Upside case
Bull case
—
The bull case requires both strong earnings delivery and the market pricing WLK more generously than it does today.
Analysis OverviewHoldUpdated Jun 18, 2026
Westlake Corporation (WLK) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Hold
Covering
32
analysts
8 bullish · 5 bearish · 32 covering WLK
Strong Buy
0
Buy
8
Hold
19
Sell
5
Strong Sell
0
Consensus Target
$116
+44.9% vs today
Scenario Range
— – —
Model bear to bull value window
Coverage
32
Published analyst ratings
Valuation Context
21.2x
Forward P/E · Market cap $10.3B
WLK price targets
Three scenarios for where WLK stock could go
Current
~$80
Confidence
40 / 100
Updated
Jun 18, 2026
Market caseClosest to today
Base case
—
The base case reflects analyst consensus expectations — steady delivery without requiring a major catalyst or re-rating.
Stress case
Bear case
—
The bear case reflects a scenario where earnings shortfalls or multiple compression combine to materially reduce the stock from its current level.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Westlake Corporation
WLK · NYSEBasic MaterialsChemicals - SpecialtyDecember year-end
Westlake Corporation is a diversified chemical and building products manufacturer that produces petrochemicals, polymers, and construction materials. It generates revenue through two main segments—Performance and Essential Materials (~60% of sales) and Housing and Infrastructure Products (~40%)—selling to chemical processors, plastics fabricators, and construction markets. The company's competitive advantage lies in its integrated production capabilities—from basic petrochemicals to finished building products—and its scale in PVC and chlor-alkali manufacturing.
Market Cap
$10.3B
Revenue TTM
$11.0B
Net Income TTM
-$1.6B
Net Margin
-14.9%
WLK Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
33%Exceptional
12 quarters tracked
Revenue Beat Rate
25%Exceptional
vs consensus estimates
Avg EPS Surprise
-76.9%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 1 of 4Q3 2025
EPS
$-0.09/$0.06
Revenue
$3.0B/$2.9B
Q4 2025
EPS
$-0.29/$0.18
Revenue
$2.8B/$2.6B
Q1 2026
EPS
$-0.25/$-1.47
Revenue
$2.5B/$2.6B
Q2 2026
EPS
$-0.77/$-0.22
Revenue
$2.7B/$2.8B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q3 2025 | $-0.09/$0.06 | -250.0% | $3.0B/$2.9B | +0.5% |
| Q4 2025 | $-0.29/$0.18 | -261.1% | $2.8B/$2.6B | +8.8% |
| Q1 2026 | $-0.25/$-1.47 | +83.0% | $2.5B/$2.6B | -2.9% |
| Q2 2026 | $-0.77/$-0.22 | -250.0% | $2.7B/$2.8B | -4.8% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$11.3B
+2.6% YoY
FY2
$11.7B
+3.5% YoY
EPS Outlook
FY1
$-6.43
+49.7% YoY
FY2
$-4.21
+34.5% YoY
Trailing FCF (TTM)-$508M
FCF Margin: -4.6%
Next Earnings
August 4, 2026
Expected EPS
$1.91
Expected Revenue
$3.2B
WLK beat EPS estimates in 1 of 4 tracked quarters. Mixed delivery makes the upcoming report a key data point for re-rating.
WLK Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $11.2B
Product Mix
Latest annual revenue by segment or product family
Performance and Essential Materials
62.9%
-10.3% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
UNITED STATES
71.2%
-9.1% YoY
Tap, hover, or focus a slice to inspect segment detail.
Performance and Essential Materials is the largest disclosed segment at 62.9% of FY 2025 revenue, down 10.3% YoY.
UNITED STATES is the largest reported region at 71.2%, down 9.1% YoY.
WLK Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Limited: Expensive versus peers
Fair value est. $36 — implies -55.5% from today's price.
Premium to Fair Value
55.5%
above fair value
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
WLK
-6.8x
vs
S&P 500
24.4x
128% discount
vs Basic Materials Trailing P/E
WLK
-6.8x
vs
Basic Materials
23.6x
129% discount
vs WLK 5Y Avg P/E
Today
-6.8x
vs
5Y Average
18.7x
137% discount
Forward PE
21.2x
S&P 500
18.8x
+13%
Basic Materials
14.9x
+42%
5Y Avg
—
—
Trailing PE
-6.8x
S&P 500
24.4x
-128%
Basic Materials
23.6x
-129%
5Y Avg
18.7x
-137%
PEG Ratio
—
S&P 500
1.66x
—
Basic Materials
1.23x
—
5Y Avg
—
—
EV/EBITDA
—
S&P 500
15.2x
—
Basic Materials
11.0x
—
5Y Avg
7.0x
—
Price/FCF
—
S&P 500
20.7x
—
Basic Materials
29.0x
—
5Y Avg
18.8x
—
Price/Sales
0.9x
S&P 500
3.1x
-70%
Basic Materials
1.9x
-51%
5Y Avg
1.1x
-15%
Dividend Yield
2.63%
S&P 500
1.91%
+37%
Basic Materials
1.41%
+87%
5Y Avg
1.66%
+58%
| Metric | WLK | S&P 500 | Basic Materials | 5Y Avg WLK |
|---|---|---|---|---|
| Forward PE | 21.2x | 18.8x+13% | 14.9x+42% | — |
| Trailing PE | -6.8x | 24.4x-128% | 23.6x-129% | 18.7x-137% |
| PEG Ratio | — | 1.66x | 1.23x | — |
| EV/EBITDA | — | 15.2x | 11.0x | 7.0x |
| Price/FCF | — | 20.7x | 29.0x | 18.8x |
| Price/Sales | 0.9x | 3.1x-70% | 1.9x-51% | 1.1x-15% |
| Dividend Yield | 2.63% | 1.91% | 1.41% | 1.66% |
WLK trades above S&P 500 benchmarks on 1 of 3 measured multiples — is elevated on some multiples, but competitive on others — a mixed valuation picture.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolWLK Financial Health
Verdict
Stressed
WLK returns 3.2% of market cap to shareholders annually.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$11.0B
Revenue Growth
TTM vs prior year
-8.6%
Gross Margin
Gross profit as a share of revenue
1.5%
Operating Margin
Operating income divided by revenue
-15.5%
Net Margin
Net income divided by revenue
-14.9%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$-12.79
Free Cash Flow (TTM)
Cash generation after capex
-$508M
FCF Margin
FCF as share of revenue — the primary cash quality signal
-4.6%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
-9.0%
ROA
Return on assets, trailing twelve months
-8.2%
Cash & Equivalents
Liquid assets on the balance sheet
$2.7B
Net Debt
Total debt minus cash
$3.7B
Debt Serviceability
Net debt as a multiple of annual free cash flow
—
ROE *
Return on equity, trailing twelve months
-16.8%
* Elevated by buyback-compressed equity — compare ROIC (-9.0%) for an undistorted picture of capital efficiency.
Shareholder Returns
How capital is returned to owners
Total shareholder yield
3.2%
Dividend
2.6%
Buyback
0.6%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$63M
Dividend / Share
Annualized trailing dividend per share
$2.11
Payout Ratio
Share of earnings distributed as dividends
—
Shares Outstanding
Declining as buybacks retire shares
128M
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt). ROE marked * where buyback-compressed equity base may inflate the figure.
Open full ratios pageWLK Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated June 18, 2026
High Risk
Revenue decline risk
A bear case recession could lead to a 1-year revenue decline of -5% and flat 3-year CAGR of 0%.
High Risk
Gross margin sensitivity
A 200 basis point change in gross margin could shift annual EPS by +/- 15-20%, indicating high sensitivity to cost pressures.
Medium
Operational losses
Recent financials show a loss from operations of $172M in Q1 2026, signaling potential profitability challenges.
Medium
Plant closures
Westlake closed all factories in Rotterdam's Pernis industrial area, eliminating 230 jobs, which may disrupt supply chains.
Lower
Sector cyclicality
As a supplier to housing, construction, and automotive sectors, Westlake is exposed to economic downturns impacting demand.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why WLK Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated June 18, 2026
Diversified industrial portfolio
Westlake operates as a global diversified industrial company, supplying essential products across housing, infrastructure, packaging, healthcare, automotive, and consumer goods sectors.
Bullish revenue growth potential
A bull case scenario driven by falling interest rates could lead to +6% 1-year revenue growth and +5% 3-year CAGR, highlighting upside potential.
Operational scale and global reach
With approximately 15,000 employees and worldwide operations, Westlake benefits from significant scale and geographic diversification.
Margin sensitivity upside
The company exhibits high earnings sensitivity to gross margin improvements, where a 200 basis point increase could boost annual EPS by 15-20%.
Value investor endorsement
A bullish thesis from ValueInvestorsClub highlights Westlake's investment potential, suggesting undervaluation or strong fundamentals.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
WLK Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$80.28
52W Range Position
35%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$56.33
+42.5% from the low
52-Week High
$124.23
-35.4% from the high
1 Month
-12.22%
3 Month
-28.70%
YTD
+8.3%
1 Year
+12.8%
3Y CAGR
-10.3%
5Y CAGR
-2.5%
10Y CAGR
+6.2%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
WLK vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
21.2x
vs 9.8x median
+115% above peer median
Revenue Growth
+2.6%
vs +1.7% median
+52% above peer median
Net Margin
-14.9%
vs -3.4% median
-333% below peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
WLK WLK Westlake Corporation | $10.3B | 21.2x | +2.6% | -14.9% | Hold | +44.9% |
OLN OLN Olin Corporation | $2.5B | 271.4x | +1.5% | -1.9% | Hold | +28.6% |
LYB LYB LyondellBasell Industries N.V. | $19.4B | 6.4x | +2.9% | -3.4% | Hold | +33.5% |
HUN HUN Huntsman Corporation | $2.1B | — | +1.7% | -5.7% | Hold | +14.3% |
EMN EMN Eastman Chemical Company | $8.3B | 11.4x | +0.1% | 4.6% | Buy | +10.2% |
CE CE Celanese Corporation | $5.7B | 8.3x | +2.7% | -10.8% | Hold | +28.2% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
WLK Dividend and Capital Return
WLK returns 3.2% total yield, led by a 2.63% dividend, raised 22 consecutive years. Buybacks add another 0.6%.
Dividend UnknownFCF Unknown
Total Shareholder Yield
3.2%
Dividend + buyback return per year
Buyback Yield
0.6%
Dividend Yield
2.63%
Payout Ratio
—
How WLK Splits Its Return
Div 2.63%
Dividend 2.63%Buybacks 0.6%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$2.11
Growth Streak
Consecutive years of dividend increases
22Y
3Y Div CAGR
17.2%
5Y Div CAGR
14.7%
Ex-Dividend Date
—
Payment Cadence
Quarterly
4 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$63M
Estimated Shares Retired
784.8K
Approx. Share Reduction
0.6%
Shares Outstanding
Current diluted share count from the screening snapshot
128M
At 0.6%/year, buybacks mechanically lift EPS even with flat earnings — each remaining share represents a slightly larger piece of the company.
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $1.06 | — | — | — |
| 2025 | $2.11 | +2.9% | 0.7% | 3.5% |
| 2024 | $2.05 | +19.6% | 0.4% | 2.2% |
| 2023 | $1.71 | +30.8% | 0.1% | 1.4% |
| 2022 | $1.31 | +15.3% | 0.8% | 2.0% |
FAQ
7 questionsWLK Investor Questions
Common questions answered from live analyst data and company financials.
01Is Westlake Corporation (WLK) stock a buy or sell in 2026?
Westlake Corporation (WLK) is rated Hold by Wall Street analysts as of 2026. Of 32 analysts covering the stock, 8 rate it Buy or Strong Buy, 19 rate it Hold, and 5 rate it Sell or Strong Sell. The consensus 12-month price target is $116, implying +44.9% from the current price of $80.
02What is the WLK stock price target for 2026?
The Wall Street consensus price target for WLK is $116 based on 32 analyst estimates. The high-end target is $145 (+80.6% from today), and the low-end target is $88 (+9.6%).
03Is Westlake Corporation (WLK) stock overvalued in 2026?
WLK trades at 21.2x times forward earnings. The stock currently trades at a discount to the broader market. Based on current multiples versus the peer group, the relative model signals limited: expensive versus peers. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for Westlake Corporation (WLK) stock in 2026?
The primary risks for WLK in 2026 are: (1) Revenue decline risk — A bear case recession could lead to a 1-year revenue decline of -5% and flat 3-year CAGR of 0%. (2) Gross margin sensitivity — A 200 basis point change in gross margin could shift annual EPS by +/- 15-20%, indicating high sensitivity to cost pressures. (3) Operational losses — Recent financials show a loss from operations of $172M in Q1 2026, signaling potential profitability challenges. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is Westlake Corporation's revenue and earnings forecast?
Analyst consensus estimates WLK will report consensus revenue of $11.3B (+2.6% year-over-year) and EPS of $-6.43 (+49.7% year-over-year) for the upcoming fiscal year. The following year, analysts project $11.7B in revenue.
06When does Westlake Corporation (WLK) report its next earnings?
Westlake Corporation is expected to report its next earnings on approximately 2026-08-04. Consensus expects EPS of $1.91 and revenue of $3.2B. Over recent quarters, WLK has beaten EPS estimates 33% of the time.
07How much free cash flow does Westlake Corporation generate?
Westlake Corporation (WLK) had a free cash outflow of $508M in free cash flow over the trailing twelve months — a free cash flow margin of 4.6%. WLK returns capital to shareholders through dividends (2.6% yield) and share repurchases ($63M TTM).