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 May 1, 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
9 bullish · 5 bearish · 32 covering WLK
Strong Buy
0
Buy
9
Hold
18
Sell
5
Strong Sell
0
Consensus Target
$102
+2.2% vs today
Scenario Range
— – —
Model bear to bull value window
Coverage
32
Published analyst ratings
Valuation Context
26.7x
Forward P/E · Market cap $12.8B
WLK price targets
Three scenarios for where WLK stock could go
Current
~$100
Confidence
33 / 100
Updated
May 1, 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
$12.8B
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
-115.1%
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
$-0.77/$-0.10
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 | $-0.77/$-0.10 | -708.4% | $2.7B/$2.8B | -4.8% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$10.6B
-3.3% YoY
FY2
$10.2B
-4.3% YoY
EPS Outlook
FY1
$-7.55
+41.0% YoY
FY2
$-5.92
+21.6% YoY
Trailing FCF (TTM)-$508M
FCF Margin: -4.6%
Next Earnings
—
Expected EPS
—
Expected Revenue
—
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
Overvalued
Fair value est. $82 — implies -28.9% from today's price.
Premium to Fair Value
28.9%
above fair value
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
WLK
-8.5x
vs
S&P 500
25.2x
134% discount
vs Basic Materials Trailing P/E
WLK
-8.5x
vs
Basic Materials
22.9x
137% discount
vs WLK 5Y Avg P/E
Today
-8.5x
vs
5Y Average
18.7x
146% discount
Forward PE
26.7x
S&P 500
19.1x
+40%
Basic Materials
15.4x
+73%
5Y Avg
—
—
Trailing PE
-8.5x
S&P 500
25.2x
-134%
Basic Materials
22.9x
-137%
5Y Avg
18.7x
-146%
PEG Ratio
—
S&P 500
1.75x
—
Basic Materials
1.22x
—
5Y Avg
—
—
EV/EBITDA
—
S&P 500
15.3x
—
Basic Materials
11.4x
—
5Y Avg
7.0x
—
Price/FCF
—
S&P 500
21.3x
—
Basic Materials
27.5x
—
5Y Avg
18.8x
—
Price/Sales
1.1x
S&P 500
3.1x
-63%
Basic Materials
2.0x
-42%
5Y Avg
1.1x
+6%
Dividend Yield
2.12%
S&P 500
1.88%
+13%
Basic Materials
1.37%
+54%
5Y Avg
1.66%
+27%
| Metric | WLK | S&P 500 | Basic Materials | 5Y Avg WLK |
|---|---|---|---|---|
| Forward PE | 26.7x | 19.1x+40% | 15.4x+73% | — |
| Trailing PE | -8.5x | 25.2x-134% | 22.9x-137% | 18.7x-146% |
| PEG Ratio | — | 1.75x | 1.22x | — |
| EV/EBITDA | — | 15.3x | 11.4x | 7.0x |
| Price/FCF | — | 21.3x | 27.5x | 18.8x |
| Price/Sales | 1.1x | 3.1x-63% | 2.0x-42% | 1.1x |
| Dividend Yield | 2.12% | 1.88% | 1.37% | 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 2.6% 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
2.6%
Dividend
2.1%
Buyback
0.5%
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 April 29, 2026
High Risk
Cyclical Concerns
Westlake operates in a cyclical chemicals industry, making its performance highly sensitive to economic conditions. Economic downturns can lead to reduced demand for chemicals, lower pricing, and significant pressure on profit margins.
High Risk
Global Oversupply
Oversupply in core chemical chains can severely impact Westlake's profit margins and earnings. This market condition can lead to increased competition and pricing pressures, further affecting financial performance.
High Risk
Feedstock and Energy Costs
Fluctuations in the cost of raw materials and energy can significantly affect Westlake's profitability. Given the volatility in these costs, any substantial increase could lead to reduced margins and earnings.
Medium
Trade and Regulatory Uncertainty
Changes in trade policies, tariffs, and regulations can create operational uncertainty for Westlake. Such changes may impact the company's profitability and ability to compete effectively in the market.
Medium
Housing and Infrastructure Market
Westlake's product demand is closely linked to the housing and infrastructure sectors. Weakness in these markets can lead to a decline in sales volumes, negatively impacting overall financial performance.
Medium
Unplanned Outages
Unexpected operational disruptions or outages at manufacturing facilities can adversely affect production levels and financial results. Such events can lead to increased costs and lost revenue opportunities.
Lower
Earnings Volatility
Westlake's earnings can be uneven, which may make the stock less appealing compared to peers. This volatility can deter potential investors and impact stock valuation.
Lower
Execution Risk
The company's ability to successfully execute its strategies is crucial for its performance. Any failure in execution could lead to missed opportunities and reduced financial outcomes.
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 April 29, 2026
Housing and Infrastructure Demand
Westlake Corporation's performance is closely tied to demand in the housing and infrastructure sectors. Positive indicators in U.S. housing starts and municipal pipe projects are seen as key drivers for the company's performance.
Three Pillar Plan
Westlake is implementing a 'three pillar plan' focused on footprint changes, reliability projects, and structural cost cuts. These initiatives aim to improve earnings and generate higher quality cash flow.
Integration and Synergies
The company emphasizes tighter integration between its business segments, particularly between Performance & Essential Materials (PEM) and Housing & Infrastructure Products (HIP) across the PVC value chain. This integration could lead to significant operational efficiencies.
Resilience and Cash Flow
Despite cyclical pressures in the chemicals sector, Westlake has shown resilience by remaining cash-flow positive at the operating level. This stability is crucial for maintaining operations and supporting future growth.
Dividend Support
Westlake has maintained its quarterly dividend even amidst near-term earnings pressure, providing a stabilizing effect on investor sentiment. This commitment to dividends can enhance investor confidence in the company's financial health.
Zacks Rank
Westlake Corporation currently holds a Zacks Rank 2, indicating an expectation for above-average returns in the near future. This ranking reflects positive analyst sentiment and potential for growth.
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
$99.73
52W Range Position
64%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$56.33
+77.1% from the low
52-Week High
$124.23
-19.7% from the high
1 Month
-16.56%
3 Month
+3.96%
YTD
+34.5%
1 Year
+26.5%
3Y CAGR
-5.6%
5Y CAGR
-0.5%
10Y CAGR
+7.7%
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
26.7x
vs 11.1x median
+140% above peer median
Revenue Growth
-3.3%
vs -0.2% median
-1483% below 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 | $12.8B | 26.7x | -3.3% | -14.9% | Hold | +2.2% |
OLN OLN Olin Corporation | $3.3B | — | -0.2% | -0.6% | Hold | -15.5% |
LYB LYB LyondellBasell Industries N.V. | $23.7B | 10.2x | +5.2% | -3.4% | Hold | +0.2% |
HUN HUN Huntsman Corporation | $2.6B | — | -4.3% | -5.7% | Hold | -20.5% |
EMN EMN Eastman Chemical Company | $8.7B | 12.8x | -2.4% | 4.6% | Buy | +2.0% |
CE CE Celanese Corporation | $7.0B | 11.1x | +0.2% | -10.8% | Hold | +5.3% |
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 2.5% total yield, led by a 2.01% dividend, raised 12 consecutive years.
Dividend UnknownFCF Unknown
Total Shareholder Yield
2.5%
Dividend + buyback return per year
Buyback Yield
0.5%
Dividend Yield
2.01%
Payout Ratio
—
How WLK Splits Its Return
Div 2.01%
Dividend 2.01%Buybacks 0.5%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$2.11
Growth Streak
Consecutive years of dividend increases
12Y
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
631.7K
Approx. Share Reduction
0.5%
Shares Outstanding
Current diluted share count from the screening snapshot
128M
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $0.53 | — | — | — |
| 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, 9 rate it Buy or Strong Buy, 18 rate it Hold, and 5 rate it Sell or Strong Sell. The consensus 12-month price target is $102, implying +2.2% from the current price of $100.
02What is the WLK stock price target for 2026?
The Wall Street consensus price target for WLK is $102 based on 32 analyst estimates. The high-end target is $145 (+45.4% from today), and the low-end target is $80 (-19.8%).
03Is Westlake Corporation (WLK) stock overvalued in 2026?
WLK trades at 26.7x 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 overvalued. 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) Cyclical Concerns — Westlake operates in a cyclical chemicals industry, making its performance highly sensitive to economic conditions. (2) Global Oversupply — Oversupply in core chemical chains can severely impact Westlake's profit margins and earnings. (3) Feedstock and Energy Costs — Fluctuations in the cost of raw materials and energy can significantly affect Westlake's profitability. 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 $10.6B (-3.3% year-over-year) and EPS of $-7.55 (+41.0% year-over-year) for the upcoming fiscal year. The following year, analysts project $10.2B in revenue.
06When does Westlake Corporation (WLK) report its next earnings?
A confirmed upcoming earnings date for WLK is not yet available. Check the Earnings section above for the most recent quarterly report dates and forward estimates.
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 (2.0% yield) and share repurchases ($63M TTM).