WESTLAKE CORP (WLK)       122.75  +3.3 (+2.76%)

122.75  +3.3 (+2.76%)

US9604131022 - Common Stock - After market: 122.75 0 (0%)


Fundamental Rating

7

We assign a fundamental rating of 7 out of 10 to WLK. WLK was compared to 122 industry peers in the Chemicals industry. WLK gets an excellent profitability rating and is at the same time showing great financial health properties. A decent growth rate in combination with a cheap valuation! Better keep an eye on WLK. This could make WLK a good candidate for value investing.




Profitability

Profitability Rating

8

WLK has a Return On Assets of 12.95%. This is better than the industry average of 7.72%.
WLK's Return On Equity of 27.49% is amongst the best of the industry. WLK does better than the industry average Return On Equity of 19.26%.

WLK has a Profit Margin of 16.53%. This is better than the industry average of 8.37%.
The Piotroski-F score of WLK is 8.00. This is a very strong score and indicates great health and profitability for WLK.
VS Industry

ROA (12.95%) VS Industry: 76% outperformed.

0.04
624.60

ROE (27.49%) VS Industry: 70% outperformed.

0.05
225.47

Profit Margin (16.53%) VS Industry: 74% outperformed.

0.06
85.23

Valuation

Valuation Rating

9

The Price/Earnings Ratio is 5.97, which indicates a rather cheap valuation of WLK.
WLK's Price/Earning Ratio is rather cheap when compared to the industry average which is at 12.72. WLK is also cheaper than 87% of the companies in the same industry.
With a Forward Price/Earnings Ratio of 10.77, the valuation of WLK can be described as very reasonable.
The low PEG Ratio, which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.

When comparing the price book ratio of WLK to the average industry price book ratio of 2.16, WLK is valued rather cheaply.
When comparing the Enterprise Value to EBITDA ratio of WLK to the average industry ratio of 9.08, WLK is valued rather cheaply. WLK is also cheaper than 84% of the companies listed in the same industry.
With a price book ratio of 1.63, WLK is valued correctly.
VS Industry

Price/Earnings (5.97) VS Industry: 87% outperformed.

604.35
1.84

Price/Book (1.63) VS Industry: 68% outperformed.

812.13
0.03

Enterprise Value/ EBITDA (4.01) VS Industry: 84% outperformed.

14,546.72
1.55

Growth

Growth Rating

5

WLK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 79.25%, which is quite impressive.
WLK shows a strong growth in Earnings Per Share. Measured over the last 5 years, the EPS has been growing by 34.42% yearly.
The Revenue has grown by 56.33% in the past year. This is a very strong growth!
The Revenue has been growing by 18.34% on average over the past 5 years. This is quite good.

WLK is expected to show a decrease in Earnings Per Share. In the coming 5 years, the EPS will decrease by -6.03% yearly.
Based on estimates for the next 5 years, WLK will show a small growth in Revenue. The Revenue will grow by 4.74% on average per year.
When comparing the EPS growth rate of the last years to the growth rate of the upcoming 5 years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming 5 years, we see that the growth is decreasing.

PastFuture
5Y3Y1Y1Y2Y3Y5Y
EPS34.42% 26.26% 79.25% 18.57% -14.46% -4.6% -6.03%
Revenue18.34% 10.9% 56.33% 40.74% 11.49% 8.05% 4.74%

Health

Health Rating

8

WLK has a Current Ratio of 2.48. This indicates that WLK is financially healthy and has no problem in meeting its short term obligations.
The Current Ratio of WLK is much better than the industry average of 2.12.
WLK is better placed than average in its industry to meet its short term obligations. Its Current Ratio is much better than the industry average of 1.33.
An Altman-Z score of 3.12 indicates that WLK is not in any danger for bankruptcy at the moment.

WLK has a very good Piotroski-F score of 8.00. This indicates a great health and profitability for WLK.
WLK has a Quick Ratio of 1.66. This is a normal value and indicates that WLK is financially healthy and should not expect problems in meeting its short term obligations.
The Debt to Equity ratio of WLK is in line with the industry averages.
WLK has a Altman-Z score comparable to the industry average, which is at 2.68.
VS Industry

Debt/Equity (0.5) VS Industry: 53% outperformed.

19.13
0.00

Quick Ratio (1.66) VS Industry: 61% outperformed.

0.01
65.94

Current Ratio (2.48) VS Industry: 63% outperformed.

0.01
65.94

Altman-Z (3.12) VS Industry: 59% outperformed.

-529.45
148.49

Dividend

Dividend Rating

5

The dividend of WLK is nicely growing with an annual growth rate of 7.25%!
6.09% of the earnings are spent on dividend by WLK. This is a low number and sustainable payout ratio.
WLK has paid a dividend for at least 10 years, which is a reliable track record.
With a Yearly Dividend Yield of 1.25%, WLK has a reasonable but not impressive dividend return.

With a Dividend Yield of 1.25, WLK pays less dividend than the industry average, which is at 2.22. 81% of the companies listed in the same industry pay a better dividend than WLK!
With a Dividend Yield of 1.25, WLK pays less dividend than the S&P500 average, which is at 2.41.
The Dividend Rate of WLK has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
VS Industry

Dividend Yield (1.25%) VS Industry: 19% outperformed.

0.30
22.94

WESTLAKE CORP122.75

NYSE:WLK (1/31/2023, 7:08:51 PM)+3.3 (+2.76%)

After market: 122.75 0 (0%)

Chartmill FA Rating
GICS Sector Materials
GICS IndustryGroup Materials
GICS Industry Chemicals
Earnings (Last) 11-03 2022-11-03/bmo Earnings (Next) 02-20 2023-02-20
Inst Owners 27.51% Inst Owner Change -0.05%
Ins Owners 0.66% Ins Owner Change 1.42%
Market Cap 15.66B Analysts 66.67
Price Target 115.05 (-6.27%)

Dividend
Dividend Yield 1.25% Dividend Growth 7.25%
DP 6.09% Ex-Date N/A

Surprises & Revisions
EPS beat(2) 1 Avg EPS beat(2) -9.25%
Min EPS beat(2) -28.64% Max EPS beat(2) 10.13%
EPS beat(4) 3 Avg EPS beat(4) 4.02%
Min EPS beat(4) -28.64% Max EPS beat(4) 24.65%
Revenue beat(2) 1 Avg Revenue beat(2) 1.11%
Min Revenue beat(2) -1.74% Max Revenue beat(2) 3.97%
Revenue beat(4) 3 Avg Revenue beat(4) 9.07%
Min Revenue beat(4) -1.74% Max Revenue beat(4) 18.76%
PT rev (1m) 2.93% EPS NQ rev (1m) 0%
EPS NY rev (1m) 0% Revenue NQ rev (1m) 0%
Revenue NY rev (1m) 0%

Valuation
Industry RankSector Rank
PE 5.97
Fwd PE 10.77
P/S 0.98
P/FCF 6.92
P/OCF 4.72
P/B 1.63
P/tB 2.65
EV/EBITDA 4.01
EPS(TTM) 20.56 EY 16.75%
EPS(NY) 11.4 Fwd EY 9.29%
FCF(TTM) 17.74 FCFY 14.45%
OCF(TTM) 26.01 OCFY 21.19%
SpS 125.47 BVpS 75.44
TBVpS 46.28 PEG (NY) 0.32
PEG (5Y) 0.17

Profitability
Industry RankSector Rank
ROA 12.95%
ROE 27.49%
ROIC 15.65%
ROICexc 17.37%
ROICexgc 22.54%
OM 22.72%
PM 16.53%
GM 28.76%
ROICexgc(3y) 10% ROICexcg growth 3Y 13.91%
ROICexcg growth 5Y 24.38% ROICexc(3y) 7.77%
ROICexc growth 3Y 10.03% ROICexc growth 5Y 22.19%
OM growth 3Y 12.8% OM growth 5Y 12.15%
PM growth 3Y 14.05% PM growth 5Y 16.82%
GM growth 3Y 8.85% GM growth 5Y 8.96%
F-Score 8 Asset Turnover 0.78

Health
Industry RankSector Rank
Debt/Equity 0.5
Debt/FCF 2.13
Debt/EBITDA 1.03
Cap/Depr 102.93%
Profit Quality 85.52%
Current Ratio 2.48
Quick Ratio 1.66
Altman-Z 3.12
F-Score 8 WACC 9.16%
ROIC/WACC 2.46 Cap/Depr(3y) 85.54%
Cap/Depr(5y) 92.43% Profit Quality(3y) 147.97%
Profit Quality(5y) 117.71%

Growth
EPS 1Y 79.25% EPS 3Y 26.26%
EPS 5Y 34.42% EPS growth Q2Q -33.9%
EPS Next Y 18.57% EPS Next 2Y -14.46%
EPS Next 3Y -4.6% EPS Next 5Y -6.03%
Revenue growth 1Y 56.33% Revenue growth 3Y 10.9%
Revenue growth 5Y 18.34% Revenue growth Q2Q 29.49%
Revenue Next Year 40.74% Revenue Next 2Y 11.49%
Revenue Next 3Y 8.05% Revenue Next 5Y 4.74%
EBIT growth 1Y 72.19% EBIT growth 3Y 25.1%
EBIT growth 5Y 32.72% EBIT Next Year 56.55%
EBIT Next 3Y 6.84% EBIT Next 5Y 3.96%
FCF growth 1Y 269.01% FCF growth 3Y 34.91%
FCF growth 5Y 48.8% OCF growth 1Y 176.65%
OCF growth 3Y 19.33% OCF growth 5Y 22.52%

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