WLK Stock Analysis: Westlake Chemical | NYSE
Specialty Chemicals | NYSE, USA | Market Cap: 8.115m USD | 12M Return: -20.3% | US9604131022 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 53.4M
Qual. Beats: 0
Rev. Trend: -94.7%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Westlake Corporation (NYSE: WLK) is a Houston-based, mid-cap U.S. materials company that manufactures performance and essential materials along with housing and infrastructure products, operating across the United States, Canada, Europe, and Latin America, with additional presence in Asia. The company is organized into two segments: Performance and Essential Materials (commodity petrochemicals and resins such as ethylene, polyethylene, chlor-alkali, PVC, and epoxy resins) and Housing and Infrastructure Products (PVC siding, trim, decking, pipes, windows, roofing tiles, and specialty compounds).
Its vertically integrated commodity chemicals model begins with ethylene and chlor-alkali production and extends downstream into PVC and epoxy resins, a structure common in the petrochemical industry where scale and feedstock access drive margins. End markets are broad, spanning residential construction, packaging, automotive, healthcare, water treatment, and coatings, with customers ranging from chemical processors and plastics fabricators to contractors, municipalities, and supply warehouses.
The company was founded in 1986, completed its IPO in 2004, and was renamed from Westlake Chemical Corporation to Westlake Corporation in February 2022. It operates as a subsidiary of TTWF LP and is classified within the GICS Materials sector under the Commodity Chemicals sub-industry, a segment historically characterized by cyclical pricing tied to industrial demand and energy feedstock costs.
- PVC and chlor-alkali prices decline on weak global demand
- US housing starts slowdown pressures building products margins
- Ethylene margins compress as natural gas feedstock costs rise
| Net Income: -1.24b TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.01 > 0.02 and ΔFCF/TA -1.10 > 1.0 |
| NWC/Revenue: 29.84% < 20% (prev 30.13%; Δ -0.29% < -1%) |
| CFO/TA 0.03 > 3% & CFO 631.0m > Net Income -1.24b |
| Net Debt/EBITDA: error (EBITDA <= 0) |
| Current Ratio: 2.45 > 1.5 & < 3 |
| Outstanding Shares: last quarter (128.5m) vs 12m ago 0.18% < -2% |
| Gross Margin: 4.72% > 18% (prev 11.20%; Δ -6.48% > 0.5%) |
| Asset Turnover: 56.13% > 50% (prev 56.52%; Δ -0.39% > 0%) |
| Interest Coverage Ratio: -6.56 > 6 (EBIT TTM -1.27b / Interest Expense TTM 193.0m) |
| A: 0.17 (Total Current Assets 5.69b - Total Current Liabilities 2.32b) / Total Assets 19.4b |
| B: 0.45 (Retained Earnings 8.65b / Total Assets 19.4b) |
| C: -0.06 (EBIT TTM -1.27b / Avg Total Assets 20.1b) |
| D: 0.85 (Book Value of Equity 8.71b / Total Liabilities 10.2b) |
| Altman-Z'' = 3.06 = A |
| DSRI: 1.12 (Receivables 1.96b/1.83b, Revenue 11.3b/11.8b) |
| GMI: 2.37 (GM 11.20% / 4.72%) |
| AQI: 0.77 (AQ_t 0.22 / AQ_t-1 0.29) |
| SGI: 0.96 (Revenue 11.3b / 11.8b) |
| TATA: -0.10 (NI -1.24b - CFO 631.0m) / TA 19.4b) |
| Beneish M = -1.86 (Cap -4..+1) = B |
As of October 07, 2026, the stock is trading at USD 63.39 with a total of 916,700 shares traded. Over the past week, the price has changed by +0.00%, over one month by -15.20%, over three months by -14.66% and over the past year by -20.31%.
Current recommended Stop Loss: 60.30 (which is 4.9% or 1.2 ATR below the current price).
Westlake Chemical has received a consensus analysts rating of 3.63. Therefore, it is recommended to hold WLK.
- StrongBuy: 4
- Buy: 2
- Hold: 10
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 87.4 | 37.8% |
P/E Forward = 14.9925
P/S = 0.7185
P/B = 1.01
P/EG = 1.6962
Revenue TTM = 11.3b USD
EBIT TTM = -1.27b USD
EBITDA TTM = -40.0m USD
Long Term Debt = 5.07b USD (from longTermDebt, last quarter)
Short Term Debt = 635.0m USD (from shortTermDebt, last fiscal year)
Debt = 6.56b USD (from shortLongTermDebtTotal, last quarter) + Leases 809.0m
Net Debt = 4.71b USD (calculated: Debt 6.56b - CCE 1.85b)
Enterprise Value = 12.8b USD (8.12b + Debt 6.56b - CCE 1.85b)
Interest Coverage Ratio = -6.56 (Ebit TTM -1.27b / Interest Expense TTM 193.0m)
EV/FCF = -48.38x (Enterprise Value 12.8b / FCF TTM -265.0m)
FCF Yield = -2.07% (FCF TTM -265.0m / Enterprise Value 12.8b)
FCF Margin = -2.35% (FCF TTM -265.0m / Revenue TTM 11.3b)
Net Margin = -10.94% (Net Income TTM -1.24b / Revenue TTM 11.3b)
Gross Margin = 4.72% ((Revenue TTM 11.3b - Cost of Revenue TTM 10.8b) / Revenue TTM)
Gross Margin QoQ = 19.93% (prev 3.09%)
Tobins Q-Ratio = 0.66 (Enterprise Value 12.8b / Total Assets 19.4b)
Interest Expense / Debt = 2.94% (Interest Expense 193.0m / Debt 6.56b)
Taxrate = 19.82% (67.0m / 338.0m)
NOPAT = -1.02b (EBIT -1.27b * (1 - 19.82%)) [loss with tax shield]
Current Ratio = 2.45 (Total Current Assets 5.69b / Total Current Liabilities 2.32b)
Debt / Equity = 0.75 (Debt 6.56b / totalStockholderEquity, last quarter 8.71b)
Debt / EBITDA = -117.6 (out of range, set to none) (Net Debt 4.71b / EBITDA -40.0m)
Debt / FCF = -17.75 (negative FCF - burning cash) (Net Debt 4.71b / FCF TTM -265.0m)
Total Stockholder Equity = 8.87b (last 4 quarters mean from totalStockholderEquity)
RoA = -6.14% (Net Income -1.24b / Total Assets 19.4b)
RoE = -13.93% (Net Income TTM -1.24b / Total Stockholder Equity 8.87b)
RoCE = -9.09% (EBIT -1.27b / Capital Employed (Equity 8.87b + L.T.Debt 5.07b))
RoIC = -5.91% (negative operating profit) (NOPAT -1.02b / Invested Capital 17.2b)
WACC = 5.77% (E(8.12b)/V(14.7b) * Re(8.52%) + D(6.56b)/V(14.7b) * Rd(2.94%) * (1-Tc(0.20)))
Discount Rate = 8.52% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -69.66 | Cagr: -0.18%
[DCF] Fair Price = unknown (Cash Flow -265.0m)
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.11 | # QB: 0
Revenue Correlation: -94.75 | Revenue CAGR: -5.10% | SUE: 0.43 | # QB: 0
EPS current Quarter (2026-09-30): EPS=1.08 | Chg30d=-24.63% | Revisions=-17% | Analysts=14
EPS current Year (2026-12-31): EPS=2.89 | Chg30d=-10.49% | Revisions=-17% | GrowthEPS=+420.7% | GrowthRev=+4.9%
EPS next Year (2027-12-31): EPS=2.96 | Chg30d=-11.82% | Revisions=-17% | GrowthEPS=+2.7% | GrowthRev=+2.4%
[Analyst] Revisions Ratio: -25% (up=3, down=6)