Westlake Corporation (WLK) AI Stock Analysis

• Market Cap: $8.06B
• Dividend Yield: 3.36%
• Average Volume (3M): 1.41M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.98
• Revenue Growth: -5.32%
• EPS Growth: -1108.29%
• Country: US
• Employees: 15,540
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): -0.29
• Shares Outstanding: 128,273,220
• 10 Day Avg. Volume: 1,724,604
• 30 Day Avg. Volume: 1,407,304
• 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: 1.69
• Enterprise Value/Revenue: 1.19
• Enterprise Value/Gross Profit: 12.95
• Enterprise Value/Ebitda: 28.26
• 1Y Price Target: $82.67
• Price Target Upside: 31.49% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): -1.19
• Revenue Forecast (FY): $11.33B

• Rating: 45 Neutral
• Price Target: $58.00 ▼(-7.75% Downside)

Westlake Corporation's overall stock score reflects significant financial and technical challenges. The company's financial performance is hindered by declining revenues and profitability, while technical indicators show bearish momentum. Valuation metrics are also concerning, with a negative P/E ratio. Despite these challenges, the dividend yield offers some income potential. Strategic initiatives and investments in the HIP segment provide a glimmer of hope, but the current macroeconomic environment remains a significant hurdle.

Positive Factors

Vertically Integrated Business Model

A vertically integrated model allows Westlake to optimize production costs and maintain control over supply chains, providing a competitive edge in managing raw material fluctuations and ensuring consistent product quality.

Strategic Investments and Acquisitions

Strategic investments and acquisitions expand Westlake's market reach and product offerings, positioning the company for long-term growth and diversification in its business segments.

Ethylene Sales Agreement Renewal

Renewing the Ethylene Sales Agreement ensures stable revenue streams and cash flow, supporting Westlake's financial stability and operational planning over the long term.

Negative Factors

Declining Revenue and Profitability

Declining revenue and profitability indicate challenges in maintaining market competitiveness and operational efficiency, potentially impacting long-term financial health and investment capacity.

Cash Flow Challenges

Negative free cash flow suggests difficulties in generating sufficient cash from operations to cover capital expenditures, which could constrain future growth initiatives and financial flexibility.

Noncash Impairment Charge

The significant impairment charge reflects ongoing challenges in the PEM segment, indicating potential long-term issues with asset valuation and profitability in a key business area.

Westlake Corporation Business Overview & Revenue Model

Company Description

Westlake Corporation (WLK) is a leading global manufacturer and supplier of petrochemicals, polymers, and building products. The company operates primarily in two segments: the Olefins and Vinyls segment, which includes the production of ethylene, polyethylene, and PVC products; and the Building Products segment, which focuses on manufacturing a variety of building materials such as vinyl siding, windows, and other related products. With a strong commitment to sustainability and innovation, Westlake serves diverse markets including construction, automotive, and consumer goods.

How the Company Makes Money

Westlake Corporation generates revenue through multiple key streams, primarily from the sale of its petrochemical and building products. The Olefins and Vinyls segment contributes significantly to its earnings by producing and selling essential chemicals and plastics used in various industries. The Building Products segment also provides a substantial revenue source through its diverse range of construction materials. Additionally, Westlake benefits from strategic partnerships and joint ventures that enhance its market presence and operational efficiency. Fluctuations in raw material prices, particularly in the oil and gas sector, can impact profit margins, but the company's integrated business model helps mitigate these risks by optimizing production and supply chain processes.

Westlake Corporation Financial Statement Overview

Summary

Westlake Corporation faces significant financial challenges, particularly in profitability and cash flow. The income statement shows declining revenues and profitability, while the balance sheet remains relatively stable with low leverage. Cash flow issues are evident, with negative free cash flow in the TTM period. Strategic measures are needed to address these challenges and improve financial performance.

Income Statement

Westlake Corporation's income statement shows significant challenges in recent periods. The TTM data reveals a negative net profit margin of -8.34%, indicating losses, and a declining revenue trend with a -2.37% growth rate. The gross profit margin has also decreased to 9.18% from higher levels in previous years. These factors suggest profitability issues and a need for strategic adjustments.

Balance Sheet

The balance sheet reflects a relatively stable financial position with a low debt-to-equity ratio of 0.15 in the TTM period, indicating manageable leverage. However, the return on equity is negative at -9.42%, reflecting recent losses. The equity ratio remains healthy, suggesting a solid asset base relative to equity.

Cash Flow

Cash flow analysis shows mixed results. The operating cash flow remains positive, but the free cash flow is negative in the TTM period, indicating cash outflows after capital expenditures. The free cash flow to net income ratio is negative, highlighting cash flow challenges. However, the operating cash flow to net income ratio is positive, suggesting some operational cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.48B	12.14B	12.55B	15.79B	11.78B	7.50B
Gross Profit	1.05B	1.96B	2.22B	4.07B	3.50B	1.02B
EBITDA	483.00M	2.21B	1.96B	4.18B	3.69B	1.25B
Net Income	-957.00M	602.00M	479.00M	2.25B	2.02B	330.00M
Balance Sheet
Total Assets	19.81B	20.75B	21.04B	20.55B	18.46B	13.84B
Cash, Cash Equivalents and Short-Term Investments	2.13B	2.92B	3.30B	2.23B	1.91B	1.31B
Total Debt	5.37B	5.28B	5.52B	5.38B	5.64B	3.95B
Total Liabilities	9.88B	9.71B	10.27B	10.09B	9.93B	7.26B
Stockholders Equity	9.43B	10.53B	10.24B	9.93B	7.96B	6.04B
Cash Flow
Free Cash Flow	-365.00M	306.00M	1.30B	2.29B	1.74B	772.00M
Operating Cash Flow	674.00M	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	-418.00M	-650.00M	-245.00M	-587.00M	1.44B	-216.00M

Westlake Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 62.87
• 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 Neutral. The current price of 62.87 is above the 20-day moving average (MA) of 62.76, below the 50-day MA of 71.79, and below the 200-day MA of 83.02, indicating a neutral trend. The MACD of -3.45 indicates Negative momentum. The RSI at 48.32 is Neutral, neither overbought nor oversold. The STOCH value of 68.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WLK.

Westlake Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SQM	69 Neutral	$16.81B	33.87	9.87%	―	-10.07%	―
EMN	67 Neutral	$6.91B	10.11	12.24%	5.48%	-3.33%	-19.59%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ALB	60 Neutral	$14.74B	―	-0.21%	1.68%	-23.92%	90.47%
AVTR	53 Neutral	$7.85B	―	-1.48%	―	-3.59%	-126.16%
LYB	51 Neutral	$15.13B	―	-10.44%	12.10%	-19.65%	-157.13%
WLK	45 Neutral	$8.06B	―	-9.48%	3.36%	-5.32%	-1108.29%

Westlake Corporation Corporate Events

Westlake Corporation Announces Results of Cash Tender Offer

On November 10, 2025, Westlake Corporation announced the pricing and results of its cash tender offer for its outstanding 3.600% Senior Notes due 2026. The tender offer, which expired on the same day, was conducted to manage the company’s debt profile and financial strategy, with the settlement expected around November 12, 2025. This move is part of Westlake’s broader financial management efforts, potentially impacting its market positioning and stakeholder interests by optimizing its capital structure.

The most recent analyst rating on (WLK) stock is a Hold with a $83.00 price target. To see the full list of analyst forecasts on Westlake Corporation stock, see the WLK Stock Forecast page.

Westlake Corporation Announces $1.2 Billion Notes Offering

On November 4, 2025, Westlake Corporation announced the pricing of its $1.2 billion public offering of senior unsecured notes, with $600 million due in 2035 and another $600 million due in 2055. The proceeds from this offering are intended to repurchase outstanding senior notes due in 2026 and fund the acquisition of ACI/Perplastic Group’s global compounding solutions business, as well as for general corporate purposes. The offering is expected to close on November 6, 2025, and is not contingent upon the completion of the acquisition or the tender offer.

The most recent analyst rating on (WLK) stock is a Hold with a $83.00 price target. To see the full list of analyst forecasts on Westlake Corporation stock, see the WLK Stock Forecast page.

Westlake Corporation Announces Cash Tender Offer for Notes

On November 4, 2025, Westlake Corporation announced the commencement of a cash tender offer to purchase any and all of its outstanding 3.600% Senior Notes due 2026. The tender offer aims to extend the maturity of Westlake’s outstanding indebtedness and is contingent upon the successful completion of a concurrent senior notes offering. The offer is set to expire on November 10, 2025, and Westlake plans to fund the purchase of the notes with the net proceeds from the notes offering, potentially impacting the company’s financial structure and market positioning.

The most recent analyst rating on (WLK) stock is a Hold with a $83.00 price target. To see the full list of analyst forecasts on Westlake Corporation stock, see the WLK Stock Forecast page.

Westlake’s Earnings Call: Mixed Results Amid Challenges

Westlake Corporation’s recent earnings call revealed a mixed performance, reflecting both challenges and resilience within different segments of the company. The Performance and Essential Materials (PEM) segment is grappling with a global supply-demand imbalance and significant impairment charges, while the Housing and Infrastructure Products (HIP) segment shows strength, buoyed by strategic investments and robust customer relationships. Despite the hurdles posed by the current macroeconomic environment, the company’s cost reduction initiatives and long-term growth outlook in the HIP segment provide a glimmer of optimism.

Westlake Corporation Reports Challenging Q3 2025 Results

Westlake Corporation is a global manufacturer and supplier of materials and innovative products, serving industries such as housing, construction, packaging, healthcare, automotive, and consumer goods. Headquartered in Houston, the company operates across Asia, Europe, and North America.

Westlake Corporation Reports Q3 2025 Financial Loss

Westlake Corporation reported its third quarter 2025 financial results, revealing a net loss of $782 million due to a significant non-cash impairment charge related to its North American chlorovinyls business. The company’s EBITDA, excluding identified items, decreased compared to both the previous quarter and the same quarter in 2024, primarily due to lower sales prices and volumes in its Performance and Essential Materials segment, as well as administrative and restructuring expenses in its Housing and Infrastructure Products segment.

The most recent analyst rating on (WLK) stock is a Buy with a $93.00 price target. To see the full list of analyst forecasts on Westlake Corporation stock, see the WLK Stock Forecast page.

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.