WESTERN MIDSTREAM PARTNERS L (WES) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WES - US9586691035
39.13 USD
-0.43 (-1.09%)
39.0753 USD
-0.05 (-0.14%)
We assign a fundamental rating of 6 out of 10 to WES. WES was compared to 209 industry peers in the Oil, Gas & Consumable Fuels industry. WES scores excellent on profitability, but there are some minor concerns on its financial health. WES has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
WES had positive earnings in the past year.
WES had a positive operating cash flow in the past year.
WES had positive earnings in each of the past 5 years.
In the past 5 years WES always reported a positive cash flow from operatings.
1.2 Ratios
WES's Return On Assets of 10.67% is amongst the best of the industry. WES outperforms 90.43% of its industry peers.
With an excellent Return On Equity value of 40.64%, WES belongs to the best of the industry, outperforming 94.26% of the companies in the same industry.
With an excellent Return On Invested Capital value of 11.36%, WES belongs to the best of the industry, outperforming 87.08% of the companies in the same industry.
WES had an Average Return On Invested Capital over the past 3 years of 9.49%. This is significantly below the industry average of 21.18%.
The last Return On Invested Capital (11.36%) for WES is above the 3 year average (9.49%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.67% | ||
| ROE | 40.64% | ||
| ROIC | 11.36% |
ROA(3y)10.08%
ROA(5y)8.51%
ROE(3y)40.66%
ROE(5y)34.2%
ROIC(3y)9.49%
ROIC(5y)9.22%
1.3 Margins
With an excellent Profit Margin value of 34.57%, WES belongs to the best of the industry, outperforming 91.39% of the companies in the same industry.
In the last couple of years the Profit Margin of WES has grown nicely.
The Operating Margin of WES (44.17%) is better than 89.00% of its industry peers.
In the last couple of years the Operating Margin of WES has grown nicely.
The Gross Margin of WES (95.33%) is better than 98.56% of its industry peers.
In the last couple of years the Gross Margin of WES has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 44.17% | ||
| PM (TTM) | 34.57% | ||
| GM | 95.33% |
OM growth 3Y2.49%
OM growth 5Y3.58%
PM growth 3Y11.02%
PM growth 5Y12.07%
GM growth 3Y2.36%
GM growth 5Y2.58%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WES is still creating some value.
Compared to 1 year ago, WES has about the same amount of shares outstanding.
The number of shares outstanding for WES has been reduced compared to 5 years ago.
Compared to 1 year ago, WES has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of WES is 4.70, which is a neutral value as it means it would take WES, 4.70 years of fcf income to pay off all of its debts.
WES has a better Debt to FCF ratio (4.70) than 66.03% of its industry peers.
A Debt/Equity ratio of 2.18 is on the high side and indicates that WES has dependencies on debt financing.
The Debt to Equity ratio of WES (2.18) is worse than 82.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.18 | ||
| Debt/FCF | 4.7 | ||
| Altman-Z | N/A |
ROIC/WACC1.44
WACC7.91%
2.3 Liquidity
WES has a Current Ratio of 1.43. This is a normal value and indicates that WES is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.43, WES is in the better half of the industry, outperforming 64.59% of the companies in the same industry.
A Quick Ratio of 1.41 indicates that WES should not have too much problems paying its short term obligations.
The Quick ratio of WES (1.41) is better than 69.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
The earnings per share for WES have decreased strongly by -13.78% in the last year.
The Earnings Per Share has been growing by 20.90% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 5.81% in the past year.
Measured over the past years, WES shows a small growth in Revenue. The Revenue has been growing by 5.59% on average per year.
EPS 1Y (TTM)-13.78%
EPS 3Y22.73%
EPS 5Y20.9%
EPS Q2Q%17.57%
Revenue 1Y (TTM)5.81%
Revenue growth 3Y7.81%
Revenue growth 5Y5.59%
Sales Q2Q%7.82%
3.2 Future
WES is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.16% yearly.
WES is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.60% yearly.
EPS Next Y-12.17%
EPS Next 2Y-3.58%
EPS Next 3Y0.16%
EPS Next 5YN/A
Revenue Next Year5.11%
Revenue Next 2Y6.03%
Revenue Next 3Y6.91%
Revenue Next 5Y5.6%
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 decreasing.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.58, the valuation of WES can be described as reasonable.
Based on the Price/Earnings ratio, WES is valued a bit cheaper than the industry average as 70.81% of the companies are valued more expensively.
WES's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.92.
WES is valuated reasonably with a Price/Forward Earnings ratio of 10.44.
73.21% of the companies in the same industry are more expensive than WES, based on the Price/Forward Earnings ratio.
WES is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.58 | ||
| Fwd PE | 10.44 |
4.2 Price Multiples
WES's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, WES is valued a bit cheaper than 73.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.82 | ||
| EV/EBITDA | 9.76 |
4.3 Compensation for Growth
The excellent profitability rating of WES may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.55
EPS Next 2Y-3.58%
EPS Next 3Y0.16%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.20%, WES is a good candidate for dividend investing.
WES's Dividend Yield is rather good when compared to the industry average which is at 3.93. WES pays more dividend than 86.60% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, WES pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.2% |
5.2 History
The dividend of WES has a limited annual growth rate of 2.35%.
WES has paid a dividend for at least 10 years, which is a reliable track record.
WES has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)2.35%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
WES pays out 107.67% of its income as dividend. This is not a sustainable payout ratio.
The dividend of WES is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP107.67%
EPS Next 2Y-3.58%
EPS Next 3Y0.16%
39.13
-0.43 (-1.09%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners77.53%
Inst Owner Change3.67%
Ins Owners0.17%
Ins Owner Change1.28%
Market Cap15.97B
Revenue(TTM)3.74B
Net Income(TTM)1.29B
Analysts65.56
Price Target42.59 (8.84%)
Short Float %1.34%
Short Ratio3.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.2% |
Yearly Dividend3.28
Dividend Growth(5Y)2.35%
DP107.67%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.79%
Min EPS beat(2)-2.42%
Max EPS beat(2)4%
EPS beat(4)1
Avg EPS beat(4)-1.37%
Min EPS beat(4)-6.21%
Max EPS beat(4)4%
EPS beat(8)3
Avg EPS beat(8)8.47%
EPS beat(12)5
Avg EPS beat(12)5.89%
EPS beat(16)6
Avg EPS beat(16)3.83%
Revenue beat(2)0
Avg Revenue beat(2)-1.34%
Min Revenue beat(2)-2.17%
Max Revenue beat(2)-0.5%
Revenue beat(4)0
Avg Revenue beat(4)-1.75%
Min Revenue beat(4)-3.05%
Max Revenue beat(4)-0.5%
Revenue beat(8)1
Avg Revenue beat(8)-2.03%
Revenue beat(12)1
Avg Revenue beat(12)-3.79%
Revenue beat(16)3
Avg Revenue beat(16)-2.95%
PT rev (1m)1.83%
PT rev (3m)3.09%
EPS NQ rev (1m)2.23%
EPS NQ rev (3m)10.44%
EPS NY rev (1m)1.73%
EPS NY rev (3m)2.44%
Revenue NQ rev (1m)1.04%
Revenue NQ rev (3m)6.74%
Revenue NY rev (1m)1.24%
Revenue NY rev (3m)1.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.58 | ||
| Fwd PE | 10.44 | ||
| P/S | 4.27 | ||
| P/FCF | 10.82 | ||
| P/OCF | 7.19 | ||
| P/B | 5.02 | ||
| P/tB | 6.26 | ||
| EV/EBITDA | 9.76 |
EPS(TTM)3.38
EY8.64%
EPS(NY)3.75
Fwd EY9.57%
FCF(TTM)3.61
FCFY9.24%
OCF(TTM)5.44
OCFY13.9%
SpS9.17
BVpS7.8
TBVpS6.25
PEG (NY)N/A
PEG (5Y)0.55
Graham Number24.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.67% | ||
| ROE | 40.64% | ||
| ROCE | 14.38% | ||
| ROIC | 11.36% | ||
| ROICexc | 11.54% | ||
| ROICexgc | 12.22% | ||
| OM | 44.17% | ||
| PM (TTM) | 34.57% | ||
| GM | 95.33% | ||
| FCFM | 39.43% |
ROA(3y)10.08%
ROA(5y)8.51%
ROE(3y)40.66%
ROE(5y)34.2%
ROIC(3y)9.49%
ROIC(5y)9.22%
ROICexc(3y)9.97%
ROICexc(5y)9.61%
ROICexgc(3y)10.63%
ROICexgc(5y)10.29%
ROCE(3y)12.66%
ROCE(5y)12.26%
ROICexgc growth 3Y6.85%
ROICexgc growth 5Y8.96%
ROICexc growth 3Y7.4%
ROICexc growth 5Y10.13%
OM growth 3Y2.49%
OM growth 5Y3.58%
PM growth 3Y11.02%
PM growth 5Y12.07%
GM growth 3Y2.36%
GM growth 5Y2.58%
F-Score6
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.18 | ||
| Debt/FCF | 4.7 | ||
| Debt/EBITDA | 2.97 | ||
| Cap/Depr | 110.16% | ||
| Cap/Sales | 19.91% | ||
| Interest Coverage | 4.44 | ||
| Cash Conversion | 95.34% | ||
| Profit Quality | 114.05% | ||
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z | N/A |
F-Score6
WACC7.91%
ROIC/WACC1.44
Cap/Depr(3y)111.42%
Cap/Depr(5y)95.45%
Cap/Sales(3y)20.59%
Cap/Sales(5y)17.59%
Profit Quality(3y)93.2%
Profit Quality(5y)135.41%
High Growth Momentum
Growth
EPS 1Y (TTM)-13.78%
EPS 3Y22.73%
EPS 5Y20.9%
EPS Q2Q%17.57%
EPS Next Y-12.17%
EPS Next 2Y-3.58%
EPS Next 3Y0.16%
EPS Next 5YN/A
Revenue 1Y (TTM)5.81%
Revenue growth 3Y7.81%
Revenue growth 5Y5.59%
Sales Q2Q%7.82%
Revenue Next Year5.11%
Revenue Next 2Y6.03%
Revenue Next 3Y6.91%
Revenue Next 5Y5.6%
EBIT growth 1Y7.99%
EBIT growth 3Y10.5%
EBIT growth 5Y9.38%
EBIT Next Year42.86%
EBIT Next 3Y18.48%
EBIT Next 5Y12.27%
FCF growth 1Y48.23%
FCF growth 3Y-3.57%
FCF growth 5Y57.3%
OCF growth 1Y32.33%
OCF growth 3Y6.54%
OCF growth 5Y10.05%
WESTERN MIDSTREAM PARTNERS L / WES FAQ
What is the fundamental rating for WES stock?
ChartMill assigns a fundamental rating of 6 / 10 to WES.
Can you provide the valuation status for WESTERN MIDSTREAM PARTNERS L?
ChartMill assigns a valuation rating of 6 / 10 to WESTERN MIDSTREAM PARTNERS L (WES). This can be considered as Fairly Valued.
How profitable is WESTERN MIDSTREAM PARTNERS L (WES) stock?
WESTERN MIDSTREAM PARTNERS L (WES) has a profitability rating of 9 / 10.
What are the PE and PB ratios of WESTERN MIDSTREAM PARTNERS L (WES) stock?
The Price/Earnings (PE) ratio for WESTERN MIDSTREAM PARTNERS L (WES) is 11.58 and the Price/Book (PB) ratio is 5.02.
How financially healthy is WESTERN MIDSTREAM PARTNERS L?
The financial health rating of WESTERN MIDSTREAM PARTNERS L (WES) is 4 / 10.