WESTLAKE CORP (WLK) Stock Fundamental Analysis
USA - NYSE:WLK - US9604131022 - Common Stock
62.56 USD
-2.35 (-3.62%)
62.56 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. WLK has a bad profitability rating. Also its financial health evaluation is rather negative. WLK does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year WLK has reported negative net income.
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
Looking at the Return On Assets, with a value of -4.83%, WLK is doing worse than 71.95% of the companies in the same industry.
Looking at the Return On Equity, with a value of -10.15%, WLK is doing worse than 68.29% of the companies in the same industry.
WLK has a Return On Invested Capital of 0.14%. This is amonst the worse of the industry: WLK underperforms 80.49% 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 6.13%.
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 worse Operating Margin (0.29%) than 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.
The Gross Margin of WLK (9.18%) is worse than 82.93% 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.
WLK has about the same amout of shares outstanding than it did 5 years ago.
The debt/assets ratio for WLK has been reduced compared to a year ago.
2.2 Solvency
WLK has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.41, WLK is in the better half of the industry, outperforming 71.95% of the companies in the same industry.
| 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.
A Quick Ratio of 1.39 indicates that WLK should not have too much problems paying 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
The Earnings Per Share is expected to decrease by -16.41% on average over the next years. This is quite bad
The Revenue is expected to decrease by -0.02% on average over the next years.
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.
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
WLK reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 36.98, 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 65.85% of the companies listed in the same industry.
WLK's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 36.98 |
4.2 Price Multiples
63.41% 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 | 8.92 |
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.
In the last 3 months the price of WLK has falen by -25.51%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
WLK's Dividend Yield is a higher than the industry average which is at 3.96.
WLK's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| 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 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
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%
62.56
-2.35 (-3.62%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners31.21%
Inst Owner Change-1.41%
Ins Owners1.26%
Ins Owner Change0.03%
Market Cap8.02B
Revenue(TTM)11.48B
Net Income(TTM)-957.00M
Analysts71.82
Price Target89.63 (43.27%)
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)-3.42%
EPS NQ rev (1m)-518.75%
EPS NQ rev (3m)-217.36%
EPS NY rev (1m)-912.58%
EPS NY rev (3m)-171.85%
Revenue NQ rev (1m)-4.24%
Revenue NQ rev (3m)-5.08%
Revenue NY rev (1m)-1.93%
Revenue NY rev (3m)-3.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 36.98 | ||
| P/S | 0.7 | ||
| P/FCF | N/A | ||
| P/OCF | 11.9 | ||
| P/B | 0.85 | ||
| P/tB | 0.85 | ||
| EV/EBITDA | 8.92 |
EPS(TTM)-0.63
EYN/A
EPS(NY)1.69
Fwd EY2.7%
FCF(TTM)-2.85
FCFYN/A
OCF(TTM)5.26
OCFY8.4%
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%.