WESTLAKE CORP (WLK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WLK - US9604131022 - Common Stock
87.87 USD
-0.43 (-0.49%)
87.87 USD
0 (0%)
Taking everything into account, WLK scores 3 out of 10 in our fundamental rating. WLK was compared to 82 industry peers in the Chemicals industry. While WLK seems to be doing ok healthwise, there are quite some concerns on its profitability. WLK does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
- In the past year WLK has reported negative net income.
- WLK had a positive operating cash flow in the past year.
- 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's Return On Assets of -4.80% is on the low side compared to the rest of the industry. WLK is outperformed by 73.17% of its industry peers.
- The Return On Equity of WLK (-10.10%) is worse than 65.85% of its industry peers.
- WLK has a worse Return On Invested Capital (0.14%) than 81.71% 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 6.11%.
- The last Return On Invested Capital (0.14%) 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 | -4.8% | ||
| ROE | -10.1% | ||
| ROIC | 0.14% |
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.
- With a Operating Margin value of 0.29%, WLK is not doing good in the industry: 82.93% of the companies in the same industry are doing better.
- 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 9.18%, WLK is not doing good in the industry: 85.37% 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 | 0.29% | ||
| PM (TTM) | N/A | ||
| GM | 9.18% |
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.
- 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
- WLK has an Altman-Z score of 2.07. 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 2.07. This is comparable to the rest of the industry: WLK outperforms 57.32% of its industry peers.
- A Debt/Equity ratio of 0.41 indicates that WLK is not too dependend on debt financing.
- WLK has a Debt to Equity ratio of 0.41. This is in the better half of the industry: WLK outperforms 69.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.07 |
ROIC/WACC0.01
WACC11.83%
2.3 Liquidity
- A Current Ratio of 1.99 indicates that WLK should not have too much problems paying its short term obligations.
- The Current ratio of WLK (1.99) is comparable to the rest of the industry.
- WLK has a Quick Ratio of 1.39. This is a normal value and indicates that WLK is financially healthy and should not expect problems in meeting its short term obligations.
- WLK's Quick ratio of 1.39 is in line compared to the rest of the industry. WLK outperforms 54.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
- The earnings per share for WLK have decreased strongly by -110.73% in the last year.
- WLK shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.83% yearly.
- Looking at the last year, WLK shows a decrease in Revenue. The Revenue has decreased by -5.32% in the last year.
- WLK shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.38% yearly.
EPS 1Y (TTM)-110.73%
EPS 3Y-30.59%
EPS 5Y9.83%
EPS Q2Q%-120.57%
Revenue 1Y (TTM)-5.32%
Revenue growth 3Y1.02%
Revenue growth 5Y8.38%
Sales Q2Q%-8.95%
3.2 Future
- Based on estimates for the next years, WLK will show a decrease in Earnings Per Share. The EPS will decrease by -8.41% on average per year.
- The Revenue is expected to grow by 2.01% on average over the next years.
EPS Next Y-138.43%
EPS Next 2Y-55.17%
EPS Next 3Y-22%
EPS Next 5Y-8.41%
Revenue Next Year-8.06%
Revenue Next 2Y-3.83%
Revenue Next 3Y-1.46%
Revenue Next 5Y2.01%
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
- The Price/Earnings Ratio is negative for WLK. In the last year negative earnings were reported.
- The Price/Forward Earnings ratio is 83.91, which means the current valuation is very expensive for WLK.
- 67.07% of the companies in the same industry are cheaper than WLK, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.29, WLK is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 83.91 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WLK is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.4 |
4.3 Compensation for Growth
- A cheap valuation may be justified as WLK's earnings are expected to decrease with -22.00% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-55.17%
EPS Next 3Y-22%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.50%, WLK has a reasonable but not impressive dividend return.
- WLK's Dividend Yield is a higher than the industry average which is at 2.28.
- WLK's Dividend Yield is a higher than the S&P500 average which is at 1.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
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 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-28.47%
EPS Next 2Y-55.17%
EPS Next 3Y-22%
87.87
-0.43 (-0.49%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)10-30 2025-10-30/bmo
Earnings (Next)02-23 2026-02-23/amc
Inst Owners34.07%
Inst Owner Change-0.06%
Ins Owners1.3%
Ins Owner Change1.63%
Market Cap11.27B
Revenue(TTM)11.48B
Net Income(TTM)-952.00M
Analysts73.64
Price Target83.77 (-4.67%)
Short Float %16.5%
Short Ratio3.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
Yearly Dividend2.06
Dividend Growth(5Y)14.83%
DP-28.47%
Div Incr Years20
Div Non Decr Years20
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-202.92%
Min EPS beat(2)-213.97%
Max EPS beat(2)-191.86%
EPS beat(4)0
Avg EPS beat(4)-161.94%
Min EPS beat(4)-213.97%
Max EPS beat(4)-94.57%
EPS beat(8)2
Avg EPS beat(8)-82.02%
EPS beat(12)4
Avg EPS beat(12)-54.05%
EPS beat(16)7
Avg EPS beat(16)-39.53%
Revenue beat(2)0
Avg Revenue beat(2)-3.8%
Min Revenue beat(2)-4.44%
Max Revenue beat(2)-3.15%
Revenue beat(4)0
Avg Revenue beat(4)-4.08%
Min Revenue beat(4)-4.46%
Max Revenue beat(4)-3.15%
Revenue beat(8)1
Avg Revenue beat(8)-3.3%
Revenue beat(12)1
Avg Revenue beat(12)-3.8%
Revenue beat(16)4
Avg Revenue beat(16)-0.58%
PT rev (1m)1.02%
PT rev (3m)-9.65%
EPS NQ rev (1m)-155.92%
EPS NQ rev (3m)-4007.21%
EPS NY rev (1m)-60.67%
EPS NY rev (3m)-2216.43%
Revenue NQ rev (1m)-2.3%
Revenue NQ rev (3m)-6.69%
Revenue NY rev (1m)-0.59%
Revenue NY rev (3m)-2.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 83.91 | ||
| P/S | 0.98 | ||
| P/FCF | N/A | ||
| P/OCF | 16.72 | ||
| P/B | 1.2 | ||
| P/tB | 1.63 | ||
| EV/EBITDA | 11.4 |
EPS(TTM)-0.63
EYN/A
EPS(NY)1.05
Fwd EY1.19%
FCF(TTM)-2.85
FCFYN/A
OCF(TTM)5.25
OCFY5.98%
SpS89.5
BVpS73.49
TBVpS53.82
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.8% | ||
| ROE | -10.1% | ||
| ROCE | 0.2% | ||
| ROIC | 0.14% | ||
| ROICexc | 0.16% | ||
| ROICexgc | 0.19% | ||
| OM | 0.29% | ||
| PM (TTM) | N/A | ||
| GM | 9.18% | ||
| 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-Score5
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.27 | ||
| Cap/Depr | 89.41% | ||
| Cap/Sales | 9.05% | ||
| Interest Coverage | 0.21 | ||
| Cash Conversion | 56.4% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.39 | ||
| Altman-Z | 2.07 |
F-Score5
WACC11.83%
ROIC/WACC0.01
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)-110.73%
EPS 3Y-30.59%
EPS 5Y9.83%
EPS Q2Q%-120.57%
EPS Next Y-138.43%
EPS Next 2Y-55.17%
EPS Next 3Y-22%
EPS Next 5Y-8.41%
Revenue 1Y (TTM)-5.32%
Revenue growth 3Y1.02%
Revenue growth 5Y8.38%
Sales Q2Q%-8.95%
Revenue Next Year-8.06%
Revenue Next 2Y-3.83%
Revenue Next 3Y-1.46%
Revenue Next 5Y2.01%
EBIT growth 1Y-96.06%
EBIT growth 3Y-30.04%
EBIT growth 5Y6.87%
EBIT Next Year-7.82%
EBIT Next 3Y16.07%
EBIT Next 5Y15.07%
FCF growth 1Y-123.56%
FCF growth 3Y-43.93%
FCF growth 5Y-9.85%
OCF growth 1Y-74.06%
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 3 / 10 to WLK.
What is the valuation status of WESTLAKE CORP (WLK) stock?
ChartMill assigns a valuation rating of 0 / 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 3 / 10.
Can you provide the financial health for WLK stock?
The financial health rating of WESTLAKE CORP (WLK) is 4 / 10.