WESTLAKE CHEMICAL PARTNERS L (WLKP)
US9604171036
Taking everything into account, WLKP scores 7 out of 10 in our fundamental rating. WLKP was compared to 84 industry peers in the Chemicals industry. While WLKP has a great profitability rating, there are some minor concerns on its financial health. WLKP is valued quite cheap, but it does not seem to be growing. This makes WLKP very considerable for value investing!
1. Profitability
1.1 Basic Checks
WLKP had positive earnings in the past year.
In the past year WLKP had a positive cash flow from operations.
WLKP had positive earnings in each of the past 5 years.
WLKP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WLKP's Return On Assets of 4.19% is fine compared to the rest of the industry. WLKP outperforms 67.86% of its industry peers.
WLKP's Return On Equity of 19.50% is amongst the best of the industry. WLKP outperforms 88.10% of its industry peers.
Looking at the Return On Invested Capital, with a value of 22.38%, WLKP belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
WLKP had an Average Return On Invested Capital over the past 3 years of 22.36%. This is significantly above the industry average of 7.00%.
The 3 year average ROIC (22.36%) for WLKP is below the current ROIC(22.38%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.19% | ||
| ROE | 19.5% | ||
| ROIC | 22.38% |
ROA(3y)4.79%
ROA(5y)4.73%
ROE(3y)23.15%
ROE(5y)23.06%
ROIC(3y)22.36%
ROIC(5y)21.74%
1.3 Margins
WLKP has a Profit Margin of 4.64%. This is comparable to the rest of the industry: WLKP outperforms 57.14% of its industry peers.
In the last couple of years the Profit Margin of WLKP has grown nicely.
WLKP has a Operating Margin of 30.37%. This is amongst the best in the industry. WLKP outperforms 92.86% of its industry peers.
WLKP's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 32.84%, WLKP is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
WLKP's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.37% | ||
| PM (TTM) | 4.64% | ||
| GM | 32.84% |
OM growth 3Y-6.3%
OM growth 5Y2.01%
PM growth 3Y-12.69%
PM growth 5Y3.52%
GM growth 3Y-6.02%
GM growth 5Y2.09%
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.
WLKP has more shares outstanding than it did 5 years ago.
WLKP has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of WLKP is 1.09, which is an excellent value as it means it would take WLKP, only 1.09 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.09, WLKP belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
A Debt/Equity ratio of 1.44 is on the high side and indicates that WLKP has dependencies on debt financing.
The Debt to Equity ratio of WLKP (1.44) is worse than 78.57% of its industry peers.
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 | 1.44 | ||
| Debt/FCF | 1.09 | ||
| Altman-Z | N/A |
ROIC/WACC2.86
WACC7.82%
2.3 Liquidity
A Current Ratio of 5.21 indicates that WLKP has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 5.21, WLKP belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
A Quick Ratio of 5.09 indicates that WLKP has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 5.09, WLKP belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.21 | ||
| Quick Ratio | 5.09 |
3. Growth
3.1 Past
WLKP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.97%.
The Earnings Per Share has been growing slightly by 0.39% on average over the past years.
Looking at the last year, WLKP shows a very negative growth in Revenue. The Revenue has decreased by -24.09% in the last year.
WLKP shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.52% yearly.
EPS 1Y (TTM)-13.97%
EPS 3Y-6.6%
EPS 5Y0.39%
EPS growth Q2Q0%
Revenue 1Y (TTM)-24.09%
Revenue growth 3Y7.2%
Revenue growth 5Y-1.52%
Revenue growth Q2Q-7.48%
3.2 Future
The Earnings Per Share is expected to grow by 15.23% on average over the next years. This is quite good.
WLKP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.77% yearly.
EPS Next Y10.39%
EPS Next 2Y20.07%
EPS Next 3Y15.23%
EPS Next 5YN/A
Revenue Next Year-4.38%
Revenue Next 2Y1.01%
Revenue Next 3Y3.77%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 14.44, WLKP is valued correctly.
76.19% of the companies in the same industry are more expensive than WLKP, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.83, WLKP is valued a bit cheaper.
The Price/Forward Earnings ratio is 10.01, which indicates a very decent valuation of WLKP.
Based on the Price/Forward Earnings ratio, WLKP is valued cheaper than 88.10% of the companies in the same industry.
WLKP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.47.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.44 | ||
| Fwd PE | 10.01 |
4.2 Price Multiples
94.05% of the companies in the same industry are more expensive than WLKP, based on the Enterprise Value to EBITDA ratio.
97.62% of the companies in the same industry are more expensive than WLKP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.13 | ||
| EV/EBITDA | 2.42 |
4.3 Compensation for Growth
WLKP's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of WLKP may justify a higher PE ratio.
WLKP's earnings are expected to grow with 15.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.39
PEG (5Y)36.62
EPS Next 2Y20.07%
EPS Next 3Y15.23%
5. Dividend
5.1 Amount
WLKP has a Yearly Dividend Yield of 8.53%, which is a nice return.
Compared to an average industry Dividend Yield of 3.11, WLKP pays a better dividend. On top of this WLKP pays more dividend than 94.05% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, WLKP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.53% |
5.2 History
The dividend of WLKP has a limited annual growth rate of 2.61%.
WLKP has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of WLKP decreased recently.
Dividend Growth(5Y)2.61%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
122.49% of the earnings are spent on dividend by WLKP. This is not a sustainable payout ratio.
WLKP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP122.49%
EPS Next 2Y20.07%
EPS Next 3Y15.23%
WESTLAKE CHEMICAL PARTNERS L
NYSE:WLKP (5/16/2024, 7:25:56 PM)
22.23
-0.09 (-0.4%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap783.16M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.53% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.44 | ||
| Fwd PE | 10.01 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.39
PEG (5Y)36.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.19% | ||
| ROE | 19.5% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 30.37% | ||
| PM (TTM) | 4.64% | ||
| GM | 32.84% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 5.21 | ||
| Quick Ratio | 5.09 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-13.97%
EPS 3Y-6.6%
EPS 5Y
EPS growth Q2Q
EPS Next Y10.39%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-24.09%
Revenue growth 3Y7.2%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y