Western Gas Partners LP

Find Ratings Reports
WES : NYSE : Basic Materials
$59.96 | %
Today's Range: 59.43 - 60.455
Avg. Daily Volume: 291400.0
01/20/17 - 4:02 PM ET

Financial Analysis

WESTERN GAS PARTNERS LP's gross profit margin for the third quarter of its fiscal year 2016 has increased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. WESTERN GAS PARTNERS LP has average liquidity. Currently, the Quick Ratio is 1.42 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has increased by 10.34% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)481.65432.52
EBITDA ($mil)239.2196.9
EBIT ($mil)169.56127.2
Net Income ($mil)167.75184.14

Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)144.4573.2
Total Assets ($mil)7501.16914.33
Total Debt ($mil)2923.822771.39
Equity ($mil)4112.33726.84

Profitability Q3 FY16 Q3 FY15
Gross Profit Margin52.0347.87
EBITDA Margin49.6645.52
Operating Margin35.229.41
Sales Turnover0.220.25
Return on Assets3.683.67
Return on Equity5.486.82
Debt Q3 FY16 Q3 FY15
Current Ratio1.451.06
Interest Expense32.1132.81
Interest Coverage5.283.88

Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)142.83139.81
Div / share0.830.75
Book value / share28.7926.66
Institutional Own % n/a n/a
Avg Daily Volume288067.0317406.0


HOLD. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. To use another comparison, its price-to-book ratio of 2.03 indicates a discount versus the S&P 500 average of 2.84 and a significant discount versus the industry average of 23.93. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. The valuation analysis reveals that, WESTERN GAS PARTNERS LP seems to be trading at a premium to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
WES NM Peers 42.39   WES 10.02 Peers 13.47

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

WES's P/E is negative making this valuation measure meaningless.


Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

WES is trading at a significant discount to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
WES 22.29 Peers 63.03   WES NA Peers 2.40

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

WES is trading at a significant discount to its peers.


Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

Ratio not available.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
WES 2.03 Peers 23.93   WES -433.33 Peers -244.01

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

WES is trading at a significant discount to its peers.


Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, WES is expected to significantly trail its peers on the basis of its earnings growth rate.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
WES 5.01 Peers 2.74   WES -1.94 Peers -20.21

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

WES is trading at a significant premium to its industry.


Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

WES has a sales growth rate that significantly exceeds its peers.



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