WLK Stock Analysis: Westlake Chemical | NYSE
Specialty Chemicals | NYSE, USA | Market Cap: 9.584m USD | 12M Return: -6.3% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 93.7M
Qual. Beats: 0
Rev. Trend: -94.2%
Qual. Beats: -3
Warnings
Tailwinds
No distinct edge detected
Seasonality 10.5 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, large-cap commodity chemicals producer that manufactures and markets performance and essential materials along with housing and infrastructure products, operating in the U.S., Canada, Germany, China, Mexico, Brazil, France, and Italy. The company runs through two segments: Performance and Essential Materials, which produces ethylene, polyethylene, chlor-alkali, chlorinated derivatives, EDC/VCM, PVC, and epoxy resins, and Housing and Infrastructure Products, which supplies PVC sidings, trim, mouldings, windows, decking, roof tiles, pipes and fittings, and specialty PVC compounds. Westlake serves chemical processors, plastics fabricators, construction contractors, municipalities, and supply warehouses, with end-market exposure spanning residential construction, packaging, automotive, healthcare, water treatment, wind energy, and coatings. The company was founded in 1986, IPOd in August 2004, was renamed from Westlake Chemical Corporation in February 2022, and remains a subsidiary of TTWF LP.
As a member of the GICS Commodity Chemicals sub-industry, Westlake operates in a capital-intensive, cyclical sector where producers are typically vertically integrated across the chlorine, vinyls, and epoxy value chains - a structure that allows the same firm to capture margin across multiple processing stages from chlor-alkali to finished PVC goods. The chlor-alkali/PVC chain is also highly energy- and feedstock-intensive, which is why U.S. Gulf Coast producers like Westlake have historically benefited from access to low-cost shale-gas-derived ethylene.
- Housing starts weakness pressures siding, decking, and PVC pipe volumes
- Natural gas and ethane feedstock costs drive petrochemical segment margins
- Hexion epoxy acquisition integration expands specialty resins and margins
| Net Income: -1.64b TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.03 > 0.02 and ΔFCF/TA -2.98 > 1.0 |
| NWC/Revenue: 29.24% < 20% (prev 31.10%; Δ -1.86% < -1%) |
| CFO/TA 0.02 > 3% & CFO 448.0m > Net Income -1.64b |
| Net Debt/EBITDA: error (EBITDA <= 0) |
| Current Ratio: 2.17 > 1.5 & < 3 |
| Outstanding Shares: last quarter (128.0m) vs 12m ago -0.25% < -2% |
| Gross Margin: 1.27% > 18% (prev 14.34%; Δ -13.08% > 0.5%) |
| Asset Turnover: 54.31% > 50% (prev 58.00%; Δ -3.69% > 0%) |
| Interest Coverage Ratio: -9.48 > 6 (EBIT TTM -1.69b / Interest Expense TTM 178.0m) |
| A: 0.16 (Total Current Assets 5.95b - Total Current Liabilities 2.74b) / Total Assets 19.7b |
| B: 0.43 (Retained Earnings 8.46b / Total Assets 19.7b) |
| C: -0.08 (EBIT TTM -1.69b / Avg Total Assets 20.2b) |
| D: 0.80 (Book Value of Equity 8.55b / Total Liabilities 10.7b) |
| Altman-Z'' = 2.75 = A |
| DSRI: 1.12 (Receivables 1.69b/1.66b, Revenue 11.0b/12.0b) |
| GMI: 11.33 (GM 14.34% / 1.27%) |
| AQI: 0.89 (AQ_t 0.22 / AQ_t-1 0.25) |
| SGI: 0.91 (Revenue 11.0b / 12.0b) |
| TATA: -0.11 (NI -1.64b - CFO 448.0m) / TA 19.7b) |
| Beneish M = 6.29 (Cap -4..+1) = D |
As of July 09, 2026, the stock is trading at USD 75.80 with a total of 1,401,471 shares traded. Over the past week, the price has changed by +3.84%, over one month by -11.10%, over three months by -36.88% and over the past year by -6.34%.
Current recommended Stop Loss: 69.50 (which is 8.3% or 2.3 ATR below the current price).
Westlake Chemical has received a consensus analysts rating of 3.79. Therefore, it is recommended to hold WLK.
- StrongBuy: 5
- Buy: 1
- Hold: 8
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 105.4 | 39.1% |
P/E Forward = 18.0505
P/S = 0.8731
P/B = 1.1208
P/EG = 1.6962
Revenue TTM = 11.0b USD
EBIT TTM = -1.69b USD
EBITDA TTM = -449.0m USD
Long Term Debt = 5.07b USD (from longTermDebt, last quarter)
Short Term Debt = 670.0m USD (from shortTermDebt, last quarter)
Debt = 7.26b USD (from shortLongTermDebtTotal, last quarter) + Leases 846.0m
Net Debt = 4.79b USD (calculated: Debt 7.26b - CCE 2.48b)
Enterprise Value = 14.4b USD (9.58b + Debt 7.26b - CCE 2.48b)
Interest Coverage Ratio = -9.48 (Ebit TTM -1.69b / Interest Expense TTM 178.0m)
EV/FCF = -28.29x (Enterprise Value 14.4b / FCF TTM -508.0m)
FCF Yield = -3.54% (FCF TTM -508.0m / Enterprise Value 14.4b)
FCF Margin = -4.63% (FCF TTM -508.0m / Revenue TTM 11.0b)
Net Margin = -14.91% (Net Income TTM -1.64b / Revenue TTM 11.0b)
Gross Margin = 1.27% ((Revenue TTM 11.0b - Cost of Revenue TTM 10.8b) / Revenue TTM)
Gross Margin QoQ = 3.09% (prev -17.25%)
Tobins Q-Ratio = 0.73 (Enterprise Value 14.4b / Total Assets 19.7b)
Interest Expense / Debt = 2.45% (Interest Expense 178.0m / Debt 7.26b)
Taxrate = 21.0% (US federal default 21%)
NOPAT = -1.33b (EBIT -1.69b * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 2.17 (Total Current Assets 5.95b / Total Current Liabilities 2.74b)
Debt / Equity = 0.85 (Debt 7.26b / totalStockholderEquity, last quarter 8.55b)
Debt / EBITDA = -10.66 (negative EBITDA) (Net Debt 4.79b / EBITDA -449.0m)
Debt / FCF = -9.42 (negative FCF - burning cash) (Net Debt 4.79b / FCF TTM -508.0m)
Total Stockholder Equity = 9.26b (last 4 quarters mean from totalStockholderEquity)
RoA = -8.10% (Net Income -1.64b / Total Assets 19.7b)
RoE = -17.68% (Net Income TTM -1.64b / Total Stockholder Equity 9.26b)
RoCE = -11.77% (EBIT -1.69b / Capital Employed (Equity 9.26b + L.T.Debt 5.07b))
RoIC = -7.80% (negative operating profit) (NOPAT -1.33b / Invested Capital 17.1b)
WACC = 5.38% (E(9.58b)/V(16.8b) * Re(7.99%) + D(7.26b)/V(16.8b) * Rd(2.45%) * (1-Tc(0.21)))
Discount Rate = 7.99% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -37.78 | Cagr: -0.06%
[DCF] Fair Price = unknown (Cash Flow -508.0m)
EPS Correlation: N/A | EPS CAGR: N/A | SUE: -0.71 | # QB: 0
Revenue Correlation: -94.20 | Revenue CAGR: -6.45% | SUE: -1.92 | # QB: -3
EPS current Quarter (2026-06-30): EPS=1.92 | Chg30d=-2.01% | Revisions=+0% | Analysts=13
EPS next Quarter (2026-09-30): EPS=1.91 | Chg30d=-6.68% | Revisions=-40% | Analysts=13
EPS current Year (2026-12-31): EPS=3.75 | Chg30d=-2.61% | Revisions=-40% | GrowthEPS=+516.9% | GrowthRev=+7.0%
EPS next Year (2027-12-31): EPS=3.81 | Chg30d=-0.94% | Revisions=-40% | GrowthEPS=+1.7% | GrowthRev=+1.7%
[Analyst] Revisions Ratio: -55% (up=1, down=7)