Westlake Chemical Partners LP (WLKP) 10-Year Financial Performance & Capital Metrics

WLKP • • Industrial / General

Basic MaterialsChemicalsBasic Industrial ChemicalsEthylene & Olefin Producers

AboutWestlake Chemical Partners LP acquires, develops, and operates ethylene production facilities and related assets in the United States. The company's ethylene production facilities primarily convert ethane into ethylene. It also sells ethylene co-products, including propylene, crude butadiene, pyrolysis gasoline, and hydrogen directly to third parties on either a spot or contract basis. Westlake Chemical Partners GP LLC serves as the general partner of the company. The company was incorporated in 2014 and is headquartered in Houston, Texas.Show more

Revenue $1.14B -4.6%
EBITDA $502M +7.4%
Net Income $62M +14.9%
EPS (Diluted) 1.77 +14.9%
Gross Margin 36.88% +13.3%
EBITDA Margin 44.22% +12.5%
Operating Margin 34.37% +14.4%
Net Margin 5.49% +20.5%
ROE 7.4% +20.0%
ROIC 24.73% +12.3%
Debt/Equity 0.48 +3.2%
Interest Coverage 15.19 +12.5%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓FCF machine: 38.4% free cash flow margin
✓High quality earnings: Operating CF exceeds net income
✓Trading at only 0.9x book value

✗Weaknesses

✗Dividend payout exceeds 100% of earnings

Price & Volume

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Growth Metrics

Revenue CAGR

10Y-4.23%

5Y0.79%

3Y-2.22%

TTM-0.82%

Profit (Net Income) CAGR

10Y16.47%

5Y0.46%

3Y-8.91%

TTM-20.33%

EPS CAGR

10Y13.48%

5Y-28.77%

3Y-46.25%

TTM212%

ROCE

10Y Avg27.46%

5Y Avg28.42%

3Y Avg28.39%

Latest31.32%

Peer Comparison

Ethylene & Olefin Producers

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
WLKPWestlake Chemical Partners LP	738.05M	20.94	11.83	-4.61%	4.34%	6.04%	59.08%	0.48

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	1.01B	986.74M	1.17B	1.29B	1.09B	966.67M	1.21B	1.59B	1.19B	1.14B
Revenue Growth %	-0.42%	-0.02%	0.19%	0.1%	-0.15%	-0.11%	0.26%	0.31%	-0.25%	-0.05%
Cost of Goods Sold+	624.34M	595.4M	769.31M	908.46M	712.44M	587.79M	773.15M	1.22B	803.33M	716.96M
COGS % of Revenue	0.62%	0.6%	0.66%	0.71%	0.65%	0.61%	0.64%	0.76%	0.67%	0.63%
Gross Profit+	382.88M	391.33M	403.67M	377.16M	379.43M	378.88M	441.71M	377.37M	387.46M	418.94M
Gross Margin %	0.38%	0.4%	0.34%	0.29%	0.35%	0.39%	0.36%	0.24%	0.33%	0.37%
Gross Profit Growth %	-0.49%	0.02%	0.03%	-0.07%	0.01%	-0%	0.17%	-0.15%	0.03%	0.08%
Operating Expenses+	23.55M	24.89M	29.26M	27.59M	29.28M	25.89M	31.02M	29.68M	29.75M	28.5M
OpEx % of Revenue	0.02%	0.03%	0.02%	0.02%	0.03%	0.03%	0.03%	0.02%	0.02%	0.03%
Selling, General & Admin	23.55M	24.89M	29.26M	27.59M	29.28M	25.89M	31.02M	29.68M	29.75M	28.5M
SG&A % of Revenue	0.02%	0.03%	0.02%	0.02%	0.03%	0.03%	0.03%	0.02%	0.02%	0.03%
Research & Development	0	0	0	0	0	0	0	0	0	0
R&D % of Revenue	-	-	-	-	-	-	-	-	-	-
Other Operating Expenses	160K	0	0	0	0	0	0	0	0	0
Operating Income+	359.33M	366.44M	374.41M	349.57M	350.15M	352.99M	410.69M	347.69M	357.71M	390.44M
Operating Margin %	0.36%	0.37%	0.32%	0.27%	0.32%	0.37%	0.34%	0.22%	0.3%	0.34%
Operating Income Growth %	-0.5%	0.02%	0.02%	-0.07%	0%	0.01%	0.16%	-0.15%	0.03%	0.09%
EBITDA+	440.54M	464.65M	488.39M	458.41M	457.47M	456.14M	519.5M	468.76M	467.91M	502.34M
EBITDA Margin %	0.44%	0.47%	0.42%	0.36%	0.42%	0.47%	0.43%	0.29%	0.39%	0.44%
EBITDA Growth %	-0.45%	0.05%	0.05%	-0.06%	-0%	-0%	0.14%	-0.1%	-0%	0.07%
D&A (Non-Cash Add-back)	81.21M	98.21M	113.98M	108.84M	107.32M	103.15M	108.81M	121.07M	110.2M	111.9M
EBIT	359.49M	367.05M	376.2M	352.03M	353.25M	353.72M	410.75M	349.25M	361.94M	395.69M
Net Interest Income+	-4.97M	-12.61M	-21.86M	-21.43M	-19.62M	-12.04M	-8.82M	-13.41M	-26.5M	-25.7M
Interest Income	0	0	0	0	0	0	0	0	0	0
Interest Expense	4.97M	12.61M	21.86M	21.43M	19.62M	12.04M	8.82M	13.41M	26.5M	25.7M
Other Income/Expense	-4.81M	-12.01M	-20.07M	-18.98M	-16.53M	-11.3M	-8.75M	-11.84M	-22.27M	-20.45M
Pretax Income+	354.52M	354.44M	354.34M	330.59M	333.62M	341.68M	401.93M	335.85M	335.44M	369.99M
Pretax Margin %	0.35%	0.36%	0.3%	0.26%	0.31%	0.35%	0.33%	0.21%	0.28%	0.33%
Income Tax+	672K	1.03M	1.28M	22K	728K	564K	549K	1.02M	813K	835K
Effective Tax Rate %	0.11%	0.12%	0.14%	0.15%	0.18%	0.19%	0.21%	0.19%	0.16%	0.17%
Net Income+	39.83M	40.94M	48.67M	49.35M	60.98M	66.17M	82.55M	64.17M	54.28M	62.39M
Net Margin %	0.04%	0.04%	0.04%	0.04%	0.06%	0.07%	0.07%	0.04%	0.05%	0.05%
Net Income Growth %	1.93%	0.03%	0.19%	0.01%	0.24%	0.09%	0.25%	-0.22%	-0.15%	0.15%
Net Income (Continuing)	353.85M	353.4M	353.06M	330.57M	332.89M	341.12M	401.38M	334.83M	334.63M	369.16M
Discontinued Operations	0	0	0	0	0	0	0	0	0	0
Minority Interest	750.61M	818.48M	778.93M	718.27M	432.05M	395.17M	436.15M	369.21M	333.74M	310.61M
EPS (Diluted)+	1.47	1.50	1.72	1.51	9.65	9.69	11.40	9.51	1.54	1.77
EPS Growth %	1.94%	0.02%	0.15%	-0.12%	5.39%	0%	0.18%	-0.17%	-0.84%	0.15%
EPS (Basic)	1.47	1.50	1.72	1.53	9.65	9.69	11.40	9.51	1.54	1.77
Diluted Shares Outstanding	27.1M	27.29M	28.39M	32.68M	34.49M	35.2M	35.21M	35.22M	35.22M	35.23M
Basic Shares Outstanding	27.06M	27.06M	28.39M	32.24M	34.49M	35.2M	35.21M	35.22M	35.25M	35.23M
Dividend Payout Ratio	0.78%	0.85%	0.87%	1.08%	1.02%	1%	0.8%	1.03%	1.22%	1.06%

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	225.29M	232.16M	231.39M	247.14M	238.41M	263.31M	281.21M	245.79M	226.2M	240.93M
Cash & Short-Term Investments	169.56M	88.9M	27.01M	19.74M	19.92M	17.15M	17.06M	64.78M	58.62M	58.32M
Cash Only	169.56M	88.9M	27.01M	19.74M	19.92M	17.15M	17.06M	64.78M	58.62M	58.32M
Short-Term Investments	0	0	0	0	0	0	0	0	0	0
Accounts Receivable	51.58M	139.06M	198.48M	222.64M	214.94M	242.28M	254.86M	109.5M	162.71M	178.11M
Days Sales Outstanding	18.69	51.44	61.76	63.21	71.85	91.48	76.57	25.09	49.87	57.23
Inventory	3.88M	3.93M	5.59M	4.39M	2.48M	3.47M	8.9M	4.71M	4.43M	4.06M
Days Inventory Outstanding	2.27	2.41	2.65	1.76	1.27	2.16	4.2	1.42	2.01	2.07
Other Current Assets	267K	0	0	0	1.07M	392K	396K	66.49M	442K	444K
Total Non-Current Assets+	1.07B	1.32B	1.28B	1.21B	1.16B	1.09B	1.2B	1.13B	1.09B	1.05B
Property, Plant & Equipment	1.02B	1.22B	1.2B	1.15B	1.1B	1.05B	1.04B	990.21M	943.84M	903.59M
Fixed Asset Turnover	0.99x	0.81x	0.98x	1.12x	0.99x	0.92x	1.16x	1.61x	1.26x	1.26x
Goodwill	5.81M	5.81M	5.81M	5.81M	5.81M	5.81M	5.81M	5.81M	5.81M	5.81M
Intangible Assets	0	0	0	0	0	0	0	0	0	0
Long-Term Investments	-7.21M	-7.55M	-8.03M	-7.48M	0	0	0	0	0	0
Other Non-Current Assets	44.59M	100.83M	87.64M	66.72M	46.24M	36.69M	150.13M	130.16M	140.98M	137.63M
Total Assets+	1.29B	1.56B	1.52B	1.46B	1.39B	1.36B	1.48B	1.37B	1.32B	1.29B
Asset Turnover	0.78x	0.63x	0.77x	0.88x	0.78x	0.71x	0.82x	1.16x	0.90x	0.88x
Asset Growth %	0.18%	0.21%	-0.03%	-0.04%	-0.05%	-0.03%	0.09%	-0.07%	-0.04%	-0.02%
Total Current Liabilities+	57.69M	37.78M	40.24M	48.77M	38.85M	39.75M	106.8M	66.94M	56.34M	55.37M
Accounts Payable	34.29M	22.06M	24.54M	32.52M	21.34M	20.99M	45.9M	49.4M	31.36M	20.74M
Days Payables Outstanding	20.04	13.52	11.64	13.07	10.93	13.03	21.67	14.83	14.25	10.56
Short-Term Debt	0	0	0	0	0	0	0	0	0	0
Deferred Revenue (Current)	0	0	0	0	0	0	0	0	0	0
Other Current Liabilities	0	0	0	0	14.9M	12.56M	60.9M	2.65M	5.47M	17.71M
Current Ratio	3.90x	6.15x	5.75x	5.07x	6.14x	6.62x	2.63x	3.67x	4.02x	4.35x
Quick Ratio	3.84x	6.04x	5.61x	4.98x	6.07x	6.54x	2.55x	3.60x	3.94x	4.28x
Cash Conversion Cycle	0.92	40.33	52.77	51.91	62.19	80.61	59.1	11.67	37.64	48.74
Total Non-Current Liabilities+	385.49M	596.49M	476.29M	479.27M	402.47M	401.6M	401.2M	401.33M	404.26M	403.27M
Long-Term Debt	384.01M	594.63M	473.96M	477.61M	399.67M	399.67M	399.67M	399.67M	399.67M	399.67M
Capital Lease Obligations	0	0	0	0	0	0	0	0	0	0
Deferred Tax Liabilities	1.39M	1.74M	2.22M	1.66M	1.65M	1.54M	1.53M	0	1.63M	1.55M
Other Non-Current Liabilities	90K	123K	107K	0	1.15M	381K	0	1.66M	2.95M	2.05M
Total Liabilities	443.18M	634.26M	516.53M	528.04M	441.32M	441.35M	508M	468.27M	460.59M	458.64M
Total Debt+	384.01M	594.63M	473.96M	477.61M	399.67M	399.67M	399.67M	399.67M	399.67M	399.67M
Net Debt	214.45M	505.73M	446.95M	457.86M	379.75M	382.52M	382.62M	334.89M	341.06M	341.36M
Debt / Equity	0.24x	0.34x	0.27x	0.29x	0.42x	0.44x	0.41x	0.44x	0.47x	0.48x
Debt / EBITDA	0.87x	1.28x	0.97x	1.04x	0.87x	0.88x	0.77x	0.85x	0.85x	0.80x
Net Debt / EBITDA	0.49x	1.09x	0.92x	1.00x	0.83x	0.84x	0.74x	0.71x	0.73x	0.68x
Interest Coverage	72.34x	29.07x	17.13x	16.31x	17.84x	29.32x	46.58x	25.93x	13.50x	15.19x
Total Equity+	1.6B	1.74B	1.78B	1.65B	952.13M	915.14M	972.7M	903.71M	856.25M	829.31M
Equity Growth %	0.01%	0.09%	0.02%	-0.07%	-0.42%	-0.04%	0.06%	-0.07%	-0.05%	-0.03%
Book Value per Share	58.97	63.73	62.61	50.56	27.61	26.00	27.63	25.66	24.31	23.54
Total Shareholders' Equity	847.17M	920.96M	998.75M	934.08M	520.09M	519.97M	536.55M	534.5M	522.51M	518.7M
Common Stock	338.85M	344.71M	461.49M	458.38M	520.09M	519.97M	536.55M	534.5M	522.51M	518.7M
Retained Earnings	0	0	0	0	0	0	0	0	0	0
Treasury Stock	0	0	0	0	0	0	0	0	0	0
Accumulated OCI	280K	200K	279K	0	0	0	0	0	0	0
Minority Interest	750.61M	818.48M	778.93M	718.27M	432.05M	395.17M	436.15M	369.21M	333.74M	310.61M

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	452.54M	287.73M	537.36M	436.15M	450.81M	373.4M	408.44M	463.74M	452M	485M
Operating CF Margin %	0.45%	0.29%	0.46%	0.34%	0.41%	0.39%	0.34%	0.29%	0.38%	0.43%
Operating CF Growth %	-0.25%	-0.36%	0.87%	-0.19%	0.03%	-0.17%	0.09%	0.14%	-0.03%	0.07%
Net Income	353.85M	353.4M	353.06M	330.57M	332.89M	341.12M	401.38M	334.83M	54.28M	369.16M
Depreciation & Amortization	81.21M	98.21M	113.98M	108.84M	107.32M	103.15M	108.81M	121.07M	110.2M	111.9M
Stock-Based Compensation	75K	194K	289K	363K	387K	375K	436K	282K	349K	0
Deferred Taxes	-456K	344K	0	0	-387K	-375K	-436K	-471.2M	0	0
Other Non-Cash Items	1.98M	3.42M	456.06M	502.66M	56K	731K	3.92M	470.92M	284.9M	2.16M
Working Capital Changes	17.48M	-163.89M	70.31M	-3.26M	10.54M	-71.61M	-105.68M	7.83M	2.26M	1.78M
Change in Receivables	13.59M	-91.29M	78.51M	1.03M	9.29M	-72.93M	-26.29M	-14.44M	28.66M	32.96M
Change in Inventory	2.75M	-55K	-1.66M	1.2M	1.13M	-990K	-5.42M	4.18M	283K	374K
Change in Payables	836K	-2.17M	1.44M	-4.48M	421K	4.25M	19.78M	-17M	1.57M	-2.69M
Cash from Investing+	-231.19M	-299.48M	-203.23M	-51.81M	-57.71M	2.03M	-64.3M	-12M	-75.94M	-88.97M
Capital Expenditures	-231.19M	-299.64M	-68.86M	-39.86M	-43.71M	-36.97M	-81.17M	-54.12M	-46.82M	-48.97M
CapEx % of Revenue	0.23%	0.3%	0.06%	0.03%	0.04%	0.04%	0.07%	0.03%	0.04%	0.04%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	0	157K	-134.37M	-384M	-529.45M	-349M	-130K	-319.88M	0	0
Cash from Financing+	-185.55M	-68.9M	-396.02M	-391.6M	-392.92M	-378.2M	-344.24M	-404.01M	-382.23M	-396.33M
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	-31.07M	-34.94M	-42.12M	-53.36M	-62.08M	-66.36M	-66.38M	-66.41M	-66.42M	-66.44M
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	-310.84M	-244.59M	-343.93M	-341.89M	-315.56M	-311.83M	-277.86M	-337.6M	-315.81M	-329.9M
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	221.36M	-11.91M	468.5M	396.29M	407.1M	336.43M	327.27M	409.62M	405.18M	436.03M
FCF Margin %	0.22%	-0.01%	0.4%	0.31%	0.37%	0.35%	0.27%	0.26%	0.34%	0.38%
FCF Growth %	-0.45%	-1.05%	40.33%	-0.15%	0.03%	-0.17%	-0.03%	0.25%	-0.01%	0.08%
FCF per Share	8.17	-0.44	16.50	12.13	11.80	9.56	9.30	11.63	11.50	12.38
FCF Conversion (FCF/Net Income)	11.36x	7.03x	11.04x	8.84x	7.39x	5.64x	4.95x	7.23x	8.33x	7.77x
Interest Paid	0	0	0	0	0	0	0	0	0	26.53M
Taxes Paid	0	0	0	0	0	0	0	0	0	831K

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	2.5%	2.45%	2.77%	2.88%	4.68%	7.09%	8.75%	6.84%	6.17%	7.4%
Return on Invested Capital (ROIC)	15.45%	13.55%	12.56%	12.1%	15.26%	20.14%	23.22%	20.11%	22.03%	24.73%
Gross Margin	38.01%	39.66%	34.41%	29.34%	34.75%	39.19%	36.36%	23.69%	32.54%	36.88%
Net Margin	3.95%	4.15%	4.15%	3.84%	5.58%	6.84%	6.79%	4.03%	4.56%	5.49%
Debt / Equity	0.24x	0.34x	0.27x	0.29x	0.42x	0.44x	0.41x	0.44x	0.47x	0.48x
Interest Coverage	72.34x	29.07x	17.13x	16.31x	17.84x	29.32x	46.58x	25.93x	13.50x	15.19x
FCF Conversion	11.36x	7.03x	11.04x	8.84x	7.39x	5.64x	4.95x	7.23x	8.33x	7.77x
Revenue Growth	-42.43%	-2.03%	18.87%	9.6%	-15.07%	-11.47%	25.67%	31.14%	-25.26%	-4.61%

Revenue by Segment

	2018	2019	2020
Product and Service, Other	210.66M	154.25M	78.42M
Product and Service, Other Growth	-	-26.78%	-49.16%

Frequently Asked Questions

Valuation & Price

Westlake Chemical Partners LP (WLKP) has a price-to-earnings (P/E) ratio of 11.8x. This may indicate the stock is undervalued or faces growth challenges.

Growth & Financials

Westlake Chemical Partners LP (WLKP) reported $1.13B in revenue for fiscal year 2024. This represents a 50% decrease from $2.25B in 2012.

Westlake Chemical Partners LP (WLKP) saw revenue decline by 4.6% over the past year.

Yes, Westlake Chemical Partners LP (WLKP) is profitable, generating $49.2M in net income for fiscal year 2024 (5.5% net margin).

Dividend & Returns

Yes, Westlake Chemical Partners LP (WLKP) pays a dividend with a yield of 9.00%. This makes it attractive for income-focused investors.

Westlake Chemical Partners LP (WLKP) has a return on equity (ROE) of 7.4%. This is below average, suggesting room for improvement.

Westlake Chemical Partners LP (WLKP) generated $209.1M in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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