WESTLAKE CHEMICAL PARTNERS L (WLKP) Stock Fundamental Analysis
USA - NYSE:WLKP - US9604171036
18.69 USD
0 (0%)
18.7399 USD
+0.05 (+0.27%)
Taking everything into account, WLKP scores 6 out of 10 in our fundamental rating. 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, WLKP could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
WLKP had positive earnings in the past year.
WLKP had a positive operating cash flow in the past year.
Each year in the past 5 years WLKP has been profitable.
In the past 5 years WLKP always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of WLKP (4.03%) is better than 74.39% of its industry peers.
The Return On Equity of WLKP (20.06%) is better than 90.24% of its industry peers.
WLKP has a better Return On Invested Capital (21.73%) than 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WLKP is significantly above the industry average of 6.23%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.03% | ||
| ROE | 20.06% | ||
| ROIC | 21.73% |
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
With a decent Profit Margin value of 4.78%, WLKP is doing good in the industry, outperforming 67.07% of the companies in the same industry.
In the last couple of years the Profit Margin of WLKP has remained more or less at the same level.
The Operating Margin of WLKP (30.82%) is better than 96.34% of its industry peers.
In the last couple of years the Operating Margin of WLKP has remained more or less at the same level.
WLKP's Gross Margin of 33.32% is fine compared to the rest of the industry. WLKP outperforms 65.85% 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 | 30.82% | ||
| PM (TTM) | 4.78% | ||
| GM | 33.32% |
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.
WLKP has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for WLKP remains at a similar level 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 1.64, which is an excellent value as it means it would take WLKP, only 1.64 years of fcf income to pay off all of its debts.
WLKP's Debt to FCF ratio of 1.64 is amongst the best of the industry. WLKP outperforms 91.46% of its industry peers.
A Debt/Equity ratio of 1.52 is on the high side and indicates that WLKP has dependencies on debt financing.
The Debt to Equity ratio of WLKP (1.52) is worse than 76.83% 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 | 1.52 | ||
| Debt/FCF | 1.64 | ||
| Altman-Z | N/A |
ROIC/WACC2.55
WACC8.51%
2.3 Liquidity
WLKP has a Current Ratio of 2.15. This indicates that WLKP is financially healthy and has no problem in meeting its short term obligations.
WLKP has a Current ratio of 2.15. This is comparable to the rest of the industry: WLKP outperforms 58.54% of its industry peers.
A Quick Ratio of 2.10 indicates that WLKP has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.10, WLKP belongs to the top of the industry, outperforming 80.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.15 | ||
| Quick Ratio | 2.1 |
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%.
Measured over the past 5 years, WLKP shows a small growth in Earnings Per Share. The EPS has been growing by 0.11% on average per year.
WLKP shows a decrease in Revenue. In the last year, the revenue decreased by -4.61%.
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)-4.61%
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 3.96% on average per year.
The Revenue is expected to grow by 7.77% on average over the next years.
EPS Next Y-21.34%
EPS Next 2Y7.36%
EPS Next 3Y3.97%
EPS Next 5YN/A
Revenue Next Year6.93%
Revenue Next 2Y10.4%
Revenue Next 3Y7.77%
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
The Price/Earnings ratio is 13.35, which indicates a correct valuation of WLKP.
WLKP's Price/Earnings ratio is a bit cheaper when compared to the industry. WLKP is cheaper than 73.17% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.83. WLKP is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 9.16 indicates a reasonable valuation of WLKP.
82.93% of the companies in the same industry are more expensive than WLKP, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of WLKP to the average of the S&P500 Index (32.68), we can say WLKP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.35 | ||
| Fwd PE | 9.16 |
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 97.56% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, WLKP is valued cheaply inside the industry as 98.78% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.7 | ||
| EV/EBITDA | 2.25 |
4.3 Compensation for Growth
The excellent profitability rating of WLKP may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)117.75
EPS Next 2Y7.36%
EPS Next 3Y3.97%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 10.00%, WLKP is a good candidate for dividend investing.
WLKP's Dividend Yield is rather good when compared to the industry average which is at 4.11. WLKP pays more dividend than 90.24% of the companies in the same industry.
WLKP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10% |
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 126.23% 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.
DP126.23%
EPS Next 2Y7.36%
EPS Next 3Y3.97%
18.69
0 (0%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners29.29%
Inst Owner Change0.09%
Ins Owners1.31%
Ins Owner Change-0.04%
Market Cap658.64M
Revenue(TTM)1.14B
Net Income(TTM)52.64M
Analysts80
Price Target26.01 (39.17%)
Short Float %0.41%
Short Ratio1.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10% |
Yearly Dividend1.89
Dividend Growth(5Y)0.46%
DP126.23%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-37.03%
Min EPS beat(2)-62.4%
Max EPS beat(2)-11.66%
EPS beat(4)2
Avg EPS beat(4)-8.65%
Min EPS beat(4)-62.4%
Max EPS beat(4)25.21%
EPS beat(8)2
Avg EPS beat(8)-9.65%
EPS beat(12)2
Avg EPS beat(12)-9.94%
EPS beat(16)3
Avg EPS beat(16)-4.91%
Revenue beat(2)0
Avg Revenue beat(2)-12.26%
Min Revenue beat(2)-21.29%
Max Revenue beat(2)-3.22%
Revenue beat(4)2
Avg Revenue beat(4)-1.17%
Min Revenue beat(4)-21.29%
Max Revenue beat(4)11.3%
Revenue beat(8)3
Avg Revenue beat(8)-2.74%
Revenue beat(12)4
Avg Revenue beat(12)-6.47%
Revenue beat(16)8
Avg Revenue beat(16)-0.73%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)2.33%
EPS NQ rev (3m)1.15%
EPS NY rev (1m)0%
EPS NY rev (3m)-13.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.35 | ||
| Fwd PE | 9.16 | ||
| P/S | 0.6 | ||
| P/FCF | 2.7 | ||
| P/OCF | 2.1 | ||
| P/B | 2.51 | ||
| P/tB | 2.57 | ||
| EV/EBITDA | 2.25 |
EPS(TTM)1.4
EY7.49%
EPS(NY)2.04
Fwd EY10.91%
FCF(TTM)6.92
FCFY37.05%
OCF(TTM)8.89
OCFY47.58%
SpS31.27
BVpS7.45
TBVpS7.28
PEG (NY)N/A
PEG (5Y)117.75
Graham Number15.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.03% | ||
| ROE | 20.06% | ||
| ROCE | 27.51% | ||
| ROIC | 21.73% | ||
| ROICexc | 22.4% | ||
| ROICexgc | 22.51% | ||
| OM | 30.82% | ||
| PM (TTM) | 4.78% | ||
| GM | 33.32% | ||
| FCFM | 22.15% |
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 Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 1.64 | ||
| Debt/EBITDA | 0.88 | ||
| Cap/Depr | 60.24% | ||
| Cap/Sales | 6.29% | ||
| Interest Coverage | 13.75 | ||
| Cash Conversion | 68.92% | ||
| Profit Quality | 463.61% | ||
| Current Ratio | 2.15 | ||
| Quick Ratio | 2.1 | ||
| Altman-Z | N/A |
F-Score4
WACC8.51%
ROIC/WACC2.55
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-21.34%
EPS Next 2Y7.36%
EPS Next 3Y3.97%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.61%
Revenue growth 3Y-2.22%
Revenue growth 5Y0.79%
Sales Q2Q%11.52%
Revenue Next Year6.93%
Revenue Next 2Y10.4%
Revenue Next 3Y7.77%
Revenue Next 5YN/A
EBIT growth 1Y-7.67%
EBIT growth 3Y-1.67%
EBIT growth 5Y2.2%
EBIT Next Year119.06%
EBIT Next 3Y34.31%
EBIT Next 5YN/A
FCF growth 1Y-44.84%
FCF growth 3Y10.04%
FCF growth 5Y1.38%
OCF growth 1Y-34.9%
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 for WLKP stock?
ChartMill assigns a valuation rating of 7 / 10 to WESTLAKE CHEMICAL PARTNERS L (WLKP). This can be considered as Undervalued.
How profitable is WESTLAKE CHEMICAL PARTNERS L (WLKP) stock?
WESTLAKE CHEMICAL PARTNERS L (WLKP) has a profitability rating of 8 / 10.
What is the earnings growth outlook for WESTLAKE CHEMICAL PARTNERS L?
The Earnings per Share (EPS) of WESTLAKE CHEMICAL PARTNERS L (WLKP) is expected to decline by -21.34% in the next year.
How sustainable is the dividend of WESTLAKE CHEMICAL PARTNERS L (WLKP) stock?
The dividend rating of WESTLAKE CHEMICAL PARTNERS L (WLKP) is 6 / 10 and the dividend payout ratio is 126.23%.