Westlake Chemical Corporation, together with its subsidiaries, manufactures and markets basic chemicals, vinyls, polymers, and building products worldwide.
Westlake Chemical Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$85.65|
|52 Week High||US$59.75|
|52 Week Low||US$106.47|
|1 Month Change||5.89%|
|3 Month Change||-6.20%|
|1 Year Change||27.13%|
|3 Year Change||-0.35%|
|5 Year Change||70.28%|
|Change since IPO||1,069.28%|
Recent News & Updates
Westlake Chemical Is A Screaming Value
The stock of Westlake Chemical has dropped 15%+ since the company announced plans to acquire assets from Boral for $2.15 billion. However, the stock drop isn't rational given strong current chemicals margins the excellent strategic and diversification benefits the Boral assets bring to the table. Westlake can easily fund the acquisition, using $1 billion in cash, and the rest through very affordable debt. Westlake is a BUY and my price target is $110 - or a total return opportunity of ~25%+.
Westlake Chemical Corporation (NYSE:WLK) Shares Could Be 37% Below Their Intrinsic Value Estimate
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Westlake Chemical...
Westlake Chemical's (NYSE:WLK) Shareholders Will Receive A Bigger Dividend Than Last Year
The board of Westlake Chemical Corporation ( NYSE:WLK ) has announced that it will be increasing its dividend on the...
|WLK||US Chemicals||US Market|
Return vs Industry: WLK exceeded the US Chemicals industry which returned 22.2% over the past year.
Return vs Market: WLK underperformed the US Market which returned 33.8% over the past year.
Stable Share Price: WLK is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: WLK's weekly volatility (4%) has been stable over the past year.
About the Company
Westlake Chemical Corporation, together with its subsidiaries, manufactures and markets basic chemicals, vinyls, polymers, and building products worldwide. It operates through two segments, Vinyls and Olefins. The Vinyls segment provides specialty and commodity polyvinyl chloride (PVC), vinyl chloride monomers, ethylene dichloride, chlorine, caustic soda, chlorinated derivative, and ethylene products.
Is Westlake Chemical undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: WLK ($85.65) is trading below our estimate of fair value ($133.07)
Significantly Below Fair Value: WLK is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: WLK is good value based on its PE Ratio (11.8x) compared to the US Chemicals industry average (22.4x).
PE vs Market: WLK is good value based on its PE Ratio (11.8x) compared to the US market (17.8x).
Price to Earnings Growth Ratio
PEG Ratio: WLK's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: WLK is good value based on its PB Ratio (1.6x) compared to the US Chemicals industry average (2.7x).
How is Westlake Chemical forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WLK's earnings are forecast to decline over the next 3 years (-14.8% per year).
Earnings vs Market: WLK's earnings are forecast to decline over the next 3 years (-14.8% per year).
High Growth Earnings: WLK's earnings are forecast to decline over the next 3 years.
Revenue vs Market: WLK's revenue is expected to decline over the next 3 years (-0.04% per year).
High Growth Revenue: WLK's revenue is forecast to decline over the next 3 years (-0.04% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: WLK's Return on Equity is forecast to be low in 3 years time (16.2%).
How has Westlake Chemical performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WLK has high quality earnings.
Growing Profit Margin: WLK's current net profit margins (10.2%) are higher than last year (5.1%).
Past Earnings Growth Analysis
Earnings Trend: WLK's earnings have declined by 5.4% per year over the past 5 years.
Accelerating Growth: WLK's earnings growth over the past year (139.7%) exceeds its 5-year average (-5.4% per year).
Earnings vs Industry: WLK earnings growth over the past year (139.7%) exceeded the Chemicals industry 32.6%.
Return on Equity
High ROE: WLK's Return on Equity (13.4%) is considered low.
How is Westlake Chemical's financial position?
Financial Position Analysis
Short Term Liabilities: WLK's short term assets ($4.4B) exceed its short term liabilities ($1.5B).
Long Term Liabilities: WLK's short term assets ($4.4B) do not cover its long term liabilities ($5.9B).
Debt to Equity History and Analysis
Debt Level: WLK's debt to equity ratio (48.4%) is considered high.
Reducing Debt: WLK's debt to equity ratio has increased from 21.2% to 48.4% over the past 5 years.
Debt Coverage: WLK's debt is well covered by operating cash flow (47%).
Interest Coverage: WLK's interest payments on its debt are well covered by EBIT (10.9x coverage).
What is Westlake Chemical current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: WLK's dividend (1.39%) is higher than the bottom 25% of dividend payers in the US market (1.33%).
High Dividend: WLK's dividend (1.39%) is low compared to the top 25% of dividend payers in the US market (3.6%).
Stability and Growth of Payments
Stable Dividend: WLK's dividends per share have been stable in the past 10 years.
Growing Dividend: WLK's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (14.9%), WLK's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: WLK's dividends in 3 years are forecast to be thoroughly covered by earnings (13.8% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Albert Chao (71 yo)
Mr. Albert Yuan Chao serves as the Chief Executive Officer, President and Managing Director of Vinnolit GmbH & Co. KG. Mr. Chao has been President, Chief Executive Officer and Director of Westlake Chemical...
CEO Compensation Analysis
Compensation vs Market: Albert's total compensation ($USD10.70M) is about average for companies of similar size in the US market ($USD11.36M).
Compensation vs Earnings: Albert's compensation has been consistent with company performance over the past year.
Experienced Management: WLK's management team is seasoned and experienced (5.8 years average tenure).
Experienced Board: WLK's board of directors are considered experienced (3.7 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: WLK insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Westlake Chemical Corporation's employee growth, exchange listings and data sources
- Name: Westlake Chemical Corporation
- Ticker: WLK
- Exchange: NYSE
- Founded: 1986
- Industry: Commodity Chemicals
- Sector: Materials
- Market Cap: US$10.976b
- Shares outstanding: 128.15m
- Website: https://www.westlake.com
Number of Employees
- Westlake Chemical Corporation
- 2801 Post Oak Boulevard
- Suite 600
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/18 22:04|
|End of Day Share Price||2021/09/17 00:00|
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.