Westlake Chemical Shares Owned By Institutions vs. Net Income

WLK Stock  USD 125.82  0.84  0.66%   
Taking into consideration Westlake Chemical's profitability measurements, Westlake Chemical's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Westlake Chemical's ability to earn profits and add value for shareholders. Sales General And Administrative To Revenue is expected to rise to 0.07 this year, although the value of Price To Sales Ratio will most likely fall to 0.81. At this time, Westlake Chemical's Income Quality is quite stable compared to the past year.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.140.1768
Significantly Down
Pretty Stable
Net Profit Margin0.05790.0382
Way Up
Very volatile
Operating Profit Margin0.0880.0581
Way Up
Slightly volatile
Pretax Profit Margin0.080.0558
Way Up
Slightly volatile
Return On Assets0.02160.0228
Notably Down
Slightly volatile
Return On Equity0.04440.0468
Notably Down
Slightly volatile
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.
  

Westlake Chemical's Revenue Breakdown by Earning Segment

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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
0.72
Revenue Per Share
94.405
Quarterly Revenue Growth
0.001
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.

Westlake Chemical Net Income vs. Shares Owned By Institutions 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 below average in shares owned by institutions category among its peers. It is rated first in net income category among its peers making up about  19,477,612  of Net Income per Shares Owned By Institutions. At this time, Westlake Chemical's Net Income is quite stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Westlake Chemical by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Westlake Net Income vs. Shares Owned By Institutions

Shares Owned by Institutions show the percentage of the outstanding shares of stock issued by a company that is currently owned by other institutions such as asset management firms, hedge funds, or investment banks. Many investors like investing in companies with a large percentage of the firm owned by institutions because they believe that larger firms such as banks, pension funds, and mutual funds, will invest when they think that good things are going to happen.

Westlake Chemical

Shares Held by Institutions

 = 

Funds and Banks

+

Firms

 = 
26.80 %
Since Institution investors conduct a lot of independent research they tend to be more involved and usually more knowledgeable about entities they invest as compared to amateur investors.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Westlake Chemical

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
522 M
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.

Westlake Net Income Comparison

Westlake Chemical is currently under evaluation in net income 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.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-98 M-93.1 M
Operating Income729 M737.9 M
Income Before Tax700 M687.4 M
Total Other Income Expense Net-29 M-30.4 M
Net Income522 M555.7 M
Income Tax Expense178 M158.2 M
Net Income Applicable To Common Shares2.6 B2.7 B
Net Income From Continuing Ops522 M495.9 M
Non Operating Income Net Other84 M88.1 M
Interest Income78 M119.7 M
Net Interest Income-165 M-173.2 M
Change To Netincome75.9 M42.8 M
Net Income Per Share 3.75  2.90 
Income Quality 4.48  4.70 
Net Income Per E B T 0.68  0.54 

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.

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Entertainment
Entertainment Theme
Companies from entertainment industry including show business, news and media. The Entertainment theme has 44 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 Entertainment 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:
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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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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.