Westlake Corporation (WLK) AI Stock Analysis

• Market Cap: $9.41B
• Dividend Yield: 2.87%
• Average Volume (3M): 1.61M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.03
• 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: 1,883,443
• 30 Day Avg. Volume: 1,607,035
• 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: 1.45
• Enterprise Value/Revenue: 1.19
• Enterprise Value/Gross Profit: 12.95
• Enterprise Value/Ebitda: 28.26
• 1Y Price Target: $81.75
• Price Target Upside: 11.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): -1.59
• Revenue Forecast (FY): $11.28B

• Rating: 52 Neutral
• Price Target: $69.00 ▼(-5.92% Downside)

Westlake Corporation's overall stock score reflects significant financial challenges, particularly in profitability and cash flow, which weigh heavily on the score. Technical analysis and valuation metrics also indicate concerns, with bearish momentum and unattractive valuation. The earnings call provides some optimism through strategic investments and cost reduction initiatives, but the current macroeconomic environment remains challenging.

Positive Factors

Strategic Investments

Strategic investments in new facilities and acquisitions expand market reach and enhance long-term growth potential.

Cost Reduction Initiatives

Effective cost reduction strategies can improve profitability and operational efficiency, supporting long-term financial health.

HIP Segment Resilience

Resilience in the HIP segment indicates strong customer relationships and a diversified product portfolio, ensuring stable revenue.

Negative Factors

Noncash Impairment Charge

Significant impairment charges reflect challenges in asset valuation and can impact future profitability and balance sheet strength.

Sales and EBITDA Decline

Declining sales and EBITDA indicate market challenges and can pressure margins, affecting long-term financial performance.

Challenging Macroeconomic Environment

Adverse macroeconomic conditions and supply-demand imbalances can hinder revenue growth and profitability in key segments.

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 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: Positive
• Last Price: 73.34
• 50DMA: Positive
• 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 Positive. The current price of 73.34 is above the 20-day moving average (MA) of 66.40, above the 50-day MA of 69.46, and below the 200-day MA of 80.48, indicating a neutral trend. The MACD of 1.76 indicates Negative momentum. The RSI at 62.69 is Neutral, neither overbought nor oversold. The STOCH value of 76.73 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
SQM	71 Outperform	$17.46B	35.18	9.87%	―	-10.07%	―
EMN	67 Neutral	$7.26B	10.61	12.24%	5.11%	-3.33%	-19.59%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ALB	58 Neutral	$15.43B	-82.08	-0.21%	1.24%	-23.92%	90.47%
WLK	52 Neutral	$9.41B	―	-9.48%	2.87%	-5.32%	-1108.29%
LYB	52 Neutral	$13.83B	-11.43	-10.44%	12.57%	-19.65%	-157.13%
AVTR	45 Neutral	$7.64B	―	-1.48%	―	-3.59%	-126.16%

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.

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.

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.

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.