WESTERN MIDSTREAM PARTNERS L (WES) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WES - US9586691035
39 USD
0 (0%)
39.0883 USD
+0.09 (+0.23%)
We assign a fundamental rating of 6 out of 10 to WES. 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
In the past year WES was profitable.
In the past year WES had a positive cash flow from operations.
In the past 5 years WES has always been profitable.
Each year in the past 5 years WES had a positive operating cash flow.
1.2 Ratios
WES's Return On Assets of 10.67% is amongst the best of the industry. WES outperforms 89.05% of its industry peers.
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.
WES has a Return On Invested Capital of 11.36%. This is amongst the best in the industry. WES outperforms 86.19% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital 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
WES's Profit Margin of 34.57% is amongst the best of the industry. WES outperforms 90.95% of its industry peers.
WES's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 44.17%, WES belongs to the best of the industry, outperforming 88.57% of the companies in the same industry.
WES's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 95.33%, WES belongs to the best of the industry, outperforming 99.05% 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 | 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.
The number of shares outstanding for WES remains at a similar level compared to 1 year ago.
Compared to 5 years ago, WES has less shares outstanding
WES has a better debt/assets ratio than last year.
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.
WES's Debt to FCF ratio of 4.70 is fine compared to the rest of the industry. WES outperforms 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.
The Debt to Equity ratio of WES (2.18) is worse than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.18 | ||
| Debt/FCF | 4.7 | ||
| Altman-Z | N/A |
ROIC/WACC1.44
WACC7.91%
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.
Looking at the Current ratio, with a value of 1.43, WES is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
A Quick Ratio of 1.41 indicates that WES should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.41, WES is doing good in the industry, outperforming 69.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
WES shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.78%.
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.
The Revenue has been growing slightly by 5.81% in the past 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)-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
The Earnings Per Share is expected to grow by 0.03% 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 5.44% on average per year.
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.
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
A Price/Earnings ratio of 11.54 indicates a reasonable valuation of WES.
Based on the Price/Earnings ratio, WES is valued a bit cheaper than the industry average as 70.48% of the companies are valued more expensively.
WES is valuated cheaply when we compare the Price/Earnings ratio to 26.15, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 10.45, the valuation of WES can be described as very reasonable.
WES's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WES is cheaper than 72.38% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.12, WES is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.54 | ||
| Fwd PE | 10.45 |
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 the industry average as 74.76% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.79 | ||
| EV/EBITDA | 9.74 |
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-3.75%
EPS Next 3Y0.03%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.71%, WES is a good candidate for dividend investing.
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.
WES's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP107.67%
EPS Next 2Y-3.75%
EPS Next 3Y0.03%
39
0 (0%)
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
WACC7.91%
ROIC/WACC1.44
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.