Westlake Chemical Partners Stock Return On Equity

WLKP Stock

USD 23.10 0.39 1.72%

Westlake Chemical Partners fundamentals help investors to digest information that contributes to Westlake Chemical's financial success or failures. It also enables traders to predict the movement of Westlake Stock. The fundamental analysis module provides a way to measure Westlake Chemical's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Westlake Chemical stock.

		Last Reported	Projected for Next Year
	Return On Equity	0.10	0.11

As of 11/22/2024, Return On Equity is likely to grow to 0.11.

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Westlake Chemical Partners Company Return On Equity Analysis

Westlake Chemical's Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Return On Equity

Net Income

Total Equity

More About Return On Equity | All Equity Analysis

Current Westlake Chemical Return On Equity

0.43

Most of Westlake Chemical's fundamental indicators, such as Return On Equity, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Westlake Chemical Partners is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

Westlake Return On Equity Driver Correlations

Understanding the fundamental principles of building solid financial models for Westlake Chemical is extremely important. It helps to project a fair market value of Westlake Stock properly, considering its historical fundamentals such as Return On Equity. Since Westlake Chemical's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Westlake Chemical's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Westlake Chemical's interrelated accounts and indicators.

	Total Assets	Total Stockholder Equity	Net Debt	Accounts Payable	Long Term Debt	Net Receivables	Good Will	Total Liab	Total Current Assets	Intangible Assets	Common Stock	Property Plant Equipment	Net Tangible Assets	Current Deferred Revenue	Deferred Long Term Liab	Short Long Term Debt	Short Term Debt	Long Term Debt Total	Long Term Investments	Net Invested Capital	Net Working Capital
Total Assets		0.9	0.74	-0.83	0.89	0.72	-0.22	-0.14	0.79	0.86	0.71	0.97	0.82	-0.29	-0.32	0.92	0.92	0.51	-0.86	-0.24	-0.14
Total Stockholder Equity	0.9		0.47	-0.96	0.72	0.62	-0.1	-0.46	0.73	0.97	0.6	0.89	0.7	-0.31	-0.33	0.79	0.79	0.37	-0.71	-0.14	-0.01
Net Debt	0.74	0.47		-0.42	0.87	0.77	-0.12	0.43	0.66	0.42	0.5	0.71	0.83	-0.03	-0.06	0.82	0.82	0.68	-0.83	-0.15	0.01
Accounts Payable	-0.83	-0.96	-0.42		-0.7	-0.54	0.19	0.53	-0.62	-0.96	-0.5	-0.87	-0.7	0.33	0.33	-0.76	-0.76	-0.35	0.68	0.19	-0.02
Long Term Debt	0.89	0.72	0.87	-0.7		0.62	-0.22	0.16	0.65	0.72	0.48	0.91	0.85	-0.26	-0.26	0.95	0.95	0.69	-0.84	-0.17	-0.11
Net Receivables	0.72	0.62	0.77	-0.54	0.62		-0.12	-0.02	0.88	0.57	0.79	0.66	0.82	-0.16	-0.22	0.73	0.73	0.23	-0.86	-0.18	0.05
Good Will	-0.22	-0.1	-0.12	0.19	-0.22	-0.12		0.32	-0.23	-0.13	-0.28	-0.26	-0.27	0.52	0.51	-0.27	-0.27	0.27	0.41	0.91	0.73
Total Liab	-0.14	-0.46	0.43	0.53	0.16	-0.02	0.32		-0.14	-0.48	-0.24	-0.18	-0.03	0.33	0.32	0.01	0.01	0.47	0.06	0.35	0.14
Total Current Assets	0.79	0.73	0.66	-0.62	0.65	0.88	-0.23	-0.14		0.66	0.74	0.7	0.69	-0.46	-0.53	0.77	0.77	0.18	-0.8	-0.32	-0.12
Intangible Assets	0.86	0.97	0.42	-0.96	0.72	0.57	-0.13	-0.48	0.66		0.61	0.89	0.72	-0.36	-0.37	0.81	0.81	0.29	-0.71	-0.07	-0.04
Common Stock	0.71	0.6	0.5	-0.5	0.48	0.79	-0.28	-0.24	0.74	0.61		0.68	0.74	-0.33	-0.37	0.67	0.67	-0.07	-0.78	-0.26	-0.16
Property Plant Equipment	0.97	0.89	0.71	-0.87	0.91	0.66	-0.26	-0.18	0.7	0.89	0.68		0.85	-0.31	-0.32	0.93	0.93	0.49	-0.85	-0.23	-0.11
Net Tangible Assets	0.82	0.7	0.83	-0.7	0.85	0.82	-0.27	-0.03	0.69	0.72	0.74	0.85		-0.19	-0.18	0.91	0.91	0.43	-0.96	-0.23	-0.05
Current Deferred Revenue	-0.29	-0.31	-0.03	0.33	-0.26	-0.16	0.52	0.33	-0.46	-0.36	-0.33	-0.31	-0.19		0.99	-0.38	-0.38	0.28	0.31	0.5	0.27
Deferred Long Term Liab	-0.32	-0.33	-0.06	0.33	-0.26	-0.22	0.51	0.32	-0.53	-0.37	-0.37	-0.32	-0.18	0.99		-0.39	-0.39	0.29	0.33	0.49	0.31
Short Long Term Debt	0.92	0.79	0.82	-0.76	0.95	0.73	-0.27	0.01	0.77	0.81	0.67	0.93	0.91	-0.38	-0.39		1.0	0.5	-0.93	-0.21	-0.14
Short Term Debt	0.92	0.79	0.82	-0.76	0.95	0.73	-0.27	0.01	0.77	0.81	0.67	0.93	0.91	-0.38	-0.39	1.0		0.5	-0.93	-0.21	-0.14
Long Term Debt Total	0.51	0.37	0.68	-0.35	0.69	0.23	0.27	0.47	0.18	0.29	-0.07	0.49	0.43	0.28	0.29	0.5	0.5		-0.36	0.22	0.22
Long Term Investments	-0.86	-0.71	-0.83	0.68	-0.84	-0.86	0.41	0.06	-0.8	-0.71	-0.78	-0.85	-0.96	0.31	0.33	-0.93	-0.93	-0.36		0.37	0.23
Net Invested Capital	-0.24	-0.14	-0.15	0.19	-0.17	-0.18	0.91	0.35	-0.32	-0.07	-0.26	-0.23	-0.23	0.5	0.49	-0.21	-0.21	0.22	0.37		0.58
Net Working Capital	-0.14	-0.01	0.01	-0.02	-0.11	0.05	0.73	0.14	-0.12	-0.04	-0.16	-0.11	-0.05	0.27	0.31	-0.14	-0.14	0.22	0.23	0.58

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For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.

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Return On Equity Over Time

Westlake Total Stockholder Equity

Total Stockholder Equity

706.75 Million

At this time, Westlake Chemical's Total Stockholder Equity is relatively stable compared to the past year.

Based on the latest financial disclosure, Westlake Chemical Partners has a Return On Equity of 0.4342. This is 52.29% lower than that of the Chemicals sector and 94.24% lower than that of the Materials industry. The return on equity for all United States stocks is notably lower than that of the firm.

Westlake Return On Equity Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Westlake Chemical's direct or indirect competition against its Return On Equity to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Westlake Chemical could also be used in its relative valuation, which is a method of valuing Westlake Chemical by comparing valuation metrics of similar companies.

Westlake Chemical is currently under evaluation in return on equity category among its peers.

Westlake Chemical Current Valuation Drivers

We derive many important indicators used in calculating different scores of Westlake Chemical from analyzing Westlake Chemical's financial statements. These drivers represent accounts that assess Westlake Chemical's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Westlake Chemical's important valuation drivers and their relationship over time.

	2019	2020	2021	2022	2023	2024 (projected)
Market Cap	778.0M	911.2M	839.1M	945.6M	851.1M	616.9M
Enterprise Value	1.2B	1.3B	1.2B	1.3B	1.2B	907.2M

Westlake Chemical ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Westlake Chemical's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Westlake Chemical's managers, analysts, and investors.

Environmental

Governance

Social

Westlake Fundamentals

	Return On Equity	0.43
	Return On Asset	0.18
	Profit Margin	0.05 %
	Operating Margin	0.37 %
	Current Valuation	1.14 B
	Shares Outstanding	35.24 M
	Shares Owned By Insiders	44.83 %
	Shares Owned By Institutions	33.75 %
	Number Of Shares Shorted	134.49 K
	Price To Earning	12.06 X
	Price To Book	2.88 X
	Price To Sales	0.70 X
	Revenue	1.19 B
	Gross Profit	377.37 M
	EBITDA	472.14 M
	Net Income	54.28 M
	Cash And Equivalents	18.37 M
	Cash Per Share	0.52 X
	Total Debt	399.67 M
	Debt To Equity	0.41 %
	Current Ratio	3.28 X
	Book Value Per Share	14.77 X
	Cash Flow From Operations	452 M
	Short Ratio	6.95 X
	Earnings Per Share	1.75 X
	Price To Earnings To Growth	0.23 X
	Target Price	25.33
	Beta	1.07
	Market Capitalization	800.27 M
	Total Asset	1.32 B
	Retained Earnings	130.58 M
	Working Capital	169.87 M
	Current Asset	225.29 M
	Current Liabilities	57.69 M
	Annual Yield	0.08 %
	Five Year Return	7.60 %
	Net Asset	1.32 B
	Last Dividend Paid	1.89

About Westlake Chemical Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Westlake Chemical Partners's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Westlake Chemical using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Westlake Chemical Partners based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.

Please read more on our fundamental analysis page.

Pair Trading with Westlake Chemical

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.

Moving against Westlake Stock

0.72	BAK	Braskem SA Class	Pair Corr
0.62	CE	Celanese	Pair Corr
0.49	AGI	Alamos Gold	Pair Corr
0.46	HYMCW	Hycroft Mining Holding	Pair Corr
0.4	SA	Seabridge Gold	Pair Corr

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 Partners 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 Correlation Correlation Matching

Additional Tools for Westlake Stock Analysis

When running Westlake Chemical's price analysis, check to measure Westlake Chemical's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Westlake Chemical is operating at the current time. Most of Westlake Chemical's value examination focuses on studying past and present price action to predict the probability of Westlake Chemical's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Westlake Chemical's price. Additionally, you may evaluate how the addition of Westlake Chemical to your portfolios can decrease your overall portfolio volatility.

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