Westlake Corporation (WLK) AI Stock Analysis

• Market Cap: $9.67B
• Dividend Yield: 2.78%
• Average Volume (3M): 1.15M
• Price to Earnings (P/E): 25.4
• Beta (1Y): 0.95
• Revenue Growth: -1.27%
• EPS Growth: 48.34%
• Country: US
• Employees: 15,540
• Sector: Basic Materials
• Sector Strength: 53
• Industry: Chemicals - Specialty
• EPS (TTM): -0.09
• Shares Outstanding: 128,238,020
• 10 Day Avg. Volume: 1,367,945
• 30 Day Avg. Volume: 1,153,063
• 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: 1.39
• Enterprise Value/Gross Profit: 12.41
• Enterprise Value/Ebitda: 24.32
• 1Y Price Target: $89.94
• Price Target Upside: 8.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

• Rating: 61 Neutral
• Price Target: $84.00 ▲(1.11% Upside)

Westlake Chemical's overall score reflects pressures from declining financial performance, highlighted by reduced profitability and free cash flow. Technical analysis suggests potential short-term weakness, while valuation metrics point to an overvalued condition with a moderate dividend yield. Earnings call insights and recent corporate events indicate strategic challenges and market uncertainties, further weighing on the stock's outlook.

Positive Factors

Balance Sheet Strength

Analyst reiterates a Buy recommendation based on Westlake's strong balance sheet, which should allow it to capitalize on opportunities.

Cost Savings

Management expects to recover the €190mm costs as they saved on fixed costs, maintenance, etc.

Negative Factors

Pricing Pressure

PVC and PE pricing fell with potential for further declines, leading to reduced earnings estimates.

PVC and PE Market Weakness

Analyst downgrades WLK due to weaker industry operating rates for PVC and PE than expected.

Westlake Corporation Business Overview & Revenue Model

Company Description

Westlake Corporation (WLK) is a global manufacturer and supplier of petrochemicals, polymers, and building products. The company operates in two main segments: Olefins and Vinyls. The Olefins segment produces ethylene, polyethylene, and other related products, while the Vinyls segment focuses on the production of polyvinyl chloride (PVC), vinyl chloride monomer (VCM), and other related chemicals. Westlake serves a diverse range of industries including construction, automotive, and packaging, providing essential materials for everyday applications.

How the Company Makes Money

Westlake Corporation generates revenue primarily through the sale of petrochemical and polymer products. The Olefins segment contributes to revenue by producing and selling ethylene and polyethylene, which are key components used in various consumer and industrial products. The Vinyls segment generates earnings through the production and sale of PVC and VCM, which are used extensively in construction and infrastructure projects. The company benefits from strategic partnerships and long-term contracts with key industrial players, optimizing its supply chain and ensuring a stable demand for its products. Additionally, Westlake's global footprint allows it to tap into diverse markets, further enhancing its revenue streams.

Westlake Corporation Financial Statement Overview

Summary

Westlake Chemical faces challenges with declining revenues and profit margins impacting overall financial performance. While the balance sheet shows financial stability with moderate leverage, the cash flow statement highlights a reduction in free cash flow, raising potential concerns about future liquidity.

Income Statement

Westlake Chemical's income statement reflects a decline in revenue and net income over the latest periods. The gross profit margin for TTM (Trailing-Twelve-Months) is around 14.1%, indicating some pressure on profitability. Net profit margin stands at 3.2%, which is lower compared to historical performance. The EBIT margin is 5.2%, and the EBITDA margin is 15.8%, showing moderate operational efficiency despite revenue headwinds.

Balance Sheet

The balance sheet indicates a strong equity position with a stable equity ratio of approximately 50.3% in TTM. The debt-to-equity ratio is 0.53, suggesting manageable leverage. Return on Equity (ROE) is at a lower level of 3.7% for TTM, reflecting decreased profitability impacting shareholder returns.

Cash Flow

Cash flow analysis shows a significant drop in free cash flow in TTM, with a free cash flow growth rate of -72.5%. Operating cash flow remains positive but has decreased compared to prior periods. The operating cash flow to net income ratio is robust at 2.75, suggesting strong cash generation relative to earnings.

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	1.32B	1.96B	2.22B	4.07B	3.50B	1.02B
EBITDA	672.00M	2.21B	1.96B	4.18B	3.69B	1.25B
Net Income	-67.00M	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	0.00	5.28B	5.52B	4.88B	5.18B	3.57B
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	78.00M	306.00M	1.30B	2.29B	1.74B	772.00M
Operating Cash Flow	831.00M	1.31B	2.34B	3.40B	2.39B	1.30B
Investing Cash Flow	-940.00M	-1.00B	-1.04B	-2.48B	-3.21B	-509.00M
Financing Cash Flow	-619.00M	-650.00M	-245.00M	-587.00M	1.44B	-216.00M

Westlake Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 83.08
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WLK, the sentiment is Positive. The current price of 83.08 is above the 20-day moving average (MA) of 82.81, above the 50-day MA of 78.30, and below the 200-day MA of 101.67, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 53.20 is Neutral, neither overbought nor oversold. The STOCH value of 27.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WLK.

Westlake Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RPM	76 Outperform	$15.09B	21.96	25.42%	1.74%	0.51%	17.21%
AVNT	70 Neutral	$3.09B	26.16	5.09%	3.16%	3.28%	1.69%
SQM	64 Neutral	$10.19B	17.02	12.13%	0.47%	-29.03%	52.74%
EMN	63 Neutral	$6.79B	8.26	14.52%	5.38%	1.60%	-3.97%
Sector *	62 Neutral	₹123.44B	29.51	7.83%	0.91%	4.93%	-6.85%
WLK	61 Neutral	$9.67B	25.36	3.71%	2.78%	-1.27%	48.34%
LYB	58 Neutral	$17.17B	70.08	1.08%	10.37%	-14.12%	-89.22%

Westlake Corporation Corporate Events

Westlake Corporation to Close Pernis Facility in Netherlands

Westlake Corporation announced plans to cease operations at its Pernis facility in the Netherlands due to continued business deterioration in Europe. The closure, which follows consultations with local councils and unions, will result in a workforce reduction of approximately 230 employees and incur pre-tax costs of about EUR 190 million. The company will continue to supply customers from its Deer Park, Texas facility.

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.

Westlake Chemical Approves Board Members and Auditor

At the 2025 Annual Meeting held on May 8, 2025, Westlake Corporation’s stockholders voted on two key matters. The election of four board members and the ratification of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, were both approved, indicating continued stability and oversight in the company’s governance and financial auditing processes.

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 Chemical stock, see the WLK Stock Forecast page.