Westlake Chemical PRN (WLKP) AI Stock Analysis

• Market Cap: $706.89M
• Dividend Yield: 9.4%
• Average Volume (3M): 50.79K
• Price to Earnings (P/E): 12.9
• Beta (1Y): 0.19
• Revenue Growth: -7.24%
• EPS Growth: -7.30%
• Country: US
• Employees: 2,169
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 0.41
• Shares Outstanding: 35,238,556
• 10 Day Avg. Volume: 50,335
• 30 Day Avg. Volume: 50,792
• PEG Ratio: 0.87
• Price to Book (P/B): 1.57
• Price to Sales (P/S): 0.72
• P/FCF Ratio: 1.87
• Enterprise Value/Market Cap: 2.08
• Enterprise Value/Revenue: 1.33
• Enterprise Value/Gross Profit: 4.00
• Enterprise Value/Ebitda: 3.41
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: $21.00 ▲(4.69% Upside)

Westlake Chemical PRN's overall stock score is driven by its strong financial performance and attractive valuation, particularly the high dividend yield. However, bearish technical indicators and challenges highlighted in the earnings call, such as decreased distributable cash flow and macroeconomic headwinds, weigh down the score. The company remains financially sound, but improvements in growth metrics and market sentiment are needed to enhance its stock performance.

Westlake Chemical PRN Business Overview & Revenue Model

Company Description

Westlake Chemical Partners LP (WLKP) is a publicly traded master limited partnership that focuses on the production and distribution of petrochemicals. The company operates primarily in the plastics and chemicals sectors, offering a variety of products including ethylene, polyethylene, and other related chemical derivatives. WLKP is a key player in the supply chain, partnering with its parent company, Westlake Chemical Corporation, to leverage its extensive manufacturing and logistics capabilities.

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	244.04M	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: Negative
• Last Price: 20.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 20.06 is below the 20-day moving average (MA) of 20.66, below the 50-day MA of 21.32, and below the 200-day MA of 21.98, indicating a bearish trend. The MACD of -0.43 indicates Positive momentum. The RSI at 23.61 is Positive, neither overbought nor oversold. The STOCH value of 11.92 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WLKP.

Westlake Chemical PRN Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ASIX	68 Neutral	$524.27M	7.13	9.85%	3.16%	1.31%	796.76%
WLKP	66 Neutral	$706.89M	12.94	10.28%	9.40%	-7.24%	-7.30%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
LXU	59 Neutral	$629.44M	-20.22	-6.51%	―	2.60%	-1506.69%
RYAM	51 Neutral	$481.74M	-1.12	-81.36%	―	-4.90%	-458.80%
TROX	45 Neutral	$559.59M	-2.36	-14.11%	11.39%	0.20%	-292.54%
BAK	40 Underperform	$1.02B	―	―	―	-3.33%	44.37%

Westlake Chemical PRN Corporate Events

Westlake Chemical Partners LP: Stable Earnings Amid Global Challenges

The recent earnings call for Westlake Chemical Partners LP highlighted a stable financial performance amidst a challenging global environment. The sentiment was generally positive, with successful operational achievements such as the completion of the Petro 1 turnaround and consistent distributions. However, there were concerns regarding decreased distributable cash flow and a soft global industrial environment.

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.