WESTLAKE CORP (WLK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WLK - US9604131022 - Common Stock
73.95 USD
-0.45 (-0.6%)
Overall WLK gets a fundamental rating of 3 out of 10. We evaluated WLK against 83 industry peers in the Chemicals industry. WLK scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. WLK is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year WLK has reported negative net income.
WLK had a positive operating cash flow in the past year.
WLK had positive earnings in each of the past 5 years.
Each year in the past 5 years WLK had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -4.80%, WLK is doing worse than 71.08% of the companies in the same industry.
WLK has a worse Return On Equity (-10.10%) than 63.86% of its industry peers.
WLK's Return On Invested Capital of 0.14% is on the low side compared to the rest of the industry. WLK is outperformed by 79.52% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WLK is in line with the industry average of 5.95%.
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
WLK's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 0.29%, WLK is doing worse than 80.72% of the companies in the same industry.
In the last couple of years the Operating Margin of WLK has remained more or less at the same level.
Looking at the Gross Margin, with a value of 9.18%, WLK is doing worse than 83.13% of the companies in the same industry.
In the last couple of years the Gross Margin of WLK has remained more or less at the same level.
| 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.
WLK has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for WLK remains at a similar level compared to 5 years ago.
WLK has a better debt/assets ratio than last year.
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 of 1.97. This is comparable to the rest of the industry: WLK outperforms 57.83% of its industry peers.
WLK has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
WLK has a Debt to Equity ratio of 0.41. This is in the better half of the industry: WLK outperforms 71.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.97 |
ROIC/WACC0.02
WACC7.62%
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.
A Quick Ratio of 1.39 indicates that WLK should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.39, WLK perfoms like the industry average, 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.
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 -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.
The Revenue is expected to grow by 2.01% on average over the next years.
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
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for WLK. In the last year negative earnings were reported.
With a Price/Forward Earnings ratio of 52.65, WLK can be considered very expensive at the moment.
WLK's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. WLK is more expensive than 65.06% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of WLK to the average of the S&P500 Index (23.79), we can say WLK is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 52.65 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as WLK.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.95 |
4.3 Compensation for Growth
A cheap valuation may be justified as WLK's earnings are expected to decrease with -20.70% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-48.08%
EPS Next 3Y-20.7%
5. Dividend
5.1 Amount
WLK has a Yearly Dividend Yield of 3.08%. Purely for dividend investing, there may be better candidates out there.
WLK's Dividend Yield is a higher than the industry average which is at 2.66.
Compared to an average S&P500 Dividend Yield of 1.87, WLK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
5.2 History
On average, the dividend of WLK grows each year by 14.83%, which is quite nice.
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
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%
NYSE:WLK (12/15/2025, 2:55:58 PM)
73.95
-0.45 (-0.6%)
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 Change0.09%
Market Cap9.49B
Revenue(TTM)11.48B
Net Income(TTM)-952.00M
Analysts73.64
Price Target82.93 (12.14%)
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)-10.56%
EPS NQ rev (1m)-20.89%
EPS NQ rev (3m)-609.69%
EPS NY rev (1m)-62.11%
EPS NY rev (3m)-1103.14%
Revenue NQ rev (1m)-0.48%
Revenue NQ rev (3m)-4.77%
Revenue NY rev (1m)-0.43%
Revenue NY rev (3m)-2.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 52.65 | ||
| P/S | 0.83 | ||
| P/FCF | N/A | ||
| P/OCF | 14.07 | ||
| P/B | 1.01 | ||
| P/tB | 1.37 | ||
| EV/EBITDA | 9.95 |
EPS(TTM)-0.63
EYN/A
EPS(NY)1.4
Fwd EY1.9%
FCF(TTM)-2.85
FCFYN/A
OCF(TTM)5.25
OCFY7.11%
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
WACC7.62%
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 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 dividend sustainability for WLK stock?
The dividend rating of WESTLAKE CORP (WLK) is 6 / 10 and the dividend payout ratio is -28.47%.