Westlake Chemical Stock Buy Hold or Sell Recommendation

WLK Stock  USD 107.28  1.56  1.48%   
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Westlake Chemical is 'Strong Hold'. The recommendation algorithm takes into account all of Westlake Chemical's available fundamental, technical, and predictive indicators you will find on this site.
  
Check out Westlake Chemical Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
For more information on how to buy Westlake Stock please use our How to buy in Westlake Stock guide.
Note, we conduct extensive research on individual companies such as Westlake and provide practical buy, sell, or hold advice based on investors' constraints. Westlake Chemical. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of economic analysis.

Execute Westlake Chemical Buy or Sell Advice

The Westlake recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Westlake Chemical. Macroaxis does not own or have any residual interests in Westlake Chemical or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Westlake Chemical's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Westlake ChemicalBuy Westlake Chemical
Strong Hold

Market Performance

Very WeakDetails

Volatility

Very steadyDetails

Hype Condition

Over hypedDetails

Current Valuation

UndervaluedDetails

Odds Of Distress

Very SmallDetails

Economic Sensitivity

Follows the market closelyDetails

Investor Sentiment

AlarmedDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Westlake Chemical has a Risk Adjusted Performance of (0.11), Jensen Alpha of (0.13), Total Risk Alpha of (0.02) and Treynor Ratio of (0.26)
Macroaxis provides trade recommendation on Westlake Chemical to complement and cross-verify current analyst consensus on Westlake Chemical. Our trade advice engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Westlake Chemical is not overpriced, please check out all Westlake Chemical fundamentals, including its ebitda, earnings per share, current liabilities, as well as the relationship between the debt to equity and market capitalization . Given that Westlake Chemical has a price to earning of 4.53 X, we strongly advise you to confirm Westlake Chemical market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevalent risk tolerance and investing horizon.

Westlake Chemical Trading Alerts and Improvement Suggestions

Westlake Chemical generated a negative expected return over the last 90 days
Westlake Chemical is unlikely to experience financial distress in the next 2 years
About 74.0% of the company outstanding shares are owned by insiders
Latest headline from gurufocus.com: Westlake Royal Building Products Introduces Series 800 Patio Do

Westlake Chemical Returns Distribution Density

The distribution of Westlake Chemical's historical returns is an attempt to chart the uncertainty of Westlake Chemical's future price movements. The chart of the probability distribution of Westlake Chemical daily returns describes the distribution of returns around its average expected value. We use Westlake Chemical price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Westlake Chemical returns is essential to provide solid investment advice for Westlake Chemical.
Mean Return
-0.2
Value At Risk
-2.79
Potential Upside
2.38
Standard Deviation
1.52
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Westlake Chemical historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Westlake Stock Institutional Investors

Shares
First Trust Advisors L.p.2024-12-31
827.5 K
Jacobs Levy Equity Management, Inc.2024-12-31
799.2 K
Citadel Advisors Llc2024-12-31
680.3 K
Geode Capital Management, Llc2024-12-31
557.9 K
Ubs Group Ag2024-12-31
557.6 K
Norges Bank2024-12-31
406.7 K
Allspring Global Investments Holdings, Llc2024-12-31
376.5 K
1832 Asset Management L.p2024-12-31
376 K
Hhg Plc2024-12-31
372.2 K
Vanguard Group Inc2024-12-31
3.9 M
Blackrock Inc2024-12-31
3.7 M
Note, although Westlake Chemical's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Westlake Chemical Cash Flow Accounts

202020212022202320242025 (projected)
Change In Cash587M604M305M1.1B(384M)(364.8M)
Free Cash Flow772M1.7B2.3B1.3B306M504.0M
Depreciation773M840M1.1B1.1B1.1B1.2B
Other Non Cash Items54M44M51M517M16M15.2M
Capital Expenditures525M658M1.1B1.0B1.0B1.1B
Net Income373M2.1B2.3B522M647M561.9M
End Period Cash Flow1.3B1.9B2.2B3.3B2.9B3.1B
Change To Inventory29M(309M)(140M)250M(97M)(92.2M)
Dividends Paid137M145M169M221M264M277.2M
Investments44M(24M)(2.5B)(1.1B)(1.0B)(951.0M)
Change Receivables59M(161M)(528M)325M292.5M307.1M
Net Borrowings786M28M1.7B(250M)(287.5M)(273.1M)
Change To Netincome129M229M98M66M75.9M42.8M

Westlake Chemical Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Westlake Chemical or Chemicals sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Westlake Chemical's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Westlake stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over Dow Jones
-0.13
β
Beta against Dow Jones0.81
σ
Overall volatility
1.53
Ir
Information ratio -0.07

Westlake Chemical Volatility Alert

Westlake Chemical exhibits very low volatility with skewness of 0.32 and kurtosis of -0.17. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Westlake Chemical's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Westlake Chemical's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

Westlake Chemical Fundamentals Vs Peers

Comparing Westlake Chemical's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Westlake Chemical's direct or indirect competition across all of the common fundamentals between Westlake Chemical and the related equities. This way, we can detect undervalued stocks with similar characteristics as Westlake Chemical or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Westlake Chemical's fundamental indicators could also be used in its relative valuation, which is a method of valuing Westlake Chemical by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Westlake Chemical to competition
FundamentalsWestlake ChemicalPeer Average
Return On Equity0.0593-0.31
Return On Asset0.0289-0.14
Profit Margin0.05 %(1.27) %
Operating Margin0.03 %(5.51) %
Current Valuation16.11 B16.62 B
Shares Outstanding128.23 M571.82 M
Shares Owned By Insiders73.69 %10.09 %
Shares Owned By Institutions28.00 %39.21 %
Number Of Shares Shorted1.54 M4.71 M
Price To Earning4.53 X28.72 X
Price To Book1.31 X9.51 X
Price To Sales1.13 X11.42 X
Revenue12.14 B9.43 B
Gross Profit1.96 B27.38 B
EBITDA2.21 B3.9 B
Net Income647 M570.98 M
Cash And Equivalents2.23 B2.7 B
Cash Per Share13.94 X5.01 X
Total Debt719 M5.32 B
Debt To Equity0.52 %48.70 %
Current Ratio2.48 X2.16 X
Book Value Per Share82.10 X1.93 K
Cash Flow From Operations1.31 B971.22 M
Short Ratio2.25 X4.00 X
Earnings Per Share4.64 X3.12 X
Price To Earnings To Growth1.59 X4.89 X
Target Price131.88
Number Of Employees15.54 K18.84 K
Beta1.17-0.15
Market Capitalization13.76 B19.03 B
Total Asset20.75 B29.47 B
Retained Earnings10.48 B9.33 B
Working Capital4 B1.48 B
Note: Disposition of 249 shares by Albert Chao of Westlake Chemical at 112.73 subject to Rule 16b-3 [view details]

Westlake Chemical Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Westlake . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Westlake Chemical Buy or Sell Advice

When is the right time to buy or sell Westlake Chemical? Buying financial instruments such as Westlake Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

Use Investing Ideas to Build Portfolios

In addition to having Westlake Chemical in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Stores
Stores Theme
Companies providing different types of retail and wholesale services. The Stores theme has 45 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Stores Theme or any other thematic opportunities.
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When determining whether Westlake Chemical is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Westlake Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Westlake Chemical Stock. Highlighted below are key reports to facilitate an investment decision about Westlake Chemical Stock:
Check out Westlake Chemical Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
For more information on how to buy Westlake Stock please use our How to buy in Westlake Stock guide.
You can also try the Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Is Commodity Chemicals space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Westlake Chemical. If investors know Westlake will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Westlake Chemical listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.62)
Dividend Share
2.05
Earnings Share
4.64
Revenue Per Share
94.464
Quarterly Revenue Growth
0.006
The market value of Westlake Chemical is measured differently than its book value, which is the value of Westlake that is recorded on the company's balance sheet. Investors also form their own opinion of Westlake Chemical's value that differs from its market value or its book value, called intrinsic value, which is Westlake Chemical's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Westlake Chemical's market value can be influenced by many factors that don't directly affect Westlake Chemical's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Westlake Chemical's value and its price as these two are different measures arrived at by different means. Investors typically determine if Westlake Chemical is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Westlake Chemical's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.