WESTLAKE CORP (WLK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WLK - US9604131022 - Common Stock
68.02 USD
+0.05 (+0.07%)
68.02 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to WLK. WLK was compared to 81 industry peers in the Chemicals industry. The financial health of WLK is average, but there are quite some concerns on its profitability. 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.
WLK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WLK has a Return On Assets of -4.80%. This is in the lower half of the industry: WLK underperforms 72.84% of its industry peers.
WLK has a worse Return On Equity (-10.10%) than 65.43% of its industry peers.
The Return On Invested Capital of WLK (0.14%) is worse than 80.25% 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 6.15%.
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.
WLK's Operating Margin of 0.29% is on the low side compared to the rest of the industry. WLK is outperformed by 81.48% of its industry peers.
In the last couple of years the Operating Margin of WLK has remained more or less at the same level.
WLK's Gross Margin of 9.18% is on the low side compared to the rest of the industry. WLK is outperformed by 85.19% 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.
The number of shares outstanding for WLK remains at a similar level compared to 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 1.92 indicates that WLK is not a great score, but indicates only limited risk for bankruptcy at the moment.
WLK has a Altman-Z score (1.92) which is in line with 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's Debt to Equity ratio of 0.41 is fine compared to the rest of the industry. WLK outperforms 72.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.92 |
ROIC/WACC0.02
WACC7.6%
2.3 Liquidity
WLK has a Current Ratio of 1.99. 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 Current ratio of 1.99. This is comparable to the rest of the industry: WLK outperforms 49.38% of its industry peers.
A Quick Ratio of 1.39 indicates that WLK should not have too much problems paying its short term obligations.
WLK's Quick ratio of 1.39 is in line compared to the rest of the industry. WLK outperforms 53.09% of its industry peers.
| 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.
The Revenue has decreased by -5.32% in the past 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.
Based on estimates for the next years, WLK will show a small growth in Revenue. The Revenue will grow by 2.01% on average per year.
EPS Next Y-114.76%
EPS Next 2Y-43.01%
EPS Next 3Y-16.41%
EPS Next 5Y-8.41%
Revenue Next Year-7.12%
Revenue Next 2Y-2.13%
Revenue Next 3Y-0.02%
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.
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
The Price/Earnings Ratio is negative for WLK. In the last year negative earnings were reported.
With a Price/Forward Earnings ratio of 40.20, WLK can be considered very expensive at the moment.
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 67.90% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of WLK to the average of the S&P500 Index (36.10), we can say WLK is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 40.2 |
4.2 Price Multiples
61.73% of the companies in the same industry are more expensive than WLK, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.26 |
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 -23.93% 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 3.88.
Compared to an average S&P500 Dividend Yield of 2.32, 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
The earnings of WLK are negative and hence is the payout ratio. WLK will probably not be able to sustain this dividend level.
DP-28.47%
EPS Next 2Y-43.01%
EPS Next 3Y-16.41%
68.02
+0.05 (+0.07%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners31.21%
Inst Owner Change7.99%
Ins Owners1.26%
Ins Owner Change0.03%
Market Cap8.72B
Revenue(TTM)11.48B
Net Income(TTM)-952.00M
Analysts71.82
Price Target83.76 (23.14%)
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)-9.67%
PT rev (3m)-9.27%
EPS NQ rev (1m)-374.6%
EPS NQ rev (3m)-529.94%
EPS NY rev (1m)-218.23%
EPS NY rev (3m)-718.81%
Revenue NQ rev (1m)-3.73%
Revenue NQ rev (3m)-4.44%
Revenue NY rev (1m)-1.47%
Revenue NY rev (3m)-1.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 40.2 | ||
| P/S | 0.76 | ||
| P/FCF | N/A | ||
| P/OCF | 12.94 | ||
| P/B | 0.93 | ||
| P/tB | 1.26 | ||
| EV/EBITDA | 9.26 |
EPS(TTM)-0.63
EYN/A
EPS(NY)1.69
Fwd EY2.49%
FCF(TTM)-2.85
FCFYN/A
OCF(TTM)5.25
OCFY7.72%
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 | 1.92 |
F-Score5
WACC7.6%
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 5Y-8.41%
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 5Y2.01%
EBIT growth 1Y-96.06%
EBIT growth 3Y-30.04%
EBIT growth 5Y6.87%
EBIT Next Year20.07%
EBIT Next 3Y22.33%
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%.