WESTLAKE CHEMICAL PARTNERS L (WLKP) Stock Fundamental Analysis
USA - NYSE:WLKP - US9604171036
21.65 USD
-0.21 (-0.96%)
21.65 USD
0 (0%)
Taking everything into account, WLKP scores 6 out of 10 in our fundamental rating. WLKP was compared to 83 industry peers in the Chemicals industry. WLKP has an excellent profitability rating, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on WLKP. With these ratings, WLKP could be worth investigating further for value investing!.
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.
WLKP had positive earnings in each of the past 5 years.
WLKP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WLKP has a better Return On Assets (4.03%) than 75.90% of its industry peers.
With an excellent Return On Equity value of 20.06%, WLKP belongs to the best of the industry, outperforming 90.36% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 21.73%, WLKP belongs to the top 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 6.34%.
| 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
The Profit Margin of WLKP (4.78%) is better than 67.47% of its industry peers.
In the last couple of years the Profit Margin of WLKP has remained more or less at the same level.
WLKP has a better Operating Margin (30.82%) than 100.00% of its industry peers.
WLKP's Operating Margin has been stable in the last couple of years.
WLKP has a better Gross Margin (33.32%) than 65.06% of its industry peers.
WLKP's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so WLKP is creating value.
Compared to 1 year ago, WLKP has about the same amount of shares outstanding.
The number of shares outstanding for WLKP remains at a similar level compared to 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 1.64. This is a very positive value and a sign of high solvency as it would only need 1.64 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.64, WLKP belongs to the best of the industry, outperforming 91.57% of the companies in the same industry.
WLKP has a Debt/Equity ratio of 1.52. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.52, WLKP is not doing good in the industry: 77.11% of the companies in the same industry are doing better.
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/WACC2.39
WACC9.1%
2.3 Liquidity
A Current Ratio of 2.15 indicates that WLKP has no problem at all paying its short term obligations.
WLKP has a Current ratio of 2.15. This is comparable to the rest of the industry: WLKP outperforms 59.04% of its industry peers.
A Quick Ratio of 2.10 indicates that WLKP has no problem at all paying its short term obligations.
WLKP has a Quick ratio of 2.10. This is amongst the best in the industry. WLKP outperforms 80.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.15 | ||
| Quick Ratio | 2.1 |
3. Growth
3.1 Past
WLKP shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.45%.
WLKP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.11% yearly.
Looking at the last year, WLKP shows a decrease in Revenue. The Revenue has decreased by -7.24% in the last 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)-7.45%
EPS 3Y-8.89%
EPS 5Y0.11%
EPS Q2Q%0%
Revenue 1Y (TTM)-7.24%
Revenue growth 3Y-2.22%
Revenue growth 5Y0.79%
Sales Q2Q%4.56%
3.2 Future
The Earnings Per Share is expected to grow by 3.79% on average over the next years.
WLKP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.35% yearly.
EPS Next Y-11.83%
EPS Next 2Y7.22%
EPS Next 3Y3.79%
EPS Next 5YN/A
Revenue Next Year12.76%
Revenue Next 2Y9.78%
Revenue Next 3Y7.35%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 14.53, which indicates a correct valuation of WLKP.
74.70% of the companies in the same industry are more expensive than WLKP, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.30. WLKP is valued slightly cheaper when compared to this.
WLKP is valuated reasonably with a Price/Forward Earnings ratio of 10.64.
Based on the Price/Forward Earnings ratio, WLKP is valued cheaper than 80.72% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.73. WLKP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.53 | ||
| Fwd PE | 10.64 |
4.2 Price Multiples
97.59% 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 98.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.13 | ||
| EV/EBITDA | 2.49 |
4.3 Compensation for Growth
The excellent profitability rating of WLKP may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)128.16
EPS Next 2Y7.22%
EPS Next 3Y3.79%
5. Dividend
5.1 Amount
WLKP has a Yearly Dividend Yield of 8.63%, which is a nice return.
WLKP's Dividend Yield is rather good when compared to the industry average which is at 3.45. WLKP pays more dividend than 91.57% of the companies in the same industry.
WLKP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.63% |
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 126.23% 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.
DP126.23%
EPS Next 2Y7.22%
EPS Next 3Y3.79%
21.65
-0.21 (-0.96%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners33.6%
Inst Owner Change1.21%
Ins Owners1.27%
Ins Owner Change-0.04%
Market Cap762.95M
Analysts80
Price Target26.01 (20.14%)
Short Float %0.48%
Short Ratio2.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.63% |
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)-0.65%
EPS NQ rev (1m)-1.15%
EPS NQ rev (3m)3.2%
EPS NY rev (1m)-2.55%
EPS NY rev (3m)-3.16%
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 | 14.53 | ||
| Fwd PE | 10.64 | ||
| P/S | 0.69 | ||
| P/FCF | 3.13 | ||
| P/OCF | 2.43 | ||
| P/B | 2.91 | ||
| P/tB | 2.97 | ||
| EV/EBITDA | 2.49 |
EPS(TTM)1.49
EY6.88%
EPS(NY)2.03
Fwd EY9.4%
FCF(TTM)6.92
FCFY31.99%
OCF(TTM)8.89
OCFY41.08%
SpS31.27
BVpS7.45
TBVpS7.28
PEG (NY)N/A
PEG (5Y)128.16
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%
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-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
WACC9.1%
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)-7.45%
EPS 3Y-8.89%
EPS 5Y0.11%
EPS Q2Q%0%
EPS Next Y-11.83%
EPS Next 2Y7.22%
EPS Next 3Y3.79%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.24%
Revenue growth 3Y-2.22%
Revenue growth 5Y0.79%
Sales Q2Q%4.56%
Revenue Next Year12.76%
Revenue Next 2Y9.78%
Revenue Next 3Y7.35%
Revenue Next 5YN/A
EBIT growth 1Y-7.67%
EBIT growth 3Y-1.67%
EBIT growth 5Y2.2%
EBIT Next Year119.07%
EBIT Next 3Y33.22%
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%