Westlake Chemical PRN (WLKP) AI Stock Analysis

• Market Cap: $677.07M
• Dividend Yield: 9.72%
• Average Volume (3M): 73.83K
• Price to Earnings (P/E): 13.8
• Beta (1Y): 0.16
• Revenue Growth: -0.82%
• EPS Growth: -20.35%
• Country: US
• Employees: 2,169
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 0.42
• Shares Outstanding: 35,245,880
• 10 Day Avg. Volume: 56,352
• 30 Day Avg. Volume: 73,825
• 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: 1.25
• Enterprise Value/Gross Profit: 4.04
• Enterprise Value/Ebitda: 3.63
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.34
• Revenue Forecast (FY): $1.15B

• Rating: 67 Neutral
• Price Target: $20.50 ▲(7.56% Upside)

Westlake Chemical PRN's strong valuation and solid financial performance are offset by bearish technical indicators and operational pressures highlighted in the earnings call. The high dividend yield is a significant positive, but the stock's current bearish trend and global economic challenges present risks.

Positive Factors

Stable Financial Performance

Consistent distributions and fee-based cash flow indicate a stable business model, providing reliable income and financial predictability.

Strong Balance Sheet

A strong balance sheet with low leverage enhances financial stability and flexibility, supporting long-term strategic initiatives.

Renewal of Ethylene Sales Agreement

The renewal ensures stable cash flows and market position, providing long-term revenue visibility and operational stability.

Negative Factors

Decrease in Net Income and Distributable Cash Flow

Decreased income and cash flow can pressure financial resources, affecting the ability to invest in growth and maintain distributions.

Impact of Planned Turnaround on Cash Flow

Operational disruptions from maintenance activities can reduce cash flow, impacting short-term financial performance and liquidity.

Global Economic Challenges

Weak global economic conditions can reduce demand for petrochemicals, affecting revenue growth and market dynamics.

Westlake Chemical PRN Business Overview & Revenue Model

Company Description

Westlake Chemical Partners LP (WLKP) is a publicly traded limited partnership that focuses on the production and distribution of petrochemicals, specifically ethylene and its derivatives. The company operates primarily in the chemical manufacturing sector and is involved in the production of polyethylene, a widely used plastic. WLKP is a subsidiary of Westlake Chemical Corporation, benefiting from its parent company's extensive operational and market expertise.

How the Company Makes Money

Westlake Chemical PRN generates revenue primarily through the production and sale of ethylene and polyethylene products. Its revenue model is based on the volume of products sold, with pricing influenced by market demand and raw material costs. The company also derives income from its ownership interest in Westlake's ethylene production facilities, receiving a portion of the profits generated from these operations. Significant partnerships with distributors and manufacturers in various industries further enhance its revenue streams. Additionally, the company's strategic focus on cost management and operational efficiency contributes to its profitability.

Westlake Chemical PRN Financial Statement Overview

Summary

Westlake Chemical PRN demonstrates solid financial health with strong profitability and operational efficiency. The income statement reflects stable margins and improving net income, while the balance sheet shows a balanced leverage position. Cash flow generation is strong, though recent declines in free cash flow warrant attention.

Income Statement

Westlake Chemical PRN shows a stable revenue base with a slight growth in TTM. The gross profit margin is healthy at 30.8%, and the net profit margin improved to 10.6% in TTM, indicating efficient cost management. However, the revenue growth rate has been inconsistent, with a recent TTM growth of 2.9% following a decline in previous years. The EBIT and EBITDA margins are strong, reflecting operational efficiency.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.79, indicating a balanced approach to leverage. The return on equity is robust at 23.7% in TTM, showcasing effective use of equity to generate profits. However, the equity ratio is relatively low, suggesting a higher reliance on debt financing.

Cash Flow

Operating cash flow remains strong with a high coverage ratio of 5.31 in TTM, indicating good cash generation relative to net income. However, free cash flow has declined by 14.3% in TTM, which could be a concern if the trend continues. The free cash flow to net income ratio is solid at 0.71, suggesting efficient cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.13B	1.14B	1.19B	1.59B	1.21B	966.67M
Gross Profit	349.62M	418.94M	387.46M	377.37M	441.71M	378.88M
EBITDA	388.88M	507.59M	472.14M	470.33M	519.56M	456.88M
Net Income	49.16M	62.39M	54.28M	64.17M	82.55M	66.17M
Balance Sheet
Total Assets	1.27B	1.29B	1.32B	1.37B	1.48B	1.36B
Cash, Cash Equivalents and Short-Term Investments	37.94M	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	458.30M	458.64M	460.59M	468.27M	508.00M	441.35M
Stockholders Equity	503.18M	518.70M	522.51M	534.50M	536.55M	519.97M
Cash Flow
Free Cash Flow	209.10M	436.03M	405.18M	409.62M	327.27M	336.43M
Operating Cash Flow	292.56M	485.00M	452.00M	463.74M	408.44M	373.40M
Investing Cash Flow	11.54M	-88.97M	-75.94M	-12.00M	-64.30M	2.03M
Financing Cash Flow	-326.37M	-396.33M	-382.23M	-404.01M	-344.24M	-378.20M

Westlake Chemical PRN Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.06
• 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 19.06 is above the 20-day moving average (MA) of 19.00, above the 50-day MA of 18.95, and below the 200-day MA of 20.74, indicating a neutral trend. The MACD of 0.16 indicates Negative momentum. The RSI at 56.57 is Neutral, neither overbought nor oversold. The STOCH value of 38.04 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	67 Neutral	$677.07M	13.77	9.61%	9.72%	-0.82%	-20.35%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ASIX	59 Neutral	$439.23M	8.50	6.62%	3.91%	-5.05%	35.01%
LXU	58 Neutral	$626.64M	-828.30	-0.13%	―	12.49%	95.48%
TROX	57 Neutral	$700.80M	-2.18	-18.65%	7.85%	-7.81%	-334.15%
RYAM	49 Neutral	$383.94M	-0.92	-78.11%	―	-9.75%	-386.63%
BAK	47 Neutral	$1.08B	-1.20	―	―	-10.68%	36.31%

Westlake Chemical PRN Corporate Events

Westlake Chemical PRN Renews Key Agreements for Stability

On October 28, 2025, Westlake Chemical OpCo LP and Westlake Corporation renewed their Ethylene Sales Agreement and Feedstock Supply Agreement through December 31, 2027, ensuring stable and predictable cash flows for the Partnership. The renewal aligns with the Services and Secondment Agreement and includes amendments to the Omnibus Agreement, which addresses procedural requirements for Westlake’s indemnification obligations. The Partnership reported a decrease in third quarter 2025 net income and cash flows compared to 2024, primarily due to higher maintenance capital expenditures, but maintained a stable cash flow structure through its Ethylene Sales Agreement with Westlake.