WESTLAKE CORP (WLK) Stock Fundamental Analysis
USA - NYSE:WLK - US9604131022 - Common Stock
58.65 USD
-0.4 (-0.68%)
58.65 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to WLK. WLK was compared to 82 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
WLK had negative earnings in the past year.
In the past year WLK had a positive cash flow from operations.
Each year in the past 5 years WLK has been profitable.
In the past 5 years WLK always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -4.80%, WLK is doing worse than 71.95% of the companies in the same industry.
With a Return On Equity value of -10.10%, WLK is not doing good in the industry: 65.85% of the companies in the same industry are doing better.
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 6.13%.
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
In the last couple of years the Profit Margin of WLK has remained more or less at the same level.
With a Operating Margin value of 0.29%, WLK is not doing good in the industry: 81.71% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of WLK has remained more or less at the same level.
WLK has a worse Gross Margin (9.18%) than 84.15% 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
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.
The debt/assets ratio for WLK has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.85 indicates that WLK is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of WLK (1.85) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.41 indicates that WLK is not too dependend on debt financing.
WLK has a Debt to Equity ratio of 0.41. This is in the better half 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 | 1.85 |
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 of 1.99. This is comparable to the rest of the industry: WLK outperforms 47.56% of 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 of 1.39. This is comparable to the rest of the industry: WLK outperforms 57.32% of its industry peers.
| 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.
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 very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -16.41% yearly.
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
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.
The Price/Forward Earnings ratio is 34.66, which means the current valuation is very expensive for WLK.
WLK's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. WLK is more expensive than 67.07% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.98, WLK is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 34.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WLK is valued a bit cheaper than the industry average as 65.85% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.26 |
4.3 Compensation for Growth
WLK's earnings are expected to decrease with -16.41% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-43.01%
EPS Next 3Y-16.41%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.08%, WLK has a reasonable but not impressive dividend return.
The stock price of WLK dropped by -35.26% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
WLK's Dividend Yield is a higher than the industry average which is at 4.00.
Compared to an average S&P500 Dividend Yield of 2.44, WLK pays a bit more dividend than the S&P500 average.
| 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 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
WLK has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-28.47%
EPS Next 2Y-43.01%
EPS Next 3Y-16.41%
58.65
-0.4 (-0.68%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners31.21%
Inst Owner Change8.6%
Ins Owners1.26%
Ins Owner Change0.08%
Market Cap7.52B
Revenue(TTM)11.48B
Net Income(TTM)-952.00M
Analysts71.82
Price Target89.63 (52.82%)
Short Float %15.71%
Short Ratio4.42
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)-3.34%
PT rev (3m)-3.42%
EPS NQ rev (1m)-1182.57%
EPS NQ rev (3m)-237.44%
EPS NY rev (1m)-912.58%
EPS NY rev (3m)-171.85%
Revenue NQ rev (1m)-4.04%
Revenue NQ rev (3m)-4.64%
Revenue NY rev (1m)-1.93%
Revenue NY rev (3m)-3.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 34.66 | ||
| P/S | 0.66 | ||
| P/FCF | N/A | ||
| P/OCF | 11.16 | ||
| P/B | 0.8 | ||
| P/tB | 1.09 | ||
| EV/EBITDA | 8.26 |
EPS(TTM)-0.63
EYN/A
EPS(NY)1.69
Fwd EY2.88%
FCF(TTM)-2.85
FCFYN/A
OCF(TTM)5.26
OCFY8.96%
SpS89.51
BVpS73.5
TBVpS53.83
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 | 1.85 |
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 -28.47%.