WESTLAKE CHEMICAL PARTNERS L (WLKP) Stock Fundamental Analysis
NYSE:WLKP - New York Stock Exchange, Inc. - US9604171036 - Currency: USD
WLKP gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 85 industry peers in the Chemicals industry. WLKP gets an excellent profitability rating and is at the same time showing great financial health properties. WLKP is not valued too expensively and it also shows a decent growth rate.
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.
Each year in the past 5 years WLKP had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 4.84%, WLKP is doing good in the industry, outperforming 75.29% of the companies in the same industry.
With an excellent Return On Equity value of 22.60%, WLKP belongs to the best of the industry, outperforming 90.59% of the companies in the same industry.
WLKP has a better Return On Invested Capital (25.02%) than 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WLKP is significantly above the industry average of 7.09%.
The 3 year average ROIC (22.83%) for WLKP is below the current ROIC(25.02%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.84% | ||
| ROE | 22.6% | ||
| ROIC | 25.02% |
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 5.49%. This is in the better half of the industry: WLKP outperforms 70.59% of its industry peers.
WLKP's Profit Margin has been stable in the last couple of years.
WLKP has a Operating Margin of 34.37%. This is amongst the best in the industry. WLKP outperforms 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.
WLKP's Gross Margin of 36.88% is fine compared to the rest of the industry. WLKP outperforms 76.47% of its industry peers.
In the last couple of years the Gross Margin of WLKP has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.37% | ||
| PM (TTM) | 5.49% | ||
| GM | 36.88% |
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
WLKP has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
WLKP has about the same amout of shares outstanding than it did 1 year ago.
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 0.92. This is a very positive value and a sign of high solvency as it would only need 0.92 years to pay back of all of its debts.
WLKP has a better Debt to FCF ratio (0.92) than 95.29% of its industry peers.
A Debt/Equity ratio of 1.45 is on the high side and indicates that WLKP has dependencies on debt financing.
WLKP's Debt to Equity ratio of 1.45 is on the low side compared to the rest of the industry. WLKP is outperformed by 75.29% 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 | 1.45 | ||
| Debt/FCF | 0.92 | ||
| Altman-Z | N/A |
ROIC/WACC2.9
WACC8.64%
2.3 Liquidity
A Current Ratio of 4.35 indicates that WLKP has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 4.35, WLKP belongs to the top of the industry, outperforming 91.76% of the companies in the same industry.
WLKP has a Quick Ratio of 4.28. This indicates that WLKP is financially healthy and has no problem in meeting its short term obligations.
WLKP has a Quick ratio of 4.28. This is amongst the best in the industry. WLKP outperforms 92.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.35 | ||
| Quick Ratio | 4.28 |
3. Growth
3.1 Past
WLKP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.94%, which is quite good.
WLKP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.11% yearly.
WLKP shows a decrease in Revenue. In the last year, the revenue decreased by -4.62%.
The Revenue has been growing slightly by 0.79% on average over the past years.
EPS 1Y (TTM)14.94%
EPS 3Y-8.89%
EPS 5Y0.11%
EPS Q2Q%4.88%
Revenue 1Y (TTM)-4.62%
Revenue growth 3Y-2.22%
Revenue growth 5Y0.79%
Sales Q2Q%-2.43%
3.2 Future
The Earnings Per Share is expected to grow by 4.32% on average over the next years.
The Revenue is expected to grow by 7.35% on average over the next years.
EPS Next Y-0.31%
EPS Next 2Y10.92%
EPS Next 3Y4.32%
EPS Next 5YN/A
Revenue Next Year12.76%
Revenue Next 2Y9.78%
Revenue Next 3Y7.35%
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
WLKP is valuated correctly with a Price/Earnings ratio of 13.15.
WLKP's Price/Earnings ratio is a bit cheaper when compared to the industry. WLKP is cheaper than 70.59% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.22. WLKP is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 13.19, which indicates a correct valuation of WLKP.
WLKP's Price/Forward Earnings ratio is in line with the industry average.
WLKP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.15 | ||
| Fwd PE | 13.19 |
4.2 Price Multiples
WLKP's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. WLKP is cheaper than 97.65% of the companies 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 98.82% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.88 | ||
| EV/EBITDA | 2.35 |
4.3 Compensation for Growth
WLKP has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)115.96
EPS Next 2Y10.92%
EPS Next 3Y4.32%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.98%, WLKP is a good candidate for dividend investing.
WLKP's Dividend Yield is rather good when compared to the industry average which is at 3.80. WLKP pays more dividend than 89.41% of the companies in the same industry.
WLKP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.98% |
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
106.48% 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.
DP106.48%
EPS Next 2Y10.92%
EPS Next 3Y4.32%
23.27
-0.53 (-2.23%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners34.26%
Inst Owner Change0%
Ins Owners1.27%
Ins Owner Change0%
Market Cap820.03M
Analysts78
Price Target26.18 (12.51%)
Short Float %0.59%
Short Ratio3.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.98% |
Yearly Dividend1.89
Dividend Growth(5Y)0.46%
DP106.48%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)19.73%
Min EPS beat(2)14.25%
Max EPS beat(2)25.21%
EPS beat(4)2
Avg EPS beat(4)6.03%
Min EPS beat(4)-7.74%
Max EPS beat(4)25.21%
EPS beat(8)2
Avg EPS beat(8)-3.61%
EPS beat(12)2
Avg EPS beat(12)-5.97%
EPS beat(16)4
Avg EPS beat(16)0.34%
Revenue beat(2)2
Avg Revenue beat(2)9.92%
Min Revenue beat(2)8.54%
Max Revenue beat(2)11.3%
Revenue beat(4)3
Avg Revenue beat(4)5.59%
Min Revenue beat(4)-0.68%
Max Revenue beat(4)11.3%
Revenue beat(8)3
Avg Revenue beat(8)-5.69%
Revenue beat(12)6
Avg Revenue beat(12)-1.08%
Revenue beat(16)9
Avg Revenue beat(16)0.38%
PT rev (1m)0%
PT rev (3m)1.32%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-14.62%
EPS NY rev (1m)0%
EPS NY rev (3m)2.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)6.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.15 | ||
| Fwd PE | 13.19 | ||
| P/S | 0.72 | ||
| P/FCF | 1.88 | ||
| P/OCF | 1.69 | ||
| P/B | 2.97 | ||
| P/tB | 3.03 | ||
| EV/EBITDA | 2.35 |
EPS(TTM)1.77
EY7.61%
EPS(NY)1.76
Fwd EY7.58%
FCF(TTM)12.37
FCFY53.17%
OCF(TTM)13.76
OCFY59.14%
SpS32.23
BVpS7.84
TBVpS7.67
PEG (NY)N/A
PEG (5Y)115.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.84% | ||
| ROE | 22.6% | ||
| ROCE | 31.68% | ||
| ROIC | 25.02% | ||
| ROICexc | 26.27% | ||
| ROICexgc | 26.4% | ||
| OM | 34.37% | ||
| PM (TTM) | 5.49% | ||
| GM | 36.88% | ||
| FCFM | 38.39% |
ROA(3y)4.55%
ROA(5y)4.82%
ROE(3y)21.33%
ROE(5y)23.18%
ROIC(3y)22.83%
ROIC(5y)22.66%
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-Score6
Asset Turnover0.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | 0.92 | ||
| Debt/EBITDA | 0.8 | ||
| Cap/Depr | 43.76% | ||
| Cap/Sales | 4.31% | ||
| Interest Coverage | 14.72 | ||
| Cash Conversion | 96.55% | ||
| Profit Quality | 698.86% | ||
| Current Ratio | 4.35 | ||
| Quick Ratio | 4.28 | ||
| Altman-Z | N/A |
F-Score6
WACC8.64%
ROIC/WACC2.9
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)14.94%
EPS 3Y-8.89%
EPS 5Y0.11%
EPS Q2Q%4.88%
EPS Next Y-0.31%
EPS Next 2Y10.92%
EPS Next 3Y4.32%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.62%
Revenue growth 3Y-2.22%
Revenue growth 5Y0.79%
Sales Q2Q%-2.43%
Revenue Next Year12.76%
Revenue Next 2Y9.78%
Revenue Next 3Y7.35%
Revenue Next 5YN/A
EBIT growth 1Y9.15%
EBIT growth 3Y-1.67%
EBIT growth 5Y2.2%
EBIT Next Year130.56%
EBIT Next 3Y32.18%
EBIT Next 5YN/A
FCF growth 1Y7.61%
FCF growth 3Y10.04%
FCF growth 5Y1.38%
OCF growth 1Y7.3%
OCF growth 3Y5.9%
OCF growth 5Y1.47%