WESTLAKE CHEMICAL PARTNERS L (WLKP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WLKP - US9604171036
19.16 USD
+0.23 (+1.22%)
WLKP gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 81 industry peers in the Chemicals industry. WLKP scores excellent on profitability, but 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
WLKP had positive earnings in the past year.
WLKP had a positive operating cash flow in the past year.
WLKP had positive earnings in each of the past 5 years.
In the past 5 years WLKP always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of WLKP (3.87%) is better than 72.84% of its industry peers.
WLKP has a better Return On Equity (18.86%) than 87.65% of its industry peers.
With an excellent Return On Invested Capital value of 20.90%, WLKP belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
WLKP had an Average Return On Invested Capital over the past 3 years of 22.83%. This is significantly above the industry average of 6.15%.
| 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
The Profit Margin of WLKP (4.34%) is better than 69.14% of its industry peers.
In the last couple of years the Profit Margin of WLKP has remained more or less at the same level.
With an excellent Operating Margin value of 28.39%, WLKP belongs to the best of the industry, outperforming 95.06% of the companies in the same industry.
WLKP's Operating Margin has been stable in the last couple of years.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), WLKP is creating value.
WLKP has about the same amout of shares outstanding than it did 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.
The Debt to FCF ratio of WLKP (1.91) is better than 90.12% 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.
With a Debt to Equity ratio value of 1.53, WLKP is not doing good in the industry: 75.31% 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 | 1.53 | ||
| Debt/FCF | 1.91 | ||
| Altman-Z | N/A |
ROIC/WACC2.39
WACC8.76%
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 66.67% 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 has a better Quick ratio (2.32) than 87.65% 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.
Looking at the last year, WLKP shows a decrease in Revenue. The Revenue has decreased by -0.82% in the last year.
Measured over the past years, WLKP shows a small growth in Revenue. The Revenue has been growing by 0.79% on average per year.
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
WLKP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.96% yearly.
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
With a Price/Earnings ratio of 13.69, WLKP is valued correctly.
WLKP's Price/Earnings ratio is a bit cheaper when compared to the industry. WLKP is cheaper than 72.84% of the companies in the same industry.
When comparing the Price/Earnings ratio of WLKP to the average of the S&P500 Index (26.46), we can say WLKP is valued slightly cheaper.
The Price/Forward Earnings ratio is 9.39, which indicates a very decent valuation of WLKP.
Based on the Price/Forward Earnings ratio, WLKP is valued cheaply inside the industry as 82.72% of the companies are valued more expensively.
WLKP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.69 | ||
| Fwd PE | 9.39 |
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 97.53% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, WLKP is valued cheaper than 96.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.23 | ||
| EV/EBITDA | 2.32 |
4.3 Compensation for Growth
The decent profitability rating of WLKP may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)120.71
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 3.88. WLKP pays more dividend than 91.36% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, WLKP pays a better dividend.
| 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.
The dividend of WLKP decreased in the last 3 years.
Dividend Growth(5Y)0.46%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
WLKP pays out 135.18% 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.
DP135.18%
EPS Next 2Y7.36%
EPS Next 3Y3.97%
NYSE:WLKP (12/5/2025, 8:04:00 PM)
19.16
+0.23 (+1.22%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners29.29%
Inst Owner Change-1.95%
Ins Owners1.31%
Ins Owner Change0.05%
Market Cap675.39M
Revenue(TTM)1.13B
Net Income(TTM)49.16M
Analysts80
Price Target26.01 (35.75%)
Short Float %0.47%
Short Ratio1.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10% |
Yearly Dividend1.89
Dividend Growth(5Y)0.46%
DP135.18%
Div Incr Years0
Div Non Decr Years2
Ex-Date
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)0%
PT rev (3m)0%
EPS NQ rev (1m)-1.23%
EPS NQ rev (3m)-3.61%
EPS NY rev (1m)0%
EPS NY rev (3m)-10.78%
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 | 13.69 | ||
| Fwd PE | 9.39 | ||
| P/S | 0.6 | ||
| P/FCF | 3.23 | ||
| P/OCF | 2.31 | ||
| P/B | 2.59 | ||
| P/tB | 2.65 | ||
| EV/EBITDA | 2.32 |
EPS(TTM)1.4
EY7.31%
EPS(NY)2.04
Fwd EY10.65%
FCF(TTM)5.93
FCFY30.96%
OCF(TTM)8.3
OCFY43.32%
SpS32.16
BVpS7.39
TBVpS7.23
PEG (NY)N/A
PEG (5Y)120.71
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
WACC8.76%
ROIC/WACC2.39
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)-0.82%
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-17.74%
EBIT growth 3Y-1.67%
EBIT growth 5Y2.2%
EBIT Next Year119.06%
EBIT Next 3Y34.31%
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 for 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 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 135.18%.