Market analysts’ consensus outlook for next year seems positive, with earnings growth more than doubling. However, earnings seem to drop of in the following year generating US$361.15M by 2021.
Even though it is useful to be aware of the growth year by year relative to today’s level, it may be more beneficial to analyze the rate at which the company is growing every year, on average. The benefit of this technique is that it removes the impact of near term flucuations and accounts for the overarching direction of Westlake Chemical Partners’s earnings trajectory over time, which may be more relevant for long term investors. To compute this rate, I’ve appended a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 31.70%. This means that, we can presume Westlake Chemical Partners will grow its earnings by 31.70% every year for the next couple of years.
For Westlake Chemical Partners, I’ve compiled three fundamental factors you should look at:
- Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
- Valuation: What is WLKP worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether WLKP is currently mispriced by the market.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of WLKP? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!