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Westlake Chemical PRN (WLKP)
NYSE:WLKP
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Westlake Chemical PRN
(NYSE:WLKP)
81Outperform
Westlake Chemical PRN (WLKP) vs. S&P 500 (SPY)
Market Cap
$780.18M
Dividend Yield8.52%
Average Volume (3M)37.82K
Price to Earnings (P/E)12.5
Beta (1Y)0.24
Revenue Growth-4.61%
EPS Growth14.90%
CountryUS
Employees2,169
SectorBasic Materials
Sector Strength58
IndustryChemicals
Share Statistics
EPS (TTM)1.77
Shares Outstanding35,238,556
10 Day Avg. Volume35,807
30 Day Avg. Volume37,824
Financial Highlights & Ratios
PEG Ratio0.84
Price to Book (P/B)N/A
Price to Sales (P/S)0.71
Price to Cash Flow (P/CF)1.60
P/FCF Ratio1.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Westlake Chemical PRN Business Overview & Revenue Model
Company DescriptionWestlake Chemical Partners LP (WLKP) is a master limited partnership formed by Westlake Chemical Corporation to operate, acquire, and develop ethylene production facilities and related assets. Primarily, the company operates in the chemicals sector, focusing on the production and distribution of ethylene, which is a key building block for a wide range of chemical products. WLKP's operations are primarily located in the United States, where it benefits from access to low-cost natural gas feedstock.
How the Company Makes MoneyWestlake Chemical Partners LP generates revenue primarily through the production and sale of ethylene, which is used in the manufacturing of various chemical products like polyethylene and polyvinyl chloride (PVC). The company operates a fee-based revenue model, wherein it receives fees for processing ethylene for its parent company, Westlake Chemical Corporation. This arrangement ensures a stable and predictable cash flow, as it is not directly exposed to the volatility of the market prices for ethylene. Additionally, WLKP benefits from long-term supply agreements and contracts with Westlake Chemical Corporation, which contribute significantly to its earnings. These strategic partnerships and agreements help in maintaining steady revenue streams and mitigating risks associated with market fluctuations.
Westlake Chemical PRN Financial Statement Overview
Summary
Westlake Chemical PRN presents a compelling financial profile, characterized by robust profitability, a debt-free balance sheet, and strong cash flow generation. While revenue has seen a slight decline, the company's efficient operations and solid capital structure provide a strong foundation for resilience and growth in the chemicals industry.Income Statement
Westlake Chemical PRN shows a healthy gross profit margin of 36.9% and a net profit margin of 11.9% in TTM (Trailing-Twelve-Months), indicating strong profitability. Although revenue decreased by 4.6% from the previous year, margins remained robust with an EBIT margin of 34.4% and an EBITDA margin of 42.1%. Despite the revenue decline, profitability remains a key strength.78
Positive
Balance Sheet
The company exhibits a strong balance sheet with a debt-to-equity ratio of 0, showing no debt as of the latest period, which is a significant improvement from the previous year's leverage. The equity ratio stands at 64.4%, suggesting financial stability and a healthy capital structure. This represents a solid foundation for future growth and risk mitigation.85
Very Positive
Cash Flow
Westlake Chemical PRN's cash flow performance is impressive, with a free cash flow growth rate of 10.9% and an operating cash flow to net income ratio of 3.6 in TTM (Trailing-Twelve-Months). These metrics indicate a strong cash generation ability, supporting operational and strategic flexibility. The company's free cash flow to net income ratio of 3.3 further underscores its efficient cash flow management.82
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.14B | 1.19B | 1.59B | 1.21B | 966.67M | Gross Profit |
| 418.94M | 387.46M | 377.37M | 441.71M | 378.88M | EBIT |
| 390.44M | 357.71M | 347.69M | 410.69M | 352.99M | EBITDA |
| 507.59M | 472.14M | 470.33M | 519.56M | 456.88M | Net Income Common Stockholders |
| 62.39M | 54.28M | 334.83M | 401.38M | 341.12M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 58.32M | 58.62M | 64.78M | 17.06M | 17.15M | Total Assets |
| 1.29B | 1.32B | 1.37B | 1.48B | 1.36B | Total Debt |
| 399.67M | 399.67M | 399.67M | 399.67M | 399.67M | Net Debt |
| 341.36M | 341.06M | 334.89M | 382.62M | 382.52M | Total Liabilities |
| 458.64M | 460.59M | 468.27M | 508.00M | 441.35M | Stockholders Equity |
| 829.31M | 522.51M | 903.71M | 972.70M | 915.14M |
| Cash Flow | Free Cash Flow | |||
| 436.03M | 405.18M | 409.62M | 327.27M | 336.43M | Operating Cash Flow |
| 485.00M | 452.00M | 463.74M | 408.44M | 373.40M | Investing Cash Flow |
| -88.97M | -75.94M | -12.00M | -64.30M | 2.03M | Financing Cash Flow |
| -396.33M | -382.23M | -404.01M | -344.24M | -378.20M |
Westlake Chemical PRN Technical Analysis
Negative
21.61
Price Trends
23.65
Negative
23.33
Negative
22.45
Negative
Market Momentum
-0.17
Positive
43.85
Neutral
22.15
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WLKP, the sentiment is Negative. The current price of 21.61 is below the 20-day moving average (MA) of 23.14, below the 50-day MA of 23.65, and below the 200-day MA of 22.45, indicating a bearish trend. The MACD of -0.17 indicates Positive momentum. The RSI at 43.85 is Neutral, neither overbought nor oversold. The STOCH value of 22.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WLKP.
Westlake Chemical PRN Risk Analysis
Westlake Chemical PRN disclosed 50 risk factors in its most recent earnings report. Westlake Chemical PRN reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Westlake Chemical PRN Peers Comparison
Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $780.18M | 12.50 | 11.98% | 8.52% | -4.61% | 14.90% | |
75 Outperform | $8.72B | 9.84 | 16.11% | 4.45% | 1.91% | 2.94% | |
65 Neutral | $22.00B | 16.25 | 19.13% | 2.77% | -4.59% | 11.09% | |
59 Neutral | $18.75B | 13.96 | 10.69% | 9.47% | -1.46% | -36.00% | |
58 Neutral | $19.85B | 18.01 | 6.14% | 10.17% | -3.72% | 91.57% | |
50 Neutral | $4.53B | 6.84 | -24.69% | 5.26% | -6.03% | -177.29% | |
47 Neutral | $2.32B | -2.86 | -21.68% | 3.65% | 4.18% | -28.49% |
* Basic Materials Sector Average
Performance Comparison
WLKP
Westlake Chemical PRN
21.61
1.24
6.09%
CE
Celanese
37.49
-126.20
-77.10%
EMN
Eastman Chemical
72.70
-25.87
-26.25%
LYB
LyondellBasell
53.23
-45.33
-45.99%
PPG
PPG Industries
91.66
-47.47
-34.12%
DOW
Dow Inc
25.81
-30.60
-54.25%
Westlake Chemical PRN Earnings Call Summary
Earnings Call Date: Feb 24, 2025 | % Change Since: -10.78% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment overall, with strong full-year net income growth, consistent distributions, and improved market conditions for ethylene. However, there are temporary concerns about decreased distributable cash flow in Q4 and the financial impact of the planned turnaround.Highlights
Strong Full Year Net Income Growth
Westlake Chemical Partners LP reported full year 2024 net income of $62 million, a significant increase from the previous year's $54 million, driven by higher third-party ethylene sales prices and margins.
Consistent Distributions to Unitholders
The company maintained its streak of 42 consecutive quarterly distributions since its IPO in July 2014 without reductions, demonstrating stability in its financial performance.
Improved Leverage Metrics
The partnership maintained a strong balance sheet with a consolidated leverage ratio below one times, with $193 million in consolidated cash and investments.
Ethylene Market Conditions
North American spot ethylene prices and margins improved due to a tightening of supply-demand conditions, benefiting the partnership through higher sales prices and margins.
Lowlights
Decreased Q4 Distributable Cash Flow
Fourth quarter 2024 distributable cash flow decreased by $1 million compared to the same period in 2023, primarily due to higher turnaround reserve and maintenance capital contributions.
Impact of Planned Turnaround
A 60-day planned turnaround at the PetroOne ethylene unit is expected to temporarily impact earnings and cash flow, reducing distribution coverage ratio before recovery.
Company Guidance
During the Westlake Chemical Partners LP Fourth Quarter and Full Year 2024 Earnings Conference Call, management provided guidance on several key financial metrics. For the full year 2024, Westlake Chemical Partners LP reported a net income of $62 million, or $1.77 per unit, with consolidated net income, including OpCo, reaching $369 million. The partnership achieved a fourth quarter net income of $15 million, or $0.43 per unit, with consolidated net sales amounting to $290 million. Distributable cash flow for the fourth quarter was $15 million, or $0.42 per unit. The partnership's full year 2024 MLP distributable cash flow increased by $4 million compared to 2023, with a distribution coverage ratio of 1.01 times. The partnership announced a quarterly distribution of $0.4714 per unit, maintaining a 71% growth in distributions since its IPO. The company emphasized its strong balance sheet with consolidated cash and investments totaling $193 million and long-term debt at $400 million. Looking forward, the partnership has accounted for the cost of a planned 60-day turnaround at the PetroOne ethylene unit, which is expected to temporarily impact the distribution coverage ratio. However, after the completion of the turnaround, the partnership anticipates a return to its target coverage ratio of approximately 1.1 times.Westlake Chemical PRN Corporate Events
Business Operations and StrategyFinancial Disclosures
Westlake Chemical PRN Reports Stable Q4 2024 Earnings
Neutral
Feb 24, 2025
Westlake Chemical Partners LP reported a net income of $15.0 million for the fourth quarter of 2024, consistent with the previous year, and an increased cash flow from operating activities of $132.5 million. The company’s decision to defer the turnaround at its Petro 1 ethylene unit allowed it to capitalize on favorable ethylene prices, leading to improved cash flows and a stable distribution coverage ratio, although the planned maintenance in 2025 is expected to temporarily affect coverage ratios.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.