WESTLAKE CORP (WLK) Stock Fundamental Analysis
USA - NYSE:WLK - US9604131022 - Common Stock
68.29 USD
-5.18 (-7.05%)
68.28 USD
-0.01 (-0.01%)
We assign a fundamental rating of 4 out of 10 to WLK. WLK was compared to 82 industry peers in the Chemicals industry. WLK has only an average score on both its financial health and profitability. WLK is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
WLK had positive earnings in the past year.
In the past year WLK had a positive cash flow from operations.
In the past 5 years WLK has always been profitable.
WLK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of -0.33%, WLK perfoms like the industry average, outperforming 43.90% of the companies in the same industry.
With a Return On Equity value of -0.66%, WLK perfoms like the industry average, outperforming 46.34% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 1.21%, WLK is doing worse than 71.95% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for WLK is in line with the industry average of 6.30%.
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
In the last couple of years the Profit Margin of WLK has remained more or less at the same level.
WLK's Operating Margin of 2.64% is on the low side compared to the rest of the industry. WLK is outperformed by 70.73% of its industry peers.
In the last couple of years the Operating Margin of WLK has remained more or less at the same level.
The Gross Margin of WLK (11.20%) is worse than 79.27% 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.
Compared to 1 year ago, WLK has about the same amount of shares outstanding.
The number of shares outstanding for WLK remains at a similar level compared to 5 years ago.
Compared to 1 year ago, WLK has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.04 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 2.04. This is comparable to the rest of the industry: WLK outperforms 53.66% of its industry peers.
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 70.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.04 |
ROIC/WACC0.16
WACC7.48%
2.3 Liquidity
A Current Ratio of 2.47 indicates that WLK has no problem at all paying its short term obligations.
WLK has a Current ratio of 2.47. This is in the better half of the industry: WLK outperforms 68.29% of its industry peers.
A Quick Ratio of 1.75 indicates that WLK should not have too much problems paying its short term obligations.
WLK's Quick ratio of 1.75 is fine compared to the rest of the industry. WLK outperforms 70.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.47 | ||
| Quick Ratio | 1.75 |
3. Growth
3.1 Past
WLK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -83.93%.
WLK shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.83% yearly.
The Revenue has decreased by -3.00% in the past year.
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 -10.96% on average over the next years. This is quite bad
WLK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.37% yearly.
EPS Next Y-104.64%
EPS Next 2Y-34.28%
EPS Next 3Y-10.96%
EPS Next 5YN/A
Revenue Next Year-5.74%
Revenue Next 2Y-0.73%
Revenue Next 3Y1.37%
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.
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
Based on the Price/Earnings ratio of 63.82, 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 68.29% of the companies in the same industry.
WLK's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.19.
A Price/Forward Earnings ratio of 30.35 indicates a quite expensive valuation of WLK.
65.85% of the companies in the same industry are cheaper than WLK, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of WLK to the average of the S&P500 Index (22.50), we can say WLK is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 63.82 | ||
| Fwd PE | 30.35 |
4.2 Price Multiples
WLK's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WLK is cheaper than 70.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.02 |
4.3 Compensation for Growth
A cheap valuation may be justified as WLK's earnings are expected to decrease with -10.96% in the coming years.
PEG (NY)N/A
PEG (5Y)6.49
EPS Next 2Y-34.28%
EPS Next 3Y-10.96%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.69%, WLK has a reasonable but not impressive dividend return.
WLK's Dividend Yield is a higher than the industry average which is at 3.70.
Compared to an average S&P500 Dividend Yield of 2.33, WLK has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
5.2 History
The dividend of WLK is nicely growing with an annual growth rate of 14.83%!
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)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-34.28%
EPS Next 3Y-10.96%
68.29
-5.18 (-7.05%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners31.21%
Inst Owner Change-0.46%
Ins Owners1.26%
Ins Owner Change0.03%
Market Cap8.76B
Revenue(TTM)11.76B
Net Income(TTM)-68000000
Analysts75.45
Price Target92.73 (35.79%)
Short Float %15.53%
Short Ratio4.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
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%
PT rev (3m)1.26%
EPS NQ rev (1m)-32.3%
EPS NQ rev (3m)-67.38%
EPS NY rev (1m)-355.34%
EPS NY rev (3m)-122.58%
Revenue NQ rev (1m)-0.67%
Revenue NQ rev (3m)-4%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)-1.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 63.82 | ||
| Fwd PE | 30.35 | ||
| P/S | 0.74 | ||
| P/FCF | N/A | ||
| P/OCF | 9.07 | ||
| P/B | 0.85 | ||
| P/tB | 1.25 | ||
| EV/EBITDA | 8.02 |
EPS(TTM)1.07
EY1.57%
EPS(NY)2.25
Fwd EY3.3%
FCF(TTM)-0.42
FCFYN/A
OCF(TTM)7.53
OCFY11.03%
SpS91.69
BVpS80.14
TBVpS54.54
PEG (NY)N/A
PEG (5Y)6.49
Graham Number43.92
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%
ROICexgc growth 3Y-33.41%
ROICexgc 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 | 2.04 |
F-Score3
WACC7.48%
ROIC/WACC0.16
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-104.64%
EPS Next 2Y-34.28%
EPS Next 3Y-10.96%
EPS Next 5YN/A
Revenue 1Y (TTM)-3%
Revenue growth 3Y1.02%
Revenue growth 5Y8.38%
Sales Q2Q%-7.92%
Revenue Next Year-5.74%
Revenue Next 2Y-0.73%
Revenue Next 3Y1.37%
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%
WESTLAKE CORP / WLK FAQ
What is the fundamental rating for WLK stock?
ChartMill assigns a fundamental rating of 4 / 10 to WLK.
Can you provide the valuation status for WESTLAKE CORP?
ChartMill assigns a valuation rating of 1 / 10 to WESTLAKE CORP (WLK). This can be considered as Overvalued.
What is the profitability of WLK stock?
WESTLAKE CORP (WLK) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for WLK stock?
The Price/Earnings (PE) ratio for WESTLAKE CORP (WLK) is 63.82 and the Price/Book (PB) ratio is 0.85.
How sustainable is the dividend of WESTLAKE CORP (WLK) stock?
The dividend rating of WESTLAKE CORP (WLK) is 5 / 10 and the dividend payout ratio is -397.06%.