Westlake Corporation (WLK) AI Stock Analysis

• Market Cap: $9.80B
• Dividend Yield: 2.64%
• Average Volume (3M): 1.09M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.99
• Revenue Growth: -3.00%
• EPS Growth: -124.79%
• Country: US
• Employees: 15,540
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): -0.09
• Shares Outstanding: 128,246,260
• 10 Day Avg. Volume: 993,887
• 30 Day Avg. Volume: 1,094,856
• PEG Ratio: 0.97
• Price to Book (P/B): 1.40
• Price to Sales (P/S): 1.21
• P/FCF Ratio: 48.16
• Enterprise Value/Market Cap: 1.38
• Enterprise Value/Revenue: 1.15
• Enterprise Value/Gross Profit: 11.27
• Enterprise Value/Ebitda: 9.53
• 1Y Price Target: $88.73
• Price Target Upside: 16.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 52 Neutral
• Price Target: $86.00 ▲(12.51% Upside)

Westlake Corporation's overall stock score reflects significant financial and operational challenges, with declining revenues and profitability pressures being the most impactful factors. Technical analysis suggests bearish momentum, and valuation metrics are unattractive due to a negative P/E ratio. While the earnings call provided some positive strategic insights, execution risks and segment-specific challenges remain.

Positive Factors

Vertically Integrated Business Model

The vertically integrated model provides Westlake with cost advantages and supply chain control, supporting long-term operational efficiency and competitive positioning.

HIP Segment Performance

Strong performance in the HIP segment with high EBITDA margins indicates robust demand and effective cost management, contributing positively to Westlake's financial health.

Cost Reduction Initiatives

Aggressive cost reduction plans enhance profitability and operational efficiency, positioning Westlake to better manage economic fluctuations and improve margins.

Negative Factors

Declining Revenue Growth

Declining revenue growth signals potential market challenges and competitive pressures, which could hinder Westlake's ability to expand and maintain profitability.

PEM Segment Challenges

Operational disruptions and oversupply issues in the PEM segment create significant financial strain, impacting Westlake's overall performance and profitability.

Negative Cash Flow Growth

A substantial decline in free cash flow growth indicates cash generation issues, potentially limiting Westlake's ability to invest in growth opportunities and manage debt.

Westlake Corporation Business Overview & Revenue Model

Company Description

Westlake Corporation manufactures and supplies petrochemicals, polymers, and building products worldwide. It operates through two segments, Performance and Essential Materials; and Housing and Infrastructure Products. The Performance and Essential Materials segment manufactures and markets polyethylene, styrene monomer, ethylene co-products, PVC, VCM, ethylene dichloride chlor-alkali, and chlorinated derivative products. The Housing and Infrastructure Products segment manufactures and sells residential PVC siding; PVC trim and moldings; roofing applications; decorative stone; windows; PVC decking; PVC films for various inflatables, wallcovering, tape, and roofing applications; polymer composite roof tiles; PVC pipe and fittings; PVC compounds; and various consumer and commercial products such as landscape edging; industrial, home and office matting; marine dock edging; and masonry joint controls. The company offers its products to a range of customers, including chemical processors, plastics fabricators, small construction contractors, municipalities, and supply warehouses for use in various consumer and industrial markets, including residential construction, flexible and rigid packaging, automotive products, healthcare products, water treatment, and coatings, as well as other durable and non-durable goods. The company was formerly known as Westlake Chemical Corporation and changed its name to Westlake Corporation in February 2022. The company was founded in 1986 and is headquartered in Houston, Texas. Westlake Corporation is a subsidiary of TTWF LP.

How the Company Makes Money

Westlake Corporation generates revenue through the production and sale of its diverse chemical and polymer products. The company's key revenue streams include the sale of polyethylene and PVC, which are fundamental to a variety of applications in different industries. Additionally, Westlake benefits from its vertically integrated business model, which enhances cost efficiencies and allows for better control over its supply chain. Strategic partnerships with other manufacturers and distributors also contribute to its revenue, enabling Westlake to expand its market reach and optimize its distribution channels. The company's ability to adapt to market demand and fluctuations in raw material costs further influences its profitability.

Westlake Corporation Financial Statement Overview

Summary

Westlake Corporation faces a challenging financial environment with declining revenues and profitability pressures. The income statement shows a negative net profit margin and declining revenue growth. The balance sheet is stable but with a negative return on equity, and cash flow analysis indicates significant cash generation issues.

Income Statement

Westlake Corporation's income statement shows a challenging period with declining revenue and profitability. The TTM data indicates a negative net profit margin of -0.57%, reflecting a loss, and a decrease in revenue growth rate by -2.11%. The gross profit margin has also decreased to 11.20% from previous years. These factors suggest pressure on the company's pricing power and cost management.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.45 in the TTM period, indicating manageable leverage. However, the return on equity has turned negative at -0.53%, which is concerning. The equity ratio remains stable, suggesting a solid asset base, but the negative ROE highlights profitability challenges.

Cash Flow

Cash flow analysis shows a significant decline in free cash flow growth rate by -164.29% in the TTM period, indicating cash generation issues. The operating cash flow to net income ratio is not calculable due to negative net income, but the free cash flow to net income ratio is positive at 9.39%, suggesting some ability to generate cash despite losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.76B	12.14B	12.55B	15.79B	11.78B	7.50B
Gross Profit	1.20B	1.84B	2.10B	3.92B	3.37B	914.00M
EBITDA	1.42B	2.21B	1.96B	4.18B	3.69B	1.25B
Net Income	-66.00M	602.00M	479.00M	2.25B	2.02B	330.00M
Balance Sheet
Total Assets	20.81B	20.75B	21.04B	20.55B	18.46B	13.84B
Cash, Cash Equivalents and Short-Term Investments	2.28B	2.92B	3.30B	2.23B	1.91B	1.31B
Total Debt	5.62B	5.28B	5.52B	5.38B	5.64B	3.95B
Total Liabilities	10.02B	9.71B	10.27B	10.09B	9.93B	7.26B
Stockholders Equity	10.28B	10.53B	10.24B	9.93B	7.96B	6.04B
Cash Flow
Free Cash Flow	-54.00M	306.00M	1.30B	2.29B	1.74B	772.00M
Operating Cash Flow	966.00M	1.31B	2.34B	3.40B	2.39B	1.30B
Investing Cash Flow	-1.23B	-1.00B	-1.04B	-2.48B	-3.21B	-509.00M
Financing Cash Flow	-701.00M	-650.00M	-245.00M	-587.00M	1.44B	-216.00M

Westlake Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 76.44
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WLK, the sentiment is Negative. The current price of 76.44 is below the 20-day moving average (MA) of 78.29, below the 50-day MA of 82.03, and below the 200-day MA of 88.91, indicating a bearish trend. The MACD of -1.09 indicates Negative momentum. The RSI at 43.95 is Neutral, neither overbought nor oversold. The STOCH value of 68.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WLK.

Westlake Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AVTR	―	$10.28B	14.98	11.73%	―	-2.34%	89.86%
EMN	―	$7.28B	8.90	14.52%	5.24%	1.60%	-3.97%
SQM	―	$12.42B	26.72	9.29%	―	-23.20%	1226.72%
Sector *	―	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ALB	―	$12.43B	―	-8.66%	1.68%	-33.05%	-97.63%
WLK	―	$9.80B	―	-0.64%	2.64%	-3.00%	-124.79%
LYB	―	$15.31B	62.46	1.08%	11.38%	-14.12%	-89.22%

Westlake Corporation Corporate Events

Westlake Corporation to Acquire ACI/Perplastic Group

On August 26, 2025, Westlake Corporation announced its agreement to acquire the global compounding solutions businesses of the ACI/Perplastic Group, a Portugal-based manufacturer serving the wire and cable sectors. This acquisition is expected to enhance Westlake’s Housing & Infrastructure Products segment by integrating ACI’s specialty materials and technology, thereby expanding Westlake’s product portfolio. ACI, with production facilities in Mexico, Portugal, Romania, and Tunisia, reported net sales of approximately EUR 210 million for the year ending December 31, 2024. The transaction is anticipated to close in early 2026, pending regulatory approvals.

The most recent analyst rating on (WLK) stock is a Hold with a $85.00 price target. To see the full list of analyst forecasts on Westlake Corporation stock, see the WLK Stock Forecast page.

Westlake Corporation Reports Q2 2025 Financial Results

Westlake Corporation is a global manufacturer and supplier of materials and innovative products, primarily serving the housing, construction, packaging, healthcare, automotive, and consumer goods sectors. Headquartered in Houston, it operates in Asia, Europe, and North America, providing essential solutions across various industries.

Westlake Chemical’s Earnings Call: Mixed Results with Strategic Focus

The recent earnings call for Westlake Chemical presented a mixed sentiment, reflecting both strong performances and significant challenges. The Housing and Infrastructure Products (HIP) segment showcased robust results, bolstering EBITDA margins, while the Performance and Essential Materials (PEM) segment faced notable difficulties. Despite these challenges, the company’s proactive cost reduction strategies and strategic focus on infrastructure projects offer a positive outlook for the future.

Westlake Corporation Reports Q2 2025 Net Loss

Westlake Corporation reported a net loss of $142 million for the second quarter of 2025, impacted by $130 million due to the closure of its Pernis facility in the Netherlands and temporary cessation of operations in China. Despite these challenges, the company’s housing and infrastructure products segment showed resilience with a 16% increase in sales, while the performance and essential materials segment faced a decline in sales volume. The company’s EBITDA, excluding identified items, was $340 million, reflecting a decrease from the previous year due to higher planned turnarounds, unplanned outages, and increased costs.

The most recent analyst rating on (WLK) stock is a Hold with a $110.00 price target. To see the full list of analyst forecasts on Westlake Corporation stock, see the WLK Stock Forecast page.