Westlake Chemical PRN (WLKP) AI Stock Analysis

• Market Cap: $772.78M
• Dividend Yield: 8.6%
• Average Volume (3M): 31.48K
• Price to Earnings (P/E): 14.7
• Beta (1Y): 0.18
• Revenue Growth: -7.24%
• EPS Growth: -7.30%
• Country: US
• Employees: 2,169
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Chemicals
• EPS (TTM): 0.41
• Shares Outstanding: 35,238,556
• 10 Day Avg. Volume: 39,639
• 30 Day Avg. Volume: 31,480
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.90
• Enterprise Value/Revenue: 1.33
• Enterprise Value/Gross Profit: 4.00
• Enterprise Value/Ebitda: 3.41
• 1Y Price Target: $25.25
• Price Target Upside: 15.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 70 Outperform
• Price Target: $24.50 ▲(11.72% Upside)

Westlake Chemical PRN's overall stock score is driven by its solid financial performance and attractive valuation, particularly its strong dividend yield. The technical analysis indicates a neutral trend, while the earnings call highlights both stability and challenges in the current industrial environment. The company is financially sound, but growth metrics and cash flow trends need attention.

Westlake Chemical PRN Business Overview & Revenue Model

Company Description

Westlake Chemical Partners LP acquires, develops, and operates ethylene production facilities and related assets in the United States. The company's ethylene production facilities primarily convert ethane into ethylene. It also sells ethylene co-products, including propylene, crude butadiene, pyrolysis gasoline, and hydrogen directly to third parties on either a spot or contract basis. Westlake Chemical Partners GP LLC serves as the general partner of the company. The company was incorporated in 2014 and is headquartered in Houston, Texas.

How the Company Makes Money

Westlake Chemical Partners generates revenue primarily through the sale of its chemical products, which are essential raw materials for various industries, including packaging, construction, automotive, and consumer goods. The company earns income by processing and distributing ethylene and polyethylene, which are sold both to its parent company and to third-party customers. Key revenue streams include long-term contracts with customers that ensure consistent demand for its products, as well as spot market sales. Additionally, the company's partnership with Westlake Chemical Corporation allows it to benefit from economies of scale and shared resources, enhancing its profitability. Factors contributing to WLKP's earnings include global demand for petrochemicals, operational efficiencies, and strategic pricing in response to market conditions.

Westlake Chemical PRN Financial Statement Overview

Summary

Westlake Chemical PRN demonstrates solid profitability and operational efficiency, with strong margins and return on equity. However, the modest revenue growth and declining free cash flow growth present challenges. The balance sheet remains stable, but the decrease in equity warrants attention. Overall, the company is financially sound but should focus on improving growth metrics.

Income Statement

Westlake Chemical PRN shows a strong gross profit margin of 33.32% for TTM, indicating efficient production processes. The net profit margin improved significantly to 14.63% from 5.49% in the previous year, reflecting enhanced profitability. However, revenue growth is modest at 1.19% TTM, suggesting limited expansion. The EBIT and EBITDA margins are robust at 21.90% and 37.87% respectively, showcasing operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is stable at 0.48, indicating a balanced approach to leveraging. Return on equity is strong at 27.13% TTM, reflecting effective use of equity to generate profits. The equity ratio stands at 63.59%, suggesting a solid equity base relative to total assets. However, the decrease in stockholders' equity over the past year is a concern.

Cash Flow

Operating cash flow remains healthy, but free cash flow has decreased by 27.66% TTM, which could impact future investments. The free cash flow to net income ratio is strong at 85.65%, indicating good cash generation relative to profits. However, the decline in free cash flow growth is a potential risk.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.10B	1.14B	1.19B	1.59B	1.21B	966.67M
Gross Profit	367.14M	418.94M	387.46M	377.37M	441.71M	378.88M
EBITDA	430.96M	507.59M	472.14M	470.33M	519.56M	456.88M
Net Income	161.24M	62.39M	54.28M	334.83M	401.38M	341.12M
Balance Sheet
Total Assets	1.31B	1.29B	1.32B	1.37B	1.48B	1.36B
Cash, Cash Equivalents and Short-Term Investments	36.58M	58.32M	58.62M	64.78M	17.06M	17.15M
Total Debt	399.67M	399.67M	399.67M	399.67M	399.67M	399.67M
Total Liabilities	476.02M	458.64M	460.59M	468.27M	508.00M	441.35M
Stockholders Equity	504.99M	518.70M	522.51M	903.71M	972.70M	915.14M
Cash Flow
Free Cash Flow	268.42M	436.03M	405.18M	409.62M	327.27M	336.43M
Operating Cash Flow	313.39M	485.00M	452.00M	463.74M	408.44M	373.40M
Investing Cash Flow	-19.36M	-88.97M	-75.94M	-12.00M	-64.30M	2.03M
Financing Cash Flow	-323.46M	-396.33M	-382.23M	-404.01M	-344.24M	-378.20M

Westlake Chemical PRN Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.93
• 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 WLKP, the sentiment is Positive. The current price of 21.93 is above the 20-day moving average (MA) of 21.60, above the 50-day MA of 21.69, and below the 200-day MA of 22.06, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 58.60 is Neutral, neither overbought nor oversold. The STOCH value of 22.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WLKP.

Westlake Chemical PRN Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WLKP	70 Outperform	$772.78M	14.68	10.28%	8.60%	-7.24%	-7.30%
ASIX	63 Neutral	$508.43M	6.67	9.85%	3.25%	1.31%	796.76%
LXU	51 Neutral	$543.84M	―	-6.51%	―	2.60%	-1506.69%
HUN	50 Neutral	$1.64B	―	-10.43%	9.82%	-1.56%	-259.58%
Sector *	44 Neutral	AU$1.54B	-7.28	-22.76%	4.37%	-3.13%	-36.41%
BAK	42 Neutral	$1.28B	―	-8638.28%	―	-3.33%	44.37%
TROX	40 Underperform	$596.05M	―	-14.11%	11.30%	0.20%	-292.54%

Westlake Chemical PRN Corporate Events

Westlake Chemical PRN Reports Steady Q2 2025 Income

Westlake Chemical Partners LP reported a net income of $14.6 million for the second quarter of 2025, consistent with the previous year’s results, despite a significant decrease in cash flows from operating activities due to higher maintenance capital expenditures from the Petro 1 turnaround. The company announced its 44th consecutive quarterly distribution and expects improvement in distributable cash flow and coverage ratio in the second half of 2025, following the completion of the Petro 1 turnaround.

The most recent analyst rating on (WLKP) stock is a Buy with a $26.00 price target. To see the full list of analyst forecasts on Westlake Chemical PRN stock, see the WLKP Stock Forecast page.