WESTLAKE CHEMICAL PARTNERS L (WLKP) Stock Fundamental Analysis
USA - NYSE:WLKP - US9604171036
19.25 USD
+0.3 (+1.58%)
19.1955 USD
-0.05 (-0.28%)
WLKP gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 82 industry peers in the Chemicals industry. While WLKP belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on WLKP. These ratings could make WLKP a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year WLKP was profitable.
In the past year WLKP had a positive cash flow from operations.
Each year in the past 5 years WLKP has been profitable.
In the past 5 years WLKP always reported a positive cash flow from operatings.
1.2 Ratios
WLKP's Return On Assets of 4.03% is fine compared to the rest of the industry. WLKP outperforms 74.39% of its industry peers.
Looking at the Return On Equity, with a value of 20.06%, WLKP belongs to the top of the industry, outperforming 90.24% of the companies in the same industry.
WLKP's Return On Invested Capital of 21.73% is amongst the best of the industry. WLKP outperforms 100.00% of its industry peers.
WLKP had an Average Return On Invested Capital over the past 3 years of 22.83%. This is significantly above the industry average of 6.30%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.03% | ||
| ROE | 20.06% | ||
| ROIC | 21.73% |
ROA(3y)4.55%
ROA(5y)4.82%
ROE(3y)21.33%
ROE(5y)23.18%
ROIC(3y)22.83%
ROIC(5y)22.66%
1.3 Margins
WLKP has a better Profit Margin (4.78%) than 67.07% of its industry peers.
WLKP's Profit Margin has been stable in the last couple of years.
The Operating Margin of WLKP (30.82%) is better than 96.34% of its industry peers.
In the last couple of years the Operating Margin of WLKP has remained more or less at the same level.
WLKP has a better Gross Margin (33.32%) than 65.85% of its industry peers.
WLKP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.82% | ||
| PM (TTM) | 4.78% | ||
| GM | 33.32% |
OM growth 3Y0.56%
OM growth 5Y1.4%
PM growth 3Y-6.83%
PM growth 5Y-0.34%
GM growth 3Y0.48%
GM growth 5Y1.2%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so WLKP is creating value.
Compared to 1 year ago, WLKP has about the same amount of shares outstanding.
Compared to 5 years ago, WLKP has about the same amount of shares outstanding.
WLKP has a worse debt/assets ratio than last year.
2.2 Solvency
WLKP has a debt to FCF ratio of 1.64. This is a very positive value and a sign of high solvency as it would only need 1.64 years to pay back of all of its debts.
The Debt to FCF ratio of WLKP (1.64) is better than 91.46% of its industry peers.
WLKP has a Debt/Equity ratio of 1.52. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.52, WLKP is doing worse than 76.83% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for WLKP, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 1.64 | ||
| Altman-Z | N/A |
ROIC/WACC2.53
WACC8.58%
2.3 Liquidity
A Current Ratio of 2.15 indicates that WLKP has no problem at all paying its short term obligations.
The Current ratio of WLKP (2.15) is comparable to the rest of the industry.
WLKP has a Quick Ratio of 2.10. This indicates that WLKP is financially healthy and has no problem in meeting its short term obligations.
WLKP has a better Quick ratio (2.10) than 79.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.15 | ||
| Quick Ratio | 2.1 |
3. Growth
3.1 Past
WLKP shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.45%.
Measured over the past 5 years, WLKP shows a small growth in Earnings Per Share. The EPS has been growing by 0.11% on average per year.
Looking at the last year, WLKP shows a decrease in Revenue. The Revenue has decreased by -7.24% in the last year.
Measured over the past years, WLKP shows a small growth in Revenue. The Revenue has been growing by 0.79% on average per year.
EPS 1Y (TTM)-7.45%
EPS 3Y-8.89%
EPS 5Y0.11%
EPS Q2Q%0%
Revenue 1Y (TTM)-7.24%
Revenue growth 3Y-2.22%
Revenue growth 5Y0.79%
Sales Q2Q%4.56%
3.2 Future
Based on estimates for the next years, WLKP will show a small growth in Earnings Per Share. The EPS will grow by 3.96% on average per year.
The Revenue is expected to grow by 7.77% on average over the next years.
EPS Next Y-21.34%
EPS Next 2Y7.36%
EPS Next 3Y3.97%
EPS Next 5YN/A
Revenue Next Year6.93%
Revenue Next 2Y10.4%
Revenue Next 3Y7.77%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.92 indicates a correct valuation of WLKP.
Based on the Price/Earnings ratio, WLKP is valued a bit cheaper than 76.83% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.76, WLKP is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.44, the valuation of WLKP can be described as reasonable.
Based on the Price/Forward Earnings ratio, WLKP is valued cheaply inside the industry as 84.15% of the companies are valued more expensively.
WLKP is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.92 | ||
| Fwd PE | 9.44 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WLKP indicates a rather cheap valuation: WLKP is cheaper than 97.56% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WLKP indicates a rather cheap valuation: WLKP is cheaper than 98.78% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.78 | ||
| EV/EBITDA | 2.27 |
4.3 Compensation for Growth
WLKP has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)113.95
EPS Next 2Y7.36%
EPS Next 3Y3.97%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.76%, WLKP is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.69, WLKP pays a better dividend. On top of this WLKP pays more dividend than 91.46% of the companies listed in the same industry.
WLKP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.76% |
5.2 History
The dividend of WLKP has a limited annual growth rate of 0.46%.
WLKP has paid a dividend for at least 10 years, which is a reliable track record.
WLKP has decreased its dividend in the last 3 years.
Dividend Growth(5Y)0.46%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
126.23% of the earnings are spent on dividend by WLKP. This is not a sustainable payout ratio.
The dividend of WLKP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP126.23%
EPS Next 2Y7.36%
EPS Next 3Y3.97%
19.25
+0.3 (+1.58%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners29.29%
Inst Owner Change0.23%
Ins Owners1.31%
Ins Owner Change-0.04%
Market Cap678.37M
Revenue(TTM)1.10B
Net Income(TTM)52.64M
Analysts80
Price Target26.01 (35.12%)
Short Float %0.41%
Short Ratio1.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.76% |
Yearly Dividend1.89
Dividend Growth(5Y)0.46%
DP126.23%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-37.03%
Min EPS beat(2)-62.4%
Max EPS beat(2)-11.66%
EPS beat(4)2
Avg EPS beat(4)-8.65%
Min EPS beat(4)-62.4%
Max EPS beat(4)25.21%
EPS beat(8)2
Avg EPS beat(8)-9.65%
EPS beat(12)2
Avg EPS beat(12)-9.94%
EPS beat(16)3
Avg EPS beat(16)-4.91%
Revenue beat(2)0
Avg Revenue beat(2)-12.26%
Min Revenue beat(2)-21.29%
Max Revenue beat(2)-3.22%
Revenue beat(4)2
Avg Revenue beat(4)-1.17%
Min Revenue beat(4)-21.29%
Max Revenue beat(4)11.3%
Revenue beat(8)3
Avg Revenue beat(8)-2.74%
Revenue beat(12)4
Avg Revenue beat(12)-6.47%
Revenue beat(16)8
Avg Revenue beat(16)-0.73%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)2.33%
EPS NQ rev (3m)1.15%
EPS NY rev (1m)0%
EPS NY rev (3m)-13.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.92 | ||
| Fwd PE | 9.44 | ||
| P/S | 0.62 | ||
| P/FCF | 2.78 | ||
| P/OCF | 2.16 | ||
| P/B | 2.59 | ||
| P/tB | 2.64 | ||
| EV/EBITDA | 2.27 |
EPS(TTM)1.49
EY7.74%
EPS(NY)2.04
Fwd EY10.6%
FCF(TTM)6.92
FCFY35.97%
OCF(TTM)8.89
OCFY46.2%
SpS31.27
BVpS7.45
TBVpS7.28
PEG (NY)N/A
PEG (5Y)113.95
Graham Number15.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.03% | ||
| ROE | 20.06% | ||
| ROCE | 27.51% | ||
| ROIC | 21.73% | ||
| ROICexc | 22.4% | ||
| ROICexgc | 22.51% | ||
| OM | 30.82% | ||
| PM (TTM) | 4.78% | ||
| GM | 33.32% | ||
| FCFM | 22.15% |
ROA(3y)4.55%
ROA(5y)4.82%
ROE(3y)21.33%
ROE(5y)23.18%
ROIC(3y)22.83%
ROIC(5y)22.66%
ROICexc(3y)23.98%
ROICexc(5y)23.46%
ROICexgc(3y)24.09%
ROICexgc(5y)23.57%
ROCE(3y)28.9%
ROCE(5y)28.68%
ROICexgc growth 3Y3.2%
ROICexgc growth 5Y4.87%
ROICexc growth 3Y3.18%
ROICexc growth 5Y4.85%
OM growth 3Y0.56%
OM growth 5Y1.4%
PM growth 3Y-6.83%
PM growth 5Y-0.34%
GM growth 3Y0.48%
GM growth 5Y1.2%
F-Score4
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 1.64 | ||
| Debt/EBITDA | 0.88 | ||
| Cap/Depr | 60.24% | ||
| Cap/Sales | 6.29% | ||
| Interest Coverage | 13.75 | ||
| Cash Conversion | 68.92% | ||
| Profit Quality | 463.61% | ||
| Current Ratio | 2.15 | ||
| Quick Ratio | 2.1 | ||
| Altman-Z | N/A |
F-Score4
WACC8.58%
ROIC/WACC2.53
Cap/Depr(3y)43.64%
Cap/Depr(5y)48.28%
Cap/Sales(3y)3.88%
Cap/Sales(5y)4.43%
Profit Quality(3y)694.43%
Profit Quality(5y)597.61%
High Growth Momentum
Growth
EPS 1Y (TTM)-7.45%
EPS 3Y-8.89%
EPS 5Y0.11%
EPS Q2Q%0%
EPS Next Y-21.34%
EPS Next 2Y7.36%
EPS Next 3Y3.97%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.24%
Revenue growth 3Y-2.22%
Revenue growth 5Y0.79%
Sales Q2Q%4.56%
Revenue Next Year6.93%
Revenue Next 2Y10.4%
Revenue Next 3Y7.77%
Revenue Next 5YN/A
EBIT growth 1Y-7.67%
EBIT growth 3Y-1.67%
EBIT growth 5Y2.2%
EBIT Next Year119.06%
EBIT Next 3Y34.31%
EBIT Next 5YN/A
FCF growth 1Y-44.84%
FCF growth 3Y10.04%
FCF growth 5Y1.38%
OCF growth 1Y-34.9%
OCF growth 3Y5.9%
OCF growth 5Y1.47%
WESTLAKE CHEMICAL PARTNERS L / WLKP FAQ
What is the fundamental rating for WLKP stock?
ChartMill assigns a fundamental rating of 6 / 10 to WLKP.
What is the valuation status for WLKP stock?
ChartMill assigns a valuation rating of 7 / 10 to WESTLAKE CHEMICAL PARTNERS L (WLKP). This can be considered as Undervalued.
How profitable is WESTLAKE CHEMICAL PARTNERS L (WLKP) stock?
WESTLAKE CHEMICAL PARTNERS L (WLKP) has a profitability rating of 8 / 10.
What is the earnings growth outlook for WESTLAKE CHEMICAL PARTNERS L?
The Earnings per Share (EPS) of WESTLAKE CHEMICAL PARTNERS L (WLKP) is expected to decline by -21.34% in the next year.
How sustainable is the dividend of WESTLAKE CHEMICAL PARTNERS L (WLKP) stock?
The dividend rating of WESTLAKE CHEMICAL PARTNERS L (WLKP) is 6 / 10 and the dividend payout ratio is 126.23%.