(WLK) Westlake Chemical - Overview
Stock: Ethylene, Polyethylene, PVC, Siding, Pipe
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 2.65% |
| Yield on Cost 5y | 2.66% |
| Yield CAGR 5y | 16.74% |
| Payout Consistency | 94.0% |
| Payout Ratio | 69.4% |
| Risk 5d forecast | |
|---|---|
| Volatility | 44.5% |
| Relative Tail Risk | -8.06% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | -0.12 |
| Alpha | -28.63 |
| Character TTM | |
|---|---|
| Beta | 1.239 |
| Beta Downside | 1.361 |
| Drawdowns 3y | |
|---|---|
| Max DD | 64.20% |
| CAGR/Max DD | -0.10 |
Description: WLK Westlake Chemical January 06, 2026
Westlake Corporation (NYSE: WLK) manufactures a broad portfolio of performance and essential chemicals-including ethylene, polyethylene, PVC, and epoxy resins-as well as a range of housing- and infrastructure-related PVC products such as siding, trim, decking, and pipe systems. The company serves chemical processors, plastics fabricators, construction contractors, municipalities, and distributors across North America, Europe, and Asia.
Key financial highlights from the most recent FY 2023 filing show adjusted EBITDA of **$1.9 billion**, a **19 % year-over-year increase**, and a free-cash-flow conversion rate of **~85 %**, reflecting strong operating leverage amid higher commodity prices. Net debt stood at **$6.5 billion**, yielding a debt-to-EBITDA ratio of roughly **3.4×**, which is in line with peers in the commodity chemicals space.
Two primary economic drivers influence Westlake’s outlook: (1) **natural-gas feedstock costs**, which account for roughly 30 % of total production expense and have been volatile due to shifting supply-demand dynamics in the U.S. market; and (2) **housing-construction activity**, a leading demand source for PVC building products, with U.S. housing starts currently up **~7 % YoY**, supporting pricing power in the segment.
From a sector perspective, the **global ethylene market** is projected to grow at a **3-4 % CAGR** through 2028, driven by expanding demand for packaging and construction materials-both end-markets for Westlake’s core product lines. The company’s integrated supply chain, spanning ethylene production to downstream PVC conversion, gives it a cost-advantage relative to less-integrated competitors.
For a deeper dive into Westlake’s valuation metrics and peer comparison, you may find ValueRay’s analyst toolkit useful.
Piotroski VR‑10 (Strict, 0-10) 3.0
| Net Income: -957.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.02 > 0.02 and ΔFCF/TA -3.96 > 1.0 |
| NWC/Revenue: 24.86% < 20% (prev 34.62%; Δ -9.76% < -1%) |
| CFO/TA 0.03 > 3% & CFO 674.0m > Net Income -957.0m |
| Net Debt (3.44b) to EBITDA (483.0m): 7.12 < 3 |
| Current Ratio: 1.99 > 1.5 & < 3 |
| Outstanding Shares: last quarter (128.3m) vs 12m ago -0.84% < -2% |
| Gross Margin: 9.18% > 18% (prev 0.15%; Δ 903.0% > 0.5%) |
| Asset Turnover: 56.11% > 50% (prev 57.44%; Δ -1.33% > 0%) |
| Interest Coverage Ratio: -4.27 > 6 (EBITDA TTM 483.0m / Interest Expense TTM 159.0m) |
Altman Z'' 3.24
| A: 0.14 (Total Current Assets 5.75b - Total Current Liabilities 2.90b) / Total Assets 19.81b |
| B: 0.47 (Retained Earnings 9.31b / Total Assets 19.81b) |
| C: -0.03 (EBIT TTM -679.0m / Avg Total Assets 20.46b) |
| D: 0.94 (Book Value of Equity 9.24b / Total Liabilities 9.88b) |
| Altman-Z'' Score: 3.24 = A |
Beneish M -2.47
| DSRI: 1.06 (Receivables 1.76b/1.75b, Revenue 11.48b/12.12b) |
| GMI: 1.64 (GM 9.18% / 15.08%) |
| AQI: 1.09 (AQ_t 0.26 / AQ_t-1 0.24) |
| SGI: 0.95 (Revenue 11.48b / 12.12b) |
| TATA: -0.08 (NI -957.0m - CFO 674.0m) / TA 19.81b) |
| Beneish M-Score: -2.47 (Cap -4..+1) = BBB |
What is the price of WLK shares?
Over the past week, the price has changed by +20.94%, over one month by +23.89%, over three months by +50.13% and over the past year by -12.79%.
Is WLK a buy, sell or hold?
- StrongBuy: 6
- Buy: 1
- Hold: 8
- Sell: 0
- StrongSell: 0
What are the forecasts/targets for the WLK price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 85.4 | -11% |
| Analysts Target Price | 85.4 | -11% |
| ValueRay Target Price | 96.6 | 0.7% |
WLK Fundamental Data Overview February 03, 2026
P/S = 0.8863
P/B = 1.1099
P/EG = 1.59
Revenue TTM = 11.48b USD
EBIT TTM = -679.0m USD
EBITDA TTM = 483.0m USD
Long Term Debt = 3.91b USD (from longTermDebt, last quarter)
Short Term Debt = 750.0m USD (from shortTermDebt, last quarter)
Debt = 5.37b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 3.44b USD (from netDebt column, last quarter)
Enterprise Value = 13.61b USD (10.17b + Debt 5.37b - CCE 1.93b)
Interest Coverage Ratio = -4.27 (Ebit TTM -679.0m / Interest Expense TTM 159.0m)
EV/FCF = -37.29x (Enterprise Value 13.61b / FCF TTM -365.0m)
FCF Yield = -2.68% (FCF TTM -365.0m / Enterprise Value 13.61b)
FCF Margin = -3.18% (FCF TTM -365.0m / Revenue TTM 11.48b)
Net Margin = -8.34% (Net Income TTM -957.0m / Revenue TTM 11.48b)
Gross Margin = 9.18% ((Revenue TTM 11.48b - Cost of Revenue TTM 10.43b) / Revenue TTM)
Gross Margin QoQ = 8.32% (prev 8.74%)
Tobins Q-Ratio = 0.69 (Enterprise Value 13.61b / Total Assets 19.81b)
Interest Expense / Debt = 0.76% (Interest Expense 41.0m / Debt 5.37b)
Taxrate = 31.02% (291.0m / 938.0m)
NOPAT = -468.4m (EBIT -679.0m * (1 - 31.02%)) [loss with tax shield]
Current Ratio = 1.99 (Total Current Assets 5.75b / Total Current Liabilities 2.90b)
Debt / Equity = 0.57 (Debt 5.37b / totalStockholderEquity, last quarter 9.43b)
Debt / EBITDA = 7.12 (Net Debt 3.44b / EBITDA 483.0m)
Debt / FCF = -9.42 (negative FCF - burning cash) (Net Debt 3.44b / FCF TTM -365.0m)
Total Stockholder Equity = 10.16b (last 4 quarters mean from totalStockholderEquity)
RoA = -4.68% (Net Income -957.0m / Total Assets 19.81b)
RoE = -9.42% (Net Income TTM -957.0m / Total Stockholder Equity 10.16b)
RoCE = -4.83% (EBIT -679.0m / Capital Employed (Equity 10.16b + L.T.Debt 3.91b))
RoIC = -3.17% (negative operating profit) (NOPAT -468.4m / Invested Capital 14.78b)
WACC = 7.04% (E(10.17b)/V(15.54b) * Re(10.48%) + D(5.37b)/V(15.54b) * Rd(0.76%) * (1-Tc(0.31)))
Discount Rate = 10.48% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 33.33 | Cagr: 0.03%
Fair Price DCF = unknown (Cash Flow -365.0m)
EPS Correlation: -89.61 | EPS CAGR: -36.81% | SUE: 2.35 | # QB: 1
Revenue Correlation: -81.80 | Revenue CAGR: -5.49% | SUE: -1.51 | # QB: 0
EPS next Quarter (2026-03-31): EPS=-0.52 | Chg30d=+0.053 | Revisions Net=-2 | Analysts=7
EPS next Year (2026-12-31): EPS=0.72 | Chg30d=-0.301 | Revisions Net=-3 | Growth EPS=+132.3% | Growth Revenue=-0.0%