WESTERN MIDSTREAM PARTNERS L (WES) Stock Fundamental Analysis
NYSE:WES - US9586691035
38.04 USD
-0.43 (-1.12%)
38.04 USD
0 (0%)
Overall WES gets a fundamental rating of 6 out of 10. We evaluated WES against 209 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.
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 86.60% of its industry peers.
With an excellent Return On Equity value of 38.98%, WES belongs to the best of the industry, outperforming 93.30% of the companies in the same industry.
WES's Return On Invested Capital of 10.95% is amongst the best of the industry. WES outperforms 82.78% 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 21.91%.
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's Profit Margin of 33.86% is amongst the best of the industry. WES outperforms 88.04% of its industry peers.
In the last couple of years the Profit Margin of WES has grown nicely.
WES's Operating Margin of 43.29% is amongst the best of the industry. WES outperforms 88.04% 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 99.52% of its industry peers.
WES's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), WES 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.
The debt/assets ratio for WES has been reduced compared to a year ago.
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.
WES has a better Debt to FCF ratio (4.78) than 66.99% of its industry peers.
WES has a Debt/Equity ratio of 2.17. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of WES (2.17) is worse than 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.17 | ||
| Debt/FCF | 4.78 | ||
| Altman-Z | N/A |
ROIC/WACC1.31
WACC8.34%
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.
The Current ratio of WES (1.30) is better than 60.77% 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 65.07% of the companies in the same industry.
| 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%.
The Earnings Per Share has been growing by 20.90% on average over the past years. This is a very strong growth
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 small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.03% yearly.
Based on estimates for the next years, WES will show a small growth in Revenue. The Revenue will grow by 4.98% on average per year.
EPS Next Y-14.12%
EPS Next 2Y-3.53%
EPS Next 3Y0.03%
EPS Next 5YN/A
Revenue Next Year2.72%
Revenue Next 2Y4.38%
Revenue Next 3Y4.98%
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.
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
Based on the Price/Earnings ratio of 11.70, the valuation of WES can be described as reasonable.
67.46% of the companies in the same industry are more expensive than WES, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.06. WES is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 10.14 indicates a reasonable valuation of WES.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WES indicates a somewhat cheap valuation: WES is cheaper than 67.94% of the companies listed in the same industry.
WES is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.69, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.7 | ||
| Fwd PE | 10.14 |
4.2 Price Multiples
WES's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, WES is valued a bit cheaper than 75.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10 | ||
| EV/EBITDA | 9.5 |
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-3.53%
EPS Next 3Y0.03%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.15%, WES is a good candidate for dividend investing.
WES's Dividend Yield is rather good when compared to the industry average which is at 6.06. WES pays more dividend than 87.56% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, WES pays a better dividend.
| 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
110.84% 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.
DP110.84%
EPS Next 2Y-3.53%
EPS Next 3Y0.03%
38.04
-0.43 (-1.12%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners84.11%
Inst Owner Change-5.9%
Ins Owners0.18%
Ins Owner Change0%
Market Cap14.51B
Analysts65.56
Price Target41.11 (8.07%)
Short Float %1.92%
Short Ratio6.44
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)0.98%
PT rev (3m)-1.04%
EPS NQ rev (1m)1%
EPS NQ rev (3m)0.58%
EPS NY rev (1m)1.49%
EPS NY rev (3m)0.29%
Revenue NQ rev (1m)0.31%
Revenue NQ rev (3m)2.5%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.7 | ||
| Fwd PE | 10.14 | ||
| P/S | 3.95 | ||
| P/FCF | 10 | ||
| P/OCF | 6.59 | ||
| P/B | 4.55 | ||
| P/tB | 5.69 | ||
| EV/EBITDA | 9.5 |
EPS(TTM)3.25
EY8.54%
EPS(NY)3.75
Fwd EY9.86%
FCF(TTM)3.81
FCFY10%
OCF(TTM)5.77
OCFY15.17%
SpS9.63
BVpS8.36
TBVpS6.69
PEG (NY)N/A
PEG (5Y)0.56
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
WACC8.34%
ROIC/WACC1.31
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-14.12%
EPS Next 2Y-3.53%
EPS Next 3Y0.03%
EPS Next 5YN/A
Revenue 1Y (TTM)7.11%
Revenue growth 3Y7.81%
Revenue growth 5Y5.59%
Sales Q2Q%4.05%
Revenue Next Year2.72%
Revenue Next 2Y4.38%
Revenue Next 3Y4.98%
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 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%