WESTLAKE CORP (WLK) Stock Fundamental Analysis
USA - NYSE:WLK - US9604131022 - Common Stock
76.555 USD
+1.17 (+1.55%)
We assign a fundamental rating of 4 out of 10 to WLK. 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 has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
WLK had positive earnings in the past year.
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
The Return On Assets of WLK (-0.33%) is comparable to the rest of the industry.
With a Return On Equity value of -0.66%, WLK perfoms like the industry average, outperforming 46.99% of the companies in the same industry.
The Return On Invested Capital of WLK (1.21%) is worse than 71.08% 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 6.30%.
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 worse Operating Margin (2.64%) than 69.88% of its industry peers.
WLK's Operating Margin has been stable in the last couple of years.
WLK's Gross Margin of 11.20% is on the low side compared to the rest of the industry. WLK is outperformed by 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.
Compared to 1 year ago, WLK has about the same amount of shares outstanding.
The number of shares outstanding for WLK remains at a similar level compared to 5 years ago.
Compared to 1 year ago, WLK has an improved debt to assets ratio.
2.2 Solvency
WLK has an Altman-Z score of 2.05. 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.
Looking at the Altman-Z score, with a value of 2.05, WLK is in line with its industry, outperforming 55.42% of the companies in the same industry.
WLK has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
WLK has a Debt to Equity ratio of 0.45. This is in the better half of the industry: WLK outperforms 69.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.05 |
ROIC/WACC0.16
WACC7.44%
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.
Looking at the Current ratio, with a value of 2.47, WLK is in the better half of the industry, outperforming 67.47% of the companies in the same industry.
A Quick Ratio of 1.75 indicates that WLK should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.75, WLK is doing good in the industry, outperforming 71.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.47 | ||
| Quick Ratio | 1.75 |
3. Growth
3.1 Past
The earnings per share for WLK have decreased strongly by -83.93% in the last year.
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 -3.00% in the last 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)-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 -5.90% yearly.
WLK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.73% yearly.
EPS Next Y-98.18%
EPS Next 2Y-25.93%
EPS Next 3Y-5.9%
EPS Next 5YN/A
Revenue Next Year-5.29%
Revenue Next 2Y-0.32%
Revenue Next 3Y1.73%
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.
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
WLK is valuated quite expensively with a Price/Earnings ratio of 71.55.
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.
The average S&P500 Price/Earnings ratio is at 27.69. WLK is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 26.78 indicates a quite expensive valuation of WLK.
WLK's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. WLK is more expensive than 61.45% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.18. WLK is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 71.55 | ||
| Fwd PE | 26.78 |
4.2 Price Multiples
67.47% 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 | 8.19 |
4.3 Compensation for Growth
A cheap valuation may be justified as WLK's earnings are expected to decrease with -5.90% in the coming years.
PEG (NY)N/A
PEG (5Y)7.28
EPS Next 2Y-25.93%
EPS Next 3Y-5.9%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.79%, WLK has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.76, WLK pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, WLK has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
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 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-397.06%
EPS Next 2Y-25.93%
EPS Next 3Y-5.9%
NYSE:WLK (10/21/2025, 10:48:03 AM)
76.555
+1.17 (+1.55%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners31.21%
Inst Owner Change-0.33%
Ins Owners1.26%
Ins Owner Change0.03%
Market Cap9.82B
Analysts75.45
Price Target92.73 (21.13%)
Short Float %14.27%
Short Ratio3.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
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%
PT rev (3m)1.26%
EPS NQ rev (1m)-25.58%
EPS NQ rev (3m)-64.82%
EPS NY rev (1m)-23.85%
EPS NY rev (3m)-91.16%
Revenue NQ rev (1m)-0.4%
Revenue NQ rev (3m)-3.74%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)-1.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 71.55 | ||
| Fwd PE | 26.78 | ||
| P/S | 0.83 | ||
| P/FCF | N/A | ||
| P/OCF | 10.16 | ||
| P/B | 0.96 | ||
| P/tB | 1.4 | ||
| EV/EBITDA | 8.19 |
EPS(TTM)1.07
EY1.4%
EPS(NY)2.86
Fwd EY3.73%
FCF(TTM)-0.42
FCFYN/A
OCF(TTM)7.53
OCFY9.84%
SpS91.69
BVpS80.14
TBVpS54.54
PEG (NY)N/A
PEG (5Y)7.28
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 | 2.05 |
F-Score3
WACC7.44%
ROIC/WACC0.16
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-98.18%
EPS Next 2Y-25.93%
EPS Next 3Y-5.9%
EPS Next 5YN/A
Revenue 1Y (TTM)-3%
Revenue growth 3Y1.02%
Revenue growth 5Y8.38%
Sales Q2Q%-7.92%
Revenue Next Year-5.29%
Revenue Next 2Y-0.32%
Revenue Next 3Y1.73%
Revenue Next 5YN/A
EBIT growth 1Y-66.7%
EBIT growth 3Y-30.04%
EBIT growth 5Y6.87%
EBIT Next Year20.07%
EBIT Next 3Y22.33%
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%