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.

Kinder Morgan, Inc.

Enterprise Products Partners LP

The Williams Cos., Inc.

Cheniere Energy, Inc.

Western Midstream Partners LP

Plains All American Pipeline LP

Energy Transfer LP

MPLX LP

Antero Midstream Corp.

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 hold?

Overall Portfolio exposure to Western Midstream Partners LP should be less than 10%
Overall Portfolio exposure to Oil should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Western Midstream Partners LP for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Western Midstream Partners LP

10.35%

-0.07

25.06%

S&P 500

20.78%

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

43.58%

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

4.09

EV to EBIT

15.78

EV to EBITDA

10.80

EV to Capital Employed

2.04

EV to Sales

6.33

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

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

No Trend

OBV

Mildly Bearish

No Trend

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

7What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 5.25

NET SALES(Q)

Highest at USD 1,123.58 MM

OPERATING PROFIT(Q)

Highest at USD 661.82 MM

PRE-TAX PROFIT(Q)

Highest at USD 363.14 MM

-8What is not working for the Company

ROCE(HY)

Lowest at 36.44%

RAW MATERIAL COST(Y)

Grown by 5.27% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 239.47 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 150.27 times

INTEREST(Q)

Highest at USD 113.39 MM

Here's what is working for Western Midstream Partners LP

Net Sales

Highest at USD 1,123.58 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (USD MM)

Dividend per share

Highest at USD 5.25 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Net Sales

At USD 1,123.58 MM has Grown at 16.94%

over average net sales of the previous four periods of USD 960.85 MM

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Profit

Highest at USD 661.82 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Pre-Tax Profit

Highest at USD 363.14 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Depreciation

Highest at USD 200.43 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

Interest

Highest at USD 113.39 MM

in the last five periods and Increased by 7.3% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debt-Equity Ratio

Highest at 239.47 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 150.27 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 5.27% (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