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 211 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
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's Return On Assets of 10.27% is amongst the best of the industry. WES outperforms 83.41% of its industry peers.
The Return On Equity of WES (40.06%) is better than 93.36% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.43%, WES is in the better half of the industry, outperforming 78.20% 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 23.70%.
The 3 year average ROIC (9.49%) for WES is below the current ROIC(10.43%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.27% | ||
| ROE | 40.06% | ||
| ROIC | 10.43% |
ROA(3y)10.08%
ROA(5y)8.51%
ROE(3y)40.66%
ROE(5y)34.2%
ROIC(3y)9.49%
ROIC(5y)9.22%
1.3 Margins
WES's Profit Margin of 35.20% is amongst the best of the industry. WES outperforms 88.15% of its industry peers.
In the last couple of years the Profit Margin of WES has grown nicely.
WES's Operating Margin of 42.78% is amongst the best of the industry. WES outperforms 87.68% of its industry peers.
WES's Operating Margin has improved in the last couple of years.
The Gross Margin of WES (95.39%) is better than 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 | 42.78% | ||
| PM (TTM) | 35.2% | ||
| GM | 95.39% |
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.
Compared to 1 year ago, WES has about the same amount of shares outstanding.
WES has less shares outstanding than it did 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 4.90. This is a neutral value as WES would need 4.90 years to pay back of all of its debts.
WES has a Debt to FCF ratio of 4.90. This is in the better half of the industry: WES outperforms 65.40% of its industry peers.
A Debt/Equity ratio of 2.27 is on the high side and indicates that WES has dependencies on debt financing.
With a Debt to Equity ratio value of 2.27, WES is not doing good in the industry: 83.41% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.27 | ||
| Debt/FCF | 4.9 | ||
| Altman-Z | N/A |
ROIC/WACC1.3
WACC8.02%
2.3 Liquidity
A Current Ratio of 1.18 indicates that WES should not have too much problems paying its short term obligations.
WES's Current ratio of 1.18 is in line compared to the rest of the industry. WES outperforms 52.13% of its industry peers.
WES has a Quick Ratio of 1.17. This is a normal value and indicates that WES is financially healthy and should not expect problems in meeting its short term obligations.
WES's Quick ratio of 1.17 is fine compared to the rest of the industry. WES outperforms 61.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
The earnings per share for WES have decreased by -5.63% in the last year.
WES shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.90% yearly.
Looking at the last year, WES shows a quite strong growth in Revenue. The Revenue has grown by 11.48% in the last year.
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)-5.63%
EPS 3Y22.73%
EPS 5Y20.9%
EPS Q2Q%-46.26%
Revenue 1Y (TTM)11.48%
Revenue growth 3Y7.81%
Revenue growth 5Y5.59%
Sales Q2Q%3.31%
3.2 Future
Based on estimates for the next years, WES will show a decrease in Earnings Per Share. The EPS will decrease by -0.82% on average per year.
Based on estimates for the next years, WES will show a small growth in Revenue. The Revenue will grow by 3.93% on average per year.
EPS Next Y-15.4%
EPS Next 2Y-4.79%
EPS Next 3Y-0.82%
EPS Next 5YN/A
Revenue Next Year2.45%
Revenue Next 2Y3.05%
Revenue Next 3Y3.93%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.67, the valuation of WES can be described as reasonable.
WES's Price/Earnings ratio is a bit cheaper when compared to the industry. WES is cheaper than 65.40% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.21. WES is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 10.70 indicates a reasonable valuation of WES.
WES's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WES is cheaper than 63.03% 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 21.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.67 | ||
| Fwd PE | 10.7 |
4.2 Price Multiples
WES's Enterprise Value to EBITDA ratio is in line with the industry average.
WES's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WES is cheaper than 74.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.03 | ||
| EV/EBITDA | 9.56 |
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-4.79%
EPS Next 3Y-0.82%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.48%, WES is a good candidate for dividend investing.
WES's Dividend Yield is rather good when compared to the industry average which is at 6.66. WES pays more dividend than 86.26% of the companies in the same industry.
WES's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.48% |
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
106.59% of the earnings are spent on dividend by WES. 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.
DP106.59%
EPS Next 2Y-4.79%
EPS Next 3Y-0.82%
NYSE:WES (7/2/2025, 3:08:33 PM)
39.09
+0.51 (+1.32%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners83.97%
Inst Owner Change-2.84%
Ins Owners0.18%
Ins Owner Change7.53%
Market Cap14.91B
Analysts65.56
Price Target40.89 (4.6%)
Short Float %1.57%
Short Ratio5.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.48% |
Yearly Dividend3.28
Dividend Growth(5Y)2.35%
DP106.59%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.54%
Min EPS beat(2)-6.21%
Max EPS beat(2)-0.86%
EPS beat(4)1
Avg EPS beat(4)-2.47%
Min EPS beat(4)-12%
Max EPS beat(4)9.22%
EPS beat(8)3
Avg EPS beat(8)8.89%
EPS beat(12)4
Avg EPS beat(12)4.31%
EPS beat(16)5
Avg EPS beat(16)3.15%
Revenue beat(2)0
Avg Revenue beat(2)-2.17%
Min Revenue beat(2)-3.05%
Max Revenue beat(2)-1.3%
Revenue beat(4)0
Avg Revenue beat(4)-3.11%
Min Revenue beat(4)-6.34%
Max Revenue beat(4)-1.3%
Revenue beat(8)1
Avg Revenue beat(8)-3.62%
Revenue beat(12)2
Avg Revenue beat(12)-3.25%
Revenue beat(16)5
Avg Revenue beat(16)-2.33%
PT rev (1m)-1.55%
PT rev (3m)-1.55%
EPS NQ rev (1m)-1.1%
EPS NQ rev (3m)-2.52%
EPS NY rev (1m)-1.21%
EPS NY rev (3m)-2%
Revenue NQ rev (1m)-0.97%
Revenue NQ rev (3m)-2.38%
Revenue NY rev (1m)-0.7%
Revenue NY rev (3m)-0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.67 | ||
| Fwd PE | 10.7 | ||
| P/S | 4.1 | ||
| P/FCF | 10.03 | ||
| P/OCF | 6.57 | ||
| P/B | 4.67 | ||
| P/tB | 5.85 | ||
| EV/EBITDA | 9.56 |
EPS(TTM)3.35
EY8.57%
EPS(NY)3.65
Fwd EY9.35%
FCF(TTM)3.9
FCFY9.97%
OCF(TTM)5.95
OCFY15.21%
SpS9.53
BVpS8.37
TBVpS6.68
PEG (NY)N/A
PEG (5Y)0.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.27% | ||
| ROE | 40.06% | ||
| ROCE | 13.58% | ||
| ROIC | 10.43% | ||
| ROICexc | 10.84% | ||
| ROICexgc | 11.49% | ||
| OM | 42.78% | ||
| PM (TTM) | 35.2% | ||
| GM | 95.39% | ||
| FCFM | 40.87% |
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 Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.27 | ||
| Debt/FCF | 4.9 | ||
| Debt/EBITDA | 3.27 | ||
| Cap/Depr | 118.04% | ||
| Cap/Sales | 21.53% | ||
| Interest Coverage | 4.44 | ||
| Cash Conversion | 102.26% | ||
| Profit Quality | 116.12% | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | N/A |
F-Score6
WACC8.02%
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)-5.63%
EPS 3Y22.73%
EPS 5Y20.9%
EPS Q2Q%-46.26%
EPS Next Y-15.4%
EPS Next 2Y-4.79%
EPS Next 3Y-0.82%
EPS Next 5YN/A
Revenue 1Y (TTM)11.48%
Revenue growth 3Y7.81%
Revenue growth 5Y5.59%
Sales Q2Q%3.31%
Revenue Next Year2.45%
Revenue Next 2Y3.05%
Revenue Next 3Y3.93%
Revenue Next 5YN/A
EBIT growth 1Y11.79%
EBIT growth 3Y10.5%
EBIT growth 5Y9.38%
EBIT Next Year37.74%
EBIT Next 3Y14.43%
EBIT Next 5Y9.43%
FCF growth 1Y29.06%
FCF growth 3Y-3.57%
FCF growth 5Y57.3%
OCF growth 1Y31.3%
OCF growth 3Y6.54%
OCF growth 5Y10.05%