WESTLAKE CHEMICAL PARTNERS L (WLKP) Stock Fundamental Analysis
USA - NYSE:WLKP - US9604171036
21.04 USD
+0.06 (+0.29%)
21.93 USD
+0.89 (+4.23%)
WLKP gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 83 industry peers in the Chemicals industry. WLKP has an excellent profitability rating, but there are some minor concerns on its financial health. WLKP is valued quite cheap, while showing a decent growth score. This is a good combination! This makes WLKP very considerable for value investing!
1. Profitability
1.1 Basic Checks
WLKP had positive earnings in the past year.
WLKP had a positive operating cash flow in the past year.
In the past 5 years WLKP has always been profitable.
WLKP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WLKP's Return On Assets of 4.03% is fine compared to the rest of the industry. WLKP outperforms 75.90% of its industry peers.
WLKP has a Return On Equity of 20.06%. This is amongst the best in the industry. WLKP outperforms 90.36% of its industry peers.
The Return On Invested Capital of WLKP (21.73%) is better than 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 6.36%.
| 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 Profit Margin of 4.78%. This is in the better half of the industry: WLKP outperforms 67.47% of its industry peers.
WLKP's Profit Margin has been stable in the last couple of years.
WLKP's Operating Margin of 30.82% is amongst the best of the industry. WLKP outperforms 96.39% 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 Gross Margin of 33.32%. This is in the better half of the industry: WLKP outperforms 66.27% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), WLKP is creating value.
Compared to 1 year ago, WLKP has about the same amount of shares outstanding.
The number of shares outstanding for WLKP remains at a similar level compared to 5 years ago.
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.
Looking at the Debt to FCF ratio, with a value of 1.64, WLKP belongs to the top of the industry, outperforming 91.57% of the companies in the same industry.
WLKP has a Debt/Equity ratio of 1.52. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of WLKP (1.52) is worse than 77.11% of its industry peers.
Although WLKP does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 1.64 | ||
| Altman-Z | N/A |
ROIC/WACC2.47
WACC8.8%
2.3 Liquidity
A Current Ratio of 2.15 indicates that WLKP has no problem at all paying its short term obligations.
With a Current ratio value of 2.15, WLKP perfoms like the industry average, outperforming 59.04% of the companies in the same 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.
Looking at the Quick ratio, with a value of 2.10, WLKP belongs to the top of the industry, outperforming 80.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.15 | ||
| Quick Ratio | 2.1 |
3. Growth
3.1 Past
The earnings per share for WLKP have decreased by -7.45% in the last year.
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.
WLKP shows a decrease in Revenue. In the last year, the revenue decreased by -7.24%.
The Revenue has been growing slightly by 0.79% on average over the past years.
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
WLKP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.67% yearly.
Based on estimates for the next years, WLKP will show a small growth in Revenue. The Revenue will grow by 7.77% on average per year.
EPS Next Y-21.34%
EPS Next 2Y8.42%
EPS Next 3Y4.67%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.12 indicates a correct valuation of WLKP.
WLKP's Price/Earnings ratio is a bit cheaper when compared to the industry. WLKP is cheaper than 71.08% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.91, WLKP is valued a bit cheaper.
WLKP is valuated reasonably with a Price/Forward Earnings ratio of 10.11.
81.93% of the companies in the same industry are more expensive than WLKP, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.30. WLKP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.12 | ||
| Fwd PE | 10.11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WLKP is valued cheaply inside the industry as 97.59% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, WLKP is valued cheaply inside the industry as 97.59% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.04 | ||
| EV/EBITDA | 2.42 |
4.3 Compensation for Growth
The excellent profitability rating of WLKP may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)124.55
EPS Next 2Y8.42%
EPS Next 3Y4.67%
5. Dividend
5.1 Amount
WLKP has a Yearly Dividend Yield of 8.90%, which is a nice return.
Compared to an average industry Dividend Yield of 3.61, WLKP pays a better dividend. On top of this WLKP pays more dividend than 91.57% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, WLKP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.9% |
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 2Y8.42%
EPS Next 3Y4.67%
21.04
+0.06 (+0.29%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners29.29%
Inst Owner Change0%
Ins Owners1.31%
Ins Owner Change-0.04%
Market Cap741.45M
Analysts80
Price Target26.01 (23.62%)
Short Float %0.32%
Short Ratio1.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.9% |
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)0%
EPS NQ rev (3m)-4.44%
EPS NY rev (1m)-10.78%
EPS NY rev (3m)-13.61%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-5.17%
Revenue NY rev (3m)-5.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.12 | ||
| Fwd PE | 10.11 | ||
| P/S | 0.67 | ||
| P/FCF | 3.04 | ||
| P/OCF | 2.37 | ||
| P/B | 2.83 | ||
| P/tB | 2.89 | ||
| EV/EBITDA | 2.42 |
EPS(TTM)1.49
EY7.08%
EPS(NY)2.08
Fwd EY9.89%
FCF(TTM)6.92
FCFY32.91%
OCF(TTM)8.89
OCFY42.27%
SpS31.27
BVpS7.45
TBVpS7.28
PEG (NY)N/A
PEG (5Y)124.55
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%
ROICexcg growth 3Y3.2%
ROICexcg 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
WACC8.8%
ROIC/WACC2.47
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 2Y8.42%
EPS Next 3Y4.67%
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%