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.

Rewards


Snowflake Analysis

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

Stable Share Price: WLKP has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.1%

WLKP

1.2%

US Chemicals

0.9%

US Market


1 Year Return

-1.6%

WLKP

-3.9%

US Chemicals

20.0%

US Market

Return vs Industry: WLKP exceeded the US Chemicals industry which returned -3.7% over the past year.

Return vs Market: WLKP underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

WLKPIndustryMarket
7 Day0.1%1.2%0.9%
30 Day-6.8%-1.2%1.4%
90 Day1.3%1.0%8.8%
1 Year6.7%-1.6%10.1%-3.9%22.5%20.0%
3 Year13.6%-8.3%28.9%4.5%49.9%40.3%
5 Year25.1%-10.7%38.4%8.3%73.2%54.1%

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 compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WLKP ($22.78) is trading below our estimate of fair value ($196.36)

Significantly Below Fair Value: WLKP is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: WLKP is good value based on its PE Ratio (13.9x) compared to the Chemicals industry average (22.2x).

PE vs Market: WLKP is good value based on its PE Ratio (13.9x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: WLKP is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: WLKP is good value based on its PB Ratio (1.5x) compared to the US Chemicals industry average (2.1x).

Future Growth

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

28.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WLKP's forecast earnings growth (28.5% per year) is above the savings rate (1.7%).

Earnings vs Market: WLKP's earnings (28.5% per year) are forecast to grow faster than the US market (14.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: WLKP's revenue is expected to decline over the next 3 years (-5.7% per year).

High Growth Revenue: WLKP's revenue is forecast to decline over the next 3 years (-5.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WLKP's Return on Equity is forecast to be high in 3 years time (33.7%)

Past Performance

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

9.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WLKP has high quality earnings.

Growing Profit Margin: WLKP's current net profit margins (4.8%) are higher than last year (4.1%).


Past Earnings Growth Analysis

Earnings Trend: WLKP's earnings have grown by 9.7% per year over the past 5 years.

Accelerating Growth: WLKP's earnings growth over the past year (7.4%) is below its 5-year average (9.7% per year).

Earnings vs Industry: WLKP earnings growth over the past year (7.4%) exceeded the Chemicals industry -14.6%.


Return on Equity

High ROE: WLKP's Return on Equity (33.5%) is considered high.


Return on Assets


Return on Capital Employed

Financial Health

How is Westlake Chemical Partners's financial position?


Financial Position Analysis

Short Term Liabilities: WLKP's short term assets ($237.3M) exceed its short term liabilities ($40.9M).

Long Term Liabilities: WLKP's short term assets ($237.3M) do not cover its long term liabilities ($403.4M).


Debt to Equity History and Analysis

Debt Level: WLKP's debt to equity ratio (41.5%) is considered high.

Reducing Debt: WLKP's debt to equity ratio has increased from 23.7% to 41.5% over the past 5 years.

Debt Coverage: WLKP's debt is well covered by operating cash flow (110.4%).

Interest Coverage: WLKP's interest payments on its debt are well covered by EBIT (16.4x coverage).


Balance Sheet

Inventory Level: WLKP has a high level of physical assets or inventory.

Debt Coverage by Assets: WLKP's debt is not covered by short term assets (assets are 0.6x debt).

Dividend

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

8.28%

Current Dividend Yield


Dividend Yield vs Market

company8.3%marketbottom25%1.4%markettop25%3.7%industryaverage2.2%forecastin3Years8.8%

Current dividend yield vs market & industry

Notable Dividend: WLKP's dividend (8.28%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: WLKP's dividend (8.28%) is in the top 25% of dividend payers in the US market (3.69%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, WLKP has been paying a dividend for less than 10 years.

Growing Dividend: WLKP's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (109.5%), WLKP's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WLKP's dividends in 3 years are not forecast to be well covered by earnings (94.7% payout ratio).

Management

How experienced are the management team and are they aligned to shareholders interests?

5.9yrs

Average management tenure


CEO

Albert Chao (69yo)

15.6yrs

Tenure

0

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 ...


Leadership Team

NamePositionTenureCompensationOwnership
Albert Chao
President15.6yrsno data0.27% $2.2m
Steven Bender
Senior VP5.9yrsno data0.034% $273.3k
George Mangieri
VP & Chief Accounting Officer of Westlake Chemical Partners GP LLC5.9yrsno datano data
L. Benjamin Ederington
VP, General Counsel5.9yrsno data0.028% $227.8k
Lawrence Teel
Executive Vice President5.6yrsno datano data
Jeff Holy
VP & Treasurer of Westlake Chemical Partners GP LLC2.3yrsno datano data

5.9yrs

Average Tenure

62yo

Average Age

Experienced Management: WLKP's management team is seasoned and experienced (5.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Albert Chao
President15.6yrsno data0.27% $2.2m
Steven Bender
Senior VP5.9yrsno data0.034% $273.3k
L. Benjamin Ederington
VP, General Counsel5.9yrsno data0.028% $227.8k
Max Lukens
Director of Westlake Chemical Partners GP LLC15.5yrsUS$184.60k0.36% $2.8m
James Chao
Chairman of Westlake Chemical Partners GP LLC5.6yrsno data0.16% $1.3m
Randy Woelfel
Director of Westlake Chemical Partners GP LLC0.3yrsno datano data
Angela Minas
Director of Westlake Chemical Partners GP LLC3.3yrsUS$180.95k0.043% $344.0k

5.9yrs

Average Tenure

64yo

Average Age

Experienced Board: WLKP's board of directors are considered experienced (5.9 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.7%.


Top Shareholders

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$801.587m
  • Shares outstanding: 35.19m
  • Website: https://www.wlkpartners.com

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 into ethylene. It also sells ethylene co-products, including propylene, crude butadiene, pyrolysis gasoline, and hydrogen directly to third parties on a spot or contract basis. Westlake Chemical Partners GP LLC serves as the general partner of the company. The company was founded in 2014 and is headquartered in Houston, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 00:55
End of Day Share Price2020/02/14 00:00
Earnings2019/09/30
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.