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 212 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 is not valued too expensively and it also shows a decent growth rate.
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.
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
The Return On Assets of WES (11.69%) is better than 86.32% of its industry peers.
The Return On Equity of WES (47.50%) is better than 93.40% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.95%, WES is in the better half of the industry, outperforming 73.11% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for WES is significantly below the industry average of 27.42%.
The 3 year average ROIC (9.49%) for WES is below the current ROIC(9.95%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.69% | ||
| ROE | 47.5% | ||
| ROIC | 9.95% |
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 (42.63%) than 91.04% of its industry peers.
WES's Profit Margin has improved in the last couple of years.
WES has a better Operating Margin (43.49%) than 87.26% of its industry peers.
In the last couple of years the Operating Margin of WES has grown nicely.
With an excellent Gross Margin value of 95.22%, 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 | 43.49% | ||
| PM (TTM) | 42.63% | ||
| GM | 95.22% |
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
The Debt to FCF ratio of WES is 6.09, which is on the high side as it means it would take WES, 6.09 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 6.09, WES is doing good in the industry, outperforming 60.38% of the companies in the same industry.
WES has a Debt/Equity ratio of 2.45. This is a high value indicating a heavy dependency on external financing.
WES's Debt to Equity ratio of 2.45 is on the low side compared to the rest of the industry. WES is outperformed by 85.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.45 | ||
| Debt/FCF | 6.09 | ||
| Altman-Z | N/A |
ROIC/WACC1.02
WACC9.77%
2.3 Liquidity
WES has a Current Ratio of 1.09. 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 (1.09) which is comparable to the rest of the industry.
A Quick Ratio of 1.09 indicates that WES should not have too much problems paying its short term obligations.
The Quick ratio of WES (1.09) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
WES shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 55.00%, which is quite impressive.
The Earnings Per Share has been growing by 20.90% on average over the past years. This is a very strong growth
Looking at the last year, WES shows a quite strong growth in Revenue. The Revenue has grown by 16.05% in the last year.
The Revenue has been growing slightly by 5.59% on average over the past years.
EPS 1Y (TTM)55%
EPS 3Y22.73%
EPS 5Y20.9%
EPS Q2Q%14.86%
Revenue 1Y (TTM)16.05%
Revenue growth 3Y7.81%
Revenue growth 5Y5.59%
Sales Q2Q%8.19%
3.2 Future
WES is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.17% yearly.
WES is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.48% yearly.
EPS Next Y-13.73%
EPS Next 2Y-3.51%
EPS Next 3Y0.17%
EPS Next 5YN/A
Revenue Next Year3.28%
Revenue Next 2Y3.83%
Revenue Next 3Y4.48%
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.
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
WES is valuated reasonably with a Price/Earnings ratio of 9.72.
WES's Price/Earnings ratio is a bit cheaper when compared to the industry. WES is cheaper than 67.92% of the companies in the same industry.
WES's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.92.
Based on the Price/Forward Earnings ratio of 11.27, the valuation of WES can be described as reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as WES.
WES's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.65.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.72 | ||
| Fwd PE | 11.27 |
4.2 Price Multiples
WES's Enterprise Value to EBITDA is on the same level as the industry average.
WES's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WES is cheaper than 66.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.46 | ||
| EV/EBITDA | 9.37 |
4.3 Compensation for Growth
WES has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.46
EPS Next 2Y-3.51%
EPS Next 3Y0.17%
5. Dividend
5.1 Amount
WES has a Yearly Dividend Yield of 9.18%, which is a nice return.
Compared to an average industry Dividend Yield of 7.41, WES pays a better dividend. On top of this WES pays more dividend than 83.49% 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 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.18% |
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 81.07% of its income as dividend. This is not a sustainable payout ratio.
WES's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP81.07%
EPS Next 2Y-3.51%
EPS Next 3Y0.17%
39.17
+1.27 (+3.35%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners85.01%
Inst Owner Change0.01%
Ins Owners0.17%
Ins Owner Change7.53%
Market Cap14.94B
Analysts65.56
Price Target41.54 (6.05%)
Short Float %1.57%
Short Ratio4.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.18% |
Yearly Dividend3.28
Dividend Growth(5Y)2.35%
DP81.07%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.43%
Min EPS beat(2)-12%
Max EPS beat(2)-0.86%
EPS beat(4)2
Avg EPS beat(4)19.52%
Min EPS beat(4)-12%
Max EPS beat(4)81.72%
EPS beat(8)3
Avg EPS beat(8)7.24%
EPS beat(12)5
Avg EPS beat(12)6.51%
EPS beat(16)5
Avg EPS beat(16)2.33%
Revenue beat(2)0
Avg Revenue beat(2)-3.82%
Min Revenue beat(2)-6.34%
Max Revenue beat(2)-1.3%
Revenue beat(4)1
Avg Revenue beat(4)-2.21%
Min Revenue beat(4)-6.34%
Max Revenue beat(4)0.53%
Revenue beat(8)1
Avg Revenue beat(8)-3.96%
Revenue beat(12)3
Avg Revenue beat(12)-2.83%
Revenue beat(16)6
Avg Revenue beat(16)-2.04%
PT rev (1m)0.83%
PT rev (3m)1.45%
EPS NQ rev (1m)-1.64%
EPS NQ rev (3m)-3.64%
EPS NY rev (1m)-1.38%
EPS NY rev (3m)-2.72%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)0.9%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.72 | ||
| Fwd PE | 11.27 | ||
| P/S | 4.14 | ||
| P/FCF | 11.46 | ||
| P/OCF | 6.99 | ||
| P/B | 4.62 | ||
| P/tB | 5.79 | ||
| EV/EBITDA | 9.37 |
EPS(TTM)4.03
EY10.29%
EPS(NY)3.48
Fwd EY8.88%
FCF(TTM)3.42
FCFY8.72%
OCF(TTM)5.6
OCFY14.31%
SpS9.45
BVpS8.49
TBVpS6.77
PEG (NY)N/A
PEG (5Y)0.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.69% | ||
| ROE | 47.5% | ||
| ROCE | 13.69% | ||
| ROIC | 9.95% | ||
| ROICexc | 10.9% | ||
| ROICexgc | 11.57% | ||
| OM | 43.49% | ||
| PM (TTM) | 42.63% | ||
| GM | 95.22% | ||
| FCFM | 36.14% |
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-Score8
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.45 | ||
| Debt/FCF | 6.09 | ||
| Debt/EBITDA | 3.57 | ||
| Cap/Depr | 128.2% | ||
| Cap/Sales | 23.13% | ||
| Interest Coverage | 4.34 | ||
| Cash Conversion | 96.33% | ||
| Profit Quality | 84.78% | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z | N/A |
F-Score8
WACC9.77%
ROIC/WACC1.02
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)55%
EPS 3Y22.73%
EPS 5Y20.9%
EPS Q2Q%14.86%
EPS Next Y-13.73%
EPS Next 2Y-3.51%
EPS Next 3Y0.17%
EPS Next 5YN/A
Revenue 1Y (TTM)16.05%
Revenue growth 3Y7.81%
Revenue growth 5Y5.59%
Sales Q2Q%8.19%
Revenue Next Year3.28%
Revenue Next 2Y3.83%
Revenue Next 3Y4.48%
Revenue Next 5YN/A
EBIT growth 1Y21.57%
EBIT growth 3Y10.5%
EBIT growth 5Y9.38%
EBIT Next Year38.81%
EBIT Next 3Y14.93%
EBIT Next 5Y9.54%
FCF growth 1Y40.69%
FCF growth 3Y-3.57%
FCF growth 5Y57.3%
OCF growth 1Y28.62%
OCF growth 3Y6.54%
OCF growth 5Y10.05%