NYSE:WLKP

Stock Analysis Report

Westlake Chemical Partners

Executive Summary

Westlake Chemical Partners LP acquires, develops, and operates ethylene production facilities and related assets in the United States.

Snowflake

Risks

  • Westlake Chemical Partners is a fund or ETF! Currently our data availability for these is poor, we only recommend using them as part of a portfolio.

Share Price & News

How has Westlake Chemical Partners's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.5%

NYSE:WLKP

-0.03%

US Chemicals

-1.2%

US Market


1 Year Return

-3.0%

NYSE:WLKP

-10.9%

US Chemicals

3.4%

US Market

WLKP outperformed the Chemicals industry which returned -11.2% over the past year.

WLKP underperformed the Market in United States of America which returned 3.9% over the past year.


Share holder returns

WLKPIndustryMarket
7 Day0.5%-0.03%-1.2%
30 Day-0.9%0.6%1.2%
90 Day5.4%-4.5%1.7%
1 Year4.3%-3.0%2.8%-10.9%5.7%3.4%
3 Year24.5%2.1%42.5%16.0%45.0%35.5%
5 Yearn/a35.7%5.9%59.3%41.6%

Price Volatility Vs. Market

How volatile is Westlake Chemical Partners's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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

Westlake Chemical Partners's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

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

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


Price Based on Expected Growth

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


Price Based on Value of Assets

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

Future Growth

How is Westlake Chemical Partners expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

4.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Westlake Chemical Partners's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

Westlake Chemical Partners's earnings are expected to grow by 4.6% yearly, however this is not considered high growth (20% yearly).

Westlake Chemical Partners's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.

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

Westlake Chemical Partners'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 Partners is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).

Past Performance

How has Westlake Chemical Partners performed over the past 5 years?

-33.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Westlake Chemical Partners's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Westlake Chemical Partners's 1-year earnings growth exceeds its 5-year average (6.1% vs -33.7%)

Westlake Chemical Partners's earnings growth has exceeded the US Chemicals industry average in the past year (6.1% vs 5.4%).


Return on Equity

Westlake Chemical Partners has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

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


Return on Capital Employed

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

Financial Health

How is Westlake Chemical Partners's financial position?


Financial Position Analysis

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

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


Debt to Equity History and Analysis

Westlake Chemical Partners's level of debt (61.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (17% vs 61.3% today).

Debt is well covered by operating cash flow (73.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 15.5x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.7x debt.

Dividend

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

8.24%

Expected Dividend Yield


Dividend Yield and Payments Analysis

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

Westlake Chemical Partners's dividend is above the markets top 25% of dividend payers in United States of America (3.74%).

Whilst dividend payments have been stable, Westlake Chemical Partners has been paying a dividend for less than 10 years.

Dividend payments have increased, but Westlake Chemical Partners only paid a dividend in the past 5 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (0.9x coverage).


Future Payout to Shareholders

Dividends after 3 years are not well covered by earnings (1x coverage).

Management

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

5.3yrs

Average management tenure


CEO

Albert Chao (69yo)

15.0yrs

Tenure

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 ...


Management Age and Tenure

5.3yrs

Average Tenure

62yo

Average Age

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


Board Age and Tenure

5.3yrs

Average Tenure

64yo

Average Age

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


Insider Trading

No 3 month individual insider trading information.


Recent Insider Transactions

BuyUS$29,999,99701 Apr 19
TTWF LP
EntityCompany
Shares1,401,869
Max PriceUS$21.40
BuyUS$90,24003 Dec 18
David Lumpkins
EntityIndividual
Role
Member of the Board of Directors
Shares4,000
Max PriceUS$22.56
BuyUS$113,75026 Nov 18
Angela Minas
EntityIndividual
Role
Member of the Board of Directors
Shares5,000
Max PriceUS$22.75
BuyUS$241,37120 Nov 18
Albert Chao
EntityIndividual
Role
President
Member of the Board of Directors
Shares10,386
Max PriceUS$23.24
BuyUS$347,57719 Nov 18
Albert Chao
EntityIndividual
Role
President
Member of the Board of Directors
Shares14,944
Max PriceUS$23.27
BuyUS$410,63415 Nov 18
Albert Chao
EntityIndividual
Role
President
Member of the Board of Directors
Shares17,605
Max PriceUS$23.37
BuyUS$227,70014 Nov 18
James Chao
EntityIndividual
Role
Chairman of the Board
Shares10,000
Max PriceUS$22.77
BuyUS$91,31313 Nov 18
David Lumpkins
EntityIndividual
Role
Member of the Board of Directors
Shares4,000
Max PriceUS$22.83

Ownership Breakdown


Management Team

  • Albert Chao (69yo)

    President

    • Tenure: 15.0yrs
  • George Mangieri (68yo)

    VP & Chief Accounting Officer of Westlake Chemical Partners GP LLC

    • Tenure: 5.3yrs
  • Steve Bender (62yo)

    Senior VP

    • Tenure: 11.4yrs
  • Skip Teel (60yo)

    Executive Vice President

    • Tenure: 5.0yrs
  • Ben Benjamin Ederington (48yo)

    VP, General Counsel

    • Tenure: 5.3yrs
  • Jeff Holy

    VP & Treasurer of Westlake Chemical Partners GP LLC

    • Tenure: 1.7yrs

Board Members

  • Max Lukens (70yo)

    Director of Westlake Chemical Partners GP LLC

    • Tenure: 14.9yrs
    • Compensation: $184.60k
  • Albert Chao (69yo)

    President

    • Tenure: 16.1yrs
  • James Chao (71yo)

    Chairman of Westlake Chemical Partners GP LLC

    • Tenure: 5.0yrs
  • Steve Bender (62yo)

    Senior VP

    • Tenure: 5.3yrs
  • David Lumpkins (64yo)

    Director of Westlake Chemical Partners GP LLC

    • Tenure: 4.5yrs
    • Compensation: $184.60k
  • Angela Minas (55yo)

    Director of Westlake Chemical Partners GP LLC

    • Tenure: 2.8yrs
    • Compensation: $180.95k
  • Ben Benjamin Ederington (48yo)

    VP, General Counsel

    • Tenure: 5.3yrs

Company Information

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


Key Information

  • Name: Westlake Chemical Partners LP
  • Ticker: WLKP
  • Exchange: NYSE
  • Founded: 2014
  • Industry: commodity chemicals
  • Sector: materials
  • Market Cap: US$841.701m
  • Shares outstanding: 35.19m
  • Website: Click here

Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WLKPNYSE (New York Stock Exchange)YesCommon UnitsUSUSDJul 2014
15WDB (Deutsche Boerse AG)YesCommon UnitsDEEURJul 2014

Biography

Westlake Chemical Partners LP acquires, develops, and operates ethylene production facilities and related assets in the United States. The company’s ethylene production facilities primarily convert ethane  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/20 00:38
End of Day Share Price2019/07/19 00:00
Earnings2019/03/31
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.