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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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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 -37.95%, its profits have fallen by -39.5%

Below par performance in long term as well as near term

Along with generating -37.95% 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.

2.49%

-1.10

45.54%

S&P 500

14.9%

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)

9.11%

EBIT Growth (5y)

-39.10%

EBIT to Interest (avg)

9.67

Debt to EBITDA (avg)

1.07

Net Debt to Equity (avg)

0.22

Sales to Capital Employed (avg)

0.81

Tax Ratio

36.36%

Dividend Payout Ratio

44.22%

Pledged Shares

Institutional Holding

41.67%

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

NA (Loss Making)

Industry P/E

Price to Book Value

1.58

EV to EBIT

529.54

EV to EBITDA

14.62

EV to Capital Employed

1.46

EV to Sales

1.52

PEG Ratio

Dividend Yield

180.91%

ROCE (Latest)

0.28%

ROE (Latest)

-0.49%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

Mildly Bullish

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

2What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 6.53

-28What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 674 MM

ROCE(HY)

Lowest at -9.48%

DEBT-EQUITY RATIO (HY)

Highest at 34.54 %

NET PROFIT(Q)

Lowest at USD -34 MM

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

RAW MATERIAL COST(Y)

Grown by 55.54% (YoY

NET SALES(Q)

Lowest at USD 2,838 MM

PRE-TAX PROFIT(Q)

Lowest at USD -31 MM

EPS(Q)

Lowest at USD -6.07

Here's what is working for Westlake Corp.

Dividend per share

Highest at USD 6.53 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 303 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 -31 MM has Fallen at -137.92%

over average net sales of the previous four periods of USD 81.75 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD -34 MM has Fallen at -229.24%

over average net sales of the previous four periods of USD 26.31 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Cash Flow

Lowest at USD 674 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)

Net Profit

Lowest at USD -34 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Debt-Equity Ratio

Highest at 34.54 % and Grown

In each half year 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

Net Sales

Lowest at USD 2,838 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Pre-Tax Profit

Lowest at USD -31 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

EPS

Lowest at USD -6.07

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

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 55.54% (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