Is Western Midstream Stock a Good Investment?
Western Midstream Investment Advice | WES |
- Examine Western Midstream's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Western Midstream's leadership team and their track record. Good management can help Western Midstream navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Oil & Gas Storage & Transportation space and any emerging trends that could impact Western Midstream's business and its evolving consumer preferences.
- Compare Western Midstream's performance and market position to its competitors. Analyze how Western Midstream is positioned in terms of product offerings, innovation, and market share.
- Check if Western Midstream pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Western Midstream's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Western Midstream Partners stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Western Midstream Partners is a good investment.
Sell | Buy |
Strong Hold
Market Performance | OK | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Slowly supersedes the market | Details | |
Investor Sentiment | Interested | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Western Midstream Stock
Researching Western Midstream's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 85.0% of the company outstanding shares are owned by institutional investors. The book value of Western Midstream was at this time reported as 8.48. The company last dividend was issued on the 1st of November 2024. Western Midstream had 10:9 split on the 26th of November 2014.
To determine if Western Midstream is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Western Midstream's research are outlined below:
| Over 85.0% of the company outstanding shares are owned by institutional investors | |
| On 14th of November 2024 Western Midstream paid $ 0.875 per share dividend to its current shareholders | |
| Latest headline from fool.com.au: Invested 5,000 in Wesfarmers shares in 2021 Guess how much passive income youve earned |
Western Midstream Quarterly Cost Of Revenue |
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Western Midstream uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Western Midstream Partners. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Western Midstream's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 21st of February 2024 Upcoming Quarterly Report | View | |
| 1st of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 21st of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Western Midstream's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Western Midstream's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2013-05-06 | 2013-03-31 | 0.13 | 0.15 | 0.02 | 15 | ||
2013-07-31 | 2013-06-30 | 0.13 | 0.16 | 0.03 | 23 | ||
2014-02-28 | 2013-12-31 | 0.18 | 0.22 | 0.04 | 22 | ||
2013-11-06 | 2013-09-30 | 0.16 | 0.2 | 0.04 | 25 | ||
2020-11-09 | 2020-09-30 | 0.5 | 0.55 | 0.05 | 10 | ||
2018-05-02 | 2018-03-31 | 0.41 | 0.46 | 0.05 | 12 | ||
2018-02-15 | 2017-12-31 | 0.4 | 0.45 | 0.05 | 12 | ||
2017-02-23 | 2016-12-31 | 0.36 | 0.41 | 0.05 | 13 |
Know Western Midstream's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Western Midstream is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Western Midstream Partners backward and forwards among themselves. Western Midstream's institutional investor refers to the entity that pools money to purchase Western Midstream's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Ubs Group Ag | 2024-06-30 | 3 M | Clearbridge Advisors, Llc | 2024-09-30 | 2.5 M | Eagle Global Advisors, Llc | 2024-09-30 | 2 M | Jennison Associates Llc | 2024-09-30 | 1.7 M | Miller Howard Investments Inc | 2024-09-30 | 1.7 M | Brookfield Corp | 2024-09-30 | 1.7 M | Fractal Investments Llc | 2024-09-30 | 1.5 M | Bank Of America Corp | 2024-06-30 | 1.5 M | Infrastructure Capital Advisors, Llc | 2024-09-30 | 1.4 M | Alps Advisors Inc | 2024-09-30 | 28.4 M | Amvescap Plc. | 2024-06-30 | 22.3 M |
Western Midstream's market capitalization trends
The company currently falls under 'Large-Cap' category with a total capitalization of 15.08 B.Market Cap |
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Western Midstream's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.09 | 0.05 | |
| Return On Capital Employed | 0.12 | 0.08 | |
| Return On Assets | 0.08 | 0.04 | |
| Return On Equity | 0.35 | 0.37 |
Determining Western Midstream's profitability involves analyzing its financial statements and using various financial metrics to determine if Western Midstream is a good buy. For example, gross profit margin measures Western Midstream's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Western Midstream's profitability and make more informed investment decisions.
Please note, the imprecision that can be found in Western Midstream's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Western Midstream Partners. Check Western Midstream's Beneish M Score to see the likelihood of Western Midstream's management manipulating its earnings.
Evaluate Western Midstream's management efficiency
Western Midstream has Return on Asset of 0.0777 % which means that on every $100 spent on assets, it made $0.0777 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.4944 %, implying that it generated $0.4944 on every 100 dollars invested. Western Midstream's management efficiency ratios could be used to measure how well Western Midstream manages its routine affairs as well as how well it operates its assets and liabilities. Return On Equity is likely to gain to 0.37 in 2024, whereas Return On Tangible Assets are likely to drop 0.05 in 2024. At this time, Western Midstream's Other Current Assets are comparatively stable compared to the past year. Total Current Assets is likely to gain to about 1 B in 2024, whereas Other Assets are likely to drop slightly above 88.3 M in 2024.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 7.91 | 7.51 | |
| Tangible Book Value Per Share | 6.12 | 5.81 | |
| Enterprise Value Over EBITDA | 9.44 | 13.24 | |
| Price Book Value Ratio | 3.87 | 4.06 | |
| Enterprise Value Multiple | 9.44 | 13.24 | |
| Price Fair Value | 3.87 | 4.06 | |
| Enterprise Value | 2.5 B | 1.9 B |
Western Midstream Partners benefits from a proactive management team that anticipates market trends. Our analysis delves into how this proactive stance influences financial metrics and stock valuation.
Dividend Yield 0.0883 | Forward Dividend Yield 0.0883 | Forward Dividend Rate 3.5 | Beta 2.818 |
Basic technical analysis of Western Stock
As of the 30th of November, Western Midstream maintains the Downside Deviation of 1.43, market risk adjusted performance of 0.6866, and Mean Deviation of 1.13. Relative to fundamental indicators, the technical analysis model lets you check existing technical drivers of Western Midstream Partners, as well as the relationship between them. Please check out Western Midstream jensen alpha and semi variance to decide if Western Midstream is priced fairly, providing market reflects its latest price of 40.71 per share. Given that Western Midstream Partners has jensen alpha of 0.1316, we strongly advise you to confirm Western Midstream's prevalent market performance to make sure the company can sustain itself at a future point.Western Midstream's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Western Midstream insiders, such as employees or executives, is commonly permitted as long as it does not rely on Western Midstream's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Western Midstream insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Daniel Holderman over a month ago Disposition of 2635 shares by Daniel Holderman of Western Midstream at 28.5 subject to Rule 16b-3 | ||
Michael Ure over a year ago Bona fide gift to Michael Ure of 16000 shares of Western Midstream subject to Section 16 | ||
Michael Ure over a year ago Western Midstream exotic insider transaction detected | ||
Michael Ure over a year ago Western Midstream exotic insider transaction detected | ||
Michael Ure over a year ago Western Midstream exotic insider transaction detected | ||
Michael Ure over a year ago Western Midstream exotic insider transaction detected |
Western Midstream's Outstanding Corporate Bonds
Western Midstream issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Western Midstream uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Western bonds can be classified according to their maturity, which is the date when Western Midstream Partners has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Western Midstream Operating Corp BondUS958667AB34 | View | |
| Western Midstream Operating Corp BondUS958667AC17 | View | |
| Western Midstream Operating Corp BondUS958667AA50 | View |
Understand Western Midstream's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Western Midstream's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.099 | |||
| Market Risk Adjusted Performance | 0.6866 | |||
| Mean Deviation | 1.13 | |||
| Semi Deviation | 1.29 | |||
| Downside Deviation | 1.43 | |||
| Coefficient Of Variation | 808.87 | |||
| Standard Deviation | 1.39 | |||
| Variance | 1.94 | |||
| Information Ratio | 0.0248 | |||
| Jensen Alpha | 0.1316 | |||
| Total Risk Alpha | (0.07) | |||
| Sortino Ratio | 0.0242 | |||
| Treynor Ratio | 0.6766 | |||
| Maximum Drawdown | 5.82 | |||
| Value At Risk | (2.16) | |||
| Potential Upside | 2.48 | |||
| Downside Variance | 2.04 | |||
| Semi Variance | 1.66 | |||
| Expected Short fall | (1.20) | |||
| Skewness | (0.33) | |||
| Kurtosis | (0.18) |
| Risk Adjusted Performance | 0.099 | |||
| Market Risk Adjusted Performance | 0.6866 | |||
| Mean Deviation | 1.13 | |||
| Semi Deviation | 1.29 | |||
| Downside Deviation | 1.43 | |||
| Coefficient Of Variation | 808.87 | |||
| Standard Deviation | 1.39 | |||
| Variance | 1.94 | |||
| Information Ratio | 0.0248 | |||
| Jensen Alpha | 0.1316 | |||
| Total Risk Alpha | (0.07) | |||
| Sortino Ratio | 0.0242 | |||
| Treynor Ratio | 0.6766 | |||
| Maximum Drawdown | 5.82 | |||
| Value At Risk | (2.16) | |||
| Potential Upside | 2.48 | |||
| Downside Variance | 2.04 | |||
| Semi Variance | 1.66 | |||
| Expected Short fall | (1.20) | |||
| Skewness | (0.33) | |||
| Kurtosis | (0.18) |
Consider Western Midstream's intraday indicators
Western Midstream intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Western Midstream stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Western Midstream Corporate Filings
13A | 13th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
8K | 6th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
F4 | 30th of October 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
| 24th of September 2024 Other Reports | ViewVerify |
Western Stock media impact
Far too much social signal, news, headlines, and media speculation about Western Midstream that are available to investors today. That information is available publicly through Western media outlets and privately through word of mouth or via Western internal channels. However, regardless of the origin, that massive amount of Western data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Western Midstream news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Western Midstream relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Western Midstream's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Western Midstream alpha.
Western Midstream Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Western Midstream can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Western Midstream Corporate Directors
| Thomas Hix | Independent Director of the General Partner | Profile | |
| Nicole Clark | Director of the General Partner | Profile | |
| Jennifer Kirk | Director of Western Gas Equity Holdings, LLC | Profile | |
| Steven Arnold | Independent Director of Western Gas Holdings, LLC | Profile |
Already Invested in Western Midstream Partners?
The danger of trading Western Midstream Partners is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Western Midstream is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Western Midstream. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Western Midstream is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
Additional Tools for Western Stock Analysis
When running Western Midstream's price analysis, check to measure Western Midstream's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Western Midstream is operating at the current time. Most of Western Midstream's value examination focuses on studying past and present price action to predict the probability of Western Midstream's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Western Midstream's price. Additionally, you may evaluate how the addition of Western Midstream to your portfolios can decrease your overall portfolio volatility.