WESTLAKE CORP (WLK)

US9604131022 - Common Stock

158.345  +1.63 (+1.04%)

Fundamental Rating

4

Overall WLK gets a fundamental rating of 4 out of 10. We evaluated WLK against 84 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.



4

1. Profitability

1.1 Basic Checks

WLK had positive earnings in the past year.
WLK had a positive operating cash flow in the past year.
Each year in the past 5 years WLK has been profitable.
In the past 5 years WLK always reported a positive cash flow from operatings.

1.2 Ratios

The Return On Assets of WLK (1.23%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 2.49%, WLK is in line with its industry, outperforming 44.05% of the companies in the same industry.
WLK has a Return On Invested Capital of 3.83%. This is comparable to the rest of the industry: WLK outperforms 50.00% of its industry peers.
WLK had an Average Return On Invested Capital over the past 3 years of 10.46%. This is above the industry average of 6.71%.
The 3 year average ROIC (10.46%) for WLK is well above the current ROIC(3.83%). The reason for the recent decline needs to be investigated.
Industry RankSector 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

WLK has a Profit Margin of 2.11%. This is comparable to the rest of the industry: WLK outperforms 42.86% of its industry peers.
WLK's Profit Margin has declined in the last couple of years.
WLK has a Operating Margin of 7.56%. This is comparable to the rest of the industry: WLK outperforms 45.24% of its industry peers.
WLK's Operating Margin has declined in the last couple of years.
The Gross Margin of WLK (15.56%) is worse than 70.24% of its industry peers.
WLK's Gross Margin has declined in the last couple of years.
Industry RankSector 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%

6

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WLK is still creating some value.
The number of shares outstanding for WLK has been increased 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

An Altman-Z score of 2.77 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 2.77. This is in the better half of the industry: WLK outperforms 75.00% of its industry peers.
WLK has a debt to FCF ratio of 5.13. This is a neutral value as WLK would need 5.13 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 5.13, WLK is doing good in the industry, outperforming 67.86% of the companies in the same industry.
A Debt/Equity ratio of 0.44 indicates that WLK is not too dependend on debt financing.
The Debt to Equity ratio of WLK (0.44) is better than 61.90% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.44
Debt/FCF 5.13
Altman-Z 2.77
ROIC/WACC0.49
WACC7.87%

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.
A Quick Ratio of 1.83 indicates that WLK should not have too much problems paying its short term obligations.
WLK has a Quick ratio of 1.83. This is in the better half of the industry: WLK outperforms 65.48% of its industry peers.
Industry RankSector Rank
Current Ratio 2.46
Quick Ratio 1.83

3

3. Growth

3.1 Past

The earnings per share for WLK have decreased strongly by -54.97% in the last year.
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%.
The Revenue has been growing slightly by 7.76% on average over the past years.
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 quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.06% yearly.
Based on estimates for the next years, WLK will show a small growth in Revenue. The Revenue will grow by 4.22% on average per year.
EPS Next Y-12.94%
EPS Next 2Y4.6%
EPS Next 3Y9.06%
EPS Next 5YN/A
Revenue Next Year-1.38%
Revenue Next 2Y3.08%
Revenue Next 3Y4.22%
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

2

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 24.10 indicates a rather expensive valuation of WLK.
WLK's Price/Earnings ratio is in line with the industry average.
WLK's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.82.
Based on the Price/Forward Earnings ratio of 17.48, the valuation of WLK can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WLK is on the same level as its industry peers.
WLK's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 19.80.
Industry RankSector Rank
PE 24.1
Fwd PE 17.48

4.2 Price Multiples

WLK's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WLK is cheaper than 65.48% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as WLK.
Industry RankSector Rank
P/FCF 21.34
EV/EBITDA 10.84

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)17.75
EPS Next 2Y4.6%
EPS Next 3Y9.06%

4

5. Dividend

5.1 Amount

WLK has a Yearly Dividend Yield of 1.28%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.11, WLK has a dividend in line with its industry peers.
With a Dividend Yield of 1.28, WLK pays less dividend than the S&P500 average, which is at 2.37.
Industry RankSector Rank
Dividend Yield 1.28%

5.2 History

On average, the dividend of WLK grows each year by 13.11%, which is quite nice.
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)13.11%
Div Incr Years10
Div Non Decr Years10

5.3 Sustainability

93.00% of the earnings are spent on dividend by WLK. 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 2Y4.6%
EPS Next 3Y9.06%

WESTLAKE CORP

NYSE:WLK (5/30/2024, 10:26:08 AM)

158.345

+1.63 (+1.04%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap20.36B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.28%
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)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
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)
Avg Revenue beat(4)
Min 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 RankSector Rank
PE 24.1
Fwd PE 17.48
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)17.75
Profitability
Industry RankSector 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 RankSector 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-12.94%
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