WESTLAKE CORP (WLK) Stock Fundamental Analysis
USA - NYSE:WLK - US9604131022 - Common Stock
88.13 USD
-1.45 (-1.62%)
88.13 USD
0 (0%)
Taking everything into account, WLK scores 4 out of 10 in our fundamental rating. WLK was compared to 83 industry peers in the Chemicals industry. WLK has only an average score on both its financial health and profitability. WLK has a expensive valuation and it also scores bad on growth.
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.
Each year in the past 5 years WLK has been profitable.
Each year in the past 5 years WLK had a positive operating cash flow.
1.2 Ratios
WLK has a Return On Assets (-0.33%) which is comparable to the rest of the industry.
WLK has a Return On Equity of -0.66%. This is comparable to the rest of the industry: WLK outperforms 48.19% of its industry peers.
WLK has a Return On Invested Capital of 1.21%. This is in the lower half of the industry: WLK underperforms 72.29% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WLK is in line with the industry average of 6.34%.
The last Return On Invested Capital (1.21%) for WLK is well below the 3 year average (6.90%), which needs to be investigated, but indicates that WLK had better years and this may not be a problem.
| 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 Operating Margin of 2.64%. This is in the lower half of the industry: WLK underperforms 69.88% of its industry peers.
WLK's Operating Margin has been stable in the last couple of years.
WLK has a Gross Margin of 11.20%. This is in the lower half of the industry: WLK underperforms 79.52% of its industry peers.
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
WLK has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for WLK remains at a similar level compared to 1 year ago.
WLK has about the same amout of shares outstanding than it did 5 years ago.
The debt/assets ratio for WLK has been reduced compared to a year ago.
2.2 Solvency
WLK has an Altman-Z score of 2.15. 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 of 2.15. This is comparable to the rest of the industry: WLK outperforms 56.63% of its industry peers.
A Debt/Equity ratio of 0.45 indicates that WLK is not too dependend on debt financing.
WLK's Debt to Equity ratio of 0.45 is fine compared to the rest of the industry. WLK outperforms 69.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.15 |
ROIC/WACC0.15
WACC8.12%
2.3 Liquidity
A Current Ratio of 2.47 indicates that WLK has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.47, WLK is doing good in the industry, outperforming 67.47% of the companies in the same industry.
A Quick Ratio of 1.75 indicates that WLK should not have too much problems paying its short term obligations.
The Quick ratio of WLK (1.75) is better 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.
WLK shows a decrease in Revenue. In the last year, the revenue decreased by -3.00%.
The Revenue has been growing by 8.38% on average over the past years. This is quite good.
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 -5.58% on average over the next years.
Based on estimates for the next years, WLK will show a small growth in Revenue. The Revenue will grow by 1.83% on average per year.
EPS Next Y-97.62%
EPS Next 2Y-25.52%
EPS Next 3Y-5.58%
EPS Next 5YN/A
Revenue Next Year-5.49%
Revenue Next 2Y-0.19%
Revenue Next 3Y1.83%
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.
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
Based on the Price/Earnings ratio of 82.36, the valuation of WLK can be described as expensive.
WLK's Price/Earnings ratio is a bit more expensive when compared to the industry. WLK is more expensive than 66.27% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, WLK is valued quite expensively.
With a Price/Forward Earnings ratio of 30.50, WLK can be considered very expensive at the moment.
65.06% of the companies in the same industry are cheaper than WLK, based on the Price/Forward Earnings ratio.
WLK's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 82.36 | ||
| Fwd PE | 30.5 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WLK indicates a somewhat cheap valuation: WLK is cheaper than 65.06% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.32 |
4.3 Compensation for Growth
WLK's earnings are expected to decrease with -5.58% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)8.38
EPS Next 2Y-25.52%
EPS Next 3Y-5.58%
5. Dividend
5.1 Amount
WLK has a Yearly Dividend Yield of 2.42%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.45, WLK pays a bit more dividend than its industry peers.
WLK's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
5.2 History
The dividend of WLK is nicely growing with an annual growth rate of 14.83%!
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
WLK has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-397.06%
EPS Next 2Y-25.52%
EPS Next 3Y-5.58%
88.13
-1.45 (-1.62%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners28.87%
Inst Owner Change6.19%
Ins Owners1.25%
Ins Owner Change-0.24%
Market Cap11.30B
Analysts75.45
Price Target92.73 (5.22%)
Short Float %14.06%
Short Ratio3.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
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)-0.07%
PT rev (3m)-1.52%
EPS NQ rev (1m)-37.34%
EPS NQ rev (3m)-59.77%
EPS NY rev (1m)-88.39%
EPS NY rev (3m)-96.27%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)-3.76%
Revenue NY rev (1m)-1.79%
Revenue NY rev (3m)-2.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 82.36 | ||
| Fwd PE | 30.5 | ||
| P/S | 0.96 | ||
| P/FCF | N/A | ||
| P/OCF | 11.7 | ||
| P/B | 1.1 | ||
| P/tB | 1.62 | ||
| EV/EBITDA | 9.32 |
EPS(TTM)1.07
EY1.21%
EPS(NY)2.89
Fwd EY3.28%
FCF(TTM)-0.42
FCFYN/A
OCF(TTM)7.53
OCFY8.55%
SpS91.69
BVpS80.14
TBVpS54.54
PEG (NY)N/A
PEG (5Y)8.38
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 | 2.15 |
F-Score3
WACC8.12%
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-97.62%
EPS Next 2Y-25.52%
EPS Next 3Y-5.58%
EPS Next 5YN/A
Revenue 1Y (TTM)-3%
Revenue growth 3Y1.02%
Revenue growth 5Y8.38%
Sales Q2Q%-7.92%
Revenue Next Year-5.49%
Revenue Next 2Y-0.19%
Revenue Next 3Y1.83%
Revenue Next 5YN/A
EBIT growth 1Y-66.7%
EBIT growth 3Y-30.04%
EBIT growth 5Y6.87%
EBIT Next Year27.98%
EBIT Next 3Y24.66%
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%