Stock Updates

Is this Large Market Cap Stock target price reasonable for Westlake Chemical Corp. (NYSE:WLK)?

The company in question is, Westlake Chemical Corp. (NYSE:WLK) currently with a stock price of 52.69 (-1.00% today). The market cap for Westlake Chemical Corp. is 6964.37, and is in the sector Basic Materials, and Specialty Chemicals industry. The target price for Westlake Chemical Corp. is 56.9. Currently Westlake Chemical Corp. is trading with a P/E of 13.28, and a forward P/E of 12.57. Average volume for Westlake Chemical Corp. is 1048.88 and so far today it is 246509.

Performance in the last year for Westlake Chemical Corp. has been -9.25%. For EPS growth, Westlake Chemical Corp. has seen a growth of -4.10%, and is looking to grow in the next year to 13.79%. More long term stats show that EPS growth has been 23.80% over the last five years and could be 8.00% for the next five years. Westlake Chemical Corp. has seen sales growth quarter over quarter at -8.30%, with EPS growth quarter over quarter at -44.70%. The 20-day simple moving average is 3.70%, with the 200-day simple moving average coming to 13.11%.

Since the IPO date for Westlake Chemical Corp. on the 08/12/2004, Westlake Chemical Corp. has seen performance year to date to be -0.81%. With Westlake Chemical Corp. trading at 52.69, the dividend yield is 1.43%, and the EPS is 4.01.

So could Westlake Chemical Corp., be undervalued? Well as said before P/E is 13.28. The PEG is 1.66, P/S is 1.64 and the P/B is at 2.01. The P/cash is 6.2, with P/free cash flow at 20.26.

Westlake Chemical Corp. ability to deal with debt shows that the current ratio is 3.5, and the quick ratio is 2.8. This is with long term debt/equity at 0.22, and total debt/equity at 0.22.

In terms of margins, Westlake Chemical Corp. has a gross margin of 24.70%, an operating margin of 19.30% and a profit margin of 12.40%.Payout ratio for Westlake Chemical Corp. is 18.00%. Return on assets come to 9.20% with return on investment coming to 16.80%.

Insider ownership for Westlake Chemical Corp., is at 0.10% and institutional ownership comes to 31.50%. Outstanding shares are at 130.86. While shares float is 36.16. The float short is currently 9.44%, and short ratio is 3.25.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Stephen Butters

Leave a Comment