WESTLAKE CHEMICAL PARTNERS L (WLKP) Stock Fundamental Analysis
NYSE:WLKP - New York Stock Exchange, Inc. - US9604171036 - Currency: USD
WLKP gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 85 industry peers in the Chemicals industry. WLKP has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. WLKP has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
WLKP had positive earnings in the past year.
In the past year WLKP had a positive cash flow from operations.
WLKP had positive earnings in each of the past 5 years.
WLKP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.84%, WLKP is doing good in the industry, outperforming 75.29% of the companies in the same industry.
Looking at the Return On Equity, with a value of 22.60%, WLKP belongs to the top of the industry, outperforming 91.76% of the companies in the same industry.
WLKP has a better Return On Invested Capital (25.02%) than 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WLKP is significantly above the industry average of 7.01%.
The 3 year average ROIC (22.83%) for WLKP is below the current ROIC(25.02%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.84% | ||
| ROE | 22.6% | ||
| ROIC | 25.02% |
ROA(3y)4.55%
ROA(5y)4.82%
ROE(3y)21.33%
ROE(5y)23.18%
ROIC(3y)22.83%
ROIC(5y)22.66%
1.3 Margins
WLKP has a better Profit Margin (5.49%) than 70.59% of its industry peers.
WLKP's Profit Margin has been stable in the last couple of years.
The Operating Margin of WLKP (34.37%) is better than 96.47% of its industry peers.
WLKP's Operating Margin has been stable in the last couple of years.
WLKP's Gross Margin of 36.88% is fine compared to the rest of the industry. WLKP outperforms 76.47% of its industry peers.
In the last couple of years the Gross Margin of WLKP has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.37% | ||
| PM (TTM) | 5.49% | ||
| GM | 36.88% |
OM growth 3Y0.56%
OM growth 5Y1.4%
PM growth 3Y-6.83%
PM growth 5Y-0.34%
GM growth 3Y0.48%
GM growth 5Y1.2%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so WLKP is creating value.
The number of shares outstanding for WLKP remains at a similar level compared to 1 year ago.
The number of shares outstanding for WLKP remains at a similar level compared to 5 years ago.
The debt/assets ratio for WLKP is higher compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of WLKP is 0.92, which is an excellent value as it means it would take WLKP, only 0.92 years of fcf income to pay off all of its debts.
WLKP has a better Debt to FCF ratio (0.92) than 95.29% of its industry peers.
A Debt/Equity ratio of 1.45 is on the high side and indicates that WLKP has dependencies on debt financing.
WLKP has a Debt to Equity ratio of 1.45. This is in the lower half of the industry: WLKP underperforms 75.29% of its industry peers.
Even though the debt/equity ratio score it not favorable for WLKP, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | 0.92 | ||
| Altman-Z | N/A |
ROIC/WACC2.91
WACC8.59%
2.3 Liquidity
A Current Ratio of 4.35 indicates that WLKP has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 4.35, WLKP belongs to the top of the industry, outperforming 91.76% of the companies in the same industry.
A Quick Ratio of 4.28 indicates that WLKP has no problem at all paying its short term obligations.
WLKP has a Quick ratio of 4.28. This is amongst the best in the industry. WLKP outperforms 92.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.35 | ||
| Quick Ratio | 4.28 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.94% over the past year.
WLKP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.11% yearly.
The Revenue has decreased by -4.62% in the past year.
The Revenue has been growing slightly by 0.79% on average over the past years.
EPS 1Y (TTM)14.94%
EPS 3Y-8.89%
EPS 5Y0.11%
EPS Q2Q%4.88%
Revenue 1Y (TTM)-4.62%
Revenue growth 3Y-2.22%
Revenue growth 5Y0.79%
Sales Q2Q%-2.43%
3.2 Future
Based on estimates for the next years, WLKP will show a small growth in Earnings Per Share. The EPS will grow by 4.32% on average per year.
Based on estimates for the next years, WLKP will show a small growth in Revenue. The Revenue will grow by 7.35% on average per year.
EPS Next Y-0.31%
EPS Next 2Y10.92%
EPS Next 3Y4.32%
EPS Next 5YN/A
Revenue Next Year12.76%
Revenue Next 2Y9.78%
Revenue Next 3Y7.35%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
WLKP is valuated correctly with a Price/Earnings ratio of 13.02.
WLKP's Price/Earnings ratio is a bit cheaper when compared to the industry. WLKP is cheaper than 68.24% of the companies in the same industry.
When comparing the Price/Earnings ratio of WLKP to the average of the S&P500 Index (28.29), we can say WLKP is valued rather cheaply.
A Price/Forward Earnings ratio of 13.06 indicates a correct valuation of WLKP.
63.53% of the companies in the same industry are more expensive than WLKP, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.08, WLKP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.02 | ||
| Fwd PE | 13.06 |
4.2 Price Multiples
96.47% of the companies in the same industry are more expensive than WLKP, based on the Enterprise Value to EBITDA ratio.
98.82% of the companies in the same industry are more expensive than WLKP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.86 | ||
| EV/EBITDA | 2.3 |
4.3 Compensation for Growth
WLKP has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)114.86
EPS Next 2Y10.92%
EPS Next 3Y4.32%
5. Dividend
5.1 Amount
WLKP has a Yearly Dividend Yield of 8.18%, which is a nice return.
Compared to an average industry Dividend Yield of 4.02, WLKP pays a better dividend. On top of this WLKP pays more dividend than 88.24% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.52, WLKP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.18% |
5.2 History
The dividend of WLKP has a limited annual growth rate of 0.46%.
WLKP has paid a dividend for at least 10 years, which is a reliable track record.
WLKP has decreased its dividend in the last 3 years.
Dividend Growth(5Y)0.46%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
WLKP pays out 106.48% of its income as dividend. This is not a sustainable payout ratio.
WLKP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP106.48%
EPS Next 2Y10.92%
EPS Next 3Y4.32%
23.05
+0.08 (+0.35%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners34.26%
Inst Owner Change0%
Ins Owners1.27%
Ins Owner Change0%
Market Cap812.28M
Analysts78
Price Target26.18 (13.58%)
Short Float %0.69%
Short Ratio3.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.18% |
Yearly Dividend1.89
Dividend Growth(5Y)0.46%
DP106.48%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)19.73%
Min EPS beat(2)14.25%
Max EPS beat(2)25.21%
EPS beat(4)2
Avg EPS beat(4)6.03%
Min EPS beat(4)-7.74%
Max EPS beat(4)25.21%
EPS beat(8)2
Avg EPS beat(8)-3.61%
EPS beat(12)2
Avg EPS beat(12)-5.97%
EPS beat(16)4
Avg EPS beat(16)0.34%
Revenue beat(2)2
Avg Revenue beat(2)9.92%
Min Revenue beat(2)8.54%
Max Revenue beat(2)11.3%
Revenue beat(4)3
Avg Revenue beat(4)5.59%
Min Revenue beat(4)-0.68%
Max Revenue beat(4)11.3%
Revenue beat(8)3
Avg Revenue beat(8)-5.69%
Revenue beat(12)6
Avg Revenue beat(12)-1.08%
Revenue beat(16)9
Avg Revenue beat(16)0.38%
PT rev (1m)0%
PT rev (3m)1.32%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-14.62%
EPS NY rev (1m)2.47%
EPS NY rev (3m)2.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)6.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.02 | ||
| Fwd PE | 13.06 | ||
| P/S | 0.72 | ||
| P/FCF | 1.86 | ||
| P/OCF | 1.67 | ||
| P/B | 2.94 | ||
| P/tB | 3 | ||
| EV/EBITDA | 2.3 |
EPS(TTM)1.77
EY7.68%
EPS(NY)1.76
Fwd EY7.66%
FCF(TTM)12.37
FCFY53.68%
OCF(TTM)13.76
OCFY59.71%
SpS32.23
BVpS7.84
TBVpS7.67
PEG (NY)N/A
PEG (5Y)114.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.84% | ||
| ROE | 22.6% | ||
| ROCE | 31.68% | ||
| ROIC | 25.02% | ||
| ROICexc | 26.27% | ||
| ROICexgc | 26.4% | ||
| OM | 34.37% | ||
| PM (TTM) | 5.49% | ||
| GM | 36.88% | ||
| FCFM | 38.39% |
ROA(3y)4.55%
ROA(5y)4.82%
ROE(3y)21.33%
ROE(5y)23.18%
ROIC(3y)22.83%
ROIC(5y)22.66%
ROICexc(3y)23.98%
ROICexc(5y)23.46%
ROICexgc(3y)24.09%
ROICexgc(5y)23.57%
ROCE(3y)28.9%
ROCE(5y)28.68%
ROICexcg growth 3Y3.2%
ROICexcg growth 5Y4.87%
ROICexc growth 3Y3.18%
ROICexc growth 5Y4.85%
OM growth 3Y0.56%
OM growth 5Y1.4%
PM growth 3Y-6.83%
PM growth 5Y-0.34%
GM growth 3Y0.48%
GM growth 5Y1.2%
F-Score6
Asset Turnover0.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | 0.92 | ||
| Debt/EBITDA | 0.8 | ||
| Cap/Depr | 43.76% | ||
| Cap/Sales | 4.31% | ||
| Interest Coverage | 14.72 | ||
| Cash Conversion | 96.55% | ||
| Profit Quality | 698.86% | ||
| Current Ratio | 4.35 | ||
| Quick Ratio | 4.28 | ||
| Altman-Z | N/A |
F-Score6
WACC8.59%
ROIC/WACC2.91
Cap/Depr(3y)43.64%
Cap/Depr(5y)48.28%
Cap/Sales(3y)3.88%
Cap/Sales(5y)4.43%
Profit Quality(3y)694.43%
Profit Quality(5y)597.61%
High Growth Momentum
Growth
EPS 1Y (TTM)14.94%
EPS 3Y-8.89%
EPS 5Y0.11%
EPS Q2Q%4.88%
EPS Next Y-0.31%
EPS Next 2Y10.92%
EPS Next 3Y4.32%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.62%
Revenue growth 3Y-2.22%
Revenue growth 5Y0.79%
Sales Q2Q%-2.43%
Revenue Next Year12.76%
Revenue Next 2Y9.78%
Revenue Next 3Y7.35%
Revenue Next 5YN/A
EBIT growth 1Y9.15%
EBIT growth 3Y-1.67%
EBIT growth 5Y2.2%
EBIT Next Year130.56%
EBIT Next 3Y32.18%
EBIT Next 5YN/A
FCF growth 1Y7.61%
FCF growth 3Y10.04%
FCF growth 5Y1.38%
OCF growth 1Y7.3%
OCF growth 3Y5.9%
OCF growth 5Y1.47%