WESTLAKE CORP (WLK) Stock Fundamental Analysis
NYSE:WLK - US9604131022 - Common Stock
90.6 USD
+7.86 (+9.5%)
90.6 USD
0 (0%)
Overall WLK gets a fundamental rating of 4 out of 10. We evaluated WLK against 84 industry peers in the Chemicals industry. Both the profitability and the financial health of WLK get a neutral evaluation. Nothing too spectacular is happening here. WLK has a expensive valuation and it also scores bad on growth.
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
WLK has a Return On Assets of -0.33%. This is comparable to the rest of the industry: WLK outperforms 46.43% of its industry peers.
With a Return On Equity value of -0.66%, WLK perfoms like the industry average, outperforming 48.81% 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 71.43% of the companies in the same industry.
WLK had an Average Return On Invested Capital over the past 3 years of 6.90%. This is in line with the industry average of 6.53%.
The last Return On Invested Capital (1.21%) 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 | -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 has a Operating Margin of 2.64%. This is in the lower half of the industry: WLK underperforms 69.05% of its industry peers.
In the last couple of years the Operating Margin of WLK has remained more or less at the same level.
WLK has a Gross Margin of 11.20%. This is in the lower half of the industry: WLK underperforms 79.76% of its industry peers.
WLK's Gross Margin has been stable in the last couple of years.
| 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.
WLK has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for WLK remains at a similar level compared to 5 years ago.
The debt/assets ratio for WLK has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.16 indicates that WLK is not a great score, but indicates only limited risk for bankruptcy at the moment.
WLK's Altman-Z score of 2.16 is in line compared to the rest of the industry. WLK outperforms 58.33% of its industry peers.
A Debt/Equity ratio of 0.45 indicates that WLK is not too dependend on debt financing.
WLK has a better Debt to Equity ratio (0.45) than 67.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.16 |
ROIC/WACC0.15
WACC8.03%
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 66.67% of its industry peers.
WLK has a Quick Ratio of 1.75. This is a normal value and indicates that WLK is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.75, WLK is doing good in the industry, outperforming 70.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.47 | ||
| Quick Ratio | 1.75 |
3. Growth
3.1 Past
The earnings per share for WLK have decreased strongly by -83.93% in the last year.
Measured over the past years, WLK shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.83% on average per year.
The Revenue has decreased by -3.00% in the past 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)-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
Based on estimates for the next years, WLK will show a decrease in Earnings Per Share. The EPS will decrease by -5.58% on average per year.
The Revenue is expected to grow by 1.84% on average over the next years.
EPS Next Y-97.62%
EPS Next 2Y-25.52%
EPS Next 3Y-5.58%
EPS Next 5YN/A
Revenue Next Year-5.45%
Revenue Next 2Y-0.19%
Revenue Next 3Y1.84%
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
WLK is valuated quite expensively with a Price/Earnings ratio of 84.67.
WLK's Price/Earnings ratio is a bit more expensive when compared to the industry. WLK is more expensive than 65.48% 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 27.24.
With a Price/Forward Earnings ratio of 31.35, WLK can be considered very expensive at the moment.
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 64.29% of the companies listed in the same industry.
WLK's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 35.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 84.67 | ||
| Fwd PE | 31.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WLK is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.54 |
4.3 Compensation for Growth
A cheap valuation may be justified as WLK's earnings are expected to decrease with -5.58% in the coming years.
PEG (NY)N/A
PEG (5Y)8.61
EPS Next 2Y-25.52%
EPS Next 3Y-5.58%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.75%, WLK has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.54, WLK pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, WLK has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.75% |
5.2 History
The dividend of WLK is nicely growing with an annual growth rate of 14.83%!
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
WLK has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-397.06%
EPS Next 2Y-25.52%
EPS Next 3Y-5.58%
90.6
+7.86 (+9.5%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners28.87%
Inst Owner Change6.19%
Ins Owners1.25%
Ins Owner Change0.32%
Market Cap11.62B
Analysts73.64
Price Target92.32 (1.9%)
Short Float %13.18%
Short Ratio3.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.75% |
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)0.82%
PT rev (3m)-15.21%
EPS NQ rev (1m)-35.39%
EPS NQ rev (3m)-73.17%
EPS NY rev (1m)-88.39%
EPS NY rev (3m)-96.27%
Revenue NQ rev (1m)-3.48%
Revenue NQ rev (3m)-8.59%
Revenue NY rev (1m)-1.57%
Revenue NY rev (3m)-3.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 84.67 | ||
| Fwd PE | 31.35 | ||
| P/S | 0.99 | ||
| P/FCF | N/A | ||
| P/OCF | 12.03 | ||
| P/B | 1.13 | ||
| P/tB | 1.66 | ||
| EV/EBITDA | 9.54 |
EPS(TTM)1.07
EY1.18%
EPS(NY)2.89
Fwd EY3.19%
FCF(TTM)-0.42
FCFYN/A
OCF(TTM)7.53
OCFY8.31%
SpS91.69
BVpS80.14
TBVpS54.54
PEG (NY)N/A
PEG (5Y)8.61
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%
ROICexcg growth 3Y-33.41%
ROICexcg 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 | 2.16 |
F-Score3
WACC8.03%
ROIC/WACC0.15
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-97.62%
EPS Next 2Y-25.52%
EPS Next 3Y-5.58%
EPS Next 5YN/A
Revenue 1Y (TTM)-3%
Revenue growth 3Y1.02%
Revenue growth 5Y8.38%
Sales Q2Q%-7.92%
Revenue Next Year-5.45%
Revenue Next 2Y-0.19%
Revenue Next 3Y1.84%
Revenue Next 5YN/A
EBIT growth 1Y-66.7%
EBIT growth 3Y-30.04%
EBIT growth 5Y6.87%
EBIT Next Year27.98%
EBIT Next 3Y24.66%
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%