WESTLAKE CHEMICAL PARTNERS L (WLKP) Stock Fundamental Analysis
NYSE:WLKP - New York Stock Exchange, Inc. - US9604171036 - Currency: USD
Taking everything into account, WLKP scores 6 out of 10 in our fundamental rating. WLKP was compared to 85 industry peers in the Chemicals industry. While WLKP has a great profitability rating, there are some minor concerns on its financial health. WLKP is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year WLKP was profitable.
WLKP had a positive operating cash flow in the past year.
In the past 5 years WLKP has always been profitable.
In the past 5 years WLKP always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.83%, WLKP is in the better half of the industry, outperforming 70.59% of the companies in the same industry.
Looking at the Return On Equity, with a value of 19.85%, WLKP belongs to the top of the industry, outperforming 89.41% of the companies in the same industry.
WLKP has a better Return On Invested Capital (22.39%) 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 6.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.83% | ||
| ROE | 19.85% | ||
| ROIC | 22.39% |
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's Profit Margin of 4.82% is fine compared to the rest of the industry. WLKP outperforms 64.71% of its industry peers.
In the last couple of years the Profit Margin of WLKP has remained more or less at the same level.
WLKP has a better Operating Margin (31.40%) than 96.47% of its industry peers.
In the last couple of years the Operating Margin of WLKP has remained more or less at the same level.
Looking at the Gross Margin, with a value of 34.06%, WLKP is in the better half of the industry, outperforming 67.06% of the companies in the same industry.
WLKP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.4% | ||
| PM (TTM) | 4.82% | ||
| GM | 34.06% |
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.
WLKP has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, WLKP has about the same amount of shares outstanding.
Compared to 1 year ago, WLKP has a worse debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of WLKP is 1.08, which is an excellent value as it means it would take WLKP, only 1.08 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of WLKP (1.08) is better than 94.12% of its industry peers.
WLKP has a Debt/Equity ratio of 1.51. This is a high value indicating a heavy dependency on external financing.
WLKP has a Debt to Equity ratio of 1.51. This is in the lower half of the industry: WLKP underperforms 78.82% 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 | 1.51 | ||
| Debt/FCF | 1.08 | ||
| Altman-Z | N/A |
ROIC/WACC2.49
WACC8.99%
2.3 Liquidity
WLKP has a Current Ratio of 1.37. This is a normal value and indicates that WLKP is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.37, WLKP is not doing good in the industry: 74.12% of the companies in the same industry are doing better.
WLKP has a Quick Ratio of 1.35. This is a normal value and indicates that WLKP is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of WLKP (1.35) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
WLKP shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.25%.
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.
The Revenue has decreased by -6.76% in the past year.
WLKP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.79% yearly.
EPS 1Y (TTM)-3.25%
EPS 3Y-8.89%
EPS 5Y0.11%
EPS Q2Q%-66.67%
Revenue 1Y (TTM)-6.76%
Revenue growth 3Y-2.22%
Revenue growth 5Y0.79%
Sales Q2Q%-16.53%
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 4.93% on average per year.
The Revenue is expected to grow by 7.35% on average over the next years.
EPS Next Y-8.95%
EPS Next 2Y9.09%
EPS Next 3Y4.93%
EPS Next 5YN/A
Revenue Next Year12.76%
Revenue Next 2Y9.78%
Revenue Next 3Y7.35%
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
WLKP is valuated correctly with a Price/Earnings ratio of 14.85.
65.88% 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 26.31, WLKP is valued a bit cheaper.
WLKP is valuated reasonably with a Price/Forward Earnings ratio of 10.50.
WLKP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WLKP is cheaper than 69.41% of the companies in the same industry.
WLKP is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.85 | ||
| Fwd PE | 10.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WLKP is valued cheaply inside the industry as 97.65% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WLKP indicates a rather cheap valuation: WLKP is cheaper than 98.82% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.1 | ||
| EV/EBITDA | 2.49 |
4.3 Compensation for Growth
The excellent profitability rating of WLKP may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)130.94
EPS Next 2Y9.09%
EPS Next 3Y4.93%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.48%, WLKP is a good candidate for dividend investing.
WLKP's Dividend Yield is rather good when compared to the industry average which is at 3.69. WLKP pays more dividend than 89.41% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, WLKP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.48% |
5.2 History
The dividend of WLKP has a limited annual growth rate of 0.46%.
WLKP has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of WLKP decreased in the last 3 years.
Dividend Growth(5Y)0.46%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
WLKP pays out 126.53% of its income as dividend. This is not a sustainable payout ratio.
WLKP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP126.53%
EPS Next 2Y9.09%
EPS Next 3Y4.93%
NYSE:WLKP (6/13/2025, 8:04:00 PM)
22.12
-0.12 (-0.54%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners33.57%
Inst Owner Change-3.08%
Ins Owners1.27%
Ins Owner Change-0.09%
Market Cap779.51M
Analysts78
Price Target26.18 (18.35%)
Short Float %0.65%
Short Ratio3.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.48% |
Yearly Dividend1.89
Dividend Growth(5Y)0.46%
DP126.53%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-24.07%
Min EPS beat(2)-62.4%
Max EPS beat(2)14.25%
EPS beat(4)2
Avg EPS beat(4)-7.63%
Min EPS beat(4)-62.4%
Max EPS beat(4)25.21%
EPS beat(8)2
Avg EPS beat(8)-9.78%
EPS beat(12)2
Avg EPS beat(12)-9.49%
EPS beat(16)4
Avg EPS beat(16)-2.39%
Revenue beat(2)1
Avg Revenue beat(2)-6.38%
Min Revenue beat(2)-21.29%
Max Revenue beat(2)8.54%
Revenue beat(4)3
Avg Revenue beat(4)0.43%
Min Revenue beat(4)-21.29%
Max Revenue beat(4)11.3%
Revenue beat(8)3
Avg Revenue beat(8)-5.49%
Revenue beat(12)5
Avg Revenue beat(12)-3.88%
Revenue beat(16)9
Avg Revenue beat(16)-0.25%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.09%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.85 | ||
| Fwd PE | 10.5 | ||
| P/S | 0.72 | ||
| P/FCF | 2.1 | ||
| P/OCF | 1.83 | ||
| P/B | 2.95 | ||
| P/tB | 3.01 | ||
| EV/EBITDA | 2.49 |
EPS(TTM)1.49
EY6.74%
EPS(NY)2.11
Fwd EY9.52%
FCF(TTM)10.53
FCFY47.6%
OCF(TTM)12.09
OCFY54.68%
SpS30.9
BVpS7.5
TBVpS7.34
PEG (NY)N/A
PEG (5Y)130.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.83% | ||
| ROE | 19.85% | ||
| ROCE | 28.34% | ||
| ROIC | 22.39% | ||
| ROICexc | 23.35% | ||
| ROICexgc | 23.47% | ||
| OM | 31.4% | ||
| PM (TTM) | 4.82% | ||
| GM | 34.06% | ||
| FCFM | 34.08% |
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-Score5
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.51 | ||
| Debt/FCF | 1.08 | ||
| Debt/EBITDA | 0.88 | ||
| Cap/Depr | 49.7% | ||
| Cap/Sales | 5.07% | ||
| Interest Coverage | 13.33 | ||
| Cash Conversion | 94.1% | ||
| Profit Quality | 706.69% | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | N/A |
F-Score5
WACC8.99%
ROIC/WACC2.49
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)-3.25%
EPS 3Y-8.89%
EPS 5Y0.11%
EPS Q2Q%-66.67%
EPS Next Y-8.95%
EPS Next 2Y9.09%
EPS Next 3Y4.93%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.76%
Revenue growth 3Y-2.22%
Revenue growth 5Y0.79%
Sales Q2Q%-16.53%
Revenue Next Year12.76%
Revenue Next 2Y9.78%
Revenue Next 3Y7.35%
Revenue Next 5YN/A
EBIT growth 1Y-3.57%
EBIT growth 3Y-1.67%
EBIT growth 5Y2.2%
EBIT Next Year119.91%
EBIT Next 3Y32.96%
EBIT Next 5YN/A
FCF growth 1Y-18.86%
FCF growth 3Y10.04%
FCF growth 5Y1.38%
OCF growth 1Y-15.4%
OCF growth 3Y5.9%
OCF growth 5Y1.47%