenue. In the last year, the Revenue has grown by 7.11%.
Measured over the past years, WES shows a small growth in Revenue. The Revenue has been growing by 5.59% on average per year.
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
The Earnings Per Share is expected to grow by 0.07% 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 5.23% on average per year.
EPS Next Y-14.26%
EPS Next 2Y-3.98%
EPS Next 3Y0.07%
EPS Next 5YN/A
Revenue Next Year3.17%
Revenue Next 2Y5.33%
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
With a Price/Earnings ratio of 11.57, the valuation of WES can be described as very reasonable.
Based on the Price/Earnings ratio, WES is valued a bit cheaper than the industry average as 64.45% of the companies are valued more expensively.
WES is valuated cheaply when we compare the Price/Earnings ratio to 27.77, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 10.12, the valuation of WES can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WES indicates a somewhat cheap valuation: WES is cheaper than 69.19% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of WES to the average of the S&P500 Index (23.23), we can say WES is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.57 | ||
| Fwd PE | 10.12 |
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 76.78% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.88 | ||
| EV/EBITDA | 9.43 |
4.3 Compensation for Growth
WES has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.55
EPS Next 2Y-3.98%
EPS Next 3Y0.07%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.67%, WES is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.30, WES pays a better dividend. On top of this WES pays more dividend than 87.68% 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 | 9.67% |
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.
The dividend of WES is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP110.84%
EPS Next 2Y-3.98%
EPS Next 3Y0.07%
37.6
-0.48 (-1.26%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners81.03%
Inst Owner Change-3.37%
Ins Owners0.18%
Ins Owner Change0%
Market Cap14.34B
Analysts65.88
Price Target41.31 (9.87%)
Short Float %2.2%
Short Ratio6.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.67% |
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%
PT rev (3m)1.48%
EPS NQ rev (1m)1.62%
EPS NQ rev (3m)3.71%
EPS NY rev (1m)-0.17%
EPS NY rev (3m)1.32%
Revenue NQ rev (1m)0.37%
Revenue NQ rev (3m)1.26%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.57 | ||
| Fwd PE | 10.12 | ||
| P/S | 3.91 | ||
| P/FCF | 9.88 | ||
| P/OCF | 6.52 | ||
| P/B | 4.5 | ||
| P/tB | 5.62 | ||
| EV/EBITDA | 9.43 |
EPS(TTM)3.25
EY8.64%
EPS(NY)3.72
Fwd EY9.88%
FCF(TTM)3.81
FCFY10.12%
OCF(TTM)5.77
OCFY15.35%
SpS9.63
BVpS8.36
TBVpS6.69
PEG (NY)N/A
PEG (5Y)0.55
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
WACC7.7%
ROIC/WACC1.42
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-14.26%
EPS Next 2Y-3.98%
EPS Next 3Y0.07%
EPS Next 5YN/A
Revenue 1Y (TTM)7.11%
Revenue growth 3Y7.81%
Revenue growth 5Y5.59%
Sales Q2Q%4.05%
Revenue Next Year3.17%
Revenue Next 2Y5.33%
Revenue Next 3Y5.23%
Revenue Next 5YN/A
EBIT growth 1Y7.33%
EBIT growth 3Y10.5%
EBIT growth 5Y9.38%
EBIT Next Year39.48%
EBIT Next 3Y17.43%
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%