Westlake Chemical Gross Profit vs. EBITDA

UEO Stock  EUR 115.00  1.00  0.86%   
Taking into consideration Westlake Chemical's profitability measurements, Westlake Chemical may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Westlake Chemical's ability to earn profits and add value for shareholders.
For Westlake Chemical profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Westlake Chemical to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Westlake Chemical utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Westlake Chemical's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Westlake Chemical over time as well as its relative position and ranking within its peers.
  
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For more detail on how to invest in Westlake Stock please use our How to Invest in Westlake Chemical guide.
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.

Westlake Chemical EBITDA vs. Gross Profit Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Westlake Chemical's current stock value. Our valuation model uses many indicators to compare Westlake Chemical value to that of its competitors to determine the firm's financial worth.
Westlake Chemical is rated first in gross profit category among its peers. It is rated first in ebitda category among its peers totaling about  1.03  of EBITDA per Gross Profit. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Westlake Chemical's earnings, one of the primary drivers of an investment's value.

Westlake EBITDA vs. Gross Profit

Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

Westlake Chemical

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
4.07 B
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.

Westlake Chemical

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
4.18 B
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.

Westlake EBITDA Comparison

Westlake Chemical is currently under evaluation in ebitda category among its peers.

Westlake Chemical Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Westlake Chemical, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Westlake Chemical will eventually generate negative long term returns. The profitability progress is the general direction of Westlake Chemical's change in net profit over the period of time. It can combine multiple indicators of Westlake Chemical, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Westlake Chemical Corporation manufactures and markets basic chemicals, vinyls, polymers, and building products worldwide. The company was founded in 1986 and is headquartered in Houston, Texas. WESTLAKE CHEM operates under Specialty Chemicals classification in Germany and is traded on Frankfurt Stock Exchange. It employs 8870 people.

Westlake Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Westlake Chemical. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Westlake Chemical position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Westlake Chemical's important profitability drivers and their relationship over time.

Use Westlake Chemical in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Westlake Chemical position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Westlake Chemical will appreciate offsetting losses from the drop in the long position's value.

Westlake Chemical Pair Trading

Westlake Chemical Pair Trading Analysis

The ability to find closely correlated positions to Westlake Chemical could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Westlake Chemical when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Westlake Chemical - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Westlake Chemical to buy it.
The correlation of Westlake Chemical is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Westlake Chemical moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Westlake Chemical moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Westlake Chemical can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Westlake Chemical position

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.

Did You Try This Idea?

Run Banking Thematic Idea Now

Banking
Banking Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Banking theme has 61 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 Banking Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Westlake Stock

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:
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For more detail on how to invest in Westlake Stock please use our How to Invest in Westlake Chemical guide.
You can also try the Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
To fully project Westlake Chemical's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Westlake Chemical at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Westlake Chemical's income statement, its balance sheet, and the statement of cash flows.
Potential Westlake Chemical investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Westlake Chemical investors may work on each financial statement separately, they are all related. The changes in Westlake Chemical's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Westlake Chemical's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.