WESTLAKE CORP (WLK) Stock Fundamental Analysis
NYSE:WLK - New York Stock Exchange, Inc. - US9604131022 - Common Stock - Currency: USD
Overall WLK gets a fundamental rating of 5 out of 10. We evaluated WLK against 85 industry peers in the Chemicals industry. WLK has an average financial health and profitability rating. WLK is not valued too expensively and it also shows a decent growth rate. WLK also has an excellent dividend rating. These ratings could make WLK a good candidate for dividend investing.
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.
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
WLK's Return On Assets of 2.88% is fine compared to the rest of the industry. WLK outperforms 63.53% of its industry peers.
WLK has a Return On Equity of 5.68%. This is comparable to the rest of the industry: WLK outperforms 58.82% of its industry peers.
The Return On Invested Capital of WLK (3.74%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for WLK is in line with the industry average of 7.09%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.88% | ||
| ROE | 5.68% | ||
| ROIC | 3.74% |
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
Looking at the Profit Margin, with a value of 4.93%, WLK is in the better half of the industry, outperforming 65.88% of the companies in the same industry.
In the last couple of years the Profit Margin of WLK has remained more or less at the same level.
The Operating Margin of WLK (7.96%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of WLK has remained more or less at the same level.
WLK has a worse Gross Margin (16.12%) than 71.76% 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 | 7.96% | ||
| PM (TTM) | 4.93% | ||
| GM | 16.12% |
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.
Compared to 1 year ago, WLK has about the same amount of shares outstanding.
Compared to 5 years ago, WLK has about the same amount of shares outstanding.
The debt/assets ratio for WLK has been reduced compared to a year ago.
2.2 Solvency
WLK has an Altman-Z score of 2.37. 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.
With a decent Altman-Z score value of 2.37, WLK is doing good in the industry, outperforming 72.94% of the companies in the same industry.
WLK has a debt to FCF ratio of 15.00. This is a negative value and a sign of low solvency as WLK would need 15.00 years to pay back of all of its debts.
The Debt to FCF ratio of WLK (15.00) is comparable to the rest of the industry.
WLK has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.43, WLK is in the better half of the industry, outperforming 67.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 15 | ||
| Altman-Z | 2.37 |
ROIC/WACC0.49
WACC7.61%
2.3 Liquidity
A Current Ratio of 2.80 indicates that WLK has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.80, WLK belongs to the best of the industry, outperforming 81.18% of the companies in the same industry.
WLK has a Quick Ratio of 2.04. This indicates that WLK is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.04, WLK belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.8 | ||
| Quick Ratio | 2.04 |
3. Growth
3.1 Past
The earnings per share for WLK have decreased strongly by -37.08% 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.
Looking at the last year, WLK shows a decrease in Revenue. The Revenue has decreased by -3.24% in the last year.
The Revenue has been growing by 8.38% on average over the past years. This is quite good.
EPS 1Y (TTM)-37.08%
EPS 3Y-30.59%
EPS 5Y9.83%
EPS Q2Q%-91.67%
Revenue 1Y (TTM)-3.24%
Revenue growth 3Y1.02%
Revenue growth 5Y8.38%
Sales Q2Q%0.6%
3.2 Future
WLK is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.93% yearly.
The Revenue is expected to grow by 3.86% on average over the next years.
EPS Next Y-4.98%
EPS Next 2Y17.05%
EPS Next 3Y20.93%
EPS Next 5YN/A
Revenue Next Year0.65%
Revenue Next 2Y3.26%
Revenue Next 3Y3.86%
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 accelerating.
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
With a Price/Earnings ratio of 15.94, WLK is valued correctly.
WLK's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of WLK to the average of the S&P500 Index (27.75), we can say WLK is valued slightly cheaper.
With a Price/Forward Earnings ratio of 16.77, WLK is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as WLK.
The average S&P500 Price/Forward Earnings ratio is at 20.49. WLK is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.94 | ||
| Fwd PE | 16.77 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WLK indicates a rather cheap valuation: WLK is cheaper than 81.18% of the companies listed in the same industry.
WLK's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.86 | ||
| EV/EBITDA | 6.5 |
4.3 Compensation for Growth
A more expensive valuation may be justified as WLK's earnings are expected to grow with 20.93% in the coming years.
PEG (NY)N/A
PEG (5Y)1.62
EPS Next 2Y17.05%
EPS Next 3Y20.93%
5. Dividend
5.1 Amount
WLK has a Yearly Dividend Yield of 2.22%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.80, WLK pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, WLK has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
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
WLK pays out 44.15% of its income as dividend. This is a bit on the high side, but may be sustainable.
WLK's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP44.15%
EPS Next 2Y17.05%
EPS Next 3Y20.93%
NYSE:WLK (5/2/2025, 10:56:53 AM)
83.03
-9.24 (-10.01%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners27.86%
Inst Owner Change0.24%
Ins Owners0.69%
Ins Owner Change3.74%
Market Cap10.67B
Analysts72.17
Price Target121.32 (46.12%)
Short Float %9.49%
Short Ratio3.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
Yearly Dividend2.06
Dividend Growth(5Y)14.83%
DP44.15%
Div Incr Years20
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-65.63%
Min EPS beat(2)-94.57%
Max EPS beat(2)-36.7%
EPS beat(4)2
Avg EPS beat(4)-20.57%
Min EPS beat(4)-94.57%
Max EPS beat(4)29.38%
EPS beat(8)4
Avg EPS beat(8)-9.16%
EPS beat(12)6
Avg EPS beat(12)-7.44%
EPS beat(16)10
Avg EPS beat(16)-1.74%
Revenue beat(2)0
Avg Revenue beat(2)-5.45%
Min Revenue beat(2)-6.62%
Max Revenue beat(2)-4.28%
Revenue beat(4)1
Avg Revenue beat(4)-3.09%
Min Revenue beat(4)-6.62%
Max Revenue beat(4)0.44%
Revenue beat(8)1
Avg Revenue beat(8)-3.72%
Revenue beat(12)3
Avg Revenue beat(12)-1.33%
Revenue beat(16)7
Avg Revenue beat(16)1.88%
PT rev (1m)-10.87%
PT rev (3m)-23.98%
EPS NQ rev (1m)-21.8%
EPS NQ rev (3m)-58.76%
EPS NY rev (1m)-14.69%
EPS NY rev (3m)-38.63%
Revenue NQ rev (1m)-1.26%
Revenue NQ rev (3m)-5.64%
Revenue NY rev (1m)-0.88%
Revenue NY rev (3m)-3.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.94 | ||
| Fwd PE | 16.77 | ||
| P/S | 0.88 | ||
| P/FCF | 34.86 | ||
| P/OCF | 8.12 | ||
| P/B | 1.01 | ||
| P/tB | 1.48 | ||
| EV/EBITDA | 6.5 |
EPS(TTM)5.21
EY6.27%
EPS(NY)4.95
Fwd EY5.96%
FCF(TTM)2.38
FCFY2.87%
OCF(TTM)10.23
OCFY12.32%
SpS94.5
BVpS81.93
TBVpS56.14
PEG (NY)N/A
PEG (5Y)1.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.88% | ||
| ROE | 5.68% | ||
| ROCE | 5.21% | ||
| ROIC | 3.74% | ||
| ROICexc | 4.44% | ||
| ROICexgc | 5.64% | ||
| OM | 7.96% | ||
| PM (TTM) | 4.93% | ||
| GM | 16.12% | ||
| FCFM | 2.52% |
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-Score6
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 15 | ||
| Debt/EBITDA | 2.19 | ||
| Cap/Depr | 90.48% | ||
| Cap/Sales | 8.3% | ||
| Interest Coverage | 6.31 | ||
| Cash Conversion | 63.17% | ||
| Profit Quality | 51.17% | ||
| Current Ratio | 2.8 | ||
| Quick Ratio | 2.04 | ||
| Altman-Z | 2.37 |
F-Score6
WACC7.61%
ROIC/WACC0.49
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)-37.08%
EPS 3Y-30.59%
EPS 5Y9.83%
EPS Q2Q%-91.67%
EPS Next Y-4.98%
EPS Next 2Y17.05%
EPS Next 3Y20.93%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.24%
Revenue growth 3Y1.02%
Revenue growth 5Y8.38%
Sales Q2Q%0.6%
Revenue Next Year0.65%
Revenue Next 2Y3.26%
Revenue Next 3Y3.86%
Revenue Next 5YN/A
EBIT growth 1Y-21.59%
EBIT growth 3Y-30.04%
EBIT growth 5Y6.87%
EBIT Next Year96.18%
EBIT Next 3Y35.21%
EBIT Next 5YN/A
FCF growth 1Y-76.5%
FCF growth 3Y-43.93%
FCF growth 5Y-9.85%
OCF growth 1Y-43.75%
OCF growth 3Y-18.12%
OCF growth 5Y0.2%