Westlake Corporation
Westlake Corporation Fundamental Analysis
Westlake Corporation (WLK) shows weak financial fundamentals with a PE ratio of -12.62, profit margin of -8.34%, and ROE of -9.42%. The company generates $11.5B in annual revenue with weak year-over-year growth of -3.24%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 1.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze WLK's fundamental strength across five key dimensions:
Efficiency Score
WeakWLK struggles to generate sufficient returns from assets.
Valuation Score
ExcellentWLK trades at attractive valuation levels.
Growth Score
ModerateWLK shows steady but slowing expansion.
Financial Health Score
ExcellentWLK maintains a strong and stable balance sheet.
Profitability Score
WeakWLK struggles to sustain strong margins.
Key Financial Metrics
Is WLK Expensive or Cheap?
P/E Ratio
WLK trades at -12.62 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, WLK's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values Westlake Corporation at 1.28 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 17.89 times EBITDA. This signals the market has high growth expectations.
How Well Does WLK Make Money?
Net Profit Margin
For every $100 in sales, Westlake Corporation keeps $-8.34 as profit after all expenses.
Operating Margin
Core operations generate -7.33 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-9.42 in profit for every $100 of shareholder equity.
ROA
Westlake Corporation generates $-4.83 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Westlake Corporation generates limited operating cash flow of $674.11M, signaling weaker underlying cash strength.
Free Cash Flow
Westlake Corporation generates weak or negative free cash flow of $-365.06M, restricting financial flexibility.
FCF Per Share
Each share generates $-2.85 in free cash annually.
FCF Yield
WLK converts -3.01% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-12.62
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.010
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.28
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.05
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.57
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.99
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.09
vs 25 benchmark
ROA
Return on assets percentage
-0.05
vs 25 benchmark
ROCE
Return on capital employed
-0.05
vs 25 benchmark
How WLK Stacks Against Its Sector Peers
| Metric | WLK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -12.62 | 27.41 | Better (Cheaper) |
| ROE | -9.42% | 859.00% | Weak |
| Net Margin | -8.34% | -120873.00% (disorted) | Weak |
| Debt/Equity | 0.57 | 0.51 | Neutral |
| Current Ratio | 1.99 | 4.80 | Neutral |
| ROA | -4.83% | -3590.00% (disorted) | Weak |
WLK outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Westlake Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
49.41%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
42.84%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
0.89%
Industry Style: Cyclical, Commodity, Value
Growing