Westlake Chemical Partners LP (WLKP)
Valuation Overview•Is Westlake Chemical Partners LP Overvalued or Undervalued?
Trading at a relative discount to industry peers, suggesting a specific risk premium is applied.
High-quality fundamentals with a strong composite quality score of 75/100, backed by robust profitability and solvency.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Solid fundamental quality, though growth presents a headwind.
Wall Street is highly bullish, projecting significant upside. This outlook is strongly supported by highly attractive capital returns, anchored by a strong, well-covered dividend yield.
WLKP demonstrates strong business quality with robust profitability and healthy margins (highlighted by a massive 20.6% ROIC). This is paired with a moderately leveraged but stable balance sheet.
The company is facing top-line contraction (-9.9% 3Y CAGR) paired with highly explosive earnings growth (67.0% EPS 3Y CAGR). This growth is supported by elite operational efficiency, sustaining an impressive 29.1% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $305.7M | +2.7% | -9.9% | +3.8% | +1.5% | |
| EBITDA | $120.9M | — | -1.5% | — | — | |
| Net Income | $81.7M | +378.5% | +66.9% | — | +22.3% | |
| EPS (Diluted) | $0.40 | +378.5% | +67.0% | +35.1% | +19.1% | |
| Free Cash Flow | $104.6M | -53.8% | -21.0% | -9.7% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 31.4% | 33.1% | 31.9% | 33.7% |
| Operating Margin | 29.1% | 30.6% | 29.5% | 31.2% |
| Net Margin | 15.8% | 11.9% | 9.3% | 7.1% |
| FCF Margin | 22.4% | 29.9% | 28.5% | 28.4% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.43 | $0.40 | -7.0% | ||
| Q1'26 | $0.38 | $0.41 | +8.2% | ||
| Q4'25 | $0.43 | $0.42 | -2.3% | ||
| Q3'25 | $0.44 | $0.41 | -7.7% | ||
| Q2'25 | $0.38 | $0.14 | -63.2% | ||
| Q1'25 | $0.36 | $0.43 | +19.4% | ||
| Q4'24 | $0.40 | $0.51 | +27.5% | ||
| Q3'24 | $0.44 | $0.41 | -6.8% |
Total return is +11.7% (1Y), lagging the benchmark by -9.2%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +24.5% | +17.2% | — |
| 1Y | +11.7% | -9.2% | +8.6% |
| 3YCAGR | +9.2% | -9.9% | +26.0% |
| 5YCAGR | +3.5% | -7.9% | +34.8% |
| 10YCAGR | +7.4% | -6.6% | — |
The S&P 500 is at 30.6x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Westlake Chemical Partners LP (WLKP) valuation, health, and returns.
Based on peer relative multiples, Westlake Chemical Partners LP appears Cheap versus peers compared to industry peers.
Westlake Chemical Partners LP has multiple valuation anchors: Peer Relative Fair Value: $71.92 | Wall Street Analyst Target: $29.00 (implying +28.0% upside). A convergence of these signals offers higher conviction.
Westlake Chemical Partners LP displays good financial health with a composite quality score of 75/100, supported by a Altman Z-Score of 2.6 (grey zone), Piotroski F-Score of 5/9, Return on Invested Capital (ROIC) of 20.6%.
Westlake Chemical Partners LP pays a 8.3% dividend yield, covered by a 22% payout ratio with 0 years of growth, supplemented by a 0.0% buyback yield.
Westlake Chemical Partners LP's current growth trajectory is Accelerating. The company achieved +2.7% 1Y revenue growth and +378.5% 1Y EPS growth, compared to its 3Y revenue CAGR of -9.9%.
Wall Street consensus is Hold based on 10 analysts, beating EPS expectations in 25% of recent quarters with a -1-quarter streak. The consensus price target represents a +28.0% change from current levels.
Investment risks for Westlake Chemical Partners LP include: -20.8% 1-year max drawdown. Volatility risk is characterized by a beta of 0.28x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.