WESTLAKE CORP (WLK)
US9604131022 - Common Stock
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. Both the profitability and the financial health of WLK get a neutral evaluation. Nothing too spectacular is happening here. 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.
WLK had a positive operating cash flow in the past year.
In the past 5 years WLK has always 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 (1.23%) which is in line with its industry peers.
WLK's Return On Equity of 2.49% is in line compared to the rest of the industry. WLK outperforms 43.37% of its industry peers.
WLK has a Return On Invested Capital (3.83%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for WLK is above the industry average of 6.66%.
The last Return On Invested Capital (3.83%) for WLK is well below the 3 year average (10.46%), which needs to be investigated, but indicates that WLK had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.23% | ||
| ROE | 2.49% | ||
| ROIC | 3.83% |
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
Looking at the Profit Margin, with a value of 2.11%, WLK is in line with its industry, outperforming 42.17% of the companies in the same industry.
WLK's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 7.56%, WLK perfoms like the industry average, outperforming 45.78% of the companies in the same industry.
WLK's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 15.56%, WLK is not doing good in the industry: 69.88% of the companies in the same industry are doing better.
WLK's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.56% | ||
| PM (TTM) | 2.11% | ||
| GM | 15.56% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), WLK is 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
WLK has an Altman-Z score of 2.67. 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 2.67. This is in the better half of the industry: WLK outperforms 75.90% of its industry peers.
The Debt to FCF ratio of WLK is 5.13, which is a neutral value as it means it would take WLK, 5.13 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 5.13, WLK is doing good in the industry, outperforming 67.47% of the companies in the same industry.
WLK has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.44, WLK is in the better half of the industry, outperforming 63.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 5.13 | ||
| Altman-Z | 2.67 |
ROIC/WACC0.51
WACC7.56%
2.3 Liquidity
WLK has a Current Ratio of 2.46. This indicates that WLK is financially healthy and has no problem in meeting its short term obligations.
WLK has a Current ratio (2.46) which is comparable to the rest of the industry.
WLK has a Quick Ratio of 1.83. This is a normal value and indicates that WLK is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.83, WLK is in the better half of the industry, outperforming 66.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.46 | ||
| Quick Ratio | 1.83 |
3. Growth
3.1 Past
WLK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -54.97%.
The Earnings Per Share has been growing slightly by 1.36% on average over the past years.
WLK shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -19.39%.
Measured over the past years, WLK shows a small growth in Revenue. The Revenue has been growing by 7.76% on average per year.
EPS 1Y (TTM)-54.97%
EPS 3Y53.93%
EPS 5Y1.36%
EPS Q2Q%-56.07%
Revenue 1Y (TTM)-19.39%
Revenue growth 3Y18.69%
Revenue growth 5Y7.76%
Sales Q2Q%-11.35%
3.2 Future
WLK is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.27% yearly.
The Revenue is expected to grow by 3.92% on average over the next years.
EPS Next Y-14.27%
EPS Next 2Y3.43%
EPS Next 3Y7.27%
EPS Next 5YN/A
Revenue Next Year-1.42%
Revenue Next 2Y2.91%
Revenue Next 3Y3.92%
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 accelerating.
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
The Price/Earnings ratio is 21.77, which indicates a rather expensive current valuation of WLK.
Compared to the rest of the industry, the Price/Earnings ratio of WLK indicates a somewhat cheap valuation: WLK is cheaper than 61.45% of the companies listed in the same industry.
WLK's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.41.
A Price/Forward Earnings ratio of 16.15 indicates a correct valuation of WLK.
WLK's Price/Forward Earnings ratio is in line with the industry average.
WLK is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.77 | ||
| Fwd PE | 16.15 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WLK is valued a bit cheaper than the industry average as 71.08% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as WLK.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.28 | ||
| EV/EBITDA | 9.95 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)16.03
EPS Next 2Y3.43%
EPS Next 3Y7.27%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.35%, WLK has a reasonable but not impressive dividend return.
WLK's Dividend Yield is comparable with the industry average which is at 3.07.
Compared to an average S&P500 Dividend Yield of 2.30, WLK's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
5.2 History
On average, the dividend of WLK grows each year by 13.11%, which is quite nice.
WLK has been paying a dividend for at least 10 years, so it has a reliable track record.
WLK has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)13.11%
Div Incr Years19
Div Non Decr Years19
5.3 Sustainability
WLK pays out 93.00% of its income as dividend. This is not a sustainable payout ratio.
WLK's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP93%
EPS Next 2Y3.43%
EPS Next 3Y7.27%
WESTLAKE CORP
NYSE:WLK (7/26/2024, 7:07:13 PM)
After market: 143.03 0 (0%)143.03
+0.32 (+0.22%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap18.39B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
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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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 | 21.77 | ||
| Fwd PE | 16.15 | ||
| 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)16.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.23% | ||
| ROE | 2.49% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.56% | ||
| PM (TTM) | 2.11% | ||
| GM | 15.56% | ||
| 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 Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.46 | ||
| Quick Ratio | 1.83 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)-54.97%
EPS 3Y53.93%
EPS 5Y
EPS Q2Q%
EPS Next Y-14.27%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-19.39%
Revenue growth 3Y18.69%
Revenue growth 5Y
Sales 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