Westlake Chemical Corporation, together with its subsidiaries, manufactures and markets basic chemicals, vinyls, polymers, and building products worldwide.
Established dividend payer and fair value.
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's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: WLK underperformed the US Chemicals industry which returned 2.6% over the past year.
Return vs Market: WLK underperformed the US Market which returned 12.5% over the past year.
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
3 days ago | Simply Wall StThese 4 Measures Indicate That Westlake Chemical (NYSE:WLK) Is Using Debt Extensively
2 weeks ago | Simply Wall StHas Westlake Chemical Corporation's (NYSE:WLK) Impressive Stock Performance Got Anything to Do With Its Fundamentals?
1 month ago | Simply Wall StIs It Too Late To Consider Buying Westlake Chemical Corporation (NYSE:WLK)?
Is Westlake Chemical undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: WLK ($54.5) is trading above our estimate of fair value ($23.34)
Significantly Below Fair Value: WLK is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: WLK is good value based on its PE Ratio (14.2x) compared to the US Chemicals industry average (23.2x).
PE vs Market: WLK is good value based on its PE Ratio (14.2x) compared to the US market (17.8x).
Price to Earnings Growth Ratio
PEG Ratio: WLK is poor value based on its PEG Ratio (5.8x)
Price to Book Ratio
PB vs Industry: WLK is good value based on its PB Ratio (1.2x) compared to the US Chemicals industry average (2x).
How is Westlake Chemical forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WLK's forecast earnings growth (2.4% per year) is above the savings rate (2.2%).
Earnings vs Market: WLK's earnings (2.4% per year) are forecast to grow slower than the US market (22.2% per year).
High Growth Earnings: WLK's earnings are forecast to grow, but not significantly.
Revenue vs Market: WLK's revenue (2.1% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: WLK's revenue (2.1% 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 (5.2%).
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 (6.1%) are lower than last year (9.1%).
Past Earnings Growth Analysis
Earnings Trend: WLK's earnings have grown by 5.7% 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 (-36.4%) over the past year, making it difficult to compare to the Chemicals industry average (-19%).
Return on Equity
High ROE: WLK's Return on Equity (8.3%) is considered low.
How is Westlake Chemical's financial position?
Financial Position Analysis
Short Term Liabilities: WLK's short term assets ($3.8B) exceed its short term liabilities ($1.0B).
Long Term Liabilities: WLK's short term assets ($3.8B) do not cover its long term liabilities ($6.7B).
Debt to Equity History and Analysis
Debt Level: WLK's debt to equity ratio (68.8%) is considered high.
Reducing Debt: WLK's debt to equity ratio has increased from 23.3% to 68.8% over the past 5 years.
Debt Coverage: WLK's debt is well covered by operating cash flow (27.4%).
Interest Coverage: WLK's interest payments on its debt are well covered by EBIT (6.4x coverage).
What is Westlake Chemical current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: WLK's dividend (1.93%) is higher than the bottom 25% of dividend payers in the US market (1.66%).
High Dividend: WLK's dividend (1.93%) is low compared to the top 25% of dividend payers in the US market (4.51%).
Stability and Growth of Payments
Stable Dividend: WLK's dividends per share have been stable in the past 10 years.
Growing Dividend: WLK's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (27%), WLK's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: WLK's dividends in 3 years are forecast to be covered by earnings (53.2% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Albert Chao (70yo)
Mr. Albert Yuan Chao serves as the Chief Executive Officer, President and Managing Director of Vinnolit GmbH & Co. KG. Mr. Chao has been President, Chief Executive Officer and Director of Westlake Chemical ...
CEO Compensation Analysis
Compensation vs Market: Albert's total compensation ($USD10.88M) is above average for companies of similar size in the US market ($USD7.31M).
Compensation vs Earnings: Albert's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
|Executive VP & CFO||13.5yrs||US$3.39m||0.086% $6.0m|
|Senior VP||4.67yrs||US$2.72m||0.050% $3.5m|
|Executive Vice President of Vinyl Products||10.33yrs||US$2.74m||0.027% $1.9m|
|Vice President & Chief Accounting Officer||0.42yr||no data||no data|
|Senior Vice President of Chemical Manufacturing||3.08yrs||US$1.38m||0.014% $946.3k|
|Executive Vice President of Olefins||6.08yrs||no data||0.0057% $397.3k|
|Managing Director of Vinnolit Business and Vice President||4.75yrs||no data||no data|
|Executive Vice President of Vinyls Chemicals||2.33yrs||US$5.21m||0.018% $1.3m|
|VP & Treasurer||no data||no data||no data|
Experienced Management: WLK's management team is considered experienced (4.8 years average tenure).
|Independent Director||2.25yrs||US$262.20k||0.0019% $130.8k|
|Independent Director||0.25yr||no data||no data|
|Chairman of the Board||16.08yrs||US$8.34m||0.21% $14.9m|
|Independent Director||7.25yrs||US$263.75k||0.0086% $595.6k|
|Independent Director||2.58yrs||US$246.96k||0.0020% $136.4k|
|Independent Director||7.25yrs||US$262.49k||0.0085% $592.8k|
|Independent Director||2.58yrs||US$258.21k||0.0020% $136.4k|
Experienced Board: WLK's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.
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
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$6.958b
- Shares outstanding: 127.67m
- Website: https://www.westlake.com
Number of Employees
- Westlake Chemical Corporation
- 2801 Post Oak Boulevard
- Suite 600
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|WLK||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Aug 2004|
|UEO||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Aug 2004|
|0LVK||LSE (London Stock Exchange)||Yes||Common Stock||GB||USD||Aug 2004|
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
|Data||Last Updated (UTC time)|
|Company Analysis||2020/08/03 00:38|
|End of Day Share Price||2020/07/31 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.