Westlake Chemical Corp

Find Ratings Reports
WLK : NYSE : Basic Materials
$57.61 up 0.21 | 0.37%
Today's Range: 57.39 - 58.77
Avg. Daily Volume: 1026900.0
12/05/16 - 4:02 PM ET

Financial Analysis


WESTLAKE CHEMICAL CORP's gross profit margin for the third quarter of its fiscal year 2016 has significantly decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased. WESTLAKE CHEMICAL CORP has average liquidity. Currently, the Quick Ratio is 1.35 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, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 7.21% 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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)1279.031188.04
EBITDA ($mil)0.0306.24
EBIT ($mil)129.4254.03
Net Income ($mil)65.66183.6


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)549.841247.65
Total Assets ($mil)10897.055524.41
Total Debt ($mil)148.68764.09
Equity ($mil)3457.733225.0


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin15.830.6
EBITDA Margin0.025.77
Operating Margin10.1221.38
Sales Turnover0.40.83
Return on Assets3.7713.0
Return on Equity11.8822.27
Debt Q3 FY16 Q3 FY15
Current Ratio2.014.2
Debt/Capital0.040.19
Interest Expense24.378.21
Interest Coverage5.3130.94


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)128.78130.94
Div / share0.190.18
EPS0.511.39
Book value / share26.8524.63
Institutional Own % n/a n/a
Avg Daily Volume1011155.01152590.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 28.02 for the Chemicals industry and a discount compared to the S&P 500 average of 25.16. To use another comparison, its price-to-book ratio of 1.98 indicates a discount versus the S&P 500 average of 2.79 and a significant discount versus the industry average of 5.24. The price-to-sales ratio is below the S&P 500 average and is well below the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, WESTLAKE CHEMICAL CORP proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
WLK 17.00 Peers 28.02   WLK 8.74 Peers 14.19

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

WLK 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.

WLK is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
WLK 12.58 Peers 20.30   WLK NM Peers 2.18

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

WLK 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.

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

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
WLK 1.98 Peers 5.24   WLK -42.04 Peers -5.71

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.

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

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
WLK 1.58 Peers 2.21   WLK -6.19 Peers -5.71

Discount. 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.

WLK is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

WLK significantly trails its peers on the basis of sales growth

 

 

Latest Stock Upgrades/Downgrades