Westlake Chemical Corporation, together with its subsidiaries, manufactures and markets basic chemicals, vinyls, polymers, and building products worldwide. More Details
Average dividend payer with mediocre balance sheet.
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: WLK is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: WLK's weekly volatility (5%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: WLK exceeded the US Chemicals industry which returned 68.3% over the past year.
Return vs Market: WLK exceeded the US Market which returned 50.8% over the past year.
Long-Term 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
1 week ago | Simply Wall StWestlake Chemical Corporation's (NYSE:WLK) CEO Might Not Expect Shareholders To Be So Generous This Year
1 month ago | Simply Wall StIs Westlake Chemical (NYSE:WLK) Using Too Much Debt?
2 months ago | Simply Wall StHow Does Westlake Chemical Corporation (NYSE:WLK) Fare As A Dividend Stock?
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 ($105) is trading below our estimate of fair value ($106.3)
Significantly Below Fair Value: WLK is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: WLK is poor value based on its PE Ratio (31.6x) compared to the US Chemicals industry average (27.6x).
PE vs Market: WLK is poor value based on its PE Ratio (31.6x) compared to the US market (19.8x).
Price to Earnings Growth Ratio
PEG Ratio: WLK is poor value based on its PEG Ratio (53.7x)
Price to Book Ratio
PB vs Industry: WLK is good value based on its PB Ratio (2.1x) compared to the US Chemicals industry average (2.8x).
How is Westlake Chemical forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WLK's forecast earnings growth (0.6% per year) is below the savings rate (2%).
Earnings vs Market: WLK's earnings (0.6% per year) are forecast to grow slower than the US market (14.6% per year).
High Growth Earnings: WLK's earnings are forecast to grow, but not significantly.
Revenue vs Market: WLK's revenue (0.8% per year) is forecast to grow slower than the US market (9% per year).
High Growth Revenue: WLK's revenue (0.8% per year) is forecast to grow slower than 20% 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 (14.6%).
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 (5.4%) are lower than last year (6.1%).
Past Earnings Growth Analysis
Earnings Trend: WLK's earnings have declined by 6.6% per year over the past 5 years.
Accelerating Growth: WLK's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: WLK had negative earnings growth (-13.8%) over the past year, making it difficult to compare to the Chemicals industry average (1.6%).
Return on Equity
High ROE: WLK's Return on Equity (6.9%) is considered low.
How is Westlake Chemical's financial position?
Financial Position Analysis
Short Term Liabilities: WLK's short term assets ($3.7B) exceed its short term liabilities ($1.3B).
Long Term Liabilities: WLK's short term assets ($3.7B) do not cover its long term liabilities ($5.9B).
Debt to Equity History and Analysis
Debt Level: WLK's debt to equity ratio (52%) is considered high.
Reducing Debt: WLK's debt to equity ratio has increased from 20.5% to 52% over the past 5 years.
Debt Coverage: WLK's debt is well covered by operating cash flow (42.3%).
Interest Coverage: WLK's interest payments on its debt are well covered by EBIT (5.3x coverage).
What is Westlake Chemical current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: WLK's dividend (1.03%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.24%).
High Dividend: WLK's dividend (1.03%) is low compared to the top 25% of dividend payers in the US market (3.42%).
Stability and Growth of Payments
Stable Dividend: WLK's dividends per share have been stable in the past 10 years.
Growing Dividend: WLK's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (32.2%), WLK's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: WLK's dividends in 3 years are forecast to be well covered by earnings (17.3% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Albert Chao (70 yo)
Mr. Albert Yuan Chao serves as the Chief Executive Officer, President and Managing Director of Vinnolit GmbH & Co. KG. Mr. Chao has been President, Chief Executive Officer and Director of Westlake Chemical...
CEO Compensation Analysis
Compensation vs Market: Albert's total compensation ($USD10.70M) is about average for companies of similar size in the US market ($USD11.20M).
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 (5.5 years average tenure).
Experienced Board: WLK's board of directors are considered experienced (3.3 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: WLK insiders have only sold shares 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 company bio, 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$13.339b
- Shares outstanding: 128.13m
- Website: https://www.westlake.com
Number of Employees
- Westlake Chemical Corporation
- 2801 Post Oak Boulevard
- Suite 600
- United States
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 Olef...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/05/17 23:18|
|End of Day Share Price||2021/05/17 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.