Westlake Chemical PRN (WLKP) AI Stock Analysis

• Market Cap: $653.46M
• Dividend Yield: 10.17%
• Average Volume (3M): 88.36K
• Price to Earnings (P/E): 13.3
• 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: 117,589
• 30 Day Avg. Volume: 88,355
• 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: 2.16
• 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): 1.36
• Revenue Forecast (FY): $1.15B

• Rating: 67 Neutral
• Price Target: $20.50 ▲(2.19% 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.

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

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: Negative
• Last Price: 20.06
• 50DMA: Negative
• 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 Negative. The current price of 20.06 is above the 20-day moving average (MA) of 18.61, above the 50-day MA of 19.77, and below the 200-day MA of 21.13, indicating a bearish trend. The MACD of -0.42 indicates Negative momentum. The RSI at 35.08 is Neutral, neither overbought nor oversold. The STOCH value of 37.24 is Neutral, 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
WLKP	67 Neutral	$653.46M	13.29	9.61%	10.17%	-0.82%	-20.35%
LXU	64 Neutral	$587.07M	-769.81	-0.13%	―	12.49%	95.48%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ASIX	53 Neutral	$422.03M	8.17	6.62%	4.44%	-5.05%	35.01%
BAK	47 Neutral	$1.20B	―	―	―	-10.68%	36.31%
RYAM	45 Neutral	$389.97M	―	-78.11%	―	-9.75%	-386.63%
TROX	43 Neutral	$534.32M	―	-18.65%	11.22%	-7.81%	-334.15%

Westlake Chemical PRN Corporate Events

Westlake Chemical Partners LP: Earnings Call Insights

Westlake Chemical Partners LP recently held its earnings call, revealing a stable yet pressured financial outlook. The company demonstrated resilience through strong contractual agreements and a solid financial foundation, despite facing operational challenges due to planned maintenance activities and global economic pressures.

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.

The most recent analyst rating on (WLKP) stock is a Hold with a $21.00 price target. To see the full list of analyst forecasts on Westlake Chemical PRN stock, see the WLKP Stock Forecast page.

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.