WESTLAKE CORP (WLK) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:WLK • US9604131022
80.925 USD
+1.61 (+2.02%)
Last: Feb 2, 2026, 10:04 AM
Taking everything into account, WLK scores 3 out of 10 in our fundamental rating. WLK was compared to 83 industry peers in the Chemicals industry. The financial health of WLK is average, but 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.
- In the past year WLK had a positive cash flow from operations.
- 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 73.49% of its industry peers.
- WLK has a Return On Equity of -10.10%. This is in the lower half of the industry: WLK underperforms 66.27% of its industry peers.
- With a Return On Invested Capital value of 0.14%, WLK is not doing good in the industry: 80.72% 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 6.11%.
- 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.
- WLK's Operating Margin of 0.29% is on the low side compared to the rest of the industry. WLK is outperformed by 81.93% of its industry peers.
- WLK's Operating Margin has been stable in the last couple of years.
- The Gross Margin of WLK (9.18%) is worse than 85.54% 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.
- The number of shares outstanding for WLK remains at a similar level compared to 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 2.00. 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 (2.00) 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.
- WLK has a Debt to Equity ratio of 0.41. This is in the better half of the industry: WLK outperforms 68.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2 |
ROIC/WACC0.01
WACC11.54%
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.
- With a Current ratio value of 1.99, WLK perfoms like the industry average, outperforming 51.81% of the companies in the same industry.
- 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.
- 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.
- WLK shows a decrease in Revenue. In the last year, the revenue decreased by -5.32%.
- The Revenue has been growing by 8.38% on average over the past years. This is quite good.
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.
- The Revenue is expected to grow by 2.01% on average over the next years.
EPS Next Y-141.07%
EPS Next 2Y-63.58%
EPS Next 3Y-23.37%
EPS Next 5Y-8.41%
Revenue Next Year-8.08%
Revenue Next 2Y-3.84%
Revenue Next 3Y-1.45%
Revenue Next 5Y2.01%
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
- The Price/Earnings Ratio is negative for WLK. In the last year negative earnings were reported.
- The Price/Forward Earnings ratio is 117.10, which means the current valuation is very expensive for WLK.
- 69.88% of the companies in the same industry are cheaper than WLK, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. WLK is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 117.1 |
4.2 Price Multiples
- WLK's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.48 |
4.3 Compensation for Growth
- WLK's earnings are expected to decrease with -23.37% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-63.58%
EPS Next 3Y-23.37%
5. Dividend
5.1 Amount
- WLK has a Yearly Dividend Yield of 2.49%.
- Compared to an average industry Dividend Yield of 2.27, WLK pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.83, WLK pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.49% |
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
- The earnings of WLK are negative and hence is the payout ratio. WLK will probably not be able to sustain this dividend level.
DP-28.47%
EPS Next 2Y-63.58%
EPS Next 3Y-23.37%
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.