Westlake Chemical Partners LP
Westlake Chemical Partners LP Fundamental Analysis
Westlake Chemical Partners LP (WLKP) shows weak financial fundamentals with a PE ratio of 15.17, profit margin of 4.34%, and ROE of 9.67%. The company generates $1.1B in annual revenue with weak year-over-year growth of -4.61%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 39.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze WLKP's fundamental strength across five key dimensions:
Efficiency Score
WeakWLKP struggles to generate sufficient returns from assets.
Valuation Score
ExcellentWLKP trades at attractive valuation levels.
Growth Score
ModerateWLKP shows steady but slowing expansion.
Financial Health Score
ExcellentWLKP maintains a strong and stable balance sheet.
Profitability Score
WeakWLKP struggles to sustain strong margins.
Key Financial Metrics
Is WLKP Expensive or Cheap?
P/E Ratio
WLKP trades at 15.17 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, WLKP's PEG of -5.93 indicates potential undervaluation.
Price to Book
The market values Westlake Chemical Partners LP at 1.48 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.99 times EBITDA. This is generally considered low.
How Well Does WLKP Make Money?
Net Profit Margin
For every $100 in sales, Westlake Chemical Partners LP keeps $4.34 as profit after all expenses.
Operating Margin
Core operations generate 28.39 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.67 in profit for every $100 of shareholder equity.
ROA
Westlake Chemical Partners LP generates $3.87 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Westlake Chemical Partners LP generates strong operating cash flow of $292.67M, reflecting robust business health.
Free Cash Flow
Westlake Chemical Partners LP generates strong free cash flow of $209.17M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.93 in free cash annually.
FCF Yield
WLKP converts 27.98% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.17
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-5.93
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.48
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.66
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.79
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.37
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.26
vs 25 benchmark
How WLKP Stacks Against Its Sector Peers
| Metric | WLKP Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.17 | 27.01 | Better (Cheaper) |
| ROE | 9.67% | 949.00% | Weak |
| Net Margin | 4.34% | -16159.00% (disorted) | Weak |
| Debt/Equity | 0.79 | 0.48 | Weak (High Leverage) |
| Current Ratio | 2.37 | 4.42 | Strong Liquidity |
| ROA | 3.87% | -6411.00% (disorted) | Weak |
WLKP outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Westlake Chemical Partners LP's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
1.83%
Industry Style: Cyclical, Commodity, Value
GrowingEPS CAGR
-81.65%
Industry Style: Cyclical, Commodity, Value
DecliningFCF CAGR
5.31%
Industry Style: Cyclical, Commodity, Value
Growing