WESTLAKE CHEMICAL PARTNERS L (WLKP) Stock Fundamental Analysis
NYSE:WLKP - New York Stock Exchange, Inc. - US9604171036 - Currency: USD
Overall WLKP gets a fundamental rating of 6 out of 10. We evaluated WLKP against 84 industry peers in the Chemicals industry. WLKP scores excellent on profitability, but there are some minor concerns on its financial health. WLKP has a correct valuation and a medium growth rate.
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.
In the past 5 years WLKP has always been profitable.
Each year in the past 5 years WLKP had a positive operating cash flow.
1.2 Ratios
The Return On Assets of WLKP (4.03%) is better than 73.81% of its industry peers.
The Return On Equity of WLKP (20.06%) is better than 90.48% of its industry peers.
With an excellent Return On Invested Capital value of 21.73%, WLKP belongs to the best 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 22.83%. This is significantly above the industry average of 6.53%.
| 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 66.67% of its industry peers.
WLKP's Profit Margin has been stable in the last couple of years.
WLKP has a better Operating Margin (30.82%) than 96.43% of its industry peers.
In the last couple of years the Operating Margin of WLKP has remained more or less at the same level.
With a decent Gross Margin value of 33.32%, WLKP is doing good in the industry, outperforming 64.29% of the companies in the same industry.
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 | 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.
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.
Compared to 1 year ago, WLKP has a worse debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of WLKP is 1.64, which is an excellent value as it means it would take WLKP, only 1.64 years of fcf income to pay off 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 90.48% 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.
Looking at the Debt to Equity ratio, with a value of 1.52, WLKP is doing worse than 78.57% of the companies in the same industry.
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/WACC2.39
WACC9.11%
2.3 Liquidity
A Current Ratio of 2.15 indicates that WLKP has no problem at all paying its short term obligations.
WLKP has a Current ratio (2.15) which is in line with its industry peers.
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.
With a decent Quick ratio value of 2.10, WLKP is doing good in the industry, outperforming 79.76% of the companies in the same industry.
| 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%.
WLKP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.11% yearly.
The Revenue has decreased by -7.24% in the past year.
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
Based on estimates for the next years, WLKP will show a small growth in Earnings Per Share. The EPS will grow by 5.19% on average per year.
The Revenue is expected to grow by 7.35% on average over the next years.
EPS Next Y-9.53%
EPS Next 2Y9.48%
EPS Next 3Y5.19%
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.
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
The Price/Earnings ratio is 14.69, which indicates a correct valuation of WLKP.
Based on the Price/Earnings ratio, WLKP is valued a bit cheaper than 76.19% of the companies in the same industry.
When comparing the Price/Earnings ratio of WLKP to the average of the S&P500 Index (26.82), we can say WLKP is valued slightly cheaper.
The Price/Forward Earnings ratio is 10.32, which indicates a very decent valuation of WLKP.
WLKP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WLKP is cheaper than 77.38% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.24, WLKP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.69 | ||
| Fwd PE | 10.32 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WLKP is valued cheaper than 97.62% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, WLKP is valued cheaply inside the industry as 97.62% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.16 | ||
| EV/EBITDA | 2.5 |
4.3 Compensation for Growth
WLKP has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)129.58
EPS Next 2Y9.48%
EPS Next 3Y5.19%
5. Dividend
5.1 Amount
WLKP has a Yearly Dividend Yield of 8.65%, which is a nice return.
WLKP's Dividend Yield is rather good when compared to the industry average which is at 3.59. WLKP pays more dividend than 91.67% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, WLKP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.65% |
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.
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
WLKP pays out 126.23% of its income as dividend. 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 2Y9.48%
EPS Next 3Y5.19%
NYSE:WLKP (8/19/2025, 3:02:19 PM)
21.89
-0.03 (-0.14%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners33.6%
Inst Owner Change1.13%
Ins Owners1.27%
Ins Owner Change-0.04%
Market Cap771.40M
Analysts80
Price Target26.01 (18.82%)
Short Float %0.47%
Short Ratio2.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.65% |
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)-0.65%
EPS NQ rev (1m)3.45%
EPS NQ rev (3m)8%
EPS NY rev (1m)0%
EPS NY rev (3m)-9.25%
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 | 14.69 | ||
| Fwd PE | 10.32 | ||
| P/S | 0.7 | ||
| P/FCF | 3.16 | ||
| P/OCF | 2.46 | ||
| P/B | 2.94 | ||
| P/tB | 3.01 | ||
| EV/EBITDA | 2.5 |
EPS(TTM)1.49
EY6.81%
EPS(NY)2.12
Fwd EY9.69%
FCF(TTM)6.92
FCFY31.64%
OCF(TTM)8.89
OCFY40.63%
SpS31.27
BVpS7.45
TBVpS7.28
PEG (NY)N/A
PEG (5Y)129.58
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
WACC9.11%
ROIC/WACC2.39
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-9.53%
EPS Next 2Y9.48%
EPS Next 3Y5.19%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.24%
Revenue growth 3Y-2.22%
Revenue growth 5Y0.79%
Sales Q2Q%4.56%
Revenue Next Year12.76%
Revenue Next 2Y9.78%
Revenue Next 3Y7.35%
Revenue Next 5YN/A
EBIT growth 1Y-7.67%
EBIT growth 3Y-1.67%
EBIT growth 5Y2.2%
EBIT Next Year119.07%
EBIT Next 3Y33.22%
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%