WESTLAKE CHEMICAL PARTNERS L (WLKP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WLKP - US9604171036
20.83 USD
-0.02 (-0.1%)
20.52 USD
-0.31 (-1.49%)
We assign a fundamental rating of 6 out of 10 to WLKP. WLKP was compared to 82 industry peers in the Chemicals industry. While WLKP has a great profitability rating, there are some minor concerns on its financial health. WLKP has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year WLKP was profitable.
- WLKP had a positive operating cash flow in the past year.
- 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 has a Return On Assets of 3.87%. This is in the better half of the industry: WLKP outperforms 73.17% of its industry peers.
- Looking at the Return On Equity, with a value of 18.86%, WLKP belongs to the top of the industry, outperforming 89.02% of the companies in the same industry.
- WLKP's Return On Invested Capital of 20.90% is amongst the best of the industry. WLKP outperforms 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 6.11%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.87% | ||
| ROE | 18.86% | ||
| ROIC | 20.9% |
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's Profit Margin of 4.34% is fine compared to the rest of the industry. WLKP outperforms 68.29% of its industry peers.
- WLKP's Profit Margin has been stable in the last couple of years.
- WLKP has a better Operating Margin (28.39%) than 95.12% of its industry peers.
- In the last couple of years the Operating Margin of WLKP has remained more or less at the same level.
- The Gross Margin of WLKP (30.84%) is comparable to the rest of the industry.
- 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 | 28.39% | ||
| PM (TTM) | 4.34% | ||
| GM | 30.84% |
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
- WLKP has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- The number of shares outstanding for WLKP remains at a similar level compared to 1 year ago.
- WLKP has about the same amout of shares outstanding than it did 5 years ago.
- The debt/assets ratio for WLKP is higher compared to a year ago.
2.2 Solvency
- WLKP has a debt to FCF ratio of 1.91. This is a very positive value and a sign of high solvency as it would only need 1.91 years to pay back of all of its debts.
- WLKP has a better Debt to FCF ratio (1.91) than 90.24% of its industry peers.
- WLKP has a Debt/Equity ratio of 1.53. This is a high value indicating a heavy dependency on external financing.
- WLKP's Debt to Equity ratio of 1.53 is on the low side compared to the rest of the industry. WLKP is outperformed by 76.83% of its industry peers.
- 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 | 1.53 | ||
| Debt/FCF | 1.91 | ||
| Altman-Z | N/A |
ROIC/WACC1.73
WACC12.11%
2.3 Liquidity
- A Current Ratio of 2.37 indicates that WLKP has no problem at all paying its short term obligations.
- WLKP has a better Current ratio (2.37) than 67.07% of its industry peers.
- WLKP has a Quick Ratio of 2.32. This indicates that WLKP is financially healthy and has no problem in meeting its short term obligations.
- WLKP's Quick ratio of 2.32 is amongst the best of the industry. WLKP outperforms 87.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.37 | ||
| Quick Ratio | 2.32 |
3. Growth
3.1 Past
- WLKP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -20.00%.
- The Earnings Per Share has been growing slightly by 0.11% on average over the past years.
- The Revenue has decreased by -0.82% in the past year.
- WLKP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.79% yearly.
EPS 1Y (TTM)-20%
EPS 3Y-8.89%
EPS 5Y0.11%
EPS Q2Q%-17.65%
Revenue 1Y (TTM)-0.82%
Revenue growth 3Y-2.22%
Revenue growth 5Y0.79%
Sales Q2Q%11.52%
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 6.06% on average per year.
- The Revenue is expected to grow by 7.58% on average over the next years.
EPS Next Y-26.24%
EPS Next 2Y4.64%
EPS Next 3Y6.06%
EPS Next 5YN/A
Revenue Next Year7.57%
Revenue Next 2Y10.11%
Revenue Next 3Y7.58%
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.
- 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
- With a Price/Earnings ratio of 14.88, WLKP is valued correctly.
- 70.73% of the companies in the same industry are more expensive than WLKP, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of WLKP to the average of the S&P500 Index (27.38), we can say WLKP is valued slightly cheaper.
- Based on the Price/Forward Earnings ratio of 10.75, the valuation of WLKP can be described as reasonable.
- WLKP's Price/Forward Earnings ratio is rather cheap when compared to the industry. WLKP is cheaper than 86.59% of the companies in the same industry.
- WLKP is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.29, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.88 | ||
| Fwd PE | 10.75 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WLKP indicates a rather cheap valuation: WLKP is cheaper than 96.34% of the companies listed in the same industry.
- WLKP's Price/Free Cash Flow ratio is rather cheap when compared to the industry. WLKP is cheaper than 97.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.51 | ||
| EV/EBITDA | 2.48 |
4.3 Compensation for Growth
- WLKP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)131.23
EPS Next 2Y4.64%
EPS Next 3Y6.06%
5. Dividend
5.1 Amount
- WLKP has a Yearly Dividend Yield of 9.31%, which is a nice return.
- WLKP's Dividend Yield is rather good when compared to the industry average which is at 2.28. WLKP pays more dividend than 92.68% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.84, WLKP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.31% |
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
- 135.18% of the earnings are spent on dividend by WLKP. This is not a sustainable payout ratio.
- The dividend of WLKP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP135.18%
EPS Next 2Y4.64%
EPS Next 3Y6.06%
20.83
-0.02 (-0.1%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)10-30 2025-10-30/bmo
Earnings (Next)02-23 2026-02-23/amc
Inst Owners28.69%
Inst Owner Change0.07%
Ins Owners1.31%
Ins Owner Change0.05%
Market Cap734.26M
Revenue(TTM)1.13B
Net Income(TTM)49.16M
Analysts80
Price Target28.56 (37.11%)
Short Float %0.51%
Short Ratio1.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.31% |
Yearly Dividend1.89
Dividend Growth(5Y)0.46%
DP135.18%
Div Incr Years0
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-9.04%
Min EPS beat(2)-11.66%
Max EPS beat(2)-6.42%
EPS beat(4)1
Avg EPS beat(4)-16.56%
Min EPS beat(4)-62.4%
Max EPS beat(4)14.25%
EPS beat(8)2
Avg EPS beat(8)-8.25%
EPS beat(12)2
Avg EPS beat(12)-9.21%
EPS beat(16)3
Avg EPS beat(16)-3.4%
Revenue beat(2)0
Avg Revenue beat(2)-1.64%
Min Revenue beat(2)-3.22%
Max Revenue beat(2)-0.05%
Revenue beat(4)1
Avg Revenue beat(4)-4.01%
Min Revenue beat(4)-21.29%
Max Revenue beat(4)8.54%
Revenue beat(8)3
Avg Revenue beat(8)-1.29%
Revenue beat(12)3
Avg Revenue beat(12)-6.64%
Revenue beat(16)7
Avg Revenue beat(16)-1.09%
PT rev (1m)9.8%
PT rev (3m)9.8%
EPS NQ rev (1m)5%
EPS NQ rev (3m)1.2%
EPS NY rev (1m)-2.66%
EPS NY rev (3m)-6.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.88 | ||
| Fwd PE | 10.75 | ||
| P/S | 0.65 | ||
| P/FCF | 3.51 | ||
| P/OCF | 2.51 | ||
| P/B | 2.82 | ||
| P/tB | 2.88 | ||
| EV/EBITDA | 2.48 |
EPS(TTM)1.4
EY6.72%
EPS(NY)1.94
Fwd EY9.3%
FCF(TTM)5.93
FCFY28.48%
OCF(TTM)8.3
OCFY39.84%
SpS32.16
BVpS7.39
TBVpS7.23
PEG (NY)N/A
PEG (5Y)131.23
Graham Number15.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.87% | ||
| ROE | 18.86% | ||
| ROCE | 26.46% | ||
| ROIC | 20.9% | ||
| ROICexc | 21.57% | ||
| ROICexgc | 21.68% | ||
| OM | 28.39% | ||
| PM (TTM) | 4.34% | ||
| GM | 30.84% | ||
| FCFM | 18.44% |
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%
ROICexgc growth 3Y3.2%
ROICexgc 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-Score4
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.53 | ||
| Debt/FCF | 1.91 | ||
| Debt/EBITDA | 0.9 | ||
| Cap/Depr | 69.03% | ||
| Cap/Sales | 7.36% | ||
| Interest Coverage | 13.43 | ||
| Cash Conversion | 66.08% | ||
| Profit Quality | 425.38% | ||
| Current Ratio | 2.37 | ||
| Quick Ratio | 2.32 | ||
| Altman-Z | N/A |
F-Score4
WACC12.11%
ROIC/WACC1.73
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)-20%
EPS 3Y-8.89%
EPS 5Y0.11%
EPS Q2Q%-17.65%
EPS Next Y-26.24%
EPS Next 2Y4.64%
EPS Next 3Y6.06%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.82%
Revenue growth 3Y-2.22%
Revenue growth 5Y0.79%
Sales Q2Q%11.52%
Revenue Next Year7.57%
Revenue Next 2Y10.11%
Revenue Next 3Y7.58%
Revenue Next 5YN/A
EBIT growth 1Y-17.74%
EBIT growth 3Y-1.67%
EBIT growth 5Y2.2%
EBIT Next Year124.27%
EBIT Next 3Y35.12%
EBIT Next 5YN/A
FCF growth 1Y-50.71%
FCF growth 3Y10.04%
FCF growth 5Y1.38%
OCF growth 1Y-37.33%
OCF growth 3Y5.9%
OCF growth 5Y1.47%
WESTLAKE CHEMICAL PARTNERS L / WLKP FAQ
What is the fundamental rating for WLKP stock?
ChartMill assigns a fundamental rating of 6 / 10 to WLKP.
What is the valuation status of WESTLAKE CHEMICAL PARTNERS L (WLKP) stock?
ChartMill assigns a valuation rating of 6 / 10 to WESTLAKE CHEMICAL PARTNERS L (WLKP). This can be considered as Fairly Valued.
How profitable is WESTLAKE CHEMICAL PARTNERS L (WLKP) stock?
WESTLAKE CHEMICAL PARTNERS L (WLKP) has a profitability rating of 7 / 10.
What is the valuation of WESTLAKE CHEMICAL PARTNERS L based on its PE and PB ratios?
The Price/Earnings (PE) ratio for WESTLAKE CHEMICAL PARTNERS L (WLKP) is 14.88 and the Price/Book (PB) ratio is 2.82.
What is the financial health of WESTLAKE CHEMICAL PARTNERS L (WLKP) stock?
The financial health rating of WESTLAKE CHEMICAL PARTNERS L (WLKP) is 6 / 10.