WESTLAKE CORP (WLK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WLK - US9604131022 - Common Stock
77.43 USD
+2.45 (+3.27%)
77.43 USD
0 (0%)
Overall WLK gets a fundamental rating of 3 out of 10. We evaluated WLK against 83 industry peers in the Chemicals industry. While WLK seems to be doing ok healthwise, there are quite some concerns on its profitability. WLK has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year WLK has reported negative net income.
In the past year WLK had a positive cash flow from operations.
In the past 5 years WLK has always been profitable.
Each year in the past 5 years WLK had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -4.80%, WLK is not doing good in the industry: 72.29% of the companies in the same industry are doing better.
The Return On Equity of WLK (-10.10%) is worse than 65.06% of its industry peers.
With a Return On Invested Capital value of 0.14%, WLK is not doing good in the industry: 80.72% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for WLK is in line with the industry average of 6.10%.
The last Return On Invested Capital (0.14%) for WLK is well below the 3 year average (6.90%), which needs to be investigated, but indicates that WLK had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.8% | ||
| ROE | -10.1% | ||
| ROIC | 0.14% |
ROA(3y)5.34%
ROA(5y)5.85%
ROE(3y)10.95%
ROE(5y)12.7%
ROIC(3y)6.9%
ROIC(5y)7.19%
1.3 Margins
WLK's Profit Margin has been stable in the last couple of years.
WLK's Operating Margin of 0.29% is on the low side compared to the rest of the industry. WLK is outperformed by 81.93% of its industry peers.
WLK's Operating Margin has been stable in the last couple of years.
The Gross Margin of WLK (9.18%) is worse than 84.34% of its industry peers.
WLK's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.29% | ||
| PM (TTM) | N/A | ||
| GM | 9.18% |
OM growth 3Y-30.74%
OM growth 5Y-1.4%
PM growth 3Y-33.82%
PM growth 5Y-0.9%
GM growth 3Y-18.41%
GM growth 5Y0.76%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WLK is destroying value.
Compared to 1 year ago, WLK has about the same amount of shares outstanding.
WLK has about the same amout of shares outstanding than it did 5 years ago.
The debt/assets ratio for WLK has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.97 indicates that WLK is not a great score, but indicates only limited risk for bankruptcy at the moment.
WLK has a Altman-Z score (1.97) which is in line with its industry peers.
A Debt/Equity ratio of 0.41 indicates that WLK is not too dependend on debt financing.
The Debt to Equity ratio of WLK (0.41) is better than 69.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.97 |
ROIC/WACC0.01
WACC11.41%
2.3 Liquidity
A Current Ratio of 1.99 indicates that WLK should not have too much problems paying its short term obligations.
WLK has a Current ratio (1.99) which is in line with its industry peers.
A Quick Ratio of 1.39 indicates that WLK should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.39, WLK is in line with its industry, outperforming 55.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
The earnings per share for WLK have decreased strongly by -110.73% in the last year.
WLK shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.83% yearly.
Looking at the last year, WLK shows a decrease in Revenue. The Revenue has decreased by -5.32% in the last year.
The Revenue has been growing by 8.38% on average over the past years. This is quite good.
EPS 1Y (TTM)-110.73%
EPS 3Y-30.59%
EPS 5Y9.83%
EPS Q2Q%-120.57%
Revenue 1Y (TTM)-5.32%
Revenue growth 3Y1.02%
Revenue growth 5Y8.38%
Sales Q2Q%-8.95%
3.2 Future
WLK is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -8.41% yearly.
Based on estimates for the next years, WLK will show a small growth in Revenue. The Revenue will grow by 2.01% on average per year.
EPS Next Y-138.43%
EPS Next 2Y-55.17%
EPS Next 3Y-22%
EPS Next 5Y-8.41%
Revenue Next Year-7.92%
Revenue Next 2Y-3.47%
Revenue Next 3Y-1.09%
Revenue Next 5Y2.01%
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.
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
WLK reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
A Price/Forward Earnings ratio of 73.94 indicates a quite expensive valuation of WLK.
Based on the Price/Forward Earnings ratio, WLK is valued a bit more expensive than 66.27% of the companies in the same industry.
WLK's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.79.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 73.94 |
4.2 Price Multiples
WLK's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.01 |
4.3 Compensation for Growth
A cheap valuation may be justified as WLK's earnings are expected to decrease with -22.00% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-55.17%
EPS Next 3Y-22%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.87%, WLK has a reasonable but not impressive dividend return.
WLK's Dividend Yield is a higher than the industry average which is at 2.47.
WLK's Dividend Yield is a higher than the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
5.2 History
The dividend of WLK is nicely growing with an annual growth rate of 14.83%!
WLK has paid a dividend for at least 10 years, which is a reliable track record.
WLK has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)14.83%
Div Incr Years20
Div Non Decr Years20
5.3 Sustainability
The earnings of WLK are negative and hence is the payout ratio. WLK will probably not be able to sustain this dividend level.
DP-28.47%
EPS Next 2Y-55.17%
EPS Next 3Y-22%
77.43
+2.45 (+3.27%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners34.07%
Inst Owner Change0%
Ins Owners1.3%
Ins Owner Change1.63%
Market Cap9.93B
Revenue(TTM)11.48B
Net Income(TTM)-952.00M
Analysts73.64
Price Target83 (7.19%)
Short Float %16.5%
Short Ratio3.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
Yearly Dividend2.06
Dividend Growth(5Y)14.83%
DP-28.47%
Div Incr Years20
Div Non Decr Years20
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-202.92%
Min EPS beat(2)-213.97%
Max EPS beat(2)-191.86%
EPS beat(4)0
Avg EPS beat(4)-161.94%
Min EPS beat(4)-213.97%
Max EPS beat(4)-94.57%
EPS beat(8)2
Avg EPS beat(8)-82.02%
EPS beat(12)4
Avg EPS beat(12)-54.05%
EPS beat(16)7
Avg EPS beat(16)-39.53%
Revenue beat(2)0
Avg Revenue beat(2)-3.8%
Min Revenue beat(2)-4.44%
Max Revenue beat(2)-3.15%
Revenue beat(4)0
Avg Revenue beat(4)-4.08%
Min Revenue beat(4)-4.46%
Max Revenue beat(4)-3.15%
Revenue beat(8)1
Avg Revenue beat(8)-3.3%
Revenue beat(12)1
Avg Revenue beat(12)-3.8%
Revenue beat(16)4
Avg Revenue beat(16)-0.58%
PT rev (1m)-0.91%
PT rev (3m)-10.49%
EPS NQ rev (1m)-155.68%
EPS NQ rev (3m)-1394.33%
EPS NY rev (1m)-60.67%
EPS NY rev (3m)-2216.43%
Revenue NQ rev (1m)-1.59%
Revenue NQ rev (3m)-6.22%
Revenue NY rev (1m)-0.44%
Revenue NY rev (3m)-2.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 73.94 | ||
| P/S | 0.87 | ||
| P/FCF | N/A | ||
| P/OCF | 14.74 | ||
| P/B | 1.05 | ||
| P/tB | 1.44 | ||
| EV/EBITDA | 10.01 |
EPS(TTM)-0.63
EYN/A
EPS(NY)1.05
Fwd EY1.35%
FCF(TTM)-2.85
FCFYN/A
OCF(TTM)5.25
OCFY6.79%
SpS89.5
BVpS73.49
TBVpS53.82
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.8% | ||
| ROE | -10.1% | ||
| ROCE | 0.2% | ||
| ROIC | 0.14% | ||
| ROICexc | 0.16% | ||
| ROICexgc | 0.19% | ||
| OM | 0.29% | ||
| PM (TTM) | N/A | ||
| GM | 9.18% | ||
| FCFM | N/A |
ROA(3y)5.34%
ROA(5y)5.85%
ROE(3y)10.95%
ROE(5y)12.7%
ROIC(3y)6.9%
ROIC(5y)7.19%
ROICexc(3y)8.06%
ROICexc(5y)8.28%
ROICexgc(3y)10.44%
ROICexgc(5y)10.79%
ROCE(3y)9.62%
ROCE(5y)10.02%
ROICexgc growth 3Y-33.41%
ROICexgc growth 5Y1.51%
ROICexc growth 3Y-32.2%
ROICexc growth 5Y0.16%
OM growth 3Y-30.74%
OM growth 5Y-1.4%
PM growth 3Y-33.82%
PM growth 5Y-0.9%
GM growth 3Y-18.41%
GM growth 5Y0.76%
F-Score5
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.27 | ||
| Cap/Depr | 89.41% | ||
| Cap/Sales | 9.05% | ||
| Interest Coverage | 0.21 | ||
| Cash Conversion | 56.4% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.39 | ||
| Altman-Z | 1.97 |
F-Score5
WACC11.41%
ROIC/WACC0.01
Cap/Depr(3y)96.56%
Cap/Depr(5y)87.18%
Cap/Sales(3y)7.85%
Cap/Sales(5y)7.23%
Profit Quality(3y)142.31%
Profit Quality(5y)149.64%
High Growth Momentum
Growth
EPS 1Y (TTM)-110.73%
EPS 3Y-30.59%
EPS 5Y9.83%
EPS Q2Q%-120.57%
EPS Next Y-138.43%
EPS Next 2Y-55.17%
EPS Next 3Y-22%
EPS Next 5Y-8.41%
Revenue 1Y (TTM)-5.32%
Revenue growth 3Y1.02%
Revenue growth 5Y8.38%
Sales Q2Q%-8.95%
Revenue Next Year-7.92%
Revenue Next 2Y-3.47%
Revenue Next 3Y-1.09%
Revenue Next 5Y2.01%
EBIT growth 1Y-96.06%
EBIT growth 3Y-30.04%
EBIT growth 5Y6.87%
EBIT Next Year-7.82%
EBIT Next 3Y16.07%
EBIT Next 5Y15.07%
FCF growth 1Y-123.56%
FCF growth 3Y-43.93%
FCF growth 5Y-9.85%
OCF growth 1Y-74.06%
OCF growth 3Y-18.12%
OCF growth 5Y0.2%
WESTLAKE CORP / WLK FAQ
What is the fundamental rating for WLK stock?
ChartMill assigns a fundamental rating of 3 / 10 to WLK.
What is the valuation status of WESTLAKE CORP (WLK) stock?
ChartMill assigns a valuation rating of 0 / 10 to WESTLAKE CORP (WLK). This can be considered as Overvalued.
What is the profitability of WLK stock?
WESTLAKE CORP (WLK) has a profitability rating of 3 / 10.
Can you provide the financial health for WLK stock?
The financial health rating of WESTLAKE CORP (WLK) is 4 / 10.