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%)
WLK gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 81 industry peers in the Chemicals industry. The financial health of WLK is average, but there are quite some concerns on its profitability. 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.
WLK had a positive operating cash flow in the past year.
WLK had positive earnings in each of the past 5 years.
WLK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WLK's Return On Assets of -4.80% is on the low side compared to the rest of the industry. WLK is outperformed by 72.84% of its industry peers.
The Return On Equity of WLK (-10.10%) is worse than 65.43% of its industry peers.
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 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 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 81.48% of the companies in the same industry.
In the last couple of years the Operating Margin of WLK has remained more or less at the same level.
Looking at the Gross Margin, with a value of 9.18%, WLK is doing worse than 85.19% of the companies in the same industry.
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.
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.
Compared to 1 year ago, WLK has an improved debt to assets ratio.
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 comparable to the rest of the industry.
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 72.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.92 |
ROIC/WACC0.02
WACC7.61%
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's Current ratio of 1.99 is in line compared 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.
With a Quick ratio value of 1.39, WLK perfoms like the industry average, outperforming 53.09% 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%.
The Earnings Per Share has been growing by 9.83% on average over the past years. This is quite good.
WLK shows a decrease in Revenue. In the last year, the revenue decreased by -5.32%.
WLK shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.38% yearly.
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
Based on estimates for the next years, WLK will show a decrease in Earnings Per Share. The EPS will decrease by -8.41% on average per year.
WLK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.01% yearly.
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.
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
The Price/Earnings Ratio is negative for WLK. In the last year negative earnings were reported.
A Price/Forward Earnings ratio of 40.20 indicates a quite expensive valuation of WLK.
67.90% of the companies in the same industry are cheaper than WLK, based on the Price/Forward Earnings ratio.
WLK's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 35.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 40.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WLK is valued a bit cheaper than 61.73% of the companies in the same industry.
| 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
WLK has a Yearly Dividend Yield of 3.08%.
In the last 3 months the price of WLK has falen by -23.93%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.88, WLK pays a bit more dividend than its industry peers.
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 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
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%
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
WACC7.61%
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%.