WESTLAKE CORP (WLK)
US9604131022 - Common Stock
Overall WLK gets a fundamental rating of 4 out of 10. We evaluated WLK against 85 industry peers in the Chemicals industry. WLK has an average financial health and profitability rating. WLK is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year WLK was profitable.
In the past year WLK had a positive cash flow from operations.
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's Return On Assets of 2.26% is in line compared to the rest of the industry. WLK outperforms 49.41% of its industry peers.
WLK's Return On Equity of 4.65% is in line compared to the rest of the industry. WLK outperforms 48.24% of its industry peers.
With a Return On Invested Capital value of 5.15%, WLK perfoms like the industry average, outperforming 55.29% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for WLK is above the industry average of 7.47%.
The 3 year average ROIC (10.46%) for WLK is well above the current ROIC(5.15%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.26% | ||
| ROE | 4.65% | ||
| ROIC | 5.15% |
ROA(3y)8%
ROA(5y)5.91%
ROE(3y)17.45%
ROE(5y)12.99%
ROIC(3y)10.46%
ROIC(5y)7.72%
1.3 Margins
The Profit Margin of WLK (3.79%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of WLK has declined.
WLK has a Operating Margin (9.82%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of WLK has declined.
Looking at the Gross Margin, with a value of 17.68%, WLK is doing worse than 65.88% of the companies in the same industry.
In the last couple of years the Gross Margin of WLK has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.82% | ||
| PM (TTM) | 3.79% | ||
| GM | 17.68% |
OM growth 3Y16.58%
OM growth 5Y-10.07%
PM growth 3Y-4.71%
PM growth 5Y-19.86%
GM growth 3Y9.06%
GM growth 5Y-5.13%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WLK is still creating some value.
WLK has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, WLK has about the same amount of shares outstanding.
WLK has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.75 indicates that WLK is not a great score, but indicates only limited risk for bankruptcy at the moment.
WLK has a Altman-Z score of 2.75. This is in the better half of the industry: WLK outperforms 76.47% of its industry peers.
WLK has a debt to FCF ratio of 3.78. This is a good value and a sign of high solvency as WLK would need 3.78 years to pay back of all of its debts.
WLK's Debt to FCF ratio of 3.78 is fine compared to the rest of the industry. WLK outperforms 75.29% of its industry peers.
A Debt/Equity ratio of 0.45 indicates that WLK is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.45, WLK is in the better half of the industry, outperforming 62.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 3.78 | ||
| Altman-Z | 2.75 |
ROIC/WACC0.65
WACC7.88%
2.3 Liquidity
WLK has a Current Ratio of 2.37. This indicates that WLK is financially healthy and has no problem in meeting its short term obligations.
WLK's Current ratio of 2.37 is in line compared to the rest of the industry. WLK outperforms 58.82% of its industry peers.
WLK has a Quick Ratio of 1.79. 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 (1.79) than 72.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.37 | ||
| Quick Ratio | 1.79 |
3. Growth
3.1 Past
WLK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -52.33%.
Measured over the past 5 years, WLK shows a small growth in Earnings Per Share. The EPS has been growing by 1.36% on average per year.
WLK shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -20.55%.
The Revenue has been growing slightly by 7.76% on average over the past years.
EPS 1Y (TTM)-52.33%
EPS 3Y53.93%
EPS 5Y1.36%
EPS growth Q2Q-59.78%
Revenue 1Y (TTM)-20.55%
Revenue growth 3Y18.69%
Revenue growth 5Y7.76%
Revenue growth Q2Q-14.34%
3.2 Future
Based on estimates for the next years, WLK will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.26% on average per year.
Based on estimates for the next years, WLK will show a small growth in Revenue. The Revenue will grow by 2.71% on average per year.
EPS Next Y-13.93%
EPS Next 2Y6.04%
EPS Next 3Y10.26%
EPS Next 5YN/A
Revenue Next Year-1.95%
Revenue Next 2Y1.92%
Revenue Next 3Y2.71%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
WLK is valuated rather expensively with a Price/Earnings ratio of 18.10.
WLK's Price/Earnings ratio is a bit cheaper when compared to the industry. WLK is cheaper than 63.53% of the companies in the same industry.
WLK's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.25.
The Price/Forward Earnings ratio is 21.03, which indicates a rather expensive current valuation of WLK.
WLK's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.67, WLK is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.1 | ||
| Fwd PE | 21.03 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WLK is valued a bit cheaper than 71.76% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, WLK is valued a bit cheaper than 72.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.8 | ||
| EV/EBITDA | 8.96 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)13.33
EPS Next 2Y6.04%
EPS Next 3Y10.26%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.34%, WLK has a reasonable but not impressive dividend return.
WLK's Dividend Yield is comparable with the industry average which is at 3.34.
With a Dividend Yield of 1.34, WLK pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
5.2 History
On average, the dividend of WLK grows each year by 13.11%, 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)13.11%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
46.43% of the earnings are spent on dividend by WLK. This is a bit on the high side, but may be sustainable.
WLK's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP46.43%
EPS Next 2Y6.04%
EPS Next 3Y10.26%
WESTLAKE CORP
NYSE:WLK (4/24/2024, 7:04:00 PM)
After market: 149.9 0 (0%)149.9
+0.54 (+0.36%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap19.26B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.1 | ||
| Fwd PE | 21.03 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)13.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.26% | ||
| ROE | 4.65% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.82% | ||
| PM (TTM) | 3.79% | ||
| GM | 17.68% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.37 | ||
| Quick Ratio | 1.79 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-52.33%
EPS 3Y53.93%
EPS 5Y
EPS growth Q2Q
EPS Next Y-13.93%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-20.55%
Revenue growth 3Y18.69%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y