WLK

Westlake ChemicalNYSE:WLK Stock Report

Market Cap

US$11.0b

7D

-0.6%

1Y

27.1%

Updated

18 Sep, 2021

Data

Company Financials +
WLK fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance4/6
Financial Health3/6
Dividends5/6

WLK Overview

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

Westlake Chemical Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Westlake Chemical
Historical stock prices
Current Share PriceUS$85.65
52 Week HighUS$59.75
52 Week LowUS$106.47
Beta1.46
1 Month Change5.89%
3 Month Change-6.20%
1 Year Change27.13%
3 Year Change-0.35%
5 Year Change70.28%
Change since IPO1,069.28%

Recent News & Updates

Sep 17

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%+.

Sep 06
Westlake Chemical Corporation (NYSE:WLK) Shares Could Be 37% Below Their Intrinsic Value Estimate

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...

Aug 19
Westlake Chemical's (NYSE:WLK) Shareholders Will Receive A Bigger Dividend Than Last Year

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...

Shareholder Returns

WLKUS ChemicalsUS Market
7D-0.6%-2.2%-0.6%
1Y27.1%22.2%33.8%

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.

Price Volatility

Is WLK's price volatile compared to industry and market?
WLK volatility
WLK Beta1.46
Industry Beta1.14
Market Beta1

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

FoundedEmployeesCEOWebsite
19869,220Albert Chaohttps://www.westlake.com

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.

Valuation

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

35.6%

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).


Future Growth

How is Westlake Chemical forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

-14.8%

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%).


Past Performance

How has Westlake Chemical performed over the past 5 years?

-5.4%

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.


Financial Health

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).


Balance Sheet


Dividend

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

1.39%

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).


Next Steps

Management

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

5.8yrs

Average management tenure


CEO

Albert Chao (71 yo)

17.17yrs

Tenure

US$10,697,841

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 ($USD10.70M) is about average for companies of similar size in the US market ($USD11.36M).

Compensation vs Earnings: Albert's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: WLK's management team is seasoned and experienced (5.8 years average tenure).


Board Members

Experienced Board: WLK's board of directors are considered experienced (3.7 years average tenure).


Ownership

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

Ownership Breakdown

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


Top Shareholders

Company Information

Westlake Chemical Corporation's 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$10.976b
  • Shares outstanding: 128.15m
  • Website: https://www.westlake.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 22:04
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.