Westlake Chemical PRN (WLKP) AI Stock Analysis

• Market Cap: $782.11M
• Dividend Yield: 9.9%
• Average Volume (3M): 52.06K
• Price to Earnings (P/E): 16.0
• Beta (1Y): 0.15
• Revenue Growth: -0.82%
• EPS Growth: -20.35%
• Country: US
• Employees: 2,169
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 0.41
• Shares Outstanding: 35,245,880
• 10 Day Avg. Volume: 53,041
• 30 Day Avg. Volume: 52,059
• PEG Ratio: <0.01
• Price to Book (P/B): 1.34
• Price to Sales (P/S): 0.57
• P/FCF Ratio: 3.32
• Enterprise Value/Market Cap: 1.45
• Enterprise Value/Revenue: 0.97
• Enterprise Value/Gross Profit: 3.27
• Enterprise Value/Ebitda: 2.90
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.85
• Revenue Forecast (FY): $1.30B

• Rating: 68 Neutral
• Price Target: $23.00 ▲(20.67% Upside)
• Action: Downgraded Date: 02/24/26
• Date: Action: Downgraded 02/24/26

The score is driven primarily by solid underlying financial performance (especially cash flow strength) but constrained by cyclical earnings/revenue and a balance-sheet data inconsistency. Technicals are supportive with the unit price above major moving averages, and valuation is helped by a high dividend yield and moderate P/E. Earnings-call guidance is constructive for 2026, though the recent full-year coverage shortfall keeps risk moderate.

Positive Factors

Cash generation

Consistent operating cash flow and positive free cash flow across reporting periods provide durable internal funding for distributions, maintenance capex, and opportunistic growth. Strong cash conversion underpins flexibility to rebuild reserves, service debt, and finance drop‑downs without immediate external funding.

Contracted, fee‑based production

A fixed‑margin ethylene contract covering most plant output and renewed through 2027 materially reduces commodity exposure and earnings volatility. This contractual predictability supports stable distributable cash flows and capital‑planning horizons, improving multi‑quarter financial visibility.

Distribution track record

A long, uninterrupted distribution history and material growth from the initial payout indicate management prioritizes steady returns. That track record reflects persistent cash generation and governance discipline, making distributions a durable structural feature for income‑oriented holders.

Negative Factors

Cyclicality and turnaround risk

Planned maintenance (Petro 1 turnaround) materially reduced 2025 production and cash flow, pushing coverage well below the partnership's target. Periodic outages and cyclical end‑market demand therefore pose recurring risks to distributable cash flow and can force reserve drawdowns or tougher allocation choices.

Sponsor and contract concentration

Heavy reliance on Westlake as the primary counterparty concentrates commercial and strategic risk and constrains upside because the fixed‑margin structure largely passes commodity gains to the sponsor. Growth prospects depend on sponsor drop‑downs and external financing, limiting independent expansion optionality.

Balance‑sheet data inconsistency

An internal inconsistency in reported TTM debt versus leverage metrics undermines confidence in reported capital structure. This transparency gap complicates assessment of refinancing risk, covenant exposure and true financial flexibility, making medium‑term liquidity and leverage planning less certain.

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 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

Cash flow is a clear strength (consistently positive free cash flow and strong operating cash flow vs. net income), but results have been cyclical with only modest TTM revenue growth and some net margin compression versus prior peaks. Balance sheet leverage looks manageable, yet an internal inconsistency in the latest-period debt detail reduces confidence in the TTM snapshot.

Income Statement

TTM (Trailing-Twelve-Months) revenue grew modestly (+2.9%), but the broader multi-year pattern shows volatility (sharp drop in 2023, modest recovery afterward). Profitability remains solid for the period, with strong operating profitability and a positive net margin in TTM, though net margin is below the stronger levels seen in 2020–2021 and dipped versus 2024—suggesting some compression and/or higher below-the-line costs. Overall, earnings quality looks acceptable, but the uneven revenue trajectory and softer net profitability keep the score from being higher.

Balance Sheet

Leverage appears moderate based on the debt-to-equity ratio sitting around ~0.75–0.79 across the periods provided, which is manageable but not conservative for a cyclical Chemicals business. Returns on equity are healthy overall (roughly ~9.7% TTM and generally low-teens in prior years), indicating decent profitability on the capital base. A key inconsistency to flag is that TTM total debt is shown as 0 while the leverage ratio remains elevated, which limits confidence in the latest-period balance sheet detail and warrants caution.

Cash Flow

Cash generation is a clear strength: operating cash flow is consistently strong and, in TTM, operating cash flow is more than sufficient relative to net income. Free cash flow is positive across all periods, with strong growth in TTM, indicating improved cash conversion and flexibility. The main watch-out is variability year-to-year (including periods of weaker free cash flow growth), which is typical for chemicals but can still pressure capital allocation timing.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.17B	1.14B	1.19B	1.59B	1.21B
Gross Profit	347.85M	418.94M	387.46M	377.37M	441.71M
EBITDA	450.00M	507.59M	472.14M	470.33M	519.56M
Net Income	298.58M	62.39M	54.28M	64.17M	82.55M
Balance Sheet
Total Assets	1.26B	1.29B	1.32B	1.37B	1.48B
Cash, Cash Equivalents and Short-Term Investments	44.27M	58.32M	58.62M	64.78M	17.06M
Total Debt	399.67M	399.67M	399.67M	399.67M	399.67M
Total Liabilities	454.18M	458.64M	460.59M	468.27M	508.00M
Stockholders Equity	501.11M	518.70M	522.51M	534.50M	536.55M
Cash Flow
Free Cash Flow	201.65M	436.03M	405.18M	409.62M	327.27M
Operating Cash Flow	280.47M	485.00M	452.00M	463.74M	408.44M
Investing Cash Flow	31.18M	-88.97M	-75.94M	-12.00M	-64.30M
Financing Cash Flow	-325.70M	-396.33M	-382.23M	-404.01M	-344.24M

Westlake Chemical PRN Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 below the 20-day moving average (MA) of 21.42, below the 50-day MA of 20.35, and below the 200-day MA of 20.08, indicating a bullish trend. The MACD of 0.43 indicates Negative momentum. The RSI at 66.59 is Neutral, neither overbought nor oversold. The STOCH value of 81.80 is Negative, 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	68 Neutral	$782.11M	15.96	9.55%	9.90%	-0.82%	-20.35%
LXU	66 Neutral	$857.85M	34.91	-0.13%	―	12.49%	95.48%
ASIX	64 Neutral	$493.12M	9.89	6.20%	3.81%	-5.05%	35.01%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
RYAM	56 Neutral	$640.57M	-1.54	-78.11%	―	-9.75%	-386.63%
TROX	51 Neutral	$1.17B	-2.49	-29.57%	8.27%	-7.81%	-334.15%
BAK	47 Neutral	$1.38B	-1.61	―	―	-10.68%	36.31%

Westlake Chemical PRN Corporate Events

Westlake Chemical Partners Highlights Q4 Recovery, Maintains Distribution

Westlake Chemical Partners LP reported fourth-quarter 2025 net income attributable to the partnership of $14.5 million, or $0.41 per unit, essentially flat versus a year earlier, with operating cash flow down to $120.4 million but MLP distributable cash flow rising to $18.8 million, yielding a strong coverage ratio of 1.13 times after the completion of the Petro 1 turnaround. For full-year 2025, net income fell to $48.7 million and operating cash flow dropped to $280.5 million, largely due to turnaround-related lower volumes and higher cash expenditures, yet the board still declared a $0.4714 per-unit distribution for the fourth quarter, marking a 46th consecutive payout and signaling continued commitment to distributions despite lower coverage of 0.80 times over the trailing twelve months.

Compared with the third quarter of 2025, fourth-quarter operating cash flow improved by $15.2 million and MLP distributable cash flow increased by $3.9 million, mainly on lower maintenance capital spending, suggesting operational recovery post-turnaround. The Petro 1 outage weighed on full-year distributable cash flow, which declined to $53.4 million from $66.9 million in 2024, but the partnership exited 2025 with its highest quarterly coverage ratio since late 2022, underpinning management’s view that the now-completed turnaround and the ethylene sales agreement with Westlake position the business for stronger volumes, improved coverage metrics and ongoing support for unitholder distributions in subsequent periods.

The most recent analyst rating on (WLKP) stock is a Hold with a $23.50 price target. To see the full list of analyst forecasts on Westlake Chemical PRN stock, see the WLKP Stock Forecast page.