WESTLAKE CORP (WLK) Stock Fundamental Analysis
USA - NYSE:WLK - US9604131022 - Common Stock
82.31 USD
+2.44 (+3.05%)
80.67 USD
-1.64 (-1.99%)
WLK gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 83 industry peers in the Chemicals industry. Both the profitability and the financial health of WLK get a neutral evaluation. Nothing too spectacular is happening here. WLK does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year WLK was profitable.
WLK had a positive operating cash flow in the past year.
WLK had positive earnings in each of the past 5 years.
WLK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WLK has a Return On Assets (-0.33%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of -0.66%, WLK is in line with its industry, outperforming 46.99% of the companies in the same industry.
WLK has a worse Return On Invested Capital (1.21%) than 71.08% of its industry peers.
WLK had an Average Return On Invested Capital over the past 3 years of 6.90%. This is in line with the industry average of 6.37%.
The 3 year average ROIC (6.90%) for WLK is well above the current ROIC(1.21%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.33% | ||
| ROE | -0.66% | ||
| ROIC | 1.21% |
ROA(3y)5.34%
ROA(5y)5.85%
ROE(3y)10.95%
ROE(5y)12.7%
ROIC(3y)6.9%
ROIC(5y)7.19%
1.3 Margins
WLK's Profit Margin has been stable in the last couple of years.
WLK has a worse Operating Margin (2.64%) than 69.88% of its industry peers.
In the last couple of years the Operating Margin of WLK has remained more or less at the same level.
With a Gross Margin value of 11.20%, WLK is not doing good in the industry: 79.52% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of WLK has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.64% | ||
| PM (TTM) | N/A | ||
| GM | 11.2% |
OM growth 3Y-30.74%
OM growth 5Y-1.4%
PM growth 3Y-33.82%
PM growth 5Y-0.9%
GM growth 3Y-18.41%
GM growth 5Y0.76%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WLK is destroying value.
The number of shares outstanding for WLK remains at a similar level compared to 1 year ago.
Compared to 5 years ago, WLK has about the same amount of shares outstanding.
Compared to 1 year ago, WLK has an improved debt to assets ratio.
2.2 Solvency
WLK has an Altman-Z score of 2.10. This is not the best score and indicates that WLK is in the grey zone with still only limited risk for bankruptcy at the moment.
WLK has a Altman-Z score (2.10) which is comparable to the rest of the industry.
WLK has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
WLK has a better Debt to Equity ratio (0.45) than 69.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.1 |
ROIC/WACC0.15
WACC7.93%
2.3 Liquidity
WLK has a Current Ratio of 2.47. This indicates that WLK is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of WLK (2.47) is better than 67.47% of its industry peers.
WLK has a Quick Ratio of 1.75. This is a normal value and indicates that WLK is financially healthy and should not expect problems in meeting its short term obligations.
WLK has a better Quick ratio (1.75) than 71.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.47 | ||
| Quick Ratio | 1.75 |
3. Growth
3.1 Past
The earnings per share for WLK have decreased strongly by -83.93% in the last year.
Measured over the past years, WLK shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.83% on average per year.
Looking at the last year, WLK shows a decrease in Revenue. The Revenue has decreased by -3.00% in the last year.
Measured over the past years, WLK shows a quite strong growth in Revenue. The Revenue has been growing by 8.38% on average per year.
EPS 1Y (TTM)-83.93%
EPS 3Y-30.59%
EPS 5Y9.83%
EPS Q2Q%-103.75%
Revenue 1Y (TTM)-3%
Revenue growth 3Y1.02%
Revenue growth 5Y8.38%
Sales Q2Q%-7.92%
3.2 Future
The Earnings Per Share is expected to decrease by -5.90% on average over the next years.
WLK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.73% yearly.
EPS Next Y-98.18%
EPS Next 2Y-25.93%
EPS Next 3Y-5.9%
EPS Next 5YN/A
Revenue Next Year-5.29%
Revenue Next 2Y-0.32%
Revenue Next 3Y1.73%
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.
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
With a Price/Earnings ratio of 76.93, WLK can be considered very expensive at the moment.
Based on the Price/Earnings ratio, WLK is valued a bit more expensive than the industry average as 66.27% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of WLK to the average of the S&P500 Index (27.86), we can say WLK is valued expensively.
A Price/Forward Earnings ratio of 28.80 indicates a quite expensive valuation of WLK.
Based on the Price/Forward Earnings ratio, WLK is valued a bit more expensive than 63.86% of the companies in the same industry.
WLK's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 76.93 | ||
| Fwd PE | 28.8 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WLK is valued a bit cheaper than 63.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.8 |
4.3 Compensation for Growth
A cheap valuation may be justified as WLK's earnings are expected to decrease with -5.90% in the coming years.
PEG (NY)N/A
PEG (5Y)7.82
EPS Next 2Y-25.93%
EPS Next 3Y-5.9%
5. Dividend
5.1 Amount
WLK has a Yearly Dividend Yield of 2.65%. Purely for dividend investing, there may be better candidates out there.
WLK's Dividend Yield is a higher than the industry average which is at 3.61.
Compared to an average S&P500 Dividend Yield of 2.44, WLK has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.65% |
5.2 History
On average, the dividend of WLK grows each year by 14.83%, which is quite nice.
WLK has paid a dividend for at least 10 years, which is a reliable track record.
WLK has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)14.83%
Div Incr Years20
Div Non Decr Years20
5.3 Sustainability
The earnings of WLK are negative and hence is the payout ratio. WLK will probably not be able to sustain this dividend level.
DP-397.06%
EPS Next 2Y-25.93%
EPS Next 3Y-5.9%
82.31
+2.44 (+3.05%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners31.21%
Inst Owner Change0%
Ins Owners1.26%
Ins Owner Change0.03%
Market Cap10.56B
Analysts75.45
Price Target92.73 (12.66%)
Short Float %14.27%
Short Ratio3.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.65% |
Yearly Dividend2.06
Dividend Growth(5Y)14.83%
DP-397.06%
Div Incr Years20
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-169.6%
Min EPS beat(2)-191.86%
Max EPS beat(2)-147.34%
EPS beat(4)0
Avg EPS beat(4)-117.62%
Min EPS beat(4)-191.86%
Max EPS beat(4)-36.7%
EPS beat(8)3
Avg EPS beat(8)-53.93%
EPS beat(12)4
Avg EPS beat(12)-38.61%
EPS beat(16)8
Avg EPS beat(16)-25.08%
Revenue beat(2)0
Avg Revenue beat(2)-3.81%
Min Revenue beat(2)-4.46%
Max Revenue beat(2)-3.15%
Revenue beat(4)0
Avg Revenue beat(4)-4.63%
Min Revenue beat(4)-6.62%
Max Revenue beat(4)-3.15%
Revenue beat(8)1
Avg Revenue beat(8)-3.4%
Revenue beat(12)1
Avg Revenue beat(12)-3.57%
Revenue beat(16)5
Avg Revenue beat(16)0.2%
PT rev (1m)0.44%
PT rev (3m)2.39%
EPS NQ rev (1m)-4.7%
EPS NQ rev (3m)-53.08%
EPS NY rev (1m)-23.85%
EPS NY rev (3m)-92.55%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-3.82%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)-1.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 76.93 | ||
| Fwd PE | 28.8 | ||
| P/S | 0.9 | ||
| P/FCF | N/A | ||
| P/OCF | 10.93 | ||
| P/B | 1.03 | ||
| P/tB | 1.51 | ||
| EV/EBITDA | 8.8 |
EPS(TTM)1.07
EY1.3%
EPS(NY)2.86
Fwd EY3.47%
FCF(TTM)-0.42
FCFYN/A
OCF(TTM)7.53
OCFY9.15%
SpS91.69
BVpS80.14
TBVpS54.54
PEG (NY)N/A
PEG (5Y)7.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.33% | ||
| ROE | -0.66% | ||
| ROCE | 1.68% | ||
| ROIC | 1.21% | ||
| ROICexc | 1.38% | ||
| ROICexgc | 1.73% | ||
| OM | 2.64% | ||
| PM (TTM) | N/A | ||
| GM | 11.2% | ||
| FCFM | N/A |
ROA(3y)5.34%
ROA(5y)5.85%
ROE(3y)10.95%
ROE(5y)12.7%
ROIC(3y)6.9%
ROIC(5y)7.19%
ROICexc(3y)8.06%
ROICexc(5y)8.28%
ROICexgc(3y)10.44%
ROICexgc(5y)10.79%
ROCE(3y)9.62%
ROCE(5y)10.02%
ROICexcg growth 3Y-33.41%
ROICexcg growth 5Y1.51%
ROICexc growth 3Y-32.2%
ROICexc growth 5Y0.16%
OM growth 3Y-30.74%
OM growth 5Y-1.4%
PM growth 3Y-33.82%
PM growth 5Y-0.9%
GM growth 3Y-18.41%
GM growth 5Y0.76%
F-Score3
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.21 | ||
| Cap/Depr | 89.47% | ||
| Cap/Sales | 8.67% | ||
| Interest Coverage | 1.97 | ||
| Cash Conversion | 66.62% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.47 | ||
| Quick Ratio | 1.75 | ||
| Altman-Z | 2.1 |
F-Score3
WACC7.93%
ROIC/WACC0.15
Cap/Depr(3y)96.56%
Cap/Depr(5y)87.18%
Cap/Sales(3y)7.85%
Cap/Sales(5y)7.23%
Profit Quality(3y)142.31%
Profit Quality(5y)149.64%
High Growth Momentum
Growth
EPS 1Y (TTM)-83.93%
EPS 3Y-30.59%
EPS 5Y9.83%
EPS Q2Q%-103.75%
EPS Next Y-98.18%
EPS Next 2Y-25.93%
EPS Next 3Y-5.9%
EPS Next 5YN/A
Revenue 1Y (TTM)-3%
Revenue growth 3Y1.02%
Revenue growth 5Y8.38%
Sales Q2Q%-7.92%
Revenue Next Year-5.29%
Revenue Next 2Y-0.32%
Revenue Next 3Y1.73%
Revenue Next 5YN/A
EBIT growth 1Y-66.7%
EBIT growth 3Y-30.04%
EBIT growth 5Y6.87%
EBIT Next Year20.07%
EBIT Next 3Y22.33%
EBIT Next 5YN/A
FCF growth 1Y-103.13%
FCF growth 3Y-43.93%
FCF growth 5Y-9.85%
OCF growth 1Y-66.09%
OCF growth 3Y-18.12%
OCF growth 5Y0.2%