WESTERN MIDSTREAM PARTNERS L (WES) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WES - US9586691035
39 USD
+0.07 (+0.18%)
39.35 USD
+0.35 (+0.9%)
Taking everything into account, WES scores 6 out of 10 in our fundamental rating. WES was compared to 210 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 decent growth rate and is not valued too expensively.
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.
In the past 5 years WES always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 10.67%, WES belongs to the best of the industry, outperforming 89.05% of the companies in the same industry.
With an excellent Return On Equity value of 40.64%, WES belongs to the best of the industry, outperforming 94.29% of the companies in the same industry.
The Return On Invested Capital of WES (11.36%) is better than 86.19% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WES is significantly below the industry average of 21.41%.
The 3 year average ROIC (9.49%) for WES is below the current ROIC(11.36%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.67% | ||
| ROE | 40.64% | ||
| ROIC | 11.36% |
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
Looking at the Profit Margin, with a value of 34.57%, WES belongs to the top of the industry, outperforming 90.95% of the companies in the same industry.
WES's Profit Margin has improved in the last couple of years.
WES's Operating Margin of 44.17% is amongst the best of the industry. WES outperforms 88.57% of its industry peers.
WES's Operating Margin has improved in the last couple of years.
WES's Gross Margin of 95.33% is amongst the best of the industry. WES outperforms 99.05% of its industry peers.
In the last couple of years the Gross Margin of WES has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 44.17% | ||
| PM (TTM) | 34.57% | ||
| GM | 95.33% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WES is still creating some value.
Compared to 1 year ago, WES has about the same amount of shares outstanding.
Compared to 5 years ago, WES has less shares outstanding
Compared to 1 year ago, WES has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of WES is 4.70, which is a neutral value as it means it would take WES, 4.70 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of WES (4.70) is better than 66.19% of its industry peers.
WES has a Debt/Equity ratio of 2.18. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.18, WES is doing worse than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.18 | ||
| Debt/FCF | 4.7 | ||
| Altman-Z | N/A |
ROIC/WACC1.43
WACC7.93%
2.3 Liquidity
WES has a Current Ratio of 1.43. This is a normal value and indicates that WES is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.43, WES is doing good in the industry, outperforming 64.29% of the companies in the same industry.
WES has a Quick Ratio of 1.41. 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 Quick ratio of 1.41. This is in the better half of the industry: WES outperforms 69.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
The earnings per share for WES have decreased strongly by -13.78% 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 small growth in Revenue. The Revenue has grown by 5.81% in the last year.
The Revenue has been growing slightly by 5.59% on average over the past years.
EPS 1Y (TTM)-13.78%
EPS 3Y22.73%
EPS 5Y20.9%
EPS Q2Q%17.57%
Revenue 1Y (TTM)5.81%
Revenue growth 3Y7.81%
Revenue growth 5Y5.59%
Sales Q2Q%7.82%
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.
WES is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.44% yearly.
EPS Next Y-13.67%
EPS Next 2Y-3.75%
EPS Next 3Y0.03%
EPS Next 5YN/A
Revenue Next Year3.82%
Revenue Next 2Y5.5%
Revenue Next 3Y5.44%
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
WES is valuated reasonably with a Price/Earnings ratio of 11.54.
WES's Price/Earnings ratio is a bit cheaper when compared to the industry. WES is cheaper than 70.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.98, WES is valued rather cheaply.
The Price/Forward Earnings ratio is 10.45, which indicates a very decent 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 71.43% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.79. WES is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.54 | ||
| Fwd PE | 10.45 |
4.2 Price Multiples
WES's Enterprise Value to EBITDA is on the same level as the industry average.
74.29% of the companies in the same industry are more expensive than WES, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.79 | ||
| EV/EBITDA | 9.74 |
4.3 Compensation for Growth
The excellent profitability rating of WES may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.55
EPS Next 2Y-3.75%
EPS Next 3Y0.03%
5. Dividend
5.1 Amount
WES has a Yearly Dividend Yield of 9.71%, which is a nice return.
Compared to an average industry Dividend Yield of 5.88, WES pays a better dividend. On top of this WES pays more dividend than 88.10% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, WES pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.71% |
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 107.67% 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.
DP107.67%
EPS Next 2Y-3.75%
EPS Next 3Y0.03%
39
+0.07 (+0.18%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners81.03%
Inst Owner Change3.66%
Ins Owners0.18%
Ins Owner Change1.28%
Market Cap15.91B
Revenue(TTM)3.74B
Net Income(TTM)1.29B
Analysts65.56
Price Target41.82 (7.23%)
Short Float %1.2%
Short Ratio2.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.71% |
Yearly Dividend3.28
Dividend Growth(5Y)2.35%
DP107.67%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.79%
Min EPS beat(2)-2.42%
Max EPS beat(2)4%
EPS beat(4)1
Avg EPS beat(4)-1.37%
Min EPS beat(4)-6.21%
Max EPS beat(4)4%
EPS beat(8)3
Avg EPS beat(8)8.47%
EPS beat(12)5
Avg EPS beat(12)5.89%
EPS beat(16)6
Avg EPS beat(16)3.83%
Revenue beat(2)0
Avg Revenue beat(2)-1.34%
Min Revenue beat(2)-2.17%
Max Revenue beat(2)-0.5%
Revenue beat(4)0
Avg Revenue beat(4)-1.75%
Min Revenue beat(4)-3.05%
Max Revenue beat(4)-0.5%
Revenue beat(8)1
Avg Revenue beat(8)-2.03%
Revenue beat(12)1
Avg Revenue beat(12)-3.79%
Revenue beat(16)3
Avg Revenue beat(16)-2.95%
PT rev (1m)1.23%
PT rev (3m)1.74%
EPS NQ rev (1m)6.53%
EPS NQ rev (3m)5.49%
EPS NY rev (1m)0.74%
EPS NY rev (3m)0.53%
Revenue NQ rev (1m)4.2%
Revenue NQ rev (3m)5.81%
Revenue NY rev (1m)0.42%
Revenue NY rev (3m)1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.54 | ||
| Fwd PE | 10.45 | ||
| P/S | 4.25 | ||
| P/FCF | 10.79 | ||
| P/OCF | 7.17 | ||
| P/B | 5 | ||
| P/tB | 6.24 | ||
| EV/EBITDA | 9.74 |
EPS(TTM)3.38
EY8.67%
EPS(NY)3.73
Fwd EY9.57%
FCF(TTM)3.62
FCFY9.27%
OCF(TTM)5.44
OCFY13.95%
SpS9.17
BVpS7.8
TBVpS6.25
PEG (NY)N/A
PEG (5Y)0.55
Graham Number24.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.67% | ||
| ROE | 40.64% | ||
| ROCE | 14.38% | ||
| ROIC | 11.36% | ||
| ROICexc | 11.54% | ||
| ROICexgc | 12.22% | ||
| OM | 44.17% | ||
| PM (TTM) | 34.57% | ||
| GM | 95.33% | ||
| FCFM | 39.43% |
ROA(3y)10.08%
ROA(5y)8.51%
ROE(3y)40.66%
ROE(5y)34.2%
ROIC(3y)9.49%
ROIC(5y)9.22%
ROICexc(3y)9.97%
ROICexc(5y)9.61%
ROICexgc(3y)10.63%
ROICexgc(5y)10.29%
ROCE(3y)12.66%
ROCE(5y)12.26%
ROICexgc growth 3Y6.85%
ROICexgc 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 Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.18 | ||
| Debt/FCF | 4.7 | ||
| Debt/EBITDA | 2.97 | ||
| Cap/Depr | 110.16% | ||
| Cap/Sales | 19.91% | ||
| Interest Coverage | 4.44 | ||
| Cash Conversion | 95.34% | ||
| Profit Quality | 114.05% | ||
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z | N/A |
F-Score6
WACC7.93%
ROIC/WACC1.43
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)-13.78%
EPS 3Y22.73%
EPS 5Y20.9%
EPS Q2Q%17.57%
EPS Next Y-13.67%
EPS Next 2Y-3.75%
EPS Next 3Y0.03%
EPS Next 5YN/A
Revenue 1Y (TTM)5.81%
Revenue growth 3Y7.81%
Revenue growth 5Y5.59%
Sales Q2Q%7.82%
Revenue Next Year3.82%
Revenue Next 2Y5.5%
Revenue Next 3Y5.44%
Revenue Next 5YN/A
EBIT growth 1Y7.99%
EBIT growth 3Y10.5%
EBIT growth 5Y9.38%
EBIT Next Year39.48%
EBIT Next 3Y17.43%
EBIT Next 5Y12.08%
FCF growth 1Y48.23%
FCF growth 3Y-3.57%
FCF growth 5Y57.3%
OCF growth 1Y32.33%
OCF growth 3Y6.54%
OCF growth 5Y10.05%
WESTERN MIDSTREAM PARTNERS L / WES FAQ
What is the fundamental rating for WES stock?
ChartMill assigns a fundamental rating of 6 / 10 to WES.
Can you provide the valuation status for WESTERN MIDSTREAM PARTNERS L?
ChartMill assigns a valuation rating of 6 / 10 to WESTERN MIDSTREAM PARTNERS L (WES). This can be considered as Fairly Valued.
How profitable is WESTERN MIDSTREAM PARTNERS L (WES) stock?
WESTERN MIDSTREAM PARTNERS L (WES) has a profitability rating of 9 / 10.
What are the PE and PB ratios of WESTERN MIDSTREAM PARTNERS L (WES) stock?
The Price/Earnings (PE) ratio for WESTERN MIDSTREAM PARTNERS L (WES) is 11.54 and the Price/Book (PB) ratio is 5.
How financially healthy is WESTERN MIDSTREAM PARTNERS L?
The financial health rating of WESTERN MIDSTREAM PARTNERS L (WES) is 4 / 10.