WESTERN MIDSTREAM PARTNERS L (WES)
US9586691035
Taking everything into account, WES scores 6 out of 10 in our fundamental rating. WES was compared to 205 industry peers in the Oil, Gas & Consumable Fuels industry. WES scores excellent on profitability, but there are concerns on its financial health. WES has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination! WES also has an excellent dividend rating.
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.
In the past 5 years WES has always been profitable.
WES had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WES has a better Return On Assets (11.50%) than 80.88% of its industry peers.
The Return On Equity of WES (46.12%) is better than 93.63% of its industry peers.
With a decent Return On Invested Capital value of 9.80%, WES is doing good in the industry, outperforming 66.67% of the companies in the same industry.
WES had an Average Return On Invested Capital over the past 3 years of 9.05%. This is significantly below the industry average of 29.03%.
The 3 year average ROIC (9.05%) for WES is below the current ROIC(9.80%), indicating increased profibility in the last year.
| 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
With an excellent Profit Margin value of 42.23%, WES belongs to the best of the industry, outperforming 89.22% of the companies in the same industry.
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 83.33% of the companies in the same industry.
In the last couple of years the Operating Margin of WES has remained more or less at the same level.
WES has a Gross Margin of 95.09%. This is amongst the best in the industry. WES outperforms 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
WES has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, WES has less shares outstanding
The number of shares outstanding for WES has been increased compared to 5 years ago.
The debt/assets ratio for WES is higher compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of WES is 6.29, which is on the high side as it means it would take WES, 6.29 years of fcf income to pay off all of its debts.
WES has a Debt to FCF ratio (6.29) which is comparable to the rest of the industry.
A Debt/Equity ratio of 2.45 is on the high side and indicates that WES has dependencies on debt financing.
The Debt to Equity ratio of WES (2.45) is worse than 87.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.45 | ||
| Debt/FCF | 6.29 | ||
| Altman-Z | N/A |
ROIC/WACC1.26
WACC7.77%
2.3 Liquidity
A Current Ratio of 1.11 indicates that WES should not have too much problems paying its short term obligations.
WES's Current ratio of 1.11 is in line compared to the rest of the industry. WES outperforms 45.10% of its industry peers.
WES has a Quick Ratio of 1.11. 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 1.11. This is comparable to the rest of the industry: WES outperforms 55.88% of its industry peers.
| 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.
WES shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.75%.
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
The Earnings Per Share is expected to grow by 14.44% on average over the next years. This is quite good.
Based on estimates for the next years, WES will show a quite strong growth in Revenue. The Revenue will grow by 8.84% on average per year.
EPS Next Y54.51%
EPS Next 2Y17.25%
EPS Next 3Y14.44%
EPS Next 5YN/A
Revenue Next Year17.67%
Revenue Next 2Y10.04%
Revenue Next 3Y8.84%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
WES is valuated reasonably with a Price/Earnings ratio of 9.98.
Based on the Price/Earnings ratio, WES is valued a bit cheaper than 62.75% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. WES is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 10.95, which indicates a very decent valuation of WES.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WES indicates a somewhat cheap valuation: WES is cheaper than 60.29% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of WES to the average of the S&P500 Index (23.80), we can say WES is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.98 | ||
| Fwd PE | 10.95 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as WES.
WES's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WES is cheaper than 60.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.8 | ||
| EV/EBITDA | 9.47 |
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.
WES's earnings are expected to grow with 14.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.18
PEG (5Y)1.11
EPS Next 2Y17.25%
EPS Next 3Y14.44%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.17%, WES is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.14, WES pays a better dividend. On top of this WES pays more dividend than 83.33% 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.17% |
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.
WES has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)2.24%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
WES pays out 75.60% of its income as dividend. This is not a sustainable payout ratio.
WES's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP75.6%
EPS Next 2Y17.25%
EPS Next 3Y14.44%
WESTERN MIDSTREAM PARTNERS L
NYSE:WES (12/27/2024, 8:04:00 PM)
After market: 39.21 +0.08 (+0.2%)39.13
+0.11 (+0.28%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners83.31%
Inst Owner Change5.09%
Ins Owners0.29%
Ins Owner Change0%
Market Cap14.89B
Analysts66.32
Price Target40.77 (4.19%)
Short Float %1.63%
Short Ratio4.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.17% |
Dividend Growth(5Y)2.24%
DP75.6%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.39%
Min EPS beat(2)-12%
Max EPS beat(2)9.22%
EPS beat(4)2
Avg EPS beat(4)18.31%
Min EPS beat(4)-12%
Max EPS beat(4)81.72%
EPS beat(8)4
Avg EPS beat(8)9.52%
EPS beat(12)5
Avg EPS beat(12)5.56%
EPS beat(16)6
Avg EPS beat(16)2.74%
Revenue beat(2)0
Avg Revenue beat(2)-4.04%
Min Revenue beat(2)-6.34%
Max Revenue beat(2)-1.75%
Revenue beat(4)1
Avg Revenue beat(4)-2.31%
Min Revenue beat(4)-6.34%
Max Revenue beat(4)0.53%
Revenue beat(8)1
Avg Revenue beat(8)-4.81%
Revenue beat(12)3
Avg Revenue beat(12)-3.35%
Revenue beat(16)6
Avg Revenue beat(16)-2.38%
PT rev (1m)-0.42%
PT rev (3m)0.84%
EPS NQ rev (1m)-0.35%
EPS NQ rev (3m)-6.38%
EPS NY rev (1m)-2.85%
EPS NY rev (3m)-1.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.1%
Revenue NY rev (1m)-0.98%
Revenue NY rev (3m)-1.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.98 | ||
| Fwd PE | 10.95 | ||
| P/S | 4.21 | ||
| P/FCF | 11.8 | ||
| P/OCF | 7.24 | ||
| P/B | 4.6 | ||
| P/tB | 5.78 | ||
| EV/EBITDA | 9.47 |
EPS(TTM)3.92
EY10.02%
EPS(NY)3.57
Fwd EY9.13%
FCF(TTM)3.32
FCFY8.47%
OCF(TTM)5.4
OCFY13.81%
SpS9.29
BVpS8.51
TBVpS6.76
PEG (NY)0.18
PEG (5Y)1.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.5% | ||
| ROE | 46.12% | ||
| ROCE | 13.5% | ||
| ROIC | 9.8% | ||
| ROICexc | 10.78% | ||
| ROICexgc | 11.46% | ||
| OM | 43.28% | ||
| PM (TTM) | 42.23% | ||
| GM | 95.09% | ||
| FCFM | 35.7% |
ROA(3y)8.84%
ROA(5y)7.25%
ROE(3y)34.93%
ROE(5y)28.84%
ROIC(3y)9.05%
ROIC(5y)8.57%
ROICexc(3y)9.26%
ROICexc(5y)8.78%
ROICexgc(3y)9.93%
ROICexgc(5y)9.49%
ROCE(3y)11.92%
ROCE(5y)11.21%
ROICexcg growth 3Y-2.32%
ROICexcg growth 5Y4.75%
ROICexc growth 3Y-1.89%
ROICexc growth 5Y6.14%
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%
F-Score7
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.45 | ||
| Debt/FCF | 6.29 | ||
| Debt/EBITDA | 3.63 | ||
| Cap/Depr | 121.63% | ||
| Cap/Sales | 22.45% | ||
| Interest Coverage | 4.3 | ||
| Cash Conversion | 94.2% | ||
| Profit Quality | 84.54% | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | N/A |
F-Score7
WACC7.77%
ROIC/WACC1.26
Cap/Depr(3y)87.64%
Cap/Depr(5y)119.01%
Cap/Sales(3y)16.52%
Cap/Sales(5y)21.62%
Profit Quality(3y)118.97%
Profit Quality(5y)122.54%
High Growth Momentum
Growth
EPS 1Y (TTM)44.65%
EPS 3Y0.91%
EPS 5Y9%
EPS Q2Q%5.71%
EPS Next Y54.51%
EPS Next 2Y17.25%
EPS Next 3Y14.44%
EPS Next 5YN/A
Revenue 1Y (TTM)16.75%
Revenue growth 3Y3.86%
Revenue growth 5Y6.2%
Sales Q2Q%13.83%
Revenue Next Year17.67%
Revenue Next 2Y10.04%
Revenue Next 3Y8.84%
Revenue Next 5YN/A
EBIT growth 1Y24.58%
EBIT growth 3Y0.03%
EBIT growth 5Y7.58%
EBIT Next Year67.02%
EBIT Next 3Y21.99%
EBIT Next 5Y13.37%
FCF growth 1Y-12.16%
FCF growth 3Y-8.63%
FCF growth 5YN/A
OCF growth 1Y9.69%
OCF growth 3Y0.48%
OCF growth 5Y4.27%