Westlake Chemical Partners Lp

Industrials
Major Chemicals
www.wlkpartners.com

Earnings Score
Moat Score

Market Cap $NaN
PE -
Debt $NaN
Cash $60.21M
EV $NaN
FCF $411.86M

Earnings

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Sales & Net Margins

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Earnings	$61.70M
EBIT	$391.24M
ROE	22%
ROA	30%
FCF	$411.86M
Equity	$277.74M
Growth Stability	76%
Net Margins	6%
Gross Margins	37%
Op. Margins	34%
Earnings CAGR	6%
Sales Growth YoY	-14%
Sales Growth QoQ	-3%
Sales CAGR	3%
FCF CAGR	7%
Equity CAGR	15%
Earnings Stability	0.52
Earnings Growth YoY	37%
Earnings Growth QoQ	26%

Earnings CAGR 5Y	-3%
Sales CAGR 5Y	6%
FCF CAGR 5Y	1%
Equity CAGR 5Y	0%
Earnings CAGR 3Y	-7%
Sales CAGR 3Y	-7%
FCF CAGR 3Y	15%
Equity CAGR 3Y	-3%
Revenue	$1.14B
Assets	$1.29B
Cash	$60.21M
Earnings Score	42%
Moat Score	92%
Working Capital	188.27M
Current Ratio	4.53
Gross Profit	$421.04M
Equity Growth QoQ	1%
Equity Growth YoY	-2%

Assets & ROA

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Stockholders Equity & ROE

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Westlake Chemical Partners LP is a part of the chemical industry in the United States. Through its operating interests in Westlake Chemical OpCo LP (OpCo), it acquires ethyelene production facilities, which primarily convert ethane into ethylene. OpCo sells ethylene and its co-products such as propylene, crude butadiene, pyrolysis gasoline, and hydrogen to Westlake and other customers located in the United States.

SEC Filings

Direct access to Westlake Chemical Partners Lp (WLKP) 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 Chemical Partners Lp compare to its competitors?

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Peter Lynch's Chart

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

CAGR 6%

Stability 52%

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Westlake Chemical Partners Lp Discounted Cash Flow

Fully customizable DCF calculator online for Westlake Chemical Partners Lp.

Years

Calculation mode

= $6.8B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$412M	$442M	$474M	$508M	$545M	$585M	$627M	$673M	$722M	$774M	$831M	$8.3B
DCF		$402M	$392M	$382M	$372M	$363M	$354M	$345M	$337M	$328M	$320M	$3.2B
Value	$6.8B

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	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	4%	4%	4%	4%	6%	7%	7%	4%	5%	6%
ROA	-	24%	25%	24%	25%	26%	28%	25%	27%	30%
ROE	41%	40%	22%	23%	22%	24%	28%	22%	19%	22%

Bad Net Margins (5.6%)

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	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	-	-	-	-	-	-	-	-	-
Debt over Equity	-	-	-	-	-	-	-	-	-	-
Growth Stability	-	-	-	100%	100%	100%	100%	92%	76%	76%

Neutral Debt/FCF ratio (-)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Neutral Debt/Equity ratio (-)

The company has a balance between equity and debt that is not too good nor too bad.

Bad Graham’s Stability (76%)

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	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	-2%	19%	10%	-15%	-11%	26%	31%	-25%	6%
Earnings YoY growth	-	3%	19%	1%	24%	9%	25%	-22%	-15%	-3%
Equity YoY growth	-	6%	114%	-2%	29%	-0%	6%	-1%	-4%	0%
FCF YoY growth	-	-105%	-4K%	-15%	3%	-17%	-3%	25%	-1%	1%