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Westlake Chemical

Executive Summary

Westlake Chemical Corporation, together with its subsidiaries, manufactures and markets basic chemicals, vinyls, polymers, and building products worldwide.


Snowflake Analysis

Established dividend payer and fair value.


Similar Companies

Share Price & News

How has Westlake Chemical's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: UEO's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.5%

UEO

0.8%

DE Chemicals

0.7%

DE Market


1 Year Return

-24.3%

UEO

-10.2%

DE Chemicals

3.9%

DE Market

Return vs Industry: UEO underperformed the German Chemicals industry which returned -10.2% over the past year.

Return vs Market: UEO underperformed the German Market which returned 3.9% over the past year.


Shareholder returns

UEOIndustryMarket
7 Day-2.5%0.8%0.7%
30 Day1.3%1.7%5.3%
90 Day10.0%10.2%17.3%
1 Year-22.8%-24.3%-6.7%-10.2%6.2%3.9%
3 Year-21.4%-24.6%-23.3%-31.3%1.8%-6.2%
5 Year-16.6%-22.2%-18.0%-31.6%9.3%-5.4%

Price Volatility Vs. Market

How volatile is Westlake Chemical's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Westlake Chemical undervalued compared to its fair value and its price relative to the market?

13.7x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: UEO (€46.2) is trading above our estimate of fair value (€17.46)

Significantly Below Fair Value: UEO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: UEO is good value based on its PE Ratio (13.7x) compared to the DE Chemicals industry average (18.2x).

PE vs Market: UEO is good value based on its PE Ratio (13.7x) compared to the German market (21x).


Price to Earnings Growth Ratio

PEG Ratio: UEO is poor value based on its PEG Ratio (5.6x)


Price to Book Ratio

PB vs Industry: UEO is good value based on its PB Ratio (1.1x) compared to the DE Chemicals industry average (1.5x).


Next Steps

Future Growth

How is Westlake Chemical forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

2.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UEO's forecast earnings growth (2.4% per year) is above the savings rate (0.2%).

Earnings vs Market: UEO's earnings (2.4% per year) are forecast to grow slower than the German market (22.4% per year).

High Growth Earnings: UEO's earnings are forecast to grow, but not significantly.

Revenue vs Market: UEO's revenue (2.7% per year) is forecast to grow slower than the German market (5.9% per year).

High Growth Revenue: UEO's revenue (2.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: UEO's Return on Equity is forecast to be low in 3 years time (5.1%).


Next Steps

Past Performance

How has Westlake Chemical performed over the past 5 years?

5.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UEO has high quality earnings.

Growing Profit Margin: UEO's current net profit margins (6.1%) are lower than last year (9.1%).


Past Earnings Growth Analysis

Earnings Trend: UEO's earnings have grown by 5.7% per year over the past 5 years.

Accelerating Growth: UEO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: UEO had negative earnings growth (-36.4%) over the past year, making it difficult to compare to the Chemicals industry average (-18.8%).


Return on Equity

High ROE: UEO's Return on Equity (8.3%) is considered low.


Next Steps

Financial Health

How is Westlake Chemical's financial position?


Financial Position Analysis

Short Term Liabilities: UEO's short term assets ($3.8B) exceed its short term liabilities ($1.0B).

Long Term Liabilities: UEO's short term assets ($3.8B) do not cover its long term liabilities ($6.7B).


Debt to Equity History and Analysis

Debt Level: UEO's debt to equity ratio (68.8%) is considered high.

Reducing Debt: UEO's debt to equity ratio has increased from 23.3% to 68.8% over the past 5 years.

Debt Coverage: UEO's debt is well covered by operating cash flow (27.4%).

Interest Coverage: UEO's interest payments on its debt are well covered by EBIT (6.4x coverage).


Balance Sheet


Next Steps

Dividend

What is Westlake Chemical current dividend yield, its reliability and sustainability?

1.99%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: UEO's dividend (1.99%) is higher than the bottom 25% of dividend payers in the German market (1.24%).

High Dividend: UEO's dividend (1.99%) is low compared to the top 25% of dividend payers in the German market (3.82%).


Stability and Growth of Payments

Stable Dividend: UEO's dividends per share have been stable in the past 10 years.

Growing Dividend: UEO's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27%), UEO's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: UEO's dividends in 3 years are forecast to be covered by earnings (53.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.7yrs

Average management tenure


CEO

Albert Chao (70yo)

16yrs

Tenure

US$10,880,451

Compensation

Mr. Albert Yuan Chao serves as the Chief Executive Officer, President and Managing Director of Vinnolit GmbH & Co. KG. Mr. Chao has been President, Chief Executive Officer and Director of Westlake Chemical ...


CEO Compensation Analysis

Compensation vs Market: Albert's total compensation ($USD10.88M) is above average for companies of similar size in the German market ($USD3.68M).

Compensation vs Earnings: Albert's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Albert Chao
President16yrsUS$10.88m0.69% $40.9m
Steven Bender
Executive VP & CFO13.42yrsUS$3.39m0.086% $5.1m
L. Benjamin Ederington
Senior VP4.58yrsUS$2.72m0.050% $3.0m
Robert Buesinger
Executive Vice President of Vinyl Products10.25yrsUS$2.74m0.027% $1.6m
Johnathan Zoeller
Vice President & Chief Accounting Officer0.33yrno datano data
Andrew Kenner
Senior Vice President of Chemical Manufacturing3yrsUS$1.38m0.014% $807.9k
Lawrence Teel
Executive Vice President of Olefins6yrsno data0.0057% $339.2k
Karl-Martin Schellerer
Managing Director of Vinnolit Business and Vice President4.67yrsno datano data
Roger Kearns
Executive Vice President of Vinyls Chemicals2.25yrsUS$5.21m0.018% $1.1m
Jeff Holy
VP & Treasurerno datano datano data

4.7yrs

Average Tenure

59yo

Average Age

Experienced Management: UEO's management team is considered experienced (4.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Albert Chao
President16yrsUS$10.88m0.69% $40.9m
Mark McCollum
Independent Director2.17yrsUS$262.20k0.0019% $111.7k
Dorothy Jenkins
Director17.08yrsUS$247.49k0.053% $3.1m
James Chao
Chairman of the Board16yrsUS$8.34m0.21% $12.7m
R. Northcutt
Independent Director7.17yrsUS$263.75k0.0086% $508.5k
Marius Haas
Independent Director2.5yrsUS$246.96k0.0020% $116.4k
Michael Graff
Independent Director7.17yrsUS$262.49k0.0085% $506.1k
Jeffrey Sheets
Independent Director2.5yrsUS$258.21k0.0020% $116.4k
Tsung-Hung Chao
Director2.5yrsUS$246.96k0.0025% $146.7k
Tsung-Chen Chao
Director1.92yrsUS$246.96k0.0011% $65.3k

4.8yrs

Average Tenure

61.5yo

Average Age

Experienced Board: UEO's board of directors are considered experienced (4.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Westlake Chemical Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Westlake Chemical Corporation
  • Ticker: UEO
  • Exchange: DB
  • Founded: 1986
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: US$6.721b
  • Listing Market Cap: US$5.940b
  • Shares outstanding: 127.67m
  • Website: https://www.westlake.com

Number of Employees


Location

  • Westlake Chemical Corporation
  • 2801 Post Oak Boulevard
  • Suite 600
  • Houston
  • Texas
  • 77056
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WLKNYSE (New York Stock Exchange)YesCommon StockUSUSDAug 2004
UEODB (Deutsche Boerse AG)YesCommon StockDEEURAug 2004
0LVKLSE (London Stock Exchange)YesCommon StockGBUSDAug 2004

Biography

Westlake Chemical Corporation, together with its subsidiaries, manufactures and markets basic chemicals, vinyls, polymers, and building products worldwide. It operates through two segments, Olefins and Vinyls. The Olefins segment offers polyethylene, styrene monomers, and various ethylene co-products, as well as sells propylene, crude butadiene, pyrolysis gasoline, and hydrogen products. The Vinyls segment provides specialty and commodity polyvinyl chloride (PVC), vinyl chloride monomers, ethylene dichloride, chlorine, caustic soda, chlorinated derivative, and ethylene products. This segment also manufactures and sells PVC compounds and building products fabricated from PVC, including residential siding, trim and moulding, pipe and fittings for various water, sewer and industrial applications, profiles for windows and doors, decking products, film for various inflatables, wall covering tapes, roofing applications, and composite roof tiles. Westlake Chemical Corporation offers its products to a range of customers, including chemical processors, plastics fabricators, small construction contractors, municipalities, and supply warehouses in various consumer and industrial markets, such as flexible and rigid packaging, automotive products, coatings, water treatment, refrigerants, and residential and commercial construction, as well as other durable and non-durable goods. The company was founded in 1986 and is headquartered in Houston, Texas. Westlake Chemical Corporation is a subsidiary of TTWF LP. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/11 21:29
End of Day Share Price2020/07/10 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.