WESTLAKE CORP (WLK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WLK - US9604131022 - Common Stock
73.94 USD
-0.94 (-1.26%)
74.45 USD
+0.51 (+0.69%)
We assign a fundamental rating of 3 out of 10 to WLK. WLK was compared to 83 industry peers in the Chemicals industry. While WLK seems to be doing ok healthwise, 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
In the past year WLK has reported negative net income.
WLK had a positive operating cash flow in the past year.
Each year in the past 5 years WLK has been profitable.
In the past 5 years WLK always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of -4.80%, WLK is not doing good in the industry: 72.29% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of -10.10%, WLK is doing worse than 65.06% of the companies in the same industry.
WLK has a worse Return On Invested Capital (0.14%) than 80.72% 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 6.09%.
The last Return On Invested Capital (0.14%) 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 | -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.
With a Operating Margin value of 0.29%, WLK is not doing good in the industry: 81.93% of the companies in the same industry are doing better.
WLK's Operating Margin has been stable in the last couple of years.
WLK has a worse Gross Margin (9.18%) than 84.34% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WLK is destroying value.
The number of shares outstanding for WLK remains at a similar level compared to 1 year ago.
Compared to 5 years ago, WLK has about the same amount of shares outstanding.
WLK has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.96 indicates that WLK is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.96, WLK is in line with its industry, outperforming 59.04% of the companies in the same industry.
WLK has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.41, WLK is doing good in the industry, outperforming 69.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.96 |
ROIC/WACC0.01
WACC11.28%
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 (1.99) which is in line with its industry peers.
A Quick Ratio of 1.39 indicates that WLK should not have too much problems paying its short term obligations.
WLK has a Quick ratio (1.39) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
The earnings per share for WLK have decreased strongly by -110.73% in the last year.
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.
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-138.43%
EPS Next 2Y-55.17%
EPS Next 3Y-22%
EPS Next 5Y-8.41%
Revenue Next Year-7.92%
Revenue Next 2Y-3.47%
Revenue Next 3Y-1.09%
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
WLK reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
The Price/Forward Earnings ratio is 70.61, 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 66.27% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.13. WLK is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 70.61 |
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 | 9.9 |
4.3 Compensation for Growth
WLK's earnings are expected to decrease with -22.00% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-55.17%
EPS Next 3Y-22%
5. Dividend
5.1 Amount
WLK has a Yearly Dividend Yield of 3.08%.
Compared to an average industry Dividend Yield of 2.48, WLK pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.00, WLK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
5.2 History
On average, the dividend of WLK grows each year by 14.83%, which is quite nice.
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 has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-28.47%
EPS Next 2Y-55.17%
EPS Next 3Y-22%
73.94
-0.94 (-1.26%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners34.01%
Inst Owner Change7.99%
Ins Owners1.26%
Ins Owner Change1.66%
Market Cap9.48B
Revenue(TTM)11.48B
Net Income(TTM)-952.00M
Analysts73.64
Price Target83 (12.25%)
Short Float %16.5%
Short Ratio3.55
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-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)-0.91%
PT rev (3m)-10.49%
EPS NQ rev (1m)-184.36%
EPS NQ rev (3m)-1403.2%
EPS NY rev (1m)-160.46%
EPS NY rev (3m)-2216.43%
Revenue NQ rev (1m)-2.03%
Revenue NQ rev (3m)-6.29%
Revenue NY rev (1m)-0.86%
Revenue NY rev (3m)-2.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 70.61 | ||
| P/S | 0.83 | ||
| P/FCF | N/A | ||
| P/OCF | 14.07 | ||
| P/B | 1.01 | ||
| P/tB | 1.37 | ||
| EV/EBITDA | 9.9 |
EPS(TTM)-0.63
EYN/A
EPS(NY)1.05
Fwd EY1.42%
FCF(TTM)-2.85
FCFYN/A
OCF(TTM)5.25
OCFY7.11%
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 | 1.96 |
F-Score5
WACC11.28%
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-7.92%
Revenue Next 2Y-3.47%
Revenue Next 3Y-1.09%
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.