WESTLAKE CORP (WLK) Stock Fundamental Analysis
NYSE:WLK - New York Stock Exchange, Inc. - US9604131022 - Common Stock - Currency: USD
Taking everything into account, WLK scores 4 out of 10 in our fundamental rating. WLK was compared to 85 industry peers in the Chemicals industry. WLK has an average financial health and profitability rating. WLK has a expensive valuation and it also scores bad on growth.
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.
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 Return On Assets (1.86%) which is comparable to the rest of the industry.
WLK has a Return On Equity of 3.70%. This is comparable to the rest of the industry: WLK outperforms 52.94% of its industry peers.
WLK's Return On Invested Capital of 2.78% is on the low side compared to the rest of the industry. WLK is outperformed by 64.71% 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 6.84%.
The last Return On Invested Capital (2.78%) 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 | 1.86% | ||
| ROE | 3.7% | ||
| ROIC | 2.78% |
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 has a Profit Margin (3.20%) which is in line with its industry peers.
In the last couple of years the Profit Margin of WLK has remained more or less at the same level.
Looking at the Operating Margin, with a value of 5.94%, WLK is doing worse than 62.35% 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.
WLK has a Gross Margin of 14.34%. This is in the lower half of the industry: WLK underperforms 75.29% 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 | 5.94% | ||
| PM (TTM) | 3.2% | ||
| GM | 14.34% |
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.
Compared to 1 year ago, WLK has about the same amount of shares outstanding.
WLK has about the same amout of shares outstanding than it did 5 years ago.
WLK has a better debt/assets ratio than last year.
2.2 Solvency
WLK has an Altman-Z score of 2.22. 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.
WLK has a Altman-Z score (2.22) which is in line with its industry peers.
WLK has a debt to FCF ratio of 54.89. This is a negative value and a sign of low solvency as WLK would need 54.89 years to pay back of all of its debts.
The Debt to FCF ratio of WLK (54.89) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.44 indicates that WLK is not too dependend on debt financing.
The Debt to Equity ratio of WLK (0.44) is better than 68.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 54.89 | ||
| Altman-Z | 2.22 |
ROIC/WACC0.35
WACC7.85%
2.3 Liquidity
WLK has a Current Ratio of 2.64. This indicates that WLK is financially healthy and has no problem in meeting its short term obligations.
WLK's Current ratio of 2.64 is fine compared to the rest of the industry. WLK outperforms 74.12% of its industry peers.
A Quick Ratio of 1.86 indicates that WLK should not have too much problems paying its short term obligations.
The Quick ratio of WLK (1.86) is better than 74.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.64 | ||
| Quick Ratio | 1.86 |
3. Growth
3.1 Past
WLK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -45.81%.
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 -1.27% in the past year.
Measured over the past years, WLK shows a quite strong growth in Revenue. The Revenue has been growing by 8.38% on average per year.
EPS 1Y (TTM)-45.81%
EPS 3Y-30.59%
EPS 5Y9.83%
EPS Q2Q%-123.13%
Revenue 1Y (TTM)-1.27%
Revenue growth 3Y1.02%
Revenue growth 5Y8.38%
Sales Q2Q%-4.34%
3.2 Future
The Earnings Per Share is expected to grow by 3.32% on average over the next years.
The Revenue is expected to grow by 3.15% on average over the next years.
EPS Next Y-75.61%
EPS Next 2Y-11.12%
EPS Next 3Y3.32%
EPS Next 5YN/A
Revenue Next Year-3.73%
Revenue Next 2Y1.29%
Revenue Next 3Y3.15%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 rather expensively with a Price/Earnings ratio of 22.78.
WLK's Price/Earnings is on the same level as the industry average.
WLK is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 19.71 indicates a rather expensive valuation of WLK.
WLK's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of WLK to the average of the S&P500 Index (21.90), we can say WLK is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.78 | ||
| Fwd PE | 19.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WLK is valued cheaply inside the industry as 82.35% of the companies are valued more expensively.
WLK's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 123.83 | ||
| EV/EBITDA | 6.72 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.32
EPS Next 2Y-11.12%
EPS Next 3Y3.32%
5. Dividend
5.1 Amount
WLK has a Yearly Dividend Yield of 2.59%. 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 3.58.
WLK's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.59% |
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 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 pays out 69.35% of its income as dividend. This is not a sustainable payout ratio.
The dividend of WLK is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP69.35%
EPS Next 2Y-11.12%
EPS Next 3Y3.32%
81.11
-0.74 (-0.9%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners28.81%
Inst Owner Change5.98%
Ins Owners1.25%
Ins Owner Change3.91%
Market Cap10.40B
Analysts72.38
Price Target90.56 (11.65%)
Short Float %8.57%
Short Ratio2.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.59% |
Yearly Dividend2.06
Dividend Growth(5Y)14.83%
DP69.35%
Div Incr Years20
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-120.96%
Min EPS beat(2)-147.34%
Max EPS beat(2)-94.57%
EPS beat(4)1
Avg EPS beat(4)-64.75%
Min EPS beat(4)-147.34%
Max EPS beat(4)19.61%
EPS beat(8)3
Avg EPS beat(8)-32.68%
EPS beat(12)5
Avg EPS beat(12)-21.77%
EPS beat(16)9
Avg EPS beat(16)-12.24%
Revenue beat(2)0
Avg Revenue beat(2)-4.37%
Min Revenue beat(2)-4.46%
Max Revenue beat(2)-4.28%
Revenue beat(4)0
Avg Revenue beat(4)-4.31%
Min Revenue beat(4)-6.62%
Max Revenue beat(4)-1.9%
Revenue beat(8)1
Avg Revenue beat(8)-4.02%
Revenue beat(12)2
Avg Revenue beat(12)-2.98%
Revenue beat(16)6
Avg Revenue beat(16)0.75%
PT rev (1m)-16.83%
PT rev (3m)-32.96%
EPS NQ rev (1m)-50.13%
EPS NQ rev (3m)-76.3%
EPS NY rev (1m)-61.9%
EPS NY rev (3m)-78.11%
Revenue NQ rev (1m)-0.84%
Revenue NQ rev (3m)-5.78%
Revenue NY rev (1m)-1.49%
Revenue NY rev (3m)-5.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.78 | ||
| Fwd PE | 19.71 | ||
| P/S | 0.87 | ||
| P/FCF | 123.83 | ||
| P/OCF | 9.74 | ||
| P/B | 1 | ||
| P/tB | 1.46 | ||
| EV/EBITDA | 6.72 |
EPS(TTM)3.56
EY4.39%
EPS(NY)4.12
Fwd EY5.07%
FCF(TTM)0.66
FCFY0.81%
OCF(TTM)8.33
OCFY10.27%
SpS93.68
BVpS81.18
TBVpS55.51
PEG (NY)N/A
PEG (5Y)2.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.86% | ||
| ROE | 3.7% | ||
| ROCE | 3.87% | ||
| ROIC | 2.78% | ||
| ROICexc | 3.21% | ||
| ROICexgc | 4.05% | ||
| OM | 5.94% | ||
| PM (TTM) | 3.2% | ||
| GM | 14.34% | ||
| FCFM | 0.7% |
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-Score6
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 54.89 | ||
| Debt/EBITDA | 2.5 | ||
| Cap/Depr | 87.54% | ||
| Cap/Sales | 8.19% | ||
| Interest Coverage | 4.61 | ||
| Cash Conversion | 58.11% | ||
| Profit Quality | 21.82% | ||
| Current Ratio | 2.64 | ||
| Quick Ratio | 1.86 | ||
| Altman-Z | 2.22 |
F-Score6
WACC7.85%
ROIC/WACC0.35
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)-45.81%
EPS 3Y-30.59%
EPS 5Y9.83%
EPS Q2Q%-123.13%
EPS Next Y-75.61%
EPS Next 2Y-11.12%
EPS Next 3Y3.32%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.27%
Revenue growth 3Y1.02%
Revenue growth 5Y8.38%
Sales Q2Q%-4.34%
Revenue Next Year-3.73%
Revenue Next 2Y1.29%
Revenue Next 3Y3.15%
Revenue Next 5YN/A
EBIT growth 1Y-22.39%
EBIT growth 3Y-30.04%
EBIT growth 5Y6.87%
EBIT Next Year49.44%
EBIT Next 3Y29.44%
EBIT Next 5YN/A
FCF growth 1Y-95.99%
FCF growth 3Y-43.93%
FCF growth 5Y-9.85%
OCF growth 1Y-66.7%
OCF growth 3Y-18.12%
OCF growth 5Y0.2%