Very undervalued with reasonable growth potential and pays a dividend
WLKP is currently trading below its true value, which means the market is undervaluing the company’s expected cash flow going forward. This mispricing gives investors the opportunity to buy into the stock at a cheap price compared to the value they will be receiving, should analysts’ consensus forecast growth be correct. Also, relative to the rest of its peers with similar levels of earnings, WLKP’s share price is trading below the group’s average. This further reaffirms that WLKP is potentially undervalued.
WLKP’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that WLKP has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. WLKP seems to have put its debt to good use, generating operating cash levels of 1.04x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
For Westlake Chemical Partners, I’ve put together three essential aspects you should look at:
- Historical Performance: What has WLKP’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Dividend Income vs Capital Gains: Does WLKP return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from WLKP as an investment.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of WLKP? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!