WESTLAKE CORP (WLK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WLK - US9604131022 - Common Stock
87.87 USD
-0.43 (-0.49%)
87.87 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. The financial health of WLK is average, but there are quite some concerns on its profitability. WLK has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
- WLK had negative earnings in the past year.
- WLK had a positive operating cash flow in the past year.
- Each year in the past 5 years WLK has been profitable.
- Each year in the past 5 years WLK had a positive operating cash flow.
1.2 Ratios
- WLK has a worse Return On Assets (-4.80%) than 73.17% of its industry peers.
- Looking at the Return On Equity, with a value of -10.10%, WLK is doing worse than 65.85% of the companies in the same industry.
- 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 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 6.11%.
- 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 82.93% of the companies in the same industry.
- WLK's Operating Margin has been stable in the last couple of years.
- WLK has a worse Gross Margin (9.18%) than 85.37% 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WLK 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.
- Compared to 1 year ago, WLK has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.07 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 2.07. This is comparable to the rest of the industry: WLK outperforms 57.32% 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.
- The Debt to Equity ratio of WLK (0.41) is better than 69.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.07 |
ROIC/WACC0.01
WACC11.83%
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 51.22% 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.
- With a Quick ratio value of 1.39, WLK perfoms like the industry average, outperforming 54.88% of the companies in the same 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%.
- WLK shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.83% yearly.
- 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.
- The Revenue is expected to grow by 2.01% on average over the next years.
EPS Next Y-138.43%
EPS Next 2Y-55.17%
EPS Next 3Y-22%
EPS Next 5Y-8.41%
Revenue Next Year-8.06%
Revenue Next 2Y-3.83%
Revenue Next 3Y-1.46%
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
- WLK reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- With a Price/Forward Earnings ratio of 83.91, WLK can be considered very expensive at the moment.
- Based on the Price/Forward Earnings ratio, WLK is valued a bit more expensive than the industry average as 67.07% of the companies are valued more cheaply.
- WLK's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 83.91 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WLK is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.4 |
4.3 Compensation for Growth
- A cheap valuation may be justified as WLK's earnings are expected to decrease with -22.00% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-55.17%
EPS Next 3Y-22%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.50%, WLK has a reasonable but not impressive dividend return.
- WLK's Dividend Yield is a higher than the industry average which is at 2.28.
- WLK's Dividend Yield is a higher than the S&P500 average which is at 1.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
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-28.47%
EPS Next 2Y-55.17%
EPS Next 3Y-22%
87.87
-0.43 (-0.49%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)10-30 2025-10-30/bmo
Earnings (Next)02-23 2026-02-23/amc
Inst Owners34.07%
Inst Owner Change-0.06%
Ins Owners1.3%
Ins Owner Change1.63%
Market Cap11.27B
Revenue(TTM)11.48B
Net Income(TTM)-952.00M
Analysts73.64
Price Target83.77 (-4.67%)
Short Float %16.5%
Short Ratio3.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
Yearly Dividend2.06
Dividend Growth(5Y)14.83%
DP-28.47%
Div Incr Years20
Div Non Decr Years20
Ex-DateN/A
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)1.02%
PT rev (3m)-9.65%
EPS NQ rev (1m)-155.92%
EPS NQ rev (3m)-4007.21%
EPS NY rev (1m)-60.67%
EPS NY rev (3m)-2216.43%
Revenue NQ rev (1m)-2.3%
Revenue NQ rev (3m)-6.69%
Revenue NY rev (1m)-0.59%
Revenue NY rev (3m)-2.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 83.91 | ||
| P/S | 0.98 | ||
| P/FCF | N/A | ||
| P/OCF | 16.72 | ||
| P/B | 1.2 | ||
| P/tB | 1.63 | ||
| EV/EBITDA | 11.4 |
EPS(TTM)-0.63
EYN/A
EPS(NY)1.05
Fwd EY1.19%
FCF(TTM)-2.85
FCFYN/A
OCF(TTM)5.25
OCFY5.98%
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 | 2.07 |
F-Score5
WACC11.83%
ROIC/WACC0.01
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-138.43%
EPS Next 2Y-55.17%
EPS Next 3Y-22%
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-8.06%
Revenue Next 2Y-3.83%
Revenue Next 3Y-1.46%
Revenue Next 5Y2.01%
EBIT growth 1Y-96.06%
EBIT growth 3Y-30.04%
EBIT growth 5Y6.87%
EBIT Next Year-7.82%
EBIT Next 3Y16.07%
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.
What is the valuation status of WESTLAKE CORP (WLK) stock?
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 financial health for WLK stock?
The financial health rating of WESTLAKE CORP (WLK) is 4 / 10.