WESTLAKE CORP (WLK) Stock Fundamental Analysis
USA - NYSE:WLK - US9604131022 - Common Stock
64.95 USD
+0.49 (+0.76%)
64.95 USD
0 (0%)
Overall WLK gets a fundamental rating of 3 out of 10. We evaluated WLK against 82 industry peers in the Chemicals industry. WLK may be in some trouble as it scores bad on both profitability and health. 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.
In the past year WLK had a positive cash flow from operations.
In the past 5 years WLK has always been profitable.
WLK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of -4.83%, WLK is not doing good in the industry: 71.95% of the companies in the same industry are doing better.
The Return On Equity of WLK (-10.15%) is worse than 67.07% of its industry peers.
WLK has a Return On Invested Capital of 0.14%. This is amonst the worse of the industry: WLK underperforms 81.71% 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 6.23%.
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 | -4.83% | ||
| ROE | -10.15% | ||
| 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 has a Operating Margin of 0.29%. This is amonst the worse of the industry: WLK underperforms 81.71% of its industry peers.
WLK's Operating Margin has been stable in the last couple of years.
WLK's Gross Margin of 9.18% 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 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
WLK has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, WLK has about the same amount of shares outstanding.
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
A Debt/Equity ratio of 0.41 indicates that WLK is not too dependend on debt financing.
WLK has a better Debt to Equity ratio (0.41) than 71.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.02
WACC7.33%
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.
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.
WLK has a Quick ratio (1.39) which 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
WLK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -110.73%.
The Earnings Per Share has been growing by 9.83% on average over the past years. This is quite good.
The Revenue has decreased by -5.32% in the past 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)-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
The Earnings Per Share is expected to decrease by -16.41% on average over the next years. This is quite bad
WLK is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.02% yearly.
EPS Next Y-114.76%
EPS Next 2Y-43.01%
EPS Next 3Y-16.41%
EPS Next 5YN/A
Revenue Next Year-7.12%
Revenue Next 2Y-2.13%
Revenue Next 3Y-0.02%
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 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
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 38.39.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WLK indicates a slightly more expensive valuation: WLK is more expensive than 65.85% of the companies listed in the same industry.
WLK is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 32.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 38.39 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WLK indicates a somewhat cheap valuation: WLK is cheaper than 60.98% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.87 |
4.3 Compensation for Growth
A cheap valuation may be justified as WLK's earnings are expected to decrease with -16.41% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-43.01%
EPS Next 3Y-16.41%
5. Dividend
5.1 Amount
WLK has a Yearly Dividend Yield of 3.08%.
Compared to an average industry Dividend Yield of 4.11, WLK pays a bit more dividend than its industry peers.
WLK's Dividend Yield is a higher than the S&P500 average which is at 2.39.
| 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 paid a dividend for at least 10 years, which is 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
The earnings of WLK are negative and hence is the payout ratio. WLK will probably not be able to sustain this dividend level.
DP-28.32%
EPS Next 2Y-43.01%
EPS Next 3Y-16.41%
64.95
+0.49 (+0.76%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners31.21%
Inst Owner Change-1.05%
Ins Owners1.26%
Ins Owner Change0.03%
Market Cap8.33B
Revenue(TTM)11.48B
Net Income(TTM)-957.00M
Analysts71.82
Price Target89.63 (38%)
Short Float %15.53%
Short Ratio4.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
Yearly Dividend2.06
Dividend Growth(5Y)14.83%
DP-28.32%
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)-3.34%
PT rev (3m)-2.12%
EPS NQ rev (1m)-195.91%
EPS NQ rev (3m)-126.88%
EPS NY rev (1m)-355.34%
EPS NY rev (3m)-122.58%
Revenue NQ rev (1m)-0.57%
Revenue NQ rev (3m)-1.44%
Revenue NY rev (1m)-0.47%
Revenue NY rev (3m)-2.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 38.39 | ||
| P/S | 0.73 | ||
| P/FCF | N/A | ||
| P/OCF | 12.36 | ||
| P/B | 0.88 | ||
| P/tB | 0.88 | ||
| EV/EBITDA | 8.87 |
EPS(TTM)-0.63
EYN/A
EPS(NY)1.69
Fwd EY2.6%
FCF(TTM)-2.85
FCFYN/A
OCF(TTM)5.26
OCFY8.09%
SpS89.51
BVpS73.5
TBVpS73.5
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.83% | ||
| ROE | -10.15% | ||
| ROCE | 0.2% | ||
| ROIC | 0.14% | ||
| ROICexc | 0.16% | ||
| ROICexgc | 0.16% | ||
| 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 | 250 | ||
| Cash Conversion | 56.4% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.39 | ||
| Altman-Z | N/A |
F-Score5
WACC7.33%
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-114.76%
EPS Next 2Y-43.01%
EPS Next 3Y-16.41%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.32%
Revenue growth 3Y1.02%
Revenue growth 5Y8.38%
Sales Q2Q%-8.95%
Revenue Next Year-7.12%
Revenue Next 2Y-2.13%
Revenue Next 3Y-0.02%
Revenue Next 5YN/A
EBIT growth 1Y-96.06%
EBIT growth 3Y-30.04%
EBIT growth 5Y6.87%
EBIT Next Year20.07%
EBIT Next 3Y22.33%
EBIT Next 5YN/A
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 -28.32%.