WESTERN MIDSTREAM PARTNERS L (WES) Stock Fundamental Analysis
NYSE:WES - New York Stock Exchange, Inc. - US9586691035 - Currency: USD
We assign a fundamental rating of 6 out of 10 to WES. WES was compared to 211 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 is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year WES was profitable.
In the past year WES had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 10.27%, WES belongs to the top of the industry, outperforming 83.41% of the companies in the same industry.
Looking at the Return On Equity, with a value of 40.06%, WES belongs to the top of the industry, outperforming 93.36% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 10.43%, WES is in the better half of the industry, outperforming 78.20% 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 23.70%.
The last Return On Invested Capital (10.43%) for WES is above the 3 year average (9.49%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.27% | ||
| ROE | 40.06% | ||
| ROIC | 10.43% |
ROA(3y)10.08%
ROA(5y)8.51%
ROE(3y)40.66%
ROE(5y)34.2%
ROIC(3y)9.49%
ROIC(5y)9.22%
1.3 Margins
The Profit Margin of WES (35.20%) is better than 88.15% of its industry peers.
In the last couple of years the Profit Margin of WES has grown nicely.
WES has a Operating Margin of 42.78%. This is amongst the best in the industry. WES outperforms 87.68% of its industry peers.
WES's Operating Margin has improved in the last couple of years.
WES has a Gross Margin of 95.39%. This is amongst the best in the industry. WES outperforms 99.53% of its industry peers.
WES's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 42.78% | ||
| PM (TTM) | 35.2% | ||
| GM | 95.39% |
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
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 remains at a similar level compared to 1 year ago.
Compared to 5 years ago, WES has less shares outstanding
The debt/assets ratio for WES has been reduced compared to a year ago.
2.2 Solvency
WES has a debt to FCF ratio of 4.90. This is a neutral value as WES would need 4.90 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 4.90, WES is doing good in the industry, outperforming 65.40% of the companies in the same industry.
WES has a Debt/Equity ratio of 2.27. This is a high value indicating a heavy dependency on external financing.
WES has a worse Debt to Equity ratio (2.27) than 83.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.27 | ||
| Debt/FCF | 4.9 | ||
| Altman-Z | N/A |
ROIC/WACC1.3
WACC8.02%
2.3 Liquidity
WES has a Current Ratio of 1.18. This is a normal value and indicates that WES is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of WES (1.18) is comparable to the rest of the industry.
A Quick Ratio of 1.17 indicates that WES should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.17, WES is doing good in the industry, outperforming 61.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
WES shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.63%.
WES shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.90% yearly.
Looking at the last year, WES shows a quite strong growth in Revenue. The Revenue has grown by 11.48% in the last year.
The Revenue has been growing slightly by 5.59% on average over the past years.
EPS 1Y (TTM)-5.63%
EPS 3Y22.73%
EPS 5Y20.9%
EPS Q2Q%-46.26%
Revenue 1Y (TTM)11.48%
Revenue growth 3Y7.81%
Revenue growth 5Y5.59%
Sales Q2Q%3.31%
3.2 Future
WES is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.82% yearly.
WES is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.93% yearly.
EPS Next Y-15.4%
EPS Next 2Y-4.79%
EPS Next 3Y-0.82%
EPS Next 5YN/A
Revenue Next Year2.45%
Revenue Next 2Y3.05%
Revenue Next 3Y3.93%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.67, which indicates a very decent valuation of WES.
Based on the Price/Earnings ratio, WES is valued a bit cheaper than 65.40% of the companies in the same industry.
WES is valuated cheaply when we compare the Price/Earnings ratio to 27.28, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 10.70 indicates a reasonable valuation of WES.
Based on the Price/Forward Earnings ratio, WES is valued a bit cheaper than the industry average as 63.03% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of WES to the average of the S&P500 Index (21.76), we can say WES is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.67 | ||
| Fwd PE | 10.7 |
4.2 Price Multiples
WES's Enterprise Value to EBITDA is on the same level as the industry average.
74.88% of the companies in the same industry are more expensive than WES, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.03 | ||
| EV/EBITDA | 9.65 |
4.3 Compensation for Growth
WES has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.56
EPS Next 2Y-4.79%
EPS Next 3Y-0.82%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.48%, WES is a good candidate for dividend investing.
WES's Dividend Yield is rather good when compared to the industry average which is at 6.66. WES pays more dividend than 86.26% of the companies in the same industry.
WES's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.48% |
5.2 History
The dividend of WES has a limited annual growth rate of 2.35%.
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)2.35%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
WES pays out 106.59% of its income as dividend. This is not a sustainable payout ratio.
WES's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP106.59%
EPS Next 2Y-4.79%
EPS Next 3Y-0.82%
39.09
+0.51 (+1.32%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners83.97%
Inst Owner Change-2.84%
Ins Owners0.18%
Ins Owner Change7.53%
Market Cap14.91B
Analysts65.56
Price Target40.89 (4.6%)
Short Float %1.57%
Short Ratio5.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.48% |
Yearly Dividend3.28
Dividend Growth(5Y)2.35%
DP106.59%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.54%
Min EPS beat(2)-6.21%
Max EPS beat(2)-0.86%
EPS beat(4)1
Avg EPS beat(4)-2.47%
Min EPS beat(4)-12%
Max EPS beat(4)9.22%
EPS beat(8)3
Avg EPS beat(8)8.89%
EPS beat(12)4
Avg EPS beat(12)4.31%
EPS beat(16)5
Avg EPS beat(16)3.15%
Revenue beat(2)0
Avg Revenue beat(2)-2.17%
Min Revenue beat(2)-3.05%
Max Revenue beat(2)-1.3%
Revenue beat(4)0
Avg Revenue beat(4)-3.11%
Min Revenue beat(4)-6.34%
Max Revenue beat(4)-1.3%
Revenue beat(8)1
Avg Revenue beat(8)-3.62%
Revenue beat(12)2
Avg Revenue beat(12)-3.25%
Revenue beat(16)5
Avg Revenue beat(16)-2.33%
PT rev (1m)-1.55%
PT rev (3m)-1.55%
EPS NQ rev (1m)-1.1%
EPS NQ rev (3m)-2.52%
EPS NY rev (1m)-1.21%
EPS NY rev (3m)-2%
Revenue NQ rev (1m)-0.97%
Revenue NQ rev (3m)-2.38%
Revenue NY rev (1m)-0.7%
Revenue NY rev (3m)-0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.67 | ||
| Fwd PE | 10.7 | ||
| P/S | 4.1 | ||
| P/FCF | 10.03 | ||
| P/OCF | 6.57 | ||
| P/B | 4.67 | ||
| P/tB | 5.85 | ||
| EV/EBITDA | 9.65 |
EPS(TTM)3.35
EY8.57%
EPS(NY)3.65
Fwd EY9.35%
FCF(TTM)3.9
FCFY9.97%
OCF(TTM)5.95
OCFY15.21%
SpS9.53
BVpS8.37
TBVpS6.68
PEG (NY)N/A
PEG (5Y)0.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.27% | ||
| ROE | 40.06% | ||
| ROCE | 13.58% | ||
| ROIC | 10.43% | ||
| ROICexc | 10.84% | ||
| ROICexgc | 11.49% | ||
| OM | 42.78% | ||
| PM (TTM) | 35.2% | ||
| GM | 95.39% | ||
| FCFM | 40.87% |
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%
ROICexcg growth 3Y6.85%
ROICexcg 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 Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.27 | ||
| Debt/FCF | 4.9 | ||
| Debt/EBITDA | 3.27 | ||
| Cap/Depr | 118.04% | ||
| Cap/Sales | 21.53% | ||
| Interest Coverage | 4.44 | ||
| Cash Conversion | 102.26% | ||
| Profit Quality | 116.12% | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | N/A |
F-Score6
WACC8.02%
ROIC/WACC1.3
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)-5.63%
EPS 3Y22.73%
EPS 5Y20.9%
EPS Q2Q%-46.26%
EPS Next Y-15.4%
EPS Next 2Y-4.79%
EPS Next 3Y-0.82%
EPS Next 5YN/A
Revenue 1Y (TTM)11.48%
Revenue growth 3Y7.81%
Revenue growth 5Y5.59%
Sales Q2Q%3.31%
Revenue Next Year2.45%
Revenue Next 2Y3.05%
Revenue Next 3Y3.93%
Revenue Next 5YN/A
EBIT growth 1Y11.79%
EBIT growth 3Y10.5%
EBIT growth 5Y9.38%
EBIT Next Year37.74%
EBIT Next 3Y14.43%
EBIT Next 5Y9.43%
FCF growth 1Y29.06%
FCF growth 3Y-3.57%
FCF growth 5Y57.3%
OCF growth 1Y31.3%
OCF growth 3Y6.54%
OCF growth 5Y10.05%