Westlake Corp

Industrials
Major Chemicals
www.westlake.com

Earnings Score
Moat Score
Safety Score

Market Cap $15.98B
PE 163
Debt $4.72B
Cash $2.93B
EV $17.77B
FCF $448.00M

Earnings

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Sales & Net Margins

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Earnings	$98.00M
EBIT	$290.00M
ROE	1%
ROA	1%
FCF	$448.00M
Equity	$11.19B
Growth Stability	31%
PE	163.07
PEG	-113.31
PB	1.43
P/FCF	35.67
P/S	1.32
Price/Cash	0.18
Debt/Equity	0.42
Debt/FCF	10.53
Net Margins	6%
Gross Margins	15%
Op. Margins	2%
Earnings CAGR	2%
Sales Growth YoY	0%
Sales Growth QoQ	-3%
Sales CAGR	38%
FCF CAGR	18%
Equity CAGR	15%
Earnings Stability	0.01
Earnings Growth YoY	-62%
Earnings Growth QoQ	-65%
Earnings CAGR 5Y	-1%

Sales CAGR 5Y	15%
FCF CAGR 5Y	12%
Equity CAGR 5Y	16%
Earnings CAGR 3Y	-5%
Sales CAGR 3Y	-5%
FCF CAGR 3Y	-39%
Equity CAGR 3Y	8%
Market Cap	$15.98B
Revenue	$12.13B
Dividend Yield	2%
Payout Ratio	267%
Assets	$21.11B
Total Debt	$4.72B
Cash	$2.93B
Shares Outstanding	128.53M
EV	17.77B
Earnings Score	6%
Moat Score	39%
Safety Score	49%
Final Score	31%
Working Capital	4.2B
Current Ratio	2.79
Gross Profit	$1.83B
Shares Growth 3y	0%
Equity Growth QoQ	1%
Equity Growth YoY	-1%

Assets & ROA

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Stockholders Equity & ROE

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Westlake Corp is a manufacturer and global supplier of chemicals, polymers and building products. Its Performance & Essential Materials segment offers a wide range of essential building blocks for making products utilized in everyday living, including olefins, vinyl chemicals, polyethylene, and epoxies. Its Housing & Infrastructure Products segment produces key finished goods for building products, pipe & fittings, and global compounds businesses.

SEC Filings

Direct access to Westlake Corp (WLK) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Westlake Corp compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Westlake Corp compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 2%

Stability 1%

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Westlake Corp Discounted Cash Flow

Fully customizable DCF calculator online for Westlake Corp.

Years

Calculation mode

= $16B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$448M	$531M	$629M	$745M	$882M	$1B	$1.2B	$1.5B	$1.7B	$2.1B	$2.4B	$24B
DCF		$482M	$520M	$559M	$603M	$649M	$699M	$752M	$810M	$873M	$940M	$9.4B
Value	$16B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	459%	596%	209%	16%	12%	5%	4%	17%	14%	4%	6%
ROA	-	17%	5%	10%	12%	5%	3%	15%	15%	3%	1%
ROE	-	18%	10%	24%	16%	7%	5%	24%	21%	4%	1%

Bad Net Margins (6.4%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	1.3	18.64	4.75	3.84	6.86	4.7	3.2	2.18	4.07	10.53
Debt over Equity	0.24	0.21	0.98	0.85	0.45	0.55	0.55	0.65	0.48	0.49	0.42
Growth Stability	-	-	-	100%	100%	47%	36%	100%	100%	31%	31%

Bad Debt/FCF ratio (10.53)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Good Debt/Equity ratio (0.42)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (31%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	-27%	76%	4K%	7%	-6%	-8%	57%	34%	-21%	15%
Earnings YoY growth	-	-5%	-38%	227%	-24%	-58%	-22%	511%	12%	-79%	-1%
Equity YoY growth	-	11%	9%	38%	13%	5%	3%	30%	23%	3%	16%
FCF YoY growth	-	-2%	-65%	368%	-26%	-27%	50%	125%	32%	-43%	12%