WESTLAKE CHEMICAL PARTNERS L (WLKP) Stock Fundamental Analysis
NYSE:WLKP - New York Stock Exchange, Inc. - US9604171036 - Currency: USD
Overall WLKP gets a fundamental rating of 6 out of 10. We evaluated WLKP against 84 industry peers in the Chemicals industry. WLKP has an excellent profitability rating, but there are some minor concerns on its financial health. WLKP is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year WLKP was profitable.
In the past year WLKP had a positive cash flow from operations.
In the past 5 years WLKP has always been profitable.
In the past 5 years WLKP always reported a positive cash flow from operatings.
1.2 Ratios
WLKP's Return On Assets of 4.77% is fine compared to the rest of the industry. WLKP outperforms 71.95% of its industry peers.
Looking at the Return On Equity, with a value of 22.21%, WLKP belongs to the top of the industry, outperforming 90.24% of the companies in the same industry.
The Return On Invested Capital of WLKP (24.90%) is better 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 6.57%.
The last Return On Invested Capital (24.90%) for WLKP is above the 3 year average (22.36%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.77% | ||
| ROE | 22.21% | ||
| ROIC | 24.9% |
ROA(3y)4.79%
ROA(5y)4.73%
ROE(3y)23.15%
ROE(5y)23.06%
ROIC(3y)22.36%
ROIC(5y)21.74%
1.3 Margins
WLKP has a better Profit Margin (5.40%) than 62.20% of its industry peers.
In the last couple of years the Profit Margin of WLKP has grown nicely.
With an excellent Operating Margin value of 34.23%, WLKP belongs to the best of the industry, outperforming 95.12% of the companies in the same industry.
WLKP's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 36.83%, WLKP is doing good in the industry, outperforming 73.17% of the companies in the same industry.
WLKP's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.23% | ||
| PM (TTM) | 5.4% | ||
| GM | 36.83% |
OM growth 3Y-6.3%
OM growth 5Y2.01%
PM growth 3Y-12.69%
PM growth 5Y3.52%
GM growth 3Y-6.02%
GM growth 5Y2.09%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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 has been increased compared to 5 years ago.
Compared to 1 year ago, WLKP has a worse debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of WLKP is 0.97, which is an excellent value as it means it would take WLKP, only 0.97 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of WLKP (0.97) is better than 93.90% of its industry peers.
A Debt/Equity ratio of 1.44 is on the high side and indicates that WLKP has dependencies on debt financing.
With a Debt to Equity ratio value of 1.44, WLKP is not doing good in the industry: 80.49% of the companies in the same industry are doing better.
Although WLKP does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | 0.97 | ||
| Altman-Z | N/A |
ROIC/WACC2.89
WACC8.61%
2.3 Liquidity
A Current Ratio of 4.53 indicates that WLKP has no problem at all paying its short term obligations.
With an excellent Current ratio value of 4.53, WLKP belongs to the best of the industry, outperforming 93.90% of the companies in the same industry.
WLKP has a Quick Ratio of 4.46. This indicates that WLKP is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of WLKP (4.46) is better than 93.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.53 | ||
| Quick Ratio | 4.46 |
3. Growth
3.1 Past
WLKP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.70%, which is quite good.
The Earnings Per Share has been growing slightly by 0.39% on average over the past years.
Looking at the last year, WLKP shows a decrease in Revenue. The Revenue has decreased by -9.31% in the last year.
Measured over the past years, WLKP shows a decrease in Revenue. The Revenue has been decreasing by -1.52% on average per year.
EPS 1Y (TTM)8.7%
EPS 3Y-6.6%
EPS 5Y0.39%
EPS Q2Q%37.84%
Revenue 1Y (TTM)-9.31%
Revenue growth 3Y7.2%
Revenue growth 5Y-1.52%
Sales Q2Q%-13.89%
3.2 Future
Based on estimates for the next years, WLKP will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.33% on average per year.
The Revenue is expected to grow by 2.35% on average over the next years.
EPS Next Y6.81%
EPS Next 2Y5.64%
EPS Next 3Y11.33%
EPS Next 5YN/A
Revenue Next Year-11.1%
Revenue Next 2Y-3.13%
Revenue Next 3Y2.35%
Revenue Next 5YN/A
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.94 indicates a correct valuation of WLKP.
WLKP's Price/Earnings ratio is a bit cheaper when compared to the industry. WLKP is cheaper than 78.05% of the companies in the same industry.
WLKP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.46.
A Price/Forward Earnings ratio of 14.20 indicates a correct valuation of WLKP.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WLKP indicates a somewhat cheap valuation: WLKP is cheaper than 65.85% of the companies listed in the same industry.
WLKP is valuated cheaply when we compare the Price/Forward Earnings ratio to 92.56, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.94 | ||
| Fwd PE | 14.2 |
4.2 Price Multiples
96.34% of the companies in the same industry are more expensive than WLKP, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WLKP indicates a rather cheap valuation: WLKP is cheaper than 98.78% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.09 | ||
| EV/EBITDA | 2.38 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WLKP does not grow enough to justify the current Price/Earnings ratio.
WLKP has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.05
PEG (5Y)35.37
EPS Next 2Y5.64%
EPS Next 3Y11.33%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.77%, WLKP is a good candidate for dividend investing.
WLKP's Dividend Yield is rather good when compared to the industry average which is at 3.22. WLKP pays more dividend than 95.12% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, WLKP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.77% |
5.2 History
The dividend of WLKP has a limited annual growth rate of 2.61%.
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)2.61%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
WLKP pays out 107.70% of its income as dividend. This is not a sustainable payout ratio.
The dividend of WLKP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP107.7%
EPS Next 2Y5.64%
EPS Next 3Y11.33%
WESTLAKE CHEMICAL PARTNERS L
NYSE:WLKP (1/31/2025, 8:04:00 PM)
24.4
-0.04 (-0.16%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners33.83%
Inst Owner Change-0.37%
Ins Owners1.27%
Ins Owner Change0.16%
Market Cap859.86M
Analysts78
Price Target25.84 (5.9%)
Short Float %0.61%
Short Ratio2.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.77% |
Yearly Dividend1.89
Dividend Growth(5Y)2.61%
DP107.7%
Div Incr Years0
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)8.81%
Min EPS beat(2)-7.6%
Max EPS beat(2)25.21%
EPS beat(4)1
Avg EPS beat(4)0.05%
Min EPS beat(4)-9.67%
Max EPS beat(4)25.21%
EPS beat(8)1
Avg EPS beat(8)-5.53%
EPS beat(12)2
Avg EPS beat(12)0.99%
EPS beat(16)3
Avg EPS beat(16)-1.63%
Revenue beat(2)2
Avg Revenue beat(2)7.24%
Min Revenue beat(2)3.18%
Max Revenue beat(2)11.3%
Revenue beat(4)2
Avg Revenue beat(4)1.43%
Min Revenue beat(4)-8.06%
Max Revenue beat(4)11.3%
Revenue beat(8)2
Avg Revenue beat(8)-7.96%
Revenue beat(12)6
Avg Revenue beat(12)-0.12%
Revenue beat(16)8
Avg Revenue beat(16)-1.04%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.5%
EPS NY rev (1m)0%
EPS NY rev (3m)4.99%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-12.08%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.94 | ||
| Fwd PE | 14.2 | ||
| P/S | 0.75 | ||
| P/FCF | 2.09 | ||
| P/OCF | 1.87 | ||
| P/B | 3.1 | ||
| P/tB | 3.16 | ||
| EV/EBITDA | 2.38 |
EPS(TTM)1.75
EY7.17%
EPS(NY)1.72
Fwd EY7.04%
FCF(TTM)11.69
FCFY47.9%
OCF(TTM)13.06
OCFY53.52%
SpS32.44
BVpS7.88
TBVpS7.72
PEG (NY)2.05
PEG (5Y)35.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.77% | ||
| ROE | 22.21% | ||
| ROCE | 31.52% | ||
| ROIC | 24.9% | ||
| ROICexc | 26.17% | ||
| ROICexgc | 26.3% | ||
| OM | 34.23% | ||
| PM (TTM) | 5.4% | ||
| GM | 36.83% | ||
| FCFM | 36.03% |
ROA(3y)4.79%
ROA(5y)4.73%
ROE(3y)23.15%
ROE(5y)23.06%
ROIC(3y)22.36%
ROIC(5y)21.74%
ROICexc(3y)23.19%
ROICexc(5y)22.35%
ROICexgc(3y)23.3%
ROICexgc(5y)22.45%
ROCE(3y)28.3%
ROCE(5y)27.51%
ROICexcg growth 3Y3.1%
ROICexcg growth 5Y3.49%
ROICexc growth 3Y3.09%
ROICexc growth 5Y3.48%
OM growth 3Y-6.3%
OM growth 5Y2.01%
PM growth 3Y-12.69%
PM growth 5Y3.52%
GM growth 3Y-6.02%
GM growth 5Y2.09%
F-Score6
Asset Turnover0.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | 0.97 | ||
| Debt/EBITDA | 0.79 | ||
| Cap/Depr | 42.86% | ||
| Cap/Sales | 4.23% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 91.32% | ||
| Profit Quality | 667.66% | ||
| Current Ratio | 4.53 | ||
| Quick Ratio | 4.46 | ||
| Altman-Z | N/A |
F-Score6
WACC8.61%
ROIC/WACC2.89
Cap/Depr(3y)53.93%
Cap/Depr(5y)47.67%
Cap/Sales(3y)4.67%
Cap/Sales(5y)4.37%
Profit Quality(3y)593.68%
Profit Quality(5y)591.31%
High Growth Momentum
Growth
EPS 1Y (TTM)8.7%
EPS 3Y-6.6%
EPS 5Y0.39%
EPS Q2Q%37.84%
EPS Next Y6.81%
EPS Next 2Y5.64%
EPS Next 3Y11.33%
EPS Next 5YN/A
Revenue 1Y (TTM)-9.31%
Revenue growth 3Y7.2%
Revenue growth 5Y-1.52%
Sales Q2Q%-13.89%
Revenue Next Year-11.1%
Revenue Next 2Y-3.13%
Revenue Next 3Y2.35%
Revenue Next 5YN/A
EBIT growth 1Y8.62%
EBIT growth 3Y0.44%
EBIT growth 5Y0.46%
EBIT Next Year-2.54%
EBIT Next 3Y-1.59%
EBIT Next 5YN/A
FCF growth 1Y49.9%
FCF growth 3Y6.4%
FCF growth 5Y0.44%
OCF growth 1Y26.79%
OCF growth 3Y6.57%
OCF growth 5Y0.71%