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 212 industry peers in the Oil, Gas & Consumable Fuels industry. WES has an excellent profitability rating, 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
In the past year WES was profitable.
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 has a better Return On Assets (11.69%) than 86.79% of its industry peers.
WES has a Return On Equity of 47.50%. This is amongst the best in the industry. WES outperforms 93.40% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.95%, WES is in the better half of the industry, outperforming 72.64% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for WES is significantly below the industry average of 27.42%.
The last Return On Invested Capital (9.95%) for WES is above the 3 year average (9.49%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.69% | ||
| ROE | 47.5% | ||
| ROIC | 9.95% |
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 (42.63%) is better than 91.04% of its industry peers.
In the last couple of years the Profit Margin of WES has grown nicely.
Looking at the Operating Margin, with a value of 43.49%, WES belongs to the top of the industry, outperforming 87.26% of the companies in the same industry.
WES's Operating Margin has improved in the last couple of years.
WES has a better Gross Margin (95.22%) than 99.53% of its industry peers.
In the last couple of years the Gross Margin of WES has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 43.49% | ||
| PM (TTM) | 42.63% | ||
| GM | 95.22% |
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.
WES has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, WES has less shares outstanding
WES has a better debt/assets ratio than last year.
2.2 Solvency
WES has a debt to FCF ratio of 6.09. This is a slightly negative value and a sign of low solvency as WES would need 6.09 years to pay back of all of its debts.
WES's Debt to FCF ratio of 6.09 is fine compared to the rest of the industry. WES outperforms 60.38% of its industry peers.
A Debt/Equity ratio of 2.45 is on the high side and indicates that WES has dependencies on debt financing.
WES's Debt to Equity ratio of 2.45 is on the low side compared to the rest of the industry. WES is outperformed by 85.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.45 | ||
| Debt/FCF | 6.09 | ||
| Altman-Z | N/A |
ROIC/WACC1.03
WACC9.63%
2.3 Liquidity
WES has a Current Ratio of 1.09. This is a normal value and indicates that WES is financially healthy and should not expect problems in meeting its short term obligations.
WES has a Current ratio (1.09) which is comparable to the rest of the industry.
WES has a Quick Ratio of 1.09. This is a normal value and indicates that WES is financially healthy and should not expect problems in meeting its short term obligations.
WES has a Quick ratio of 1.09. This is comparable to the rest of the industry: WES outperforms 58.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 55.00% over the past year.
Measured over the past years, WES shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.90% on average per year.
Looking at the last year, WES shows a quite strong growth in Revenue. The Revenue has grown by 16.05% in the last year.
The Revenue has been growing slightly by 5.59% on average over the past years.
EPS 1Y (TTM)55%
EPS 3Y22.73%
EPS 5Y20.9%
EPS Q2Q%14.86%
Revenue 1Y (TTM)16.05%
Revenue growth 3Y7.81%
Revenue growth 5Y5.59%
Sales Q2Q%8.19%
3.2 Future
Based on estimates for the next years, WES will show a decrease in Earnings Per Share. The EPS will decrease by -0.06% on average per year.
WES is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.48% yearly.
EPS Next Y-13.68%
EPS Next 2Y-3.69%
EPS Next 3Y-0.06%
EPS Next 5YN/A
Revenue Next Year3.28%
Revenue Next 2Y3.83%
Revenue Next 3Y4.48%
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 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 9.46, the valuation of WES can be described as reasonable.
Based on the Price/Earnings ratio, WES is valued a bit cheaper than 68.87% of the companies in the same industry.
When comparing the Price/Earnings ratio of WES to the average of the S&P500 Index (28.29), we can say WES is valued rather cheaply.
The Price/Forward Earnings ratio is 10.96, which indicates a very decent valuation of WES.
WES's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.08, WES is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.46 | ||
| Fwd PE | 10.96 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WES is on the same level as its industry peers.
66.98% 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 | 11.16 | ||
| EV/EBITDA | 9.19 |
4.3 Compensation for Growth
The excellent profitability rating of WES may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.45
EPS Next 2Y-3.69%
EPS Next 3Y-0.06%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.18%, WES is a good candidate for dividend investing.
WES's Dividend Yield is rather good when compared to the industry average which is at 7.82. WES pays more dividend than 84.91% of the companies in the same industry.
WES's Dividend Yield is rather good when compared to the S&P500 average which is at 2.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.18% |
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
81.07% of the earnings are spent on dividend by WES. 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.
DP81.07%
EPS Next 2Y-3.69%
EPS Next 3Y-0.06%
38.13
+0.74 (+1.98%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners85.01%
Inst Owner Change0%
Ins Owners0.17%
Ins Owner Change7.53%
Market Cap14.54B
Analysts65.56
Price Target41.54 (8.94%)
Short Float %1.57%
Short Ratio4.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.18% |
Yearly Dividend3.28
Dividend Growth(5Y)2.35%
DP81.07%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.43%
Min EPS beat(2)-12%
Max EPS beat(2)-0.86%
EPS beat(4)2
Avg EPS beat(4)19.52%
Min EPS beat(4)-12%
Max EPS beat(4)81.72%
EPS beat(8)3
Avg EPS beat(8)7.24%
EPS beat(12)5
Avg EPS beat(12)6.51%
EPS beat(16)5
Avg EPS beat(16)2.33%
Revenue beat(2)0
Avg Revenue beat(2)-3.82%
Min Revenue beat(2)-6.34%
Max Revenue beat(2)-1.3%
Revenue beat(4)1
Avg Revenue beat(4)-2.21%
Min Revenue beat(4)-6.34%
Max Revenue beat(4)0.53%
Revenue beat(8)1
Avg Revenue beat(8)-3.96%
Revenue beat(12)3
Avg Revenue beat(12)-2.83%
Revenue beat(16)6
Avg Revenue beat(16)-2.04%
PT rev (1m)0.83%
PT rev (3m)1.45%
EPS NQ rev (1m)-1.64%
EPS NQ rev (3m)-3.64%
EPS NY rev (1m)-1.33%
EPS NY rev (3m)-2.67%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)0.9%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.46 | ||
| Fwd PE | 10.96 | ||
| P/S | 4.03 | ||
| P/FCF | 11.16 | ||
| P/OCF | 6.8 | ||
| P/B | 4.49 | ||
| P/tB | 5.63 | ||
| EV/EBITDA | 9.19 |
EPS(TTM)4.03
EY10.57%
EPS(NY)3.48
Fwd EY9.12%
FCF(TTM)3.42
FCFY8.96%
OCF(TTM)5.6
OCFY14.7%
SpS9.45
BVpS8.49
TBVpS6.77
PEG (NY)N/A
PEG (5Y)0.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.69% | ||
| ROE | 47.5% | ||
| ROCE | 13.69% | ||
| ROIC | 9.95% | ||
| ROICexc | 10.9% | ||
| ROICexgc | 11.57% | ||
| OM | 43.49% | ||
| PM (TTM) | 42.63% | ||
| GM | 95.22% | ||
| FCFM | 36.14% |
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-Score8
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.45 | ||
| Debt/FCF | 6.09 | ||
| Debt/EBITDA | 3.57 | ||
| Cap/Depr | 128.2% | ||
| Cap/Sales | 23.13% | ||
| Interest Coverage | 4.34 | ||
| Cash Conversion | 96.33% | ||
| Profit Quality | 84.78% | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z | N/A |
F-Score8
WACC9.63%
ROIC/WACC1.03
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)55%
EPS 3Y22.73%
EPS 5Y20.9%
EPS Q2Q%14.86%
EPS Next Y-13.68%
EPS Next 2Y-3.69%
EPS Next 3Y-0.06%
EPS Next 5YN/A
Revenue 1Y (TTM)16.05%
Revenue growth 3Y7.81%
Revenue growth 5Y5.59%
Sales Q2Q%8.19%
Revenue Next Year3.28%
Revenue Next 2Y3.83%
Revenue Next 3Y4.48%
Revenue Next 5YN/A
EBIT growth 1Y21.57%
EBIT growth 3Y10.5%
EBIT growth 5Y9.38%
EBIT Next Year38.81%
EBIT Next 3Y14.93%
EBIT Next 5Y9.54%
FCF growth 1Y40.69%
FCF growth 3Y-3.57%
FCF growth 5Y57.3%
OCF growth 1Y28.62%
OCF growth 3Y6.54%
OCF growth 5Y10.05%