NYSE:WLK

Stock Analysis Report

Executive Summary

Westlake Chemical Corporation manufactures and markets basic chemicals, vinyls, polymers, and building products worldwide.

Snowflake

Fundamentals

Established dividend payer and good 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


Market Performance


7 Day Return

0.6%

NYSE:WLK

1.2%

US Chemicals

0.8%

US Market


1 Year Return

-21.7%

NYSE:WLK

-13.3%

US Chemicals

1.9%

US Market

WLK underperformed the Chemicals industry which returned -12.8% over the past year.

WLK underperformed the Market in United States of America which returned 2.1% over the past year.


Share holder returns

WLKIndustryMarket
7 Day0.6%1.2%0.8%
30 Day7.3%3.2%3.4%
90 Day4.8%0.5%2.1%
1 Year-20.4%-21.7%0.3%-13.3%4.2%1.9%
3 Year38.2%33.2%43.9%17.2%46.7%37.2%
5 Year-23.8%-28.5%37.1%6.8%62.3%44.5%

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

Valuation

Is Westlake Chemical undervalued based on future cash flows and its price relative to the stock market?

36%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Westlake Chemical's share price is below the future cash flow value, and at a moderate discount (> 20%).

Westlake Chemical's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Westlake Chemical is good value based on earnings compared to the US Chemicals industry average.

Westlake Chemical is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Westlake Chemical is poor value based on expected growth next year.


Price Based on Value of Assets

Westlake Chemical is good value based on assets compared to the US Chemicals industry average.


Next Steps

Future Growth

How is Westlake Chemical expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

6.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Westlake Chemical's revenue is expected to grow by 3.2% yearly, however this is not considered high growth (20% yearly).

Westlake Chemical's earnings are expected to grow by 6.2% yearly, however this is not considered high growth (20% yearly).

Westlake Chemical's revenue growth is positive but not above the United States of America market average.

Westlake Chemical's earnings growth is positive but not above the United States of America market average.

Westlake Chemical's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Westlake Chemical is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Westlake Chemical performed over the past 5 years?

14.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Westlake Chemical's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

Westlake Chemical's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Westlake Chemical's 1-year earnings growth is negative, it can't be compared to the US Chemicals industry average.


Return on Equity

Westlake Chemical has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Westlake Chemical used its assets less efficiently than the US Chemicals industry average last year based on Return on Assets.


Return on Capital Employed

Westlake Chemical's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Westlake Chemical's financial position?


Financial Position Analysis

Westlake Chemical is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Westlake Chemical's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Westlake Chemical's level of debt (43.1%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (28% vs 43.1% today).

Debt is well covered by operating cash flow (49.2%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 9.8x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1x debt.


Next Steps

Dividend

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

1.60%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Westlake Chemical's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).

Westlake Chemical's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (4.8x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (5.6x coverage).


Next Steps

Management

What is the CEO of Westlake Chemical's salary, the management and board of directors tenure and is there insider trading?

5.2yrs

Average management tenure


CEO

Albert Chao (69yo)

15.2yrs

Tenure

US$9,014,456

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

Albert's remuneration is higher than average for companies of similar size in United States of America.

Albert's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

5.2yrs

Average Tenure

61yo

Average Age

The average tenure for the Westlake Chemical management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

6.3yrs

Average Tenure

62.5yo

Average Age

The tenure for the Westlake Chemical board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$232,62420 Mar 19
H. Riley
EntityIndividual
Shares3,327
Max PriceUS$69.92

Ownership Breakdown


Management Team

  • Albert Chao (69yo)

    President

    • Tenure: 15.2yrs
    • Compensation: US$9.01m
  • George Mangieri (68yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 12.6yrs
    • Compensation: US$679.78k
  • Steve Bender (62yo)

    Executive VP & CFO

    • Tenure: 12.6yrs
    • Compensation: US$3.09m
  • Roger Kearns (56yo)

    Executive Vice President of Vinyls Chemicals

    • Tenure: 1.4yrs
    • Compensation: US$5.21m
  • Bob Buesinger (62yo)

    Executive Vice President of Vinyl Products

    • Tenure: 9.4yrs
    • Compensation: US$2.42m
  • Andrew Kenner (54yo)

    Senior Vice President of Chemical Manufacturing

    • Tenure: 2.2yrs
    • Compensation: US$1.38m
  • Skip Teel (60yo)

    Executive Vice President of Olefins

    • Tenure: 5.2yrs
  • Karl-Martin Schellerer

    Managing Director of Vinnolit Business and Vice President

    • Tenure: 3.8yrs
  • Ben Benjamin Ederington (48yo)

    Senior VP

    • Tenure: 3.8yrs
    • Compensation: US$1.92m
  • Jeff Holy

    VP & Treasurer

    • Tenure: 0yrs

Board Members

  • Mark McCollum (60yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$318.35k
  • Max Lukens (70yo)

    Independent Director

    • Tenure: 15.1yrs
    • Compensation: US$263.10k
  • Albert Chao (69yo)

    President

    • Tenure: 15.2yrs
    • Compensation: US$9.01m
  • Dorothy Jenkins (73yo)

    Director

    • Tenure: 16.3yrs
    • Compensation: US$263.10k
  • James Chao (71yo)

    Chairman of the Board

    • Tenure: 15.2yrs
    • Compensation: US$6.74m
  • R. Northcutt (59yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$288.13k
  • Marius Haas (51yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: US$356.71k
  • Mike Graff (64yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$278.10k
  • Jeff Sheets (61yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: US$356.71k
  • David Chao (43yo)

    Director

    • Tenure: 1.7yrs
    • Compensation: US$356.71k

Company Information

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


Key Information

  • Name: Westlake Chemical Corporation
  • Ticker: WLK
  • Exchange: NYSE
  • Founded: 1986
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: US$8.429b
  • Shares outstanding: 128.27m
  • 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 manufactures and markets basic chemicals, vinyls, polymers, and building products worldwide. It operates through two segments, Olefins and Vinyls. The Olefins segment offers p ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/17 23:51
End of Day Share Price2019/09/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.