WESTLAKE CORP (WLK) Stock Fundamental Analysis
USA - NYSE:WLK - US9604131022 - Common Stock
83.56 USD
-1.4 (-1.65%)
Taking everything into account, WLK scores 4 out of 10 in our fundamental rating. WLK was compared to 83 industry peers in the Chemicals industry. Both the profitability and the financial health of WLK get a neutral evaluation. Nothing too spectacular is happening here. WLK is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year WLK was profitable.
In the past year WLK had a positive cash flow from operations.
WLK had positive earnings in each of the past 5 years.
Each year in the past 5 years WLK had a positive operating cash flow.
1.2 Ratios
WLK has a Return On Assets (-0.33%) which is in line with its industry peers.
WLK has a Return On Equity (-0.66%) which is comparable to the rest of the industry.
With a Return On Invested Capital value of 1.21%, WLK is not doing good in the industry: 72.29% of the companies in the same industry are doing better.
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 6.34%.
The 3 year average ROIC (6.90%) for WLK is well above the current ROIC(1.21%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.33% | ||
| ROE | -0.66% | ||
| ROIC | 1.21% |
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.
WLK has a Operating Margin of 2.64%. This is in the lower half of the industry: WLK underperforms 69.88% of its industry peers.
WLK's Operating Margin has been stable in the last couple of years.
WLK has a worse Gross Margin (11.20%) than 79.52% of its industry peers.
WLK's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.64% | ||
| PM (TTM) | N/A | ||
| GM | 11.2% |
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.
WLK has about the same amout of shares outstanding than it did 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 an Altman-Z score of 2.12. This is not the best score and indicates that WLK is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.12, WLK perfoms like the industry average, outperforming 56.63% of the companies in the same industry.
A Debt/Equity ratio of 0.45 indicates that WLK is not too dependend on debt financing.
The Debt to Equity ratio of WLK (0.45) is better than 69.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.12 |
ROIC/WACC0.15
WACC7.99%
2.3 Liquidity
WLK has a Current Ratio of 2.47. This indicates that WLK is financially healthy and has no problem in meeting its short term obligations.
WLK's Current ratio of 2.47 is fine compared to the rest of the industry. WLK outperforms 67.47% of its industry peers.
WLK has a Quick Ratio of 1.75. This is a normal value and indicates that WLK is financially healthy and should not expect problems in meeting its short term obligations.
WLK's Quick ratio of 1.75 is fine compared to the rest of the industry. WLK outperforms 71.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.47 | ||
| Quick Ratio | 1.75 |
3. Growth
3.1 Past
WLK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -83.93%.
Measured over the past years, WLK shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.83% on average per year.
The Revenue has decreased by -3.00% 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)-83.93%
EPS 3Y-30.59%
EPS 5Y9.83%
EPS Q2Q%-103.75%
Revenue 1Y (TTM)-3%
Revenue growth 3Y1.02%
Revenue growth 5Y8.38%
Sales Q2Q%-7.92%
3.2 Future
WLK is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -5.58% yearly.
The Revenue is expected to grow by 1.83% on average over the next years.
EPS Next Y-97.62%
EPS Next 2Y-25.52%
EPS Next 3Y-5.58%
EPS Next 5YN/A
Revenue Next Year-5.49%
Revenue Next 2Y-0.19%
Revenue Next 3Y1.83%
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 is valuated quite expensively with a Price/Earnings ratio of 78.09.
WLK's Price/Earnings ratio is a bit more expensive when compared to the industry. WLK is more expensive than 66.27% of the companies in the same industry.
WLK's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.41.
The Price/Forward Earnings ratio is 28.92, 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 65.06% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.88, WLK is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 78.09 | ||
| Fwd PE | 28.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WLK is valued a bit cheaper than the industry average as 65.06% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.04 |
4.3 Compensation for Growth
WLK's earnings are expected to decrease with -5.58% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)7.94
EPS Next 2Y-25.52%
EPS Next 3Y-5.58%
5. Dividend
5.1 Amount
WLK has a Yearly Dividend Yield of 2.42%. Purely for dividend investing, there may be better candidates out there.
WLK's Dividend Yield is a higher than the industry average which is at 3.43.
WLK's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
5.2 History
On average, the dividend of WLK grows each year by 14.83%, which is quite nice.
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
WLK has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-397.06%
EPS Next 2Y-25.52%
EPS Next 3Y-5.58%
NYSE:WLK (9/19/2025, 10:16:10 AM)
83.56
-1.4 (-1.65%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners28.87%
Inst Owner Change6.19%
Ins Owners1.25%
Ins Owner Change-0.24%
Market Cap10.72B
Analysts75.45
Price Target92.73 (10.97%)
Short Float %13.32%
Short Ratio3.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
Yearly Dividend2.06
Dividend Growth(5Y)14.83%
DP-397.06%
Div Incr Years20
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-169.6%
Min EPS beat(2)-191.86%
Max EPS beat(2)-147.34%
EPS beat(4)0
Avg EPS beat(4)-117.62%
Min EPS beat(4)-191.86%
Max EPS beat(4)-36.7%
EPS beat(8)3
Avg EPS beat(8)-53.93%
EPS beat(12)4
Avg EPS beat(12)-38.61%
EPS beat(16)8
Avg EPS beat(16)-25.08%
Revenue beat(2)0
Avg Revenue beat(2)-3.81%
Min Revenue beat(2)-4.46%
Max Revenue beat(2)-3.15%
Revenue beat(4)0
Avg Revenue beat(4)-4.63%
Min Revenue beat(4)-6.62%
Max Revenue beat(4)-3.15%
Revenue beat(8)1
Avg Revenue beat(8)-3.4%
Revenue beat(12)1
Avg Revenue beat(12)-3.57%
Revenue beat(16)5
Avg Revenue beat(16)0.2%
PT rev (1m)-0.07%
PT rev (3m)-1.52%
EPS NQ rev (1m)-37.34%
EPS NQ rev (3m)-59.77%
EPS NY rev (1m)-88.39%
EPS NY rev (3m)-96.27%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)-3.76%
Revenue NY rev (1m)-1.79%
Revenue NY rev (3m)-2.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 78.09 | ||
| Fwd PE | 28.92 | ||
| P/S | 0.91 | ||
| P/FCF | N/A | ||
| P/OCF | 11.09 | ||
| P/B | 1.04 | ||
| P/tB | 1.53 | ||
| EV/EBITDA | 9.04 |
EPS(TTM)1.07
EY1.28%
EPS(NY)2.89
Fwd EY3.46%
FCF(TTM)-0.42
FCFYN/A
OCF(TTM)7.53
OCFY9.01%
SpS91.69
BVpS80.14
TBVpS54.54
PEG (NY)N/A
PEG (5Y)7.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.33% | ||
| ROE | -0.66% | ||
| ROCE | 1.68% | ||
| ROIC | 1.21% | ||
| ROICexc | 1.38% | ||
| ROICexgc | 1.73% | ||
| OM | 2.64% | ||
| PM (TTM) | N/A | ||
| GM | 11.2% | ||
| 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%
ROICexcg growth 3Y-33.41%
ROICexcg 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-Score3
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.21 | ||
| Cap/Depr | 89.47% | ||
| Cap/Sales | 8.67% | ||
| Interest Coverage | 1.97 | ||
| Cash Conversion | 66.62% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.47 | ||
| Quick Ratio | 1.75 | ||
| Altman-Z | 2.12 |
F-Score3
WACC7.99%
ROIC/WACC0.15
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)-83.93%
EPS 3Y-30.59%
EPS 5Y9.83%
EPS Q2Q%-103.75%
EPS Next Y-97.62%
EPS Next 2Y-25.52%
EPS Next 3Y-5.58%
EPS Next 5YN/A
Revenue 1Y (TTM)-3%
Revenue growth 3Y1.02%
Revenue growth 5Y8.38%
Sales Q2Q%-7.92%
Revenue Next Year-5.49%
Revenue Next 2Y-0.19%
Revenue Next 3Y1.83%
Revenue Next 5YN/A
EBIT growth 1Y-66.7%
EBIT growth 3Y-30.04%
EBIT growth 5Y6.87%
EBIT Next Year27.98%
EBIT Next 3Y24.66%
EBIT Next 5YN/A
FCF growth 1Y-103.13%
FCF growth 3Y-43.93%
FCF growth 5Y-9.85%
OCF growth 1Y-66.09%
OCF growth 3Y-18.12%
OCF growth 5Y0.2%