WESTERN MIDSTREAM PARTNERS L (WES) Fundamental Analysis & Valuation

NYSE:WES • US9586691035

Current stock price

40.775 USD
-0.4 (-0.96%)
Last:

This WES fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. WES Profitability Analysis

1.1 Basic Checks

  • WES had positive earnings in the past year.
  • In the past year WES had a positive cash flow from operations.
  • In the past 5 years WES has always been profitable.
  • Each year in the past 5 years WES had a positive operating cash flow.
WES Yearly Net Income VS EBIT VS OCF VS FCFWES Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M 1B 1.5B 2B

1.2 Ratios

  • With a decent Return On Assets value of 7.70%, WES is doing good in the industry, outperforming 79.43% of the companies in the same industry.
  • WES's Return On Equity of 28.71% is amongst the best of the industry. WES outperforms 91.87% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 9.54%, WES belongs to the top of the industry, outperforming 83.25% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for WES is significantly below the industry average of 23.14%.
  • The last Return On Invested Capital (9.54%) for WES is above the 3 year average (9.38%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 7.7%
ROE 28.71%
ROIC 9.54%
ROA(3y)9.13%
ROA(5y)9.18%
ROE(3y)36.89%
ROE(5y)36.2%
ROIC(3y)9.38%
ROIC(5y)9.33%
WES Yearly ROA, ROE, ROICWES Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

1.3 Margins

  • WES has a better Profit Margin (30.04%) than 86.60% of its industry peers.
  • WES's Profit Margin has improved in the last couple of years.
  • WES has a better Operating Margin (43.24%) than 89.00% of its industry peers.
  • WES's Operating Margin has been stable in the last couple of years.
  • Looking at the Gross Margin, with a value of 94.61%, WES belongs to the top of the industry, outperforming 98.56% of the companies in the same industry.
  • WES's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 43.24%
PM (TTM) 30.04%
GM 94.61%
OM growth 3Y2.1%
OM growth 5Y-1.43%
PM growth 3Y-6.36%
PM growth 5Y10.05%
GM growth 3Y2.81%
GM growth 5Y0.3%
WES Yearly Profit, Operating, Gross MarginsWES Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

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4

2. WES Health Analysis

2.1 Basic Checks

  • WES has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • The number of shares outstanding for WES has been increased compared to 1 year ago.
  • WES has less shares outstanding than it did 5 years ago.
  • The debt/assets ratio for WES has been reduced compared to a year ago.
WES Yearly Shares OutstandingWES Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M
WES Yearly Total Debt VS Total AssetsWES Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B

2.2 Solvency

  • WES has a debt to FCF ratio of 5.78. This is a neutral value as WES would need 5.78 years to pay back of all of its debts.
  • WES's Debt to FCF ratio of 5.78 is fine compared to the rest of the industry. WES outperforms 64.59% of its industry peers.
  • A Debt/Equity ratio of 2.04 is on the high side and indicates that WES has dependencies on debt financing.
  • WES has a Debt to Equity ratio of 2.04. This is in the lower half of the industry: WES underperforms 77.99% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.04
Debt/FCF 5.78
Altman-Z N/A
ROIC/WACC1.33
WACC7.18%
WES Yearly LT Debt VS Equity VS FCFWES Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B 8B

2.3 Liquidity

  • WES has a Current Ratio of 1.34. This is a normal value and indicates that WES is financially healthy and should not expect problems in meeting its short term obligations.
  • WES's Current ratio of 1.34 is fine compared to the rest of the industry. WES outperforms 60.29% of its industry peers.
  • WES has a Quick Ratio of 1.33. This is a normal value and indicates that WES is financially healthy and should not expect problems in meeting its short term obligations.
  • The Quick ratio of WES (1.33) is better than 65.55% of its industry peers.
Industry RankSector Rank
Current Ratio 1.34
Quick Ratio 1.33
WES Yearly Current Assets VS Current LiabilitesWES Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

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3

3. WES Growth Analysis

3.1 Past

  • The earnings per share for WES have decreased strongly by -25.56% in the last year.
  • The Earnings Per Share has been growing slightly by 3.47% on average over the past years.
  • Looking at the last year, WES shows a small growth in Revenue. The Revenue has grown by 6.61% in the last year.
  • WES shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.75% yearly.
EPS 1Y (TTM)-25.56%
EPS 3Y0%
EPS 5Y3.47%
EPS Q2Q%-44.71%
Revenue 1Y (TTM)6.61%
Revenue growth 3Y5.73%
Revenue growth 5Y6.75%
Sales Q2Q%11.09%

3.2 Future

  • The Earnings Per Share is expected to grow by 12.69% on average over the next years. This is quite good.
  • Based on estimates for the next years, WES will show a decrease in Revenue. The Revenue will decrease by -9.54% on average per year.
EPS Next Y10.69%
EPS Next 2Y11.18%
EPS Next 3Y12.69%
EPS Next 5YN/A
Revenue Next Year5.33%
Revenue Next 2Y5.94%
Revenue Next 3Y-9.54%
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 decreasing.
WES Yearly Revenue VS EstimatesWES Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1B 2B 3B 4B
WES Yearly EPS VS EstimatesWES Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1 2 3 4

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6

4. WES Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 13.59 indicates a correct valuation of WES.
  • Based on the Price/Earnings ratio, WES is valued a bit cheaper than the industry average as 73.21% of the companies are valued more expensively.
  • WES is valuated rather cheaply when we compare the Price/Earnings ratio to 25.58, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 12.28 indicates a correct valuation of WES.
  • WES's Price/Forward Earnings ratio is rather cheap when compared to the industry. WES is cheaper than 80.86% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of WES to the average of the S&P500 Index (22.81), we can say WES is valued slightly cheaper.
Industry RankSector Rank
PE 13.59
Fwd PE 12.28
WES Price Earnings VS Forward Price EarningsWES Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as WES.
  • 83.73% of the companies in the same industry are more expensive than WES, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 10.74
EV/EBITDA 10.13
WES Per share dataWES EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

4.3 Compensation for Growth

  • WES's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The excellent profitability rating of WES may justify a higher PE ratio.
  • WES's earnings are expected to grow with 12.69% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.27
PEG (5Y)3.92
EPS Next 2Y11.18%
EPS Next 3Y12.69%

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6

5. WES Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 8.85%, WES is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 3.20, WES pays a better dividend. On top of this WES pays more dividend than 92.34% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.89, WES pays a better dividend.
Industry RankSector Rank
Dividend Yield 8.85%

5.2 History

  • On average, the dividend of WES grows each year by 17.51%, which is quite nice.
  • WES has been paying a dividend for at least 10 years, so it has a reliable track record.
  • WES has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)17.51%
Div Incr Years3
Div Non Decr Years3
WES Yearly Dividends per shareWES Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3

5.3 Sustainability

  • 123.95% of the earnings are spent on dividend by WES. This is not a sustainable payout ratio.
  • WES's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP123.95%
EPS Next 2Y11.18%
EPS Next 3Y12.69%
WES Yearly Income VS Free CF VS DividendWES Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M 1B 1.5B
WES Dividend Payout.WES Dividend Payout, showing the Payout Ratio.WES Dividend Payout.PayoutRetained Earnings

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WES Fundamentals: All Metrics, Ratios and Statistics

WESTERN MIDSTREAM PARTNERS L

NYSE:WES (4/1/2026, 1:31:01 PM)

40.775

-0.4 (-0.96%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)02-18
Earnings (Next)05-05
Inst Owners41.83%
Inst Owner Change9.19%
Ins Owners0.24%
Ins Owner Change9.79%
Market Cap16.05B
Revenue(TTM)3.84B
Net Income(TTM)1.15B
Analysts65.56
Price Target43.04 (5.55%)
Short Float %2.73%
Short Ratio4.38
Dividend
Industry RankSector Rank
Dividend Yield 8.85%
Yearly Dividend3.63
Dividend Growth(5Y)17.51%
DP123.95%
Div Incr Years3
Div Non Decr Years3
Ex-Date02-02
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-23.93%
Min EPS beat(2)-45.43%
Max EPS beat(2)-2.42%
EPS beat(4)1
Avg EPS beat(4)-12.52%
Min EPS beat(4)-45.43%
Max EPS beat(4)4%
EPS beat(8)3
Avg EPS beat(8)3.5%
EPS beat(12)4
Avg EPS beat(12)0.66%
EPS beat(16)6
Avg EPS beat(16)1.75%
Revenue beat(2)0
Avg Revenue beat(2)-2.61%
Min Revenue beat(2)-3.06%
Max Revenue beat(2)-2.17%
Revenue beat(4)0
Avg Revenue beat(4)-2.19%
Min Revenue beat(4)-3.06%
Max Revenue beat(4)-0.5%
Revenue beat(8)1
Avg Revenue beat(8)-2.2%
Revenue beat(12)1
Avg Revenue beat(12)-3.37%
Revenue beat(16)3
Avg Revenue beat(16)-2.67%
PT rev (1m)1.35%
PT rev (3m)1.08%
EPS NQ rev (1m)-8.59%
EPS NQ rev (3m)-17.41%
EPS NY rev (1m)-10.08%
EPS NY rev (3m)-11.37%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)-2.67%
Revenue NY rev (1m)-0.68%
Revenue NY rev (3m)-1.58%
Valuation
Industry RankSector Rank
PE 13.59
Fwd PE 12.28
P/S 4.18
P/FCF 10.74
P/OCF 7.22
P/B 3.99
P/tB 5.83
EV/EBITDA 10.13
EPS(TTM)3
EY7.36%
EPS(NY)3.32
Fwd EY8.14%
FCF(TTM)3.8
FCFY9.31%
OCF(TTM)5.65
OCFY13.85%
SpS9.76
BVpS10.21
TBVpS7
PEG (NY)1.27
PEG (5Y)3.92
Graham Number26.26
Profitability
Industry RankSector Rank
ROA 7.7%
ROE 28.71%
ROCE 12.08%
ROIC 9.54%
ROICexc 10.14%
ROICexgc 11.25%
OM 43.24%
PM (TTM) 30.04%
GM 94.61%
FCFM 38.89%
ROA(3y)9.13%
ROA(5y)9.18%
ROE(3y)36.89%
ROE(5y)36.2%
ROIC(3y)9.38%
ROIC(5y)9.33%
ROICexc(3y)9.97%
ROICexc(5y)9.77%
ROICexgc(3y)10.74%
ROICexgc(5y)10.52%
ROCE(3y)12.44%
ROCE(5y)12.31%
ROICexgc growth 3Y1.04%
ROICexgc growth 5Y2.17%
ROICexc growth 3Y0.01%
ROICexc growth 5Y1.59%
OM growth 3Y2.1%
OM growth 5Y-1.43%
PM growth 3Y-6.36%
PM growth 5Y10.05%
GM growth 3Y2.81%
GM growth 5Y0.3%
F-Score4
Asset Turnover0.26
Health
Industry RankSector Rank
Debt/Equity 2.04
Debt/FCF 5.78
Debt/EBITDA 3.45
Cap/Depr 102.42%
Cap/Sales 18.94%
Interest Coverage 4.36
Cash Conversion 93.67%
Profit Quality 129.46%
Current Ratio 1.34
Quick Ratio 1.33
Altman-Z N/A
F-Score4
WACC7.18%
ROIC/WACC1.33
Cap/Depr(3y)117.67%
Cap/Depr(5y)98.71%
Cap/Sales(3y)21.91%
Cap/Sales(5y)18.32%
Profit Quality(3y)102.33%
Profit Quality(5y)114.23%
High Growth Momentum
Growth
EPS 1Y (TTM)-25.56%
EPS 3Y0%
EPS 5Y3.47%
EPS Q2Q%-44.71%
EPS Next Y10.69%
EPS Next 2Y11.18%
EPS Next 3Y12.69%
EPS Next 5YN/A
Revenue 1Y (TTM)6.61%
Revenue growth 3Y5.73%
Revenue growth 5Y6.75%
Sales Q2Q%11.09%
Revenue Next Year5.33%
Revenue Next 2Y5.94%
Revenue Next 3Y-9.54%
Revenue Next 5YN/A
EBIT growth 1Y6.01%
EBIT growth 3Y7.95%
EBIT growth 5Y5.23%
EBIT Next Year48.25%
EBIT Next 3Y18.87%
EBIT Next 5Y12.77%
FCF growth 1Y14.71%
FCF growth 3Y7.17%
FCF growth 5Y4.24%
OCF growth 1Y4.01%
OCF growth 3Y9.32%
OCF growth 5Y6.3%

WESTERN MIDSTREAM PARTNERS L / WES Fundamental Analysis FAQ

What is the fundamental rating for WES stock?

ChartMill assigns a fundamental rating of 5 / 10 to WES.


What is the valuation status of WESTERN MIDSTREAM PARTNERS L (WES) stock?

ChartMill assigns a valuation rating of 6 / 10 to WESTERN MIDSTREAM PARTNERS L (WES). This can be considered as Fairly Valued.


Can you provide the profitability details for WESTERN MIDSTREAM PARTNERS L?

WESTERN MIDSTREAM PARTNERS L (WES) has a profitability rating of 8 / 10.


What is the financial health of WESTERN MIDSTREAM PARTNERS L (WES) stock?

The financial health rating of WESTERN MIDSTREAM PARTNERS L (WES) is 4 / 10.


Can you provide the dividend sustainability for WES stock?

The dividend rating of WESTERN MIDSTREAM PARTNERS L (WES) is 6 / 10 and the dividend payout ratio is 123.95%.