Is Westlake Chemical Stock a Good Investment?
Westlake Chemical Investment Advice | WLK |
- Examine Westlake Chemical'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 Westlake Chemical's leadership team and their track record. Good management can help Westlake Chemical navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Commodity Chemicals space and any emerging trends that could impact Westlake Chemical's business and its evolving consumer preferences.
- Compare Westlake Chemical's performance and market position to its competitors. Analyze how Westlake Chemical is positioned in terms of product offerings, innovation, and market share.
- Check if Westlake Chemical pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Westlake Chemical'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 Westlake Chemical 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 Westlake Chemical is a good investment.
Sell | Buy |
Strong Buy
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Moves indifferently to market moves | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unavailable | Details |
Examine Westlake Chemical Stock
Researching Westlake Chemical'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 74.0% of the company outstanding shares are owned by insiders. The company has Price to Book (P/B) ratio of 1.23. Historically many companies with similar price-to-book (P/B) ratio do better than the market in the long run. Westlake Chemical has Price/Earnings To Growth (PEG) ratio of 1.59. The entity last dividend was issued on the 4th of March 2025. The firm had 2:1 split on the 19th of March 2014.
To determine if Westlake Chemical 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 Westlake Chemical's research are outlined below:
| 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 finance.yahoo.com: Is Westlake Corporation Potentially Undervalued |
Westlake Chemical Quarterly Accounts Payable |
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Westlake Chemical 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 Westlake Chemical. 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 Westlake Chemical'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.
| 20th of February 2024 Upcoming Quarterly Report | View | |
| 2nd of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 20th 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 Westlake Chemical'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 Westlake Chemical's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2008-11-06 | 2008-09-30 | 0.25 | 0.21 | -0.04 | 16 | ||
2008-05-01 | 2008-03-31 | 0.1 | 0.06 | -0.04 | 40 | ||
2007-08-02 | 2007-06-30 | 0.25 | 0.29 | 0.04 | 16 | ||
2006-11-02 | 2006-09-30 | 0.43 | 0.48 | 0.05 | 11 | ||
2007-05-03 | 2007-03-31 | 0.21 | 0.15 | -0.06 | 28 | ||
2008-02-19 | 2007-12-31 | 0.16 | 0.09 | -0.07 | 43 | ||
2007-11-01 | 2007-09-30 | 0.4 | 0.33 | -0.07 | 17 | ||
2020-05-04 | 2020-03-31 | 0.57 | 0.65 | 0.08 | 14 |
Westlake Chemical Target Price Consensus
Westlake target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Westlake Chemical's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 16 | Buy |
Most Westlake analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Westlake stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Westlake Chemical, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationWestlake Chemical Target Price Projection
Westlake Chemical's current and average target prices are 100.89 and 148.07, respectively. The current price of Westlake Chemical is the price at which Westlake Chemical is currently trading. On the other hand, Westlake Chemical's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Current Price
Westlake Chemical Market Quote on 24th of March 2025
Target Price
Analyst Consensus On Westlake Chemical Target Price
Westlake Chemical Analyst Ratings
Westlake Chemical's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Westlake Chemical stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Westlake Chemical's financials, market performance, and future outlook by experienced professionals. Westlake Chemical's historical ratings below, therefore, can serve as a valuable tool for investors.Know Westlake Chemical's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Westlake Chemical is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Westlake Chemical backward and forwards among themselves. Westlake Chemical's institutional investor refers to the entity that pools money to purchase Westlake Chemical'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 | First Trust Advisors L.p. | 2024-12-31 | 827.5 K | Jacobs Levy Equity Management, Inc. | 2024-12-31 | 799.2 K | Citadel Advisors Llc | 2024-12-31 | 680.3 K | Geode Capital Management, Llc | 2024-12-31 | 557.9 K | Ubs Group Ag | 2024-12-31 | 557.6 K | Norges Bank | 2024-12-31 | 406.7 K | Allspring Global Investments Holdings, Llc | 2024-12-31 | 376.5 K | 1832 Asset Management L.p | 2024-12-31 | 376 K | Hhg Plc | 2024-12-31 | 372.2 K | Vanguard Group Inc | 2024-12-31 | 3.9 M | Blackrock Inc | 2024-12-31 | 3.7 M |
Westlake Chemical's market capitalization trends
The company currently falls under 'Large-Cap' category with a total capitalization of 12.94 B.Market Cap |
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Westlake Chemical's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.03 | 0.06 | |
| Return On Capital Employed | 0.05 | 0.04 | |
| Return On Assets | 0.03 | 0.05 | |
| Return On Equity | 0.06 | 0.10 |
Determining Westlake Chemical's profitability involves analyzing its financial statements and using various financial metrics to determine if Westlake Chemical is a good buy. For example, gross profit margin measures Westlake Chemical'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 Westlake Chemical's profitability and make more informed investment decisions.
Evaluate Westlake Chemical's management efficiency
Westlake Chemical has Return on Asset of 0.0289 % which means that on every $100 spent on assets, it made $0.0289 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.0593 %, implying that it generated $0.0593 on every 100 dollars invested. Westlake Chemical's management efficiency ratios could be used to measure how well Westlake Chemical manages its routine affairs as well as how well it operates its assets and liabilities. At this time, Westlake Chemical's Return On Tangible Assets are quite stable compared to the past year. Return On Assets is expected to rise to 0.05 this year, although the value of Return On Capital Employed will most likely fall to 0.04. At this time, Westlake Chemical's Liabilities And Stockholders Equity is quite stable compared to the past year. Total Current Liabilities is expected to rise to about 2.3 B this year, although the value of Change To Liabilities is projected to rise to (17.5 M).| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 85.91 | 90.21 | |
| Tangible Book Value Per Share | 66.52 | 69.84 | |
| Enterprise Value Over EBITDA | 5.67 | 5.66 | |
| Price Book Value Ratio | 1.40 | 1.43 | |
| Enterprise Value Multiple | 5.67 | 5.66 | |
| Price Fair Value | 1.40 | 1.43 | |
| Enterprise Value | 12.5 B | 13.2 B |
The decision-making processes within Westlake Chemical are key to its success in a competitive market. By evaluating these processes, we assess the stock's potential for future gains.
Basic technical analysis of Westlake Stock
As of the 24th of March, Westlake Chemical maintains the Mean Deviation of 1.23, market risk adjusted performance of (0.33), and Standard Deviation of 1.54. Relative to fundamental indicators, the technical analysis model lets you check existing technical drivers of Westlake Chemical, as well as the relationship between them.Westlake Chemical'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 Westlake Chemical insiders, such as employees or executives, is commonly permitted as long as it does not rely on Westlake Chemical'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 Westlake Chemical 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.
Westlake Chemical's Outstanding Corporate Bonds
Westlake Chemical 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. Westlake Chemical 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 Westlake bonds can be classified according to their maturity, which is the date when Westlake Chemical 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.
| WESTLAKE CHEM P Corp BondUS960413AT94 | View | |
| WESTLAKE CHEM P Corp BondUS960413AS12 | View | |
| US960413AW24 Corp BondUS960413AW24 | View | |
| WESTLAKE CHEM P Corp BondUS960413AU67 | View | |
| WLK 3125 15 AUG 51 Corp BondUS960413AZ54 | View | |
| WLK 2875 15 AUG 41 Corp BondUS960413AY89 | View | |
| WLK 3375 15 AUG 61 Corp BondUS960413BA94 | View |
Understand Westlake Chemical's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Westlake Chemical'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 | (0.13) | |||
| Market Risk Adjusted Performance | (0.33) | |||
| Mean Deviation | 1.23 | |||
| Coefficient Of Variation | (652.76) | |||
| Standard Deviation | 1.54 | |||
| Variance | 2.38 | |||
| Information Ratio | (0.12) | |||
| Jensen Alpha | (0.20) | |||
| Total Risk Alpha | (0.13) | |||
| Treynor Ratio | (0.34) | |||
| Maximum Drawdown | 7.41 | |||
| Value At Risk | (2.79) | |||
| Potential Upside | 2.38 | |||
| Skewness | 0.2424 | |||
| Kurtosis | (0.03) |
| Risk Adjusted Performance | (0.13) | |||
| Market Risk Adjusted Performance | (0.33) | |||
| Mean Deviation | 1.23 | |||
| Coefficient Of Variation | (652.76) | |||
| Standard Deviation | 1.54 | |||
| Variance | 2.38 | |||
| Information Ratio | (0.12) | |||
| Jensen Alpha | (0.20) | |||
| Total Risk Alpha | (0.13) | |||
| Treynor Ratio | (0.34) | |||
| Maximum Drawdown | 7.41 | |||
| Value At Risk | (2.79) | |||
| Potential Upside | 2.38 | |||
| Skewness | 0.2424 | |||
| Kurtosis | (0.03) |
Consider Westlake Chemical's intraday indicators
Westlake Chemical 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 Westlake Chemical 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.
Westlake Chemical Corporate Filings
| 7th of March 2025 Other Reports | ViewVerify | |
8K | 4th of March 2025 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
10K | 31st of March 2025 Annual report required by the U.S. Securities and Exchange Commission (SEC) of a company financial performance | ViewVerify |
F4 | 20th of February 2025 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 |
Westlake Stock media impact
Far too much social signal, news, headlines, and media speculation about Westlake Chemical that are available to investors today. That information is available publicly through Westlake media outlets and privately through word of mouth or via Westlake internal channels. However, regardless of the origin, that massive amount of Westlake 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 Westlake Chemical 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 Westlake Chemical 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 Westlake Chemical's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Westlake Chemical alpha.
Westlake Chemical Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Westlake Chemical 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.
Westlake Chemical Historical Investor Sentiment
Investor biases related to Westlake Chemical's public news can be used to forecast risks associated with an investment in Westlake. The trend in average sentiment can be used to explain how an investor holding Westlake can time the market purely based on public headlines and social activities around Westlake Chemical. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Westlake Chemical's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Westlake Chemical and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Westlake Chemical news discussions. The higher the estimate score, the more favorable the investor's outlook on Westlake Chemical.
Westlake Chemical Corporate Directors
| Jeffrey Sheets | Independent Director | Profile | |
| John Chao | Director | Profile | |
| David Chao | Director | Profile | |
| Marius Haas | Independent Director | Profile |
Already Invested in Westlake Chemical?
The danger of trading Westlake Chemical 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 Westlake Chemical 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 Westlake Chemical. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Westlake Chemical 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.
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 Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in 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. For more information on how to buy Westlake Stock please use our How to buy in Westlake Stock guide.You can also try the Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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 | 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.
In summary, please note that there is a difference between Westlake Chemical's value and its price, as these two are different measures arrived at by various 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.