WESTERN MIDSTREAM PARTNERS L (WES)
US9586691035
Taking everything into account, WES scores 6 out of 10 in our fundamental rating. WES was compared to 204 industry peers in the Oil, Gas & Consumable Fuels industry. While WES has a great profitability rating, there are quite some concerns on its financial health. WES is evaluated to be cheap and growing strongly. This does not happen too often! Finally WES also has an excellent dividend rating.
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.
In the past 5 years WES has always been profitable.
In the past 5 years WES always reported a positive cash flow from operatings.
1.2 Ratios
WES has a better Return On Assets (11.50%) than 80.30% of its industry peers.
WES's Return On Equity of 46.12% is amongst the best of the industry. WES outperforms 93.10% of its industry peers.
WES's Return On Invested Capital of 9.80% is fine compared to the rest of the industry. WES outperforms 62.07% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WES is significantly below the industry average of 22.54%.
The last Return On Invested Capital (9.80%) for WES is above the 3 year average (9.05%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.5% | ||
| ROE | 46.12% | ||
| ROIC | 9.8% |
ROA(3y)8.84%
ROA(5y)7.25%
ROE(3y)34.93%
ROE(5y)28.84%
ROIC(3y)9.05%
ROIC(5y)8.57%
1.3 Margins
WES's Profit Margin of 42.23% is amongst the best of the industry. WES outperforms 88.67% of its industry peers.
WES's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 43.28%, WES belongs to the top of the industry, outperforming 83.25% of the companies in the same industry.
WES's Operating Margin has been stable in the last couple of years.
The Gross Margin of WES (95.09%) is better than 99.51% of its industry peers.
In the last couple of years the Gross Margin of WES has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 43.28% | ||
| PM (TTM) | 42.23% | ||
| GM | 95.09% |
OM growth 3Y-3.69%
OM growth 5Y1.3%
PM growth 3Y19.99%
PM growth 5Y14.88%
GM growth 3Y0.53%
GM growth 5Y2.94%
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.
The number of shares outstanding for WES has been reduced compared to 1 year ago.
WES has more shares outstanding than it did 5 years ago.
WES has a worse debt/assets ratio than last year.
2.2 Solvency
WES has a debt to FCF ratio of 6.29. This is a slightly negative value and a sign of low solvency as WES would need 6.29 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.29, WES is in line with its industry, outperforming 53.69% of the companies in the same industry.
WES has a Debt/Equity ratio of 2.45. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.45, WES is not doing good in the industry: 87.68% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.45 | ||
| Debt/FCF | 6.29 | ||
| Altman-Z | N/A |
ROIC/WACC1.3
WACC7.56%
2.3 Liquidity
A Current Ratio of 1.11 indicates that WES should not have too much problems paying its short term obligations.
The Current ratio of WES (1.11) is comparable to the rest of the industry.
A Quick Ratio of 1.11 indicates that WES should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.11, WES is in line with its industry, outperforming 55.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
WES shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 44.65%, which is quite impressive.
Measured over the past years, WES shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.00% on average per year.
The Revenue has grown by 16.75% in the past year. This is quite good.
The Revenue has been growing slightly by 6.20% on average over the past years.
EPS 1Y (TTM)44.65%
EPS 3Y0.91%
EPS 5Y9%
EPS Q2Q%5.71%
Revenue 1Y (TTM)16.75%
Revenue growth 3Y3.86%
Revenue growth 5Y6.2%
Sales Q2Q%13.83%
3.2 Future
Based on estimates for the next years, WES will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.23% on average per year.
The Revenue is expected to grow by 9.56% on average over the next years. This is quite good.
EPS Next Y59.05%
EPS Next 2Y19.82%
EPS Next 3Y16.23%
EPS Next 5YN/A
Revenue Next Year18.84%
Revenue Next 2Y10.72%
Revenue Next 3Y9.56%
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.
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
With a Price/Earnings ratio of 9.68, the valuation of WES can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of WES indicates a somewhat cheap valuation: WES is cheaper than 68.47% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of WES to the average of the S&P500 Index (28.96), we can say WES is valued rather cheaply.
A Price/Forward Earnings ratio of 10.16 indicates a reasonable valuation of WES.
Based on the Price/Forward Earnings ratio, WES is valued a bit cheaper than 67.00% of the companies in the same industry.
WES is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.68 | ||
| Fwd PE | 10.16 |
4.2 Price Multiples
WES's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, WES is valued a bit cheaper than 61.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.44 | ||
| EV/EBITDA | 9.28 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
WES has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as WES's earnings are expected to grow with 16.23% in the coming years.
PEG (NY)0.16
PEG (5Y)1.08
EPS Next 2Y19.82%
EPS Next 3Y16.23%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.26%, WES is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.45, WES pays a better dividend. On top of this WES pays more dividend than 84.24% of the companies listed in the same industry.
WES's Dividend Yield is rather good when compared to the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.26% |
5.2 History
The dividend of WES has a limited annual growth rate of 2.24%.
WES has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of WES decreased in the last 3 years.
Dividend Growth(5Y)2.24%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
75.60% of the earnings are spent on dividend by WES. This is not a sustainable payout ratio.
The dividend of WES is growing, but earnings are growing more, so the dividend growth is sustainable.
DP75.6%
EPS Next 2Y19.82%
EPS Next 3Y16.23%
WESTERN MIDSTREAM PARTNERS L
NYSE:WES (11/21/2024, 8:04:00 PM)
Premarket: 38 +0.07 (+0.18%)37.93
+0.49 (+1.31%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap14.43B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.26% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.68 | ||
| Fwd PE | 10.16 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.16
PEG (5Y)1.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.5% | ||
| ROE | 46.12% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 43.28% | ||
| PM (TTM) | 42.23% | ||
| GM | 95.09% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.45 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)44.65%
EPS 3Y0.91%
EPS 5Y
EPS Q2Q%
EPS Next Y59.05%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)16.75%
Revenue growth 3Y3.86%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y