Western Gas Partners LP

Find Ratings Reports
WES : NYSE : Basic Materials
$49.54 | %
Today's Range: 49.3 - 50.63
Avg. Daily Volume: 506800.0
09/22/17 - 4:02 PM ET

Financial Analysis

WESTERN GAS PARTNERS LP's gross profit margin for the second quarter of its fiscal year 2017 has decreased when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. WESTERN GAS PARTNERS LP has average liquidity. Currently, the Quick Ratio is 1.17 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 2.25% 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 Q2 FY17 Q2 FY16
Net Sales ($mil)525.45428.66
EBITDA ($mil)223.52225.68
EBIT ($mil)146.31155.97
Net Income ($mil)173.45164.52

Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)188.2157.77
Total Assets ($mil)7745.727504.1
Total Debt ($mil)3253.072961.15
Equity ($mil)4000.224092.47

Profitability Q2 FY17 Q2 FY16
Gross Profit Margin44.5555.19
EBITDA Margin42.5352.64
Operating Margin27.8436.39
Sales Turnover0.260.22
Return on Assets7.564.11
Return on Equity12.36.92
Debt Q2 FY17 Q2 FY16
Current Ratio1.211.59
Interest Expense36.8114.37
Interest Coverage3.9810.86

Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)165.35142.62
Div / share0.880.82
Book value / share24.1928.7
Institutional Own % n/a n/a
Avg Daily Volume539537.0337751.0


BUY. The current P/E ratio indicates a significant discount compared to an average of 54.34 for the Oil, Gas & Consumable Fuels industry and a significant premium compared to the S&P 500 average of 24.93. To use another comparison, its price-to-book ratio of 2.09 indicates a discount versus the S&P 500 average of 3.11 and a significant discount versus the industry average of 452.14. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, WESTERN GAS PARTNERS LP proves to trade at a discount to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
WES 36.29 Peers 54.34   WES 8.04 Peers 11.51

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

WES is trading at a significant discount to its peers.


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 19.11 Peers 53.83   WES NM Peers 0.55

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.

WES's negative PEG ratio makes this valuation measure meaningless.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
WES 2.09 Peers 452.14   WES 2680.00 Peers 184.92

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.


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

WES is expected to have an earnings growth rate that significantly exceeds its peers.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
WES 4.10 Peers 2.15   WES 22.47 Peers 21.07

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.


Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

WES is keeping pace with its peers on the basis of sales growth.



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