WESTLAKE CORP (WLK) Stock Fundamental Analysis
NYSE:WLK - New York Stock Exchange, Inc. - US9604131022 - Common Stock - Currency: USD
Overall WLK gets a fundamental rating of 5 out of 10. We evaluated WLK against 85 industry peers in the Chemicals industry. WLK has only an average score on both its financial health and profitability. WLK is valied quite expensively at the moment, while it does show a decent growth rate. Finally WLK also has an excellent dividend rating. With these ratings, WLK could be worth investigating further for dividend investing!.
1. Profitability
1.1 Basic Checks
WLK had positive earnings in the past year.
WLK had a positive operating cash flow in the past year.
Each year in the past 5 years WLK has been profitable.
WLK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WLK's Return On Assets of 2.88% is fine compared to the rest of the industry. WLK outperforms 63.53% of its industry peers.
WLK has a Return On Equity (5.68%) which is in line with its industry peers.
WLK has a Return On Invested Capital (3.74%) which is in line with its industry peers.
WLK had an Average Return On Invested Capital over the past 3 years of 6.90%. This is in line with the industry average of 7.13%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.88% | ||
| ROE | 5.68% | ||
| ROIC | 3.74% |
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 has a Profit Margin of 4.93%. This is in the better half of the industry: WLK outperforms 65.88% of its industry peers.
WLK's Profit Margin has been stable in the last couple of years.
WLK has a Operating Margin (7.96%) which is comparable to the rest of the industry.
WLK's Operating Margin has been stable in the last couple of years.
WLK has a Gross Margin of 16.12%. This is in the lower half of the industry: WLK underperforms 71.76% of its industry peers.
WLK's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.96% | ||
| PM (TTM) | 4.93% | ||
| GM | 16.12% |
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.
The number of shares outstanding for WLK remains at a similar level compared to 1 year ago.
Compared to 5 years ago, WLK has about the same amount of shares outstanding.
WLK has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.38 indicates that WLK is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.38, WLK is in the better half of the industry, outperforming 69.41% of the companies in the same industry.
The Debt to FCF ratio of WLK is 15.00, which is on the high side as it means it would take WLK, 15.00 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of WLK (15.00) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.43 indicates that WLK is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.43, WLK is in the better half of the industry, outperforming 67.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 15 | ||
| Altman-Z | 2.38 |
ROIC/WACC0.49
WACC7.7%
2.3 Liquidity
A Current Ratio of 2.80 indicates that WLK has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.80, WLK belongs to the top of the industry, outperforming 81.18% of the companies in the same industry.
WLK has a Quick Ratio of 2.04. This indicates that WLK is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.04, WLK belongs to the top of the industry, outperforming 82.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.8 | ||
| Quick Ratio | 2.04 |
3. Growth
3.1 Past
WLK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -37.08%.
Measured over the past years, WLK shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.83% on average per year.
Looking at the last year, WLK shows a decrease in Revenue. The Revenue has decreased by -3.24% in the last year.
WLK shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.38% yearly.
EPS 1Y (TTM)-37.08%
EPS 3Y-30.59%
EPS 5Y9.83%
EPS Q2Q%-91.67%
Revenue 1Y (TTM)-3.24%
Revenue growth 3Y1.02%
Revenue growth 5Y8.38%
Sales Q2Q%0.6%
3.2 Future
The Earnings Per Share is expected to grow by 20.93% on average over the next years. This is a very strong growth
WLK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.86% yearly.
EPS Next Y-4.98%
EPS Next 2Y17.05%
EPS Next 3Y20.93%
EPS Next 5YN/A
Revenue Next Year0.65%
Revenue Next 2Y3.26%
Revenue Next 3Y3.86%
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 accelerating.
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 is valuated rather expensively with a Price/Earnings ratio of 17.86.
Compared to the rest of the industry, the Price/Earnings ratio of WLK is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 28.87. WLK is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 18.80 indicates a rather expensive valuation of WLK.
WLK's Price/Forward Earnings ratio is in line with the industry average.
WLK's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.86 | ||
| Fwd PE | 18.8 |
4.2 Price Multiples
WLK's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. WLK is cheaper than 81.18% of the companies in the same industry.
WLK's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.08 | ||
| EV/EBITDA | 6.55 |
4.3 Compensation for Growth
A more expensive valuation may be justified as WLK's earnings are expected to grow with 20.93% in the coming years.
PEG (NY)N/A
PEG (5Y)1.82
EPS Next 2Y17.05%
EPS Next 3Y20.93%
5. Dividend
5.1 Amount
WLK has a Yearly Dividend Yield of 2.22%.
WLK's Dividend Yield is a higher than the industry average which is at 3.80.
WLK's Dividend Yield is comparable with the S&P500 average which is at 2.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
5.2 History
On average, the dividend of WLK grows each year by 14.83%, which is quite nice.
WLK has been paying a dividend for at least 10 years, so it has 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
44.15% of the earnings are spent on dividend by WLK. This is a bit on the high side, but may be sustainable.
The dividend of WLK is growing, but earnings are growing more, so the dividend growth is sustainable.
DP44.15%
EPS Next 2Y17.05%
EPS Next 3Y20.93%
93.06
-0.33 (-0.35%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners27.86%
Inst Owner Change0.24%
Ins Owners0.69%
Ins Owner Change3.74%
Market Cap11.96B
Analysts72.17
Price Target121.32 (30.37%)
Short Float %9.49%
Short Ratio3.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
Yearly Dividend2.06
Dividend Growth(5Y)14.83%
DP44.15%
Div Incr Years20
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-65.63%
Min EPS beat(2)-94.57%
Max EPS beat(2)-36.7%
EPS beat(4)2
Avg EPS beat(4)-20.57%
Min EPS beat(4)-94.57%
Max EPS beat(4)29.38%
EPS beat(8)4
Avg EPS beat(8)-9.16%
EPS beat(12)6
Avg EPS beat(12)-7.44%
EPS beat(16)10
Avg EPS beat(16)-1.74%
Revenue beat(2)0
Avg Revenue beat(2)-5.45%
Min Revenue beat(2)-6.62%
Max Revenue beat(2)-4.28%
Revenue beat(4)1
Avg Revenue beat(4)-3.09%
Min Revenue beat(4)-6.62%
Max Revenue beat(4)0.44%
Revenue beat(8)1
Avg Revenue beat(8)-3.72%
Revenue beat(12)3
Avg Revenue beat(12)-1.33%
Revenue beat(16)7
Avg Revenue beat(16)1.88%
PT rev (1m)-10.87%
PT rev (3m)-23.98%
EPS NQ rev (1m)-21.8%
EPS NQ rev (3m)-58.76%
EPS NY rev (1m)-14.69%
EPS NY rev (3m)-38.63%
Revenue NQ rev (1m)-1.26%
Revenue NQ rev (3m)-5.64%
Revenue NY rev (1m)-0.88%
Revenue NY rev (3m)-3.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.86 | ||
| Fwd PE | 18.8 | ||
| P/S | 0.98 | ||
| P/FCF | 39.08 | ||
| P/OCF | 9.1 | ||
| P/B | 1.14 | ||
| P/tB | 1.66 | ||
| EV/EBITDA | 6.55 |
EPS(TTM)5.21
EY5.6%
EPS(NY)4.95
Fwd EY5.32%
FCF(TTM)2.38
FCFY2.56%
OCF(TTM)10.23
OCFY10.99%
SpS94.5
BVpS81.93
TBVpS56.14
PEG (NY)N/A
PEG (5Y)1.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.88% | ||
| ROE | 5.68% | ||
| ROCE | 5.21% | ||
| ROIC | 3.74% | ||
| ROICexc | 4.44% | ||
| ROICexgc | 5.64% | ||
| OM | 7.96% | ||
| PM (TTM) | 4.93% | ||
| GM | 16.12% | ||
| FCFM | 2.52% |
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%
ROICexcg growth 3Y-33.41%
ROICexcg 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-Score6
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 15 | ||
| Debt/EBITDA | 2.19 | ||
| Cap/Depr | 90.48% | ||
| Cap/Sales | 8.3% | ||
| Interest Coverage | 6.31 | ||
| Cash Conversion | 63.17% | ||
| Profit Quality | 51.17% | ||
| Current Ratio | 2.8 | ||
| Quick Ratio | 2.04 | ||
| Altman-Z | 2.38 |
F-Score6
WACC7.7%
ROIC/WACC0.49
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)-37.08%
EPS 3Y-30.59%
EPS 5Y9.83%
EPS Q2Q%-91.67%
EPS Next Y-4.98%
EPS Next 2Y17.05%
EPS Next 3Y20.93%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.24%
Revenue growth 3Y1.02%
Revenue growth 5Y8.38%
Sales Q2Q%0.6%
Revenue Next Year0.65%
Revenue Next 2Y3.26%
Revenue Next 3Y3.86%
Revenue Next 5YN/A
EBIT growth 1Y-21.59%
EBIT growth 3Y-30.04%
EBIT growth 5Y6.87%
EBIT Next Year96.18%
EBIT Next 3Y35.21%
EBIT Next 5YN/A
FCF growth 1Y-76.5%
FCF growth 3Y-43.93%
FCF growth 5Y-9.85%
OCF growth 1Y-43.75%
OCF growth 3Y-18.12%
OCF growth 5Y0.2%