Westlake Corp. (WLK) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

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LyondellBasell Industries NV

Air Products & Chemicals, Inc.

Westlake Corp.

Why is Westlake Corp. ?

Poor long term growth as Operating profit has grown by an annual rate -9.65% of over the last 5 years

With a fall in PBT of -174.52%, the company declared Very Negative results in Jun 25

The company has declared negative results for the last 2 consecutive quarters
OPERATING CASH FLOW(Y) Lowest at USD 966 MM
PRE-TAX PROFIT(Q) At USD -10 MM has Fallen at -105.23%
NET PROFIT(Q) At USD -26 MM has Fallen at -123.36%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -45.75%, its profits have fallen by -39.5%

Below par performance in long term as well as near term

Along with generating -45.75% 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 Specialty Chemicals)

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

Is Westlake Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Westlake Corp.

-45.98%

-1.20

45.08%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.15%

EBIT Growth (5y)

-9.65%

EBIT to Interest (avg)

9.67

Debt to EBITDA (avg)

1.07

Net Debt to Equity (avg)

0.22

Sales to Capital Employed (avg)

0.83

Tax Ratio

36.36%

Dividend Payout Ratio

44.22%

Pledged Shares

Institutional Holding

32.83%

ROCE (avg)

13.73%

ROE (avg)

13.85%

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

0.95

EV to EBIT

17.09

EV to EBITDA

6.64

EV to Capital Employed

0.96

EV to Sales

1.02

PEG Ratio

Dividend Yield

202.42%

ROCE (Latest)

5.63%

ROE (Latest)

4.65%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

2What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 6.45

-23What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 966 MM

PRE-TAX PROFIT(Q)

At USD -10 MM has Fallen at -105.23%

NET PROFIT(Q)

At USD -26 MM has Fallen at -123.36%

ROCE(HY)

Lowest at -0.64%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

RAW MATERIAL COST(Y)

Grown by 64.36% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 31.8 %

EPS(Q)

Lowest at USD -1.1

Here's what is working for Westlake Corp.

Dividend per share

Highest at USD 6.45 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Depreciation

Highest at USD 295 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 Westlake Corp.

Pre-Tax Profit

At USD -10 MM has Fallen at -105.23%

over average net sales of the previous four periods of USD 191.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD -26 MM has Fallen at -123.36%

over average net sales of the previous four periods of USD 111.32 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Cash Flow

Lowest at USD 966 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

EPS

Lowest at USD -1.1

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Debt-Equity Ratio

Highest at 31.8 %

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

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Grown by 64.36% (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