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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Dow, 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 -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.

12.78%

-1.10

45.54%

S&P 500

25.41%

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)

8.28%

EBIT Growth (5y)

-185.38%

EBIT to Interest (avg)

9.67

Debt to EBITDA (avg)

1.07

Net Debt to Equity (avg)

0.22

Sales to Capital Employed (avg)

0.80

Tax Ratio

36.36%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

41.64%

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

1.74

EV to EBIT

-85.72

EV to EBITDA

18.70

EV to Capital Employed

1.56

EV to Sales

1.62

PEG Ratio

Dividend Yield

176.92%

ROCE (Latest)

-1.82%

ROE (Latest)

-1.10%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

Mildly 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

2What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 6.56

-32What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 448 MM

ROCE(HY)

Lowest at -17.19%

DEBT-EQUITY RATIO (HY)

Highest at 46.03 %

INTEREST COVERAGE RATIO(Q)

Lowest at 232.14

RAW MATERIAL COST(Y)

Grown by 65.74% (YoY

INTEREST(Q)

Highest at USD 56 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.9 %

PRE-TAX PROFIT(Q)

Lowest at USD -172 MM

NET PROFIT(Q)

Lowest at USD -150 MM

Here's what is working for Westlake Corp.

Dividend per share

Highest at USD 6.56 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Here's what is not working for Westlake Corp.

Pre-Tax Profit

At USD -172 MM has Fallen at -199.13%

over average net sales of the previous four periods of USD -57.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD -150 MM has Fallen at -347.76%

over average net sales of the previous four periods of USD -33.5 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Cash Flow

Lowest at USD 448 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)

Interest Coverage Ratio

Lowest at 232.14

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 46.03 % 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

Interest

Highest at USD 56 MM

in the last five periods and Increased by 9.8% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Operating Profit Margin

Lowest at 4.9 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD -172 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 -150 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Raw Material Cost

Grown by 65.74% (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