WESTLAKE CHEMICAL PARTNERS L (WLKP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WLKP - US9604171036
19.06 USD
+0.34 (+1.82%)
19.06 USD
0 (0%)
WLKP gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 81 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
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.
In the past 5 years WLKP always reported a positive cash flow from operatings.
1.2 Ratios
WLKP has a Return On Assets of 3.87%. This is in the better half of the industry: WLKP outperforms 72.84% of its industry peers.
With an excellent Return On Equity value of 18.86%, WLKP belongs to the best of the industry, outperforming 87.65% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 20.90%, WLKP belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for WLKP is significantly above the industry average of 6.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.87% | ||
| ROE | 18.86% | ||
| ROIC | 20.9% |
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 4.34% is fine compared to the rest of the industry. WLKP outperforms 69.14% of its industry peers.
In the last couple of years the Profit Margin of WLKP has remained more or less at the same level.
The Operating Margin of WLKP (28.39%) is better than 95.06% 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 30.84%. This is comparable to the rest of the industry: WLKP outperforms 56.79% of its industry peers.
WLKP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.39% | ||
| PM (TTM) | 4.34% | ||
| GM | 30.84% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so WLKP is creating value.
WLKP has about the same amout of shares outstanding than it did 1 year ago.
WLKP has about the same amout of shares outstanding than it did 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 1.91, which is an excellent value as it means it would take WLKP, only 1.91 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.91, WLKP belongs to the top of the industry, outperforming 90.12% of the companies in the same industry.
A Debt/Equity ratio of 1.53 is on the high side and indicates that WLKP has dependencies on debt financing.
With a Debt to Equity ratio value of 1.53, WLKP is not doing good in the industry: 75.31% of the companies in the same industry are doing better.
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 | 1.53 | ||
| Debt/FCF | 1.91 | ||
| Altman-Z | N/A |
ROIC/WACC2.44
WACC8.56%
2.3 Liquidity
A Current Ratio of 2.37 indicates that WLKP has no problem at all paying its short term obligations.
The Current ratio of WLKP (2.37) is better than 66.67% of its industry peers.
A Quick Ratio of 2.32 indicates that WLKP has no problem at all paying its short term obligations.
The Quick ratio of WLKP (2.32) is better than 87.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.37 | ||
| Quick Ratio | 2.32 |
3. Growth
3.1 Past
WLKP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -20.00%.
The Earnings Per Share has been growing slightly by 0.11% on average over the past years.
WLKP shows a decrease in Revenue. In the last year, the revenue decreased by -0.82%.
Measured over the past years, WLKP shows a small growth in Revenue. The Revenue has been growing by 0.79% on average per year.
EPS 1Y (TTM)-20%
EPS 3Y-8.89%
EPS 5Y0.11%
EPS Q2Q%-17.65%
Revenue 1Y (TTM)-0.82%
Revenue growth 3Y-2.22%
Revenue growth 5Y0.79%
Sales Q2Q%11.52%
3.2 Future
WLKP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.96% 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 2Y7.36%
EPS Next 3Y3.97%
EPS Next 5YN/A
Revenue Next Year6.93%
Revenue Next 2Y10.4%
Revenue Next 3Y7.77%
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
WLKP is valuated correctly with a Price/Earnings ratio of 13.61.
Based on the Price/Earnings ratio, WLKP is valued a bit cheaper than 72.84% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.15, WLKP is valued a bit cheaper.
WLKP is valuated reasonably with a Price/Forward Earnings ratio of 9.34.
Based on the Price/Forward Earnings ratio, WLKP is valued cheaper than 83.95% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.12, WLKP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.61 | ||
| Fwd PE | 9.34 |
4.2 Price Multiples
97.53% of the companies in the same industry are more expensive than WLKP, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, WLKP is valued cheaply inside the industry as 96.30% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.21 | ||
| EV/EBITDA | 2.31 |
4.3 Compensation for Growth
WLKP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)120.08
EPS Next 2Y7.36%
EPS Next 3Y3.97%
5. Dividend
5.1 Amount
WLKP has a Yearly Dividend Yield of 10.00%, which is a nice return.
WLKP's Dividend Yield is rather good when compared to the industry average which is at 4.16. WLKP pays more dividend than 91.36% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, WLKP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10% |
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.
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
135.18% 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.
DP135.18%
EPS Next 2Y7.36%
EPS Next 3Y3.97%
19.06
+0.34 (+1.82%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners29.29%
Inst Owner Change-1.96%
Ins Owners1.31%
Ins Owner Change-0.04%
Market Cap671.87M
Revenue(TTM)1.13B
Net Income(TTM)49.16M
Analysts80
Price Target26.01 (36.46%)
Short Float %0.46%
Short Ratio1.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10% |
Yearly Dividend1.89
Dividend Growth(5Y)0.46%
DP135.18%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-9.04%
Min EPS beat(2)-11.66%
Max EPS beat(2)-6.42%
EPS beat(4)1
Avg EPS beat(4)-16.56%
Min EPS beat(4)-62.4%
Max EPS beat(4)14.25%
EPS beat(8)2
Avg EPS beat(8)-8.25%
EPS beat(12)2
Avg EPS beat(12)-9.21%
EPS beat(16)3
Avg EPS beat(16)-3.4%
Revenue beat(2)0
Avg Revenue beat(2)-1.64%
Min Revenue beat(2)-3.22%
Max Revenue beat(2)-0.05%
Revenue beat(4)1
Avg Revenue beat(4)-4.01%
Min Revenue beat(4)-21.29%
Max Revenue beat(4)8.54%
Revenue beat(8)3
Avg Revenue beat(8)-1.29%
Revenue beat(12)3
Avg Revenue beat(12)-6.64%
Revenue beat(16)7
Avg Revenue beat(16)-1.09%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-1.23%
EPS NQ rev (3m)-6.98%
EPS NY rev (1m)0%
EPS NY rev (3m)-13.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.61 | ||
| Fwd PE | 9.34 | ||
| P/S | 0.59 | ||
| P/FCF | 3.21 | ||
| P/OCF | 2.3 | ||
| P/B | 2.58 | ||
| P/tB | 2.64 | ||
| EV/EBITDA | 2.31 |
EPS(TTM)1.4
EY7.35%
EPS(NY)2.04
Fwd EY10.7%
FCF(TTM)5.93
FCFY31.12%
OCF(TTM)8.3
OCFY43.54%
SpS32.16
BVpS7.39
TBVpS7.23
PEG (NY)N/A
PEG (5Y)120.08
Graham Number15.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.87% | ||
| ROE | 18.86% | ||
| ROCE | 26.46% | ||
| ROIC | 20.9% | ||
| ROICexc | 21.57% | ||
| ROICexgc | 21.68% | ||
| OM | 28.39% | ||
| PM (TTM) | 4.34% | ||
| GM | 30.84% | ||
| FCFM | 18.44% |
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%
ROICexgc growth 3Y3.2%
ROICexgc 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 Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.53 | ||
| Debt/FCF | 1.91 | ||
| Debt/EBITDA | 0.9 | ||
| Cap/Depr | 69.03% | ||
| Cap/Sales | 7.36% | ||
| Interest Coverage | 13.43 | ||
| Cash Conversion | 66.08% | ||
| Profit Quality | 425.38% | ||
| Current Ratio | 2.37 | ||
| Quick Ratio | 2.32 | ||
| Altman-Z | N/A |
F-Score4
WACC8.56%
ROIC/WACC2.44
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)-20%
EPS 3Y-8.89%
EPS 5Y0.11%
EPS Q2Q%-17.65%
EPS Next Y-21.34%
EPS Next 2Y7.36%
EPS Next 3Y3.97%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.82%
Revenue growth 3Y-2.22%
Revenue growth 5Y0.79%
Sales Q2Q%11.52%
Revenue Next Year6.93%
Revenue Next 2Y10.4%
Revenue Next 3Y7.77%
Revenue Next 5YN/A
EBIT growth 1Y-17.74%
EBIT growth 3Y-1.67%
EBIT growth 5Y2.2%
EBIT Next Year119.06%
EBIT Next 3Y34.31%
EBIT Next 5YN/A
FCF growth 1Y-50.71%
FCF growth 3Y10.04%
FCF growth 5Y1.38%
OCF growth 1Y-37.33%
OCF growth 3Y5.9%
OCF growth 5Y1.47%
WESTLAKE CHEMICAL PARTNERS L / WLKP FAQ
What is the fundamental rating for WLKP stock?
ChartMill assigns a fundamental rating of 6 / 10 to WLKP.
What is the valuation status for WLKP stock?
ChartMill assigns a valuation rating of 6 / 10 to WESTLAKE CHEMICAL PARTNERS L (WLKP). This can be considered as Fairly Valued.
How profitable is WESTLAKE CHEMICAL PARTNERS L (WLKP) stock?
WESTLAKE CHEMICAL PARTNERS L (WLKP) has a profitability rating of 7 / 10.
What is the earnings growth outlook for WESTLAKE CHEMICAL PARTNERS L?
The Earnings per Share (EPS) of WESTLAKE CHEMICAL PARTNERS L (WLKP) is expected to decline by -21.34% in the next year.
How sustainable is the dividend of WESTLAKE CHEMICAL PARTNERS L (WLKP) stock?
The dividend rating of WESTLAKE CHEMICAL PARTNERS L (WLKP) is 6 / 10 and the dividend payout ratio is 135.18%.