WESTLAKE CORP (WLK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WLK - US9604131022 - Common Stock
74.92 USD
+2.19 (+3.01%)
74.92 USD
0 (0%)
WLK gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 82 industry peers in the Chemicals industry. The financial health of WLK is average, but there are quite some concerns on its profitability. WLK does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
WLK had negative earnings in the past year.
WLK had a positive operating cash flow in the past year.
In the past 5 years WLK has always been profitable.
In the past 5 years WLK always reported a positive cash flow from operatings.
1.2 Ratios
WLK's Return On Assets of -4.80% is on the low side compared to the rest of the industry. WLK is outperformed by 71.95% of its industry peers.
WLK's Return On Equity of -10.10% is on the low side compared to the rest of the industry. WLK is outperformed by 64.63% of its industry peers.
The Return On Invested Capital of WLK (0.14%) is worse than 80.49% of 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 6.05%.
The 3 year average ROIC (6.90%) for WLK is well above the current ROIC(0.14%). The reason for the recent decline needs to be investigated.
| 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
In the last couple of years the Profit Margin of WLK has remained more or less at the same level.
WLK's Operating Margin of 0.29% is on the low side compared to the rest of the industry. WLK is outperformed by 81.71% of its industry peers.
In the last couple of years the Operating Margin of WLK has remained more or less at the same level.
With a Gross Margin value of 9.18%, WLK is not doing good in the industry: 84.15% of the companies in the same industry are doing better.
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
WLK has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for WLK remains at a similar level compared to 1 year ago.
WLK has about the same amout of shares outstanding than it did 5 years ago.
Compared to 1 year ago, WLK has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.95 indicates that WLK is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.95, WLK perfoms like the industry average, outperforming 54.88% of the companies in the same industry.
A Debt/Equity ratio of 0.41 indicates that WLK is not too dependend on debt financing.
WLK's Debt to Equity ratio of 0.41 is fine compared to the rest of the industry. WLK outperforms 71.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.95 |
ROIC/WACC0.02
WACC7.63%
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 comparable to the rest of the industry.
WLK has a Quick Ratio of 1.39. This is a normal value and indicates that WLK is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of WLK (1.39) is comparable to the rest of the 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.
The Earnings Per Share has been growing by 9.83% on average over the past years. This is quite good.
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
Based on estimates for the next years, WLK will show a decrease in Earnings Per Share. The EPS will decrease by -8.41% on average per year.
WLK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.01% yearly.
EPS Next Y-123.92%
EPS Next 2Y-48.08%
EPS Next 3Y-20.7%
EPS Next 5Y-8.41%
Revenue Next Year-7.52%
Revenue Next 2Y-2.32%
Revenue Next 3Y-0.03%
Revenue Next 5Y2.01%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
WLK reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
WLK is valuated quite expensively with a Price/Forward Earnings ratio of 53.34.
Based on the Price/Forward Earnings ratio, WLK is valued a bit more expensive than 65.85% 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 23.96.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 53.34 |
4.2 Price Multiples
WLK's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WLK is cheaper than 60.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.77 |
4.3 Compensation for Growth
WLK's earnings are expected to decrease with -20.70% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-48.08%
EPS Next 3Y-20.7%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.08%, WLK has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.98, WLK pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, WLK pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
5.2 History
The dividend of WLK is nicely growing with an annual growth rate of 14.83%!
WLK has been paying a dividend for at least 10 years, so it has a reliable track record.
WLK has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)14.83%
Div Incr Years20
Div Non Decr Years20
5.3 Sustainability
WLK has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-28.47%
EPS Next 2Y-48.08%
EPS Next 3Y-20.7%
74.92
+2.19 (+3.01%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners34.01%
Inst Owner Change7.99%
Ins Owners1.26%
Ins Owner Change0.03%
Market Cap9.61B
Revenue(TTM)11.48B
Net Income(TTM)-952.00M
Analysts73.64
Price Target82.93 (10.69%)
Short Float %15.15%
Short Ratio3.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
Yearly Dividend2.06
Dividend Growth(5Y)14.83%
DP-28.47%
Div Incr Years20
Div Non Decr Years20
Ex-Date
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)-7.47%
PT rev (3m)-10.17%
EPS NQ rev (1m)-20.89%
EPS NQ rev (3m)-578.15%
EPS NY rev (1m)-62.11%
EPS NY rev (3m)-1103.14%
Revenue NQ rev (1m)-0.48%
Revenue NQ rev (3m)-4.87%
Revenue NY rev (1m)-0.43%
Revenue NY rev (3m)-2.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 53.34 | ||
| P/S | 0.84 | ||
| P/FCF | N/A | ||
| P/OCF | 14.26 | ||
| P/B | 1.02 | ||
| P/tB | 1.39 | ||
| EV/EBITDA | 9.77 |
EPS(TTM)-0.63
EYN/A
EPS(NY)1.4
Fwd EY1.87%
FCF(TTM)-2.85
FCFYN/A
OCF(TTM)5.25
OCFY7.01%
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 | 1.95 |
F-Score5
WACC7.63%
ROIC/WACC0.02
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-123.92%
EPS Next 2Y-48.08%
EPS Next 3Y-20.7%
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-7.52%
Revenue Next 2Y-2.32%
Revenue Next 3Y-0.03%
Revenue Next 5Y2.01%
EBIT growth 1Y-96.06%
EBIT growth 3Y-30.04%
EBIT growth 5Y6.87%
EBIT Next Year4.17%
EBIT Next 3Y16.99%
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.
Can you provide the valuation status for WESTLAKE CORP?
ChartMill assigns a valuation rating of 1 / 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 dividend sustainability for WLK stock?
The dividend rating of WESTLAKE CORP (WLK) is 5 / 10 and the dividend payout ratio is -28.47%.