WESTLAKE CORP (WLK) Stock Fundamental Analysis
USA - NYSE:WLK - US9604131022 - Common Stock
68.28 USD
-0.53 (-0.77%)
68.28 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. WLK has a bad profitability rating. Also its financial health evaluation is rather negative. WLK has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
WLK had negative 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.
Each year in the past 5 years WLK had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -4.83%, WLK is doing worse than 71.95% of the companies in the same industry.
WLK has a Return On Equity of -10.15%. This is in the lower half of the industry: WLK underperforms 67.07% of its industry peers.
WLK's Return On Invested Capital of 0.14% is on the low side compared to the rest of the industry. WLK is outperformed by 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 6.23%.
The 3 year average ROIC (6.90%) for WLK is well above the current ROIC(0.14%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.83% | ||
| ROE | -10.15% | ||
| 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.
WLK has a worse Operating Margin (0.29%) than 81.71% of its industry peers.
WLK's Operating Margin has been stable in the last couple of years.
WLK has a worse Gross Margin (9.18%) than 81.71% 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 | 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
WLK has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
WLK has about the same amout of shares outstanding than it did 1 year ago.
WLK has about the same amout of shares outstanding than it did 5 years ago.
WLK has a better debt/assets ratio than last year.
2.2 Solvency
A Debt/Equity ratio of 0.41 indicates that WLK is not too dependend on debt financing.
The Debt to Equity ratio of WLK (0.41) is better than 71.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.02
WACC7.44%
2.3 Liquidity
WLK has a Current Ratio of 1.99. This is a normal value and indicates that WLK is financially healthy and should not expect problems in meeting its short term obligations.
WLK has a Current ratio (1.99) which is in line with its industry peers.
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 has a Quick ratio (1.39) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
WLK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -110.73%.
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 -5.32% in the past year.
Measured over the past years, WLK shows a quite strong growth in Revenue. The Revenue has been growing by 8.38% on average per year.
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 very negative growth in Earnings Per Share. The EPS will decrease by -16.41% on average per year.
Based on estimates for the next years, WLK will show a decrease in Revenue. The Revenue will decrease by -0.02% on average per year.
EPS Next Y-114.76%
EPS Next 2Y-43.01%
EPS Next 3Y-16.41%
EPS Next 5YN/A
Revenue Next Year-7.12%
Revenue Next 2Y-2.13%
Revenue Next 3Y-0.02%
Revenue Next 5YN/A
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.
WLK is valuated quite expensively with a Price/Forward Earnings ratio of 40.36.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WLK indicates a slightly more expensive valuation: WLK is more expensive than 65.85% of the companies listed in the same industry.
WLK's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.53.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 40.36 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as WLK.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.28 |
4.3 Compensation for Growth
WLK's earnings are expected to decrease with -16.41% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-43.01%
EPS Next 3Y-16.41%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.08%, WLK has a reasonable but not impressive dividend return.
WLK's Dividend Yield is a higher than the industry average which is at 3.99.
Compared to an average S&P500 Dividend Yield of 2.38, WLK pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
5.2 History
On average, the dividend of WLK grows each year by 14.83%, 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)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-28.32%
EPS Next 2Y-43.01%
EPS Next 3Y-16.41%
68.28
-0.53 (-0.77%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners31.21%
Inst Owner Change-1.05%
Ins Owners1.26%
Ins Owner Change0.03%
Market Cap8.76B
Revenue(TTM)11.48B
Net Income(TTM)-957000000
Analysts71.82
Price Target89.63 (31.27%)
Short Float %15.53%
Short Ratio4.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
Yearly Dividend2.06
Dividend Growth(5Y)14.83%
DP-28.32%
Div Incr Years20
Div Non Decr Years20
Ex-Date
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)-3.34%
PT rev (3m)-2.12%
EPS NQ rev (1m)-195.91%
EPS NQ rev (3m)-126.88%
EPS NY rev (1m)-355.34%
EPS NY rev (3m)-122.58%
Revenue NQ rev (1m)-0.57%
Revenue NQ rev (3m)-1.44%
Revenue NY rev (1m)-0.47%
Revenue NY rev (3m)-2.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 40.36 | ||
| P/S | 0.76 | ||
| P/FCF | N/A | ||
| P/OCF | 12.99 | ||
| P/B | 0.93 | ||
| P/tB | 0.93 | ||
| EV/EBITDA | 9.28 |
EPS(TTM)-0.63
EYN/A
EPS(NY)1.69
Fwd EY2.48%
FCF(TTM)-2.85
FCFYN/A
OCF(TTM)5.26
OCFY7.7%
SpS89.51
BVpS73.5
TBVpS73.5
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.83% | ||
| ROE | -10.15% | ||
| ROCE | 0.2% | ||
| ROIC | 0.14% | ||
| ROICexc | 0.16% | ||
| ROICexgc | 0.16% | ||
| 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 | 250 | ||
| Cash Conversion | 56.4% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.39 | ||
| Altman-Z | N/A |
F-Score5
WACC7.44%
ROIC/WACC0.02
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-114.76%
EPS Next 2Y-43.01%
EPS Next 3Y-16.41%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.32%
Revenue growth 3Y1.02%
Revenue growth 5Y8.38%
Sales Q2Q%-8.95%
Revenue Next Year-7.12%
Revenue Next 2Y-2.13%
Revenue Next 3Y-0.02%
Revenue Next 5YN/A
EBIT growth 1Y-96.06%
EBIT growth 3Y-30.04%
EBIT growth 5Y6.87%
EBIT Next Year20.07%
EBIT Next 3Y22.33%
EBIT Next 5YN/A
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.
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 3 / 10.
Can you provide the dividend sustainability for WLK stock?
The dividend rating of WESTLAKE CORP (WLK) is 5 / 10 and the dividend payout ratio is -28.32%.