Western Midstream Partners LP () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

ONEOK, Inc.

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Kinder Morgan, Inc.

Cheniere Energy, Inc.

MPLX LP

Energy Transfer LP

The Williams Cos., Inc.

Antero Midstream Corp.

Western Midstream Partners LP

EnLink Midstream LLC

Why is Western Midstream Partners LP ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 13.08%

Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.70 times

Positive results in Jun 25

OPERATING CASH FLOW(Y) Highest at USD 2,221.1 MM
DIVIDEND PAYOUT RATIO(Y) Highest at 104.24%
INTEREST COVERAGE RATIO(Q) Highest at 621.06

With ROCE of 15.46%, it has a very attractive valuation with a 2.13 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -0.54%, its profits have fallen by -4.8%

Below par performance in long term as well as near term

Along with generating -0.54% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Oil)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Western Midstream Partners LP for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Western Midstream Partners LP

1.48%

-0.07

25.06%

S&P 500

16.12%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.75%

EBIT Growth (5y)

3.65%

EBIT to Interest (avg)

3.58

Debt to EBITDA (avg)

3.70

Net Debt to Equity (avg)

2.15

Sales to Capital Employed (avg)

0.32

Tax Ratio

1.47%

Dividend Payout Ratio

121.12%

Pledged Shares

Institutional Holding

42.03%

ROCE (avg)

13.08%

ROE (avg)

39.90%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.01

EV to EBIT

15.58

EV to EBITDA

10.67

EV to Capital Employed

2.02

EV to Sales

6.25

PEG Ratio

Dividend Yield

ROCE (Latest)

12.96%

ROE (Latest)

30.51%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 2,254.02 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 195.66%

DIVIDEND PER SHARE(HY)

Highest at USD 5.09

DEBT-EQUITY RATIO (HY)

Lowest at 198.94 %

NET SALES(Q)

Highest at USD 1,031.48 MM

-24What is not working for the Company

ROCE(HY)

Lowest at 31.82%

INTEREST COVERAGE RATIO(Q)

Lowest at 461.46

RAW MATERIAL COST(Y)

Grown by 7.46% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 238.91 times

INTEREST(Q)

Highest at USD 105.67 MM

OPERATING PROFIT(Q)

Lowest at USD 487.64 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 47.28 %

PRE-TAX PROFIT(Q)

Lowest at USD 206.1 MM

NET PROFIT(Q)

Lowest at USD 189.6 MM

EPS(Q)

Lowest at USD 0.47

Here's what is working for Western Midstream Partners LP

Operating Cash Flow

Highest at USD 2,254.02 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Dividend per share

Highest at USD 5.09 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Dividend Payout Ratio

Highest at 195.66% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Net Sales

Highest at USD 1,031.48 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Debt-Equity Ratio

Lowest at 198.94 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Depreciation

Highest at USD 197.88 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Western Midstream Partners LP

Pre-Tax Profit

At USD 206.1 MM has Fallen at -40.18%

over average net sales of the previous four periods of USD 344.56 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 189.6 MM has Fallen at -41.9%

over average net sales of the previous four periods of USD 326.34 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest

At USD 105.67 MM has Grown at 14.42%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest Coverage Ratio

Lowest at 461.46

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at USD 105.67 MM

in the last five periods and Increased by 14.42% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Operating Profit

Lowest at USD 487.64 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 47.28 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD 206.1 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 189.6 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 0.47

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Inventory Turnover Ratio

Lowest at 238.91 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 7.46% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales