Latest Ratios: P/E Ratio -5.8x · EV/EBITDA N/A · ROE -14.8%. (1999–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $8.8B | $9.5B | $14.8B | $18.0B | $13.2B | $12.5B | $10.5B | $9.0B | $8.6B | $13.8B | $7.3B |
| Enterprise Value | $12.5B | $13.2B | $17.2B | $20.2B | $16.5B | $16.2B | $13.1B | $12.1B | $10.5B | $16.1B | $10.6B |
| P/E Ratio → | -5.83 | — | 24.71 | 37.83 | 5.91 | 6.23 | 31.75 | 21.58 | 8.64 | 10.65 | 18.30 |
| P/S Ratio | 0.78 | 0.85 | 1.22 | 1.43 | 0.84 | 1.06 | 1.39 | 1.11 | 1.00 | 1.72 | 1.43 |
| P/B Ratio | 0.95 | 1.03 | 1.34 | 1.67 | 1.26 | 1.47 | 1.59 | 1.41 | 1.42 | 2.57 | 1.87 |
| P/FCF | — | — | 48.41 | 13.82 | 5.78 | 7.20 | 13.54 | 17.57 | 12.17 | 14.36 | 35.44 |
| P/OCF | 18.85 | 20.50 | 11.27 | 7.70 | 3.89 | 5.22 | 8.06 | 6.94 | 6.10 | 8.97 | 8.73 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.18 | 1.41 | 1.61 | 1.04 | 1.38 | 1.74 | 1.49 | 1.22 | 2.00 | 2.10 |
| EV / EBITDA | — | — | 8.63 | 11.07 | 4.02 | 4.46 | 10.89 | 8.86 | 5.13 | 8.82 | 11.08 |
| EV / EBIT | — | — | 15.65 | 23.37 | 5.28 | 5.69 | 27.67 | 17.48 | 7.20 | 12.99 | 16.69 |
| EV / FCF | — | — | 56.11 | 15.52 | 7.21 | 9.35 | 16.95 | 23.60 | 14.87 | 16.76 | 51.84 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 2.6% | 2.6% | 16.1% | 17.7% | 25.8% | 29.7% | 13.6% | 15.5% | 23.0% | 21.9% | 19.4% |
| Operating Margin | -14.1% | -14.1% | 7.2% | 5.8% | 19.3% | 23.8% | 5.7% | 8.1% | 16.3% | 15.2% | 11.5% |
| Net Profit Margin | -13.5% | -13.5% | 5.0% | 3.8% | 14.2% | 17.1% | 4.4% | 5.2% | 11.5% | 16.2% | 7.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -14.8% | -14.8% | 5.5% | 4.5% | 23.7% | 26.7% | 5.1% | 6.7% | 17.4% | 28.2% | 10.7% |
| ROA | -7.4% | -7.4% | 2.9% | 2.3% | 11.5% | 12.5% | 2.4% | 3.4% | 8.4% | 11.4% | 4.8% |
| ROIC | -9.0% | -9.0% | 5.0% | 4.1% | 17.6% | 19.6% | 3.4% | 5.6% | 13.5% | 12.3% | 8.0% |
| ROCE | -8.8% | -8.8% | 4.8% | 4.0% | 17.7% | 19.6% | 3.5% | 5.8% | 13.7% | 12.4% | 7.9% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.69 | 0.69 | 0.48 | 0.51 | 0.53 | 0.66 | 0.60 | 0.60 | 0.44 | 0.71 | 0.98 |
| Debt / EBITDA | — | — | 2.65 | 3.02 | 1.34 | 1.55 | 3.29 | 2.79 | 1.30 | 2.10 | 3.98 |
| Net Debt / Equity | — | 0.40 | 0.21 | 0.21 | 0.31 | 0.44 | 0.40 | 0.48 | 0.32 | 0.43 | 0.87 |
| Net Debt / EBITDA | — | — | 1.18 | 1.21 | 0.80 | 1.03 | 2.19 | 2.26 | 0.93 | 1.26 | 3.51 |
| Debt / FCF | — | — | 7.70 | 1.70 | 1.43 | 2.15 | 3.41 | 6.03 | 2.71 | 2.40 | 16.40 |
| Interest Coverage | -8.92 | -8.92 | 6.90 | 5.24 | 17.64 | 16.21 | 3.33 | 5.60 | 11.59 | 7.80 | 8.03 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.24 | 2.24 | 2.80 | 2.37 | 2.60 | 2.25 | 2.56 | 2.21 | 2.40 | 1.76 | 2.04 |
| Quick Ratio | 1.65 | 1.65 | 2.04 | 1.79 | 1.79 | 1.65 | 1.89 | 1.46 | 1.55 | 1.30 | 1.36 |
| Cash Ratio | 1.06 | 1.06 | 1.32 | 1.18 | 0.97 | 0.81 | 0.97 | 0.59 | 0.64 | 0.78 | 0.39 |
| Asset Turnover | — | 0.56 | 0.59 | 0.60 | 0.77 | 0.64 | 0.54 | 0.61 | 0.74 | 0.67 | 0.47 |
| Inventory Turnover | 6.58 | 6.58 | 6.00 | 6.37 | 6.28 | 5.89 | 7.06 | 7.33 | 6.56 | 6.98 | 5.11 |
| Days Sales Outstanding | — | 49.15 | 44.58 | 46.57 | 41.62 | 57.89 | 59.05 | 46.58 | 43.83 | 45.44 | 67.50 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 3.1% | 2.9% | 1.8% | 1.2% | 1.3% | 1.2% | 1.3% | 1.5% | 1.4% | 0.7% | 1.3% |
| Payout Ratio | — | — | 43.9% | 46.1% | 7.5% | 7.2% | 41.5% | 31.4% | 12.0% | 7.9% | 24.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | 4.0% | 2.6% | 16.9% | 16.0% | 3.1% | 4.6% | 11.6% | 9.4% | 5.5% |
| FCF Yield | — | — | 2.1% | 7.2% | 17.3% | 13.9% | 7.4% | 5.7% | 8.2% | 7.0% | 2.8% |
| Buyback Yield | 0.7% | 0.7% | 0.4% | 0.1% | 0.8% | 0.2% | 0.5% | 0.3% | 1.2% | 0.0% | 0.9% |
| Total Shareholder Yield | 3.8% | 3.5% | 2.2% | 1.4% | 2.0% | 1.4% | 1.8% | 1.8% | 2.6% | 0.7% | 2.3% |
| Shares Outstanding | — | $129M | $129M | $129M | $129M | $129M | $128M | $129M | $130M | $130M | $130M |
Includes 30+ ratios · 26 years · Updated daily
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Quick answers to the most common questions about buying WLK stock.
Westlake Corporation's current P/E ratio is -5.8x. The historical average is 15.5x.
Westlake Corporation's return on equity (ROE) is -14.8%. The historical average is 12.9%.
Based on historical data, Westlake Corporation is trading at a P/E of -5.8x. Compare with industry peers and growth rates for a complete picture.
Westlake Corporation's current dividend yield is 3.08%.
Westlake Corporation has 2.6% gross margin and -14.1% operating margin.
Key Metrics
Top Statement Risk
Persistent negative operating income
Metrics are mathematically derived from official filings.
Margin Recovery from Cyclical Trough
Gross margin swung from -17.3% in 2025Q4 to 19.9% in 2026Q2, a dramatic recovery, yet net margin remains thin at 7.9%, reflecting ongoing volatility in input costs and pricing.
The gross margin recovery is substantial, but operating margin at 11.1% in 2026Q2 is still below the 12.7% seen in 2024Q2, indicating that the recovery is incomplete. The negative margins in prior quarters highlight the extreme cyclicality of the chemicals business, where fixed costs amplify revenue swings. Investors should monitor whether the margin improvement is sustainable or merely a temporary reprieve from favorable input costs.
Return on Capital Still Depressed
ROIC improved to 2.1% in 2026Q2 from -4.1% in 2025Q3, but remains far below the cost of capital, suggesting value destruction persists despite the cyclical upturn.
The improvement in ROIC is encouraging, but the absolute level is low, and the five-quarter average is negative. The company's asset base is large, and the return on assets at 1.3% indicates that the capital employed is not generating adequate returns. This suggests that the business is still in the early stages of recovery, and sustained margin expansion is needed to restore value creation.
Working Capital Cycle Lengthens
Cash conversion cycle extended to 80 days in 2026Q2 from 78 days in 2024Q2, driven by a rise in DSO to 50 days and DIO to 58 days, indicating slower cash recovery.
The slight lengthening of the CCC is a concern, as it ties up more cash in operations. DSO has increased from 50 to 50 days, but DIO has risen from 60 to 58 days, and DPO has fallen from 31 to 28 days, reducing the company's ability to finance operations with supplier credit. This may indicate weaker negotiating power with suppliers or a buildup of inventory, which could pressure cash flow if demand softens.
Leverage Creeps Higher as Equity Shrinks
Debt-to-equity rose to 0.62 in 2026Q2 from 0.48 in 2024Q4, while interest coverage improved to 6.09x, but the D/EBITDA of 8.87x remains elevated, signaling refinancing risk.
The increase in D/E is driven by equity erosion from cumulative losses, not by new debt issuance. Interest coverage has improved from negative levels, but the absolute level of debt relative to EBITDA is high, and the company's ability to service debt in a downturn is uncertain. The recent improvement in EBITDA is encouraging, but the cyclicality of earnings means that coverage could deteriorate quickly if margins compress again.
Liquidity Buffer Thins but Remains Adequate
Current ratio stands at 2.45 in 2026Q2, down from 2.80 in 2024Q4, while cash has halved to $1.6B, indicating a shrinking but still comfortable liquidity cushion.
The current ratio remains above 2, suggesting that short-term obligations are well covered, but the trend is downward. The decline in cash reserves is notable, and with negative free cash flow in most quarters, the company is relying on its balance sheet to fund operations. If the cyclical recovery stalls, the liquidity buffer could be tested, especially given the ongoing dividend payments.
Misapplied P/E in Cyclical Downturn
The trailing P/E of -6.74 is meaningless due to negative earnings, and the forward P/E of 26.00 may overstate value if the cyclical recovery is not sustained, as seen in the volatile margins.
For cyclical companies like Westlake, P/E ratios are often misleading because earnings are at cyclical extremes. The current negative trailing P/E reflects the trough, while the forward P/E assumes a recovery that may not materialize. A more appropriate metric is EV/EBITDA, which at 6.56x on a forward basis appears reasonable, but investors should adjust for the cyclicality of EBITDA and consider mid-cycle earnings power. The company's high operating leverage means that small changes in revenue can have outsized effects on profitability, making any single multiple unreliable.