WESTLAKE CHEMICAL PARTNERS L (WLKP) Stock Fundamental Analysis
NYSE:WLKP - New York Stock Exchange, Inc. - US9604171036 - Currency: USD
Taking everything into account, WLKP scores 6 out of 10 in our fundamental rating. WLKP was compared to 85 industry peers in the Chemicals industry. While WLKP has a great profitability rating, 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
WLKP had positive earnings in the past year.
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
The Return On Assets of WLKP (3.83%) is better than 70.59% of its industry peers.
Looking at the Return On Equity, with a value of 19.85%, WLKP belongs to the top of the industry, outperforming 89.41% of the companies in the same industry.
WLKP has a Return On Invested Capital of 22.39%. This is amongst the best in the industry. WLKP outperforms 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 6.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.83% | ||
| ROE | 19.85% | ||
| ROIC | 22.39% |
ROA(3y)4.55%
ROA(5y)4.82%
ROE(3y)21.33%
ROE(5y)23.18%
ROIC(3y)22.83%
ROIC(5y)22.66%
1.3 Margins
With a decent Profit Margin value of 4.82%, WLKP is doing good in the industry, outperforming 64.71% of the companies in the same industry.
WLKP's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 31.40%, WLKP belongs to the best of the industry, outperforming 96.47% of the companies in the same industry.
In the last couple of years the Operating Margin of WLKP has remained more or less at the same level.
With a decent Gross Margin value of 34.06%, WLKP is doing good in the industry, outperforming 67.06% of the companies in the same industry.
WLKP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.4% | ||
| PM (TTM) | 4.82% | ||
| GM | 34.06% |
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.
Compared to 5 years ago, WLKP has about the same amount of shares outstanding.
The debt/assets ratio for WLKP is higher compared to a year ago.
2.2 Solvency
WLKP has a debt to FCF ratio of 1.08. This is a very positive value and a sign of high solvency as it would only need 1.08 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.08, WLKP belongs to the top of the industry, outperforming 94.12% of the companies in the same industry.
A Debt/Equity ratio of 1.51 is on the high side and indicates that WLKP has dependencies on debt financing.
WLKP's Debt to Equity ratio of 1.51 is on the low side compared to the rest of the industry. WLKP is outperformed by 78.82% 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 | 1.51 | ||
| Debt/FCF | 1.08 | ||
| Altman-Z | N/A |
ROIC/WACC2.5
WACC8.97%
2.3 Liquidity
WLKP has a Current Ratio of 1.37. This is a normal value and indicates that WLKP is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.37, WLKP is doing worse than 74.12% of the companies in the same industry.
A Quick Ratio of 1.35 indicates that WLKP should not have too much problems paying its short term obligations.
WLKP has a Quick ratio (1.35) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
WLKP shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.25%.
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.
Looking at the last year, WLKP shows a decrease in Revenue. The Revenue has decreased by -6.76% in the last year.
The Revenue has been growing slightly by 0.79% on average over the past years.
EPS 1Y (TTM)-3.25%
EPS 3Y-8.89%
EPS 5Y0.11%
EPS Q2Q%-66.67%
Revenue 1Y (TTM)-6.76%
Revenue growth 3Y-2.22%
Revenue growth 5Y0.79%
Sales Q2Q%-16.53%
3.2 Future
WLKP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.19% yearly.
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-9.53%
EPS Next 2Y9.48%
EPS Next 3Y5.19%
EPS Next 5YN/A
Revenue Next Year12.76%
Revenue Next 2Y9.78%
Revenue Next 3Y7.35%
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.
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 15.06, WLKP is valued correctly.
70.59% of the companies in the same industry are more expensive than WLKP, based on the Price/Earnings ratio.
WLKP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.30.
The Price/Forward Earnings ratio is 10.58, which indicates a very decent valuation of WLKP.
75.29% of the companies in the same industry are more expensive than WLKP, based on the Price/Forward Earnings ratio.
WLKP is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.06 | ||
| Fwd PE | 10.58 |
4.2 Price Multiples
97.65% of the companies in the same industry are more expensive than WLKP, based on the Enterprise Value to EBITDA ratio.
WLKP's Price/Free Cash Flow ratio is rather cheap when compared to the industry. WLKP is cheaper than 98.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.13 | ||
| EV/EBITDA | 2.52 |
4.3 Compensation for Growth
WLKP has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)132.83
EPS Next 2Y9.48%
EPS Next 3Y5.19%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.37%, WLKP is a good candidate for dividend investing.
WLKP's Dividend Yield is rather good when compared to the industry average which is at 3.53. WLKP pays more dividend than 90.59% of the companies in the same industry.
WLKP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.37% |
5.2 History
The dividend of WLKP has a limited annual growth rate of 0.46%.
WLKP has been paying a dividend for at least 10 years, so it has 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
126.53% 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.
DP126.53%
EPS Next 2Y9.48%
EPS Next 3Y5.19%
22.44
-0.08 (-0.36%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners33.57%
Inst Owner Change0%
Ins Owners1.27%
Ins Owner Change-0.09%
Market Cap790.79M
Analysts80
Price Target26.01 (15.91%)
Short Float %0.64%
Short Ratio3.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.37% |
Yearly Dividend1.89
Dividend Growth(5Y)0.46%
DP126.53%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-24.07%
Min EPS beat(2)-62.4%
Max EPS beat(2)14.25%
EPS beat(4)2
Avg EPS beat(4)-7.63%
Min EPS beat(4)-62.4%
Max EPS beat(4)25.21%
EPS beat(8)2
Avg EPS beat(8)-9.78%
EPS beat(12)2
Avg EPS beat(12)-9.49%
EPS beat(16)4
Avg EPS beat(16)-2.39%
Revenue beat(2)1
Avg Revenue beat(2)-6.38%
Min Revenue beat(2)-21.29%
Max Revenue beat(2)8.54%
Revenue beat(4)3
Avg Revenue beat(4)0.43%
Min Revenue beat(4)-21.29%
Max Revenue beat(4)11.3%
Revenue beat(8)3
Avg Revenue beat(8)-5.49%
Revenue beat(12)5
Avg Revenue beat(12)-3.88%
Revenue beat(16)9
Avg Revenue beat(16)-0.25%
PT rev (1m)-0.65%
PT rev (3m)-0.65%
EPS NQ rev (1m)2.25%
EPS NQ rev (3m)-2.15%
EPS NY rev (1m)-0.63%
EPS NY rev (3m)-9.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.06 | ||
| Fwd PE | 10.58 | ||
| P/S | 0.73 | ||
| P/FCF | 2.13 | ||
| P/OCF | 1.86 | ||
| P/B | 2.99 | ||
| P/tB | 3.06 | ||
| EV/EBITDA | 2.52 |
EPS(TTM)1.49
EY6.64%
EPS(NY)2.12
Fwd EY9.45%
FCF(TTM)10.53
FCFY46.92%
OCF(TTM)12.09
OCFY53.9%
SpS30.9
BVpS7.5
TBVpS7.34
PEG (NY)N/A
PEG (5Y)132.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.83% | ||
| ROE | 19.85% | ||
| ROCE | 28.34% | ||
| ROIC | 22.39% | ||
| ROICexc | 23.35% | ||
| ROICexgc | 23.47% | ||
| OM | 31.4% | ||
| PM (TTM) | 4.82% | ||
| GM | 34.06% | ||
| FCFM | 34.08% |
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-Score5
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.51 | ||
| Debt/FCF | 1.08 | ||
| Debt/EBITDA | 0.88 | ||
| Cap/Depr | 49.7% | ||
| Cap/Sales | 5.07% | ||
| Interest Coverage | 13.33 | ||
| Cash Conversion | 94.1% | ||
| Profit Quality | 706.69% | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | N/A |
F-Score5
WACC8.97%
ROIC/WACC2.5
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)-3.25%
EPS 3Y-8.89%
EPS 5Y0.11%
EPS Q2Q%-66.67%
EPS Next Y-9.53%
EPS Next 2Y9.48%
EPS Next 3Y5.19%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.76%
Revenue growth 3Y-2.22%
Revenue growth 5Y0.79%
Sales Q2Q%-16.53%
Revenue Next Year12.76%
Revenue Next 2Y9.78%
Revenue Next 3Y7.35%
Revenue Next 5YN/A
EBIT growth 1Y-3.57%
EBIT growth 3Y-1.67%
EBIT growth 5Y2.2%
EBIT Next Year119.91%
EBIT Next 3Y32.96%
EBIT Next 5YN/A
FCF growth 1Y-18.86%
FCF growth 3Y10.04%
FCF growth 5Y1.38%
OCF growth 1Y-15.4%
OCF growth 3Y5.9%
OCF growth 5Y1.47%