Westlake Chemical Stock Buy Hold or Sell Recommendation
| WLK Stock | USD 149.90 0.54 0.36% |
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Westlake Chemical is 'Strong Hold'. Macroaxis provides Westlake Chemical buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding WLK positions. The advice algorithm takes into account all of Westlake Chemical's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Westlake Chemical's buy or sell advice are summarized below:
Real Value 124.55 | Target Price 134.71 | Hype Value 149.36 | Market Value 149.9 | Naive Value 144.95 |
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Westlake Chemical given historical horizon and risk tolerance towards Westlake Chemical. When Macroaxis issues a 'buy' or 'sell' recommendation for Westlake Chemical, the advice is generated through an automated system that utilizes algorithms and statistical models.
Westlake |
Execute Westlake Chemical Buy or Sell Advice
The Westlake recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Westlake Chemical. Macroaxis does not own or have any residual interests in Westlake Chemical or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Westlake Chemical's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Hold
Market Performance | Modest | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Moves indifferently to market moves | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unavailable | Details |
Westlake Chemical Trading Alerts and Improvement Suggestions
| About 73.0% of the company outstanding shares are owned by insiders | |
| On 14th of March 2024 Westlake Chemical paid $ 0.5 per share dividend to its current shareholders | |
| Latest headline from simplywall.st: Is Westlake Corporations Recent Stock Performance Influenced By Its Financials In Any Way |
Westlake Chemical Returns Distribution Density
The distribution of Westlake Chemical's historical returns is an attempt to chart the uncertainty of Westlake Chemical's future price movements. The chart of the probability distribution of Westlake Chemical daily returns describes the distribution of returns around its average expected value. We use Westlake Chemical price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Westlake Chemical returns is essential to provide solid investment advice for Westlake Chemical.
| Mean Return | 0.14 | Value At Risk | -2.73 | Potential Upside | 2.47 | Standard Deviation | 1.80 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Westlake Chemical historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Westlake Stock Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Westlake Chemical is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Westlake Chemical backward and forwards among themselves. Westlake Chemical's institutional investor refers to the entity that pools money to purchase Westlake Chemical's securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Goldman Sachs Group Inc | 2023-09-30 | 705.5 K | Mirae Asset Global Investments (korea) Co Ltd | 2023-09-30 | 682.8 K | Nuveen Asset Management, Llc | 2023-09-30 | 518.7 K | Geode Capital Management, Llc | 2023-09-30 | 474.1 K | First Trust Advisors L.p. | 2023-12-31 | 411.8 K | Samlyn Capital, Llc | 2023-12-31 | 393.3 K | Bank Of New York Mellon Corp | 2023-09-30 | 375.3 K | Norges Bank | 2023-12-31 | 364.1 K | Charles Schwab Investment Management Inc | 2023-09-30 | 344.6 K | Fmr Inc | 2023-09-30 | 4.6 M | Blackrock Inc | 2023-09-30 | 3.5 M |
Westlake Chemical Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change In Cash | (25M) | 587M | 604M | 305M | 1.1B | 1.1B | |
| Free Cash Flow | 514M | 772M | 1.7B | 2.3B | 1.3B | 1.4B | |
| Depreciation | 713M | 773M | 840M | 1.1B | 1.1B | 1.2B | |
| Other Non Cash Items | 50M | 54M | 44M | 51M | 560M | 588M | |
| Capital Expenditures | 787M | 525M | 658M | 1.1B | 1.0B | 1.1B | |
| Net Income | 462M | 373M | 2.1B | 2.3B | 479M | 553.7M | |
| End Period Cash Flow | 750M | 1.3B | 1.9B | 2.2B | 3.3B | 3.5B | |
| Change To Inventory | 112M | 29M | (309M) | (140M) | 250M | 262.5M | |
| Dividends Paid | 132M | 137M | 145M | 169M | 221M | 232.1M | |
| Investments | (2.0B) | 44M | (24M) | (2.5B) | (1.1B) | (1.0B) | |
| Change Receivables | 59M | (161M) | (528M) | 325M | 292.5M | 307.1M | |
| Net Borrowings | 786M | 28M | 1.7B | (250M) | (287.5M) | (273.1M) | |
| Change To Netincome | 129M | 229M | 98M | 66M | 75.9M | 42.8M |
Westlake Chemical Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Westlake Chemical or Chemicals sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Westlake Chemical's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Westlake stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over NYSE Composite | -0 | |
β | Beta against NYSE Composite | 1.48 | |
σ | Overall volatility | 1.80 | |
Ir | Information ratio | 0.02 |
Westlake Chemical Volatility Alert
Westlake Chemical has relatively low volatility with skewness of -1.32 and kurtosis of 4.88. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Westlake Chemical's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Westlake Chemical's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Westlake Chemical Fundamentals Vs Peers
Comparing Westlake Chemical's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Westlake Chemical's direct or indirect competition across all of the common fundamentals between Westlake Chemical and the related equities. This way, we can detect undervalued stocks with similar characteristics as Westlake Chemical or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Westlake Chemical's fundamental indicators could also be used in its relative valuation, which is a method of valuing Westlake Chemical by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Westlake Chemical to competition |
| Fundamentals | Westlake Chemical | Peer Average |
| Return On Equity | 0.0492 | -0.31 |
| Return On Asset | 0.037 | -0.14 |
| Profit Margin | 0.04 % | (1.27) % |
| Operating Margin | (0.02) % | (5.51) % |
| Current Valuation | 22.05 B | 16.62 B |
| Shares Outstanding | 128.51 M | 571.82 M |
| Shares Owned By Insiders | 73.46 % | 10.09 % |
| Shares Owned By Institutions | 28.44 % | 39.21 % |
| Number Of Shares Shorted | 1.51 M | 4.71 M |
| Price To Earning | 4.53 X | 28.72 X |
| Price To Book | 1.93 X | 9.51 X |
| Price To Sales | 1.57 X | 11.42 X |
| Revenue | 12.55 B | 9.43 B |
| Gross Profit | 4.07 B | 27.38 B |
| EBITDA | 2.33 B | 3.9 B |
| Net Income | 479 M | 570.98 M |
| Cash And Equivalents | 2.23 B | 2.7 B |
| Cash Per Share | 13.94 X | 5.01 X |
| Total Debt | 4.91 B | 5.32 B |
| Debt To Equity | 0.52 % | 48.70 % |
| Current Ratio | 2.48 X | 2.16 X |
| Book Value Per Share | 79.88 X | 1.93 K |
| Cash Flow From Operations | 2.34 B | 971.22 M |
| Short Ratio | 3.91 X | 4.00 X |
| Earnings Per Share | 3.70 X | 3.12 X |
| Price To Earnings To Growth | 1.59 X | 4.89 X |
| Target Price | 153.39 | |
| Number Of Employees | 15.52 K | 18.84 K |
| Beta | 1.31 | -0.15 |
| Market Capitalization | 19.19 B | 19.03 B |
| Total Asset | 21.04 B | 29.47 B |
| Retained Earnings | 10.14 B | 9.33 B |
| Working Capital | 3.82 B | 1.48 B |
Note: Acquisition by Johnathan Zoeller of 293 shares of Westlake Chemical at 86.5379 subject to Rule 16b-3 [view details]
Westlake Chemical Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Westlake . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Westlake Chemical Buy or Sell Advice
When is the right time to buy or sell Westlake Chemical? Buying financial instruments such as Westlake Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.| 2021 | 2022 | 2023 | 2024 (projected) | Total Stockholder Equity | 8.0B | 9.9B | 10.2B | 10.8B | Total Assets | 18.5B | 20.6B | 21.0B | 22.1B |
Use Investing Ideas to Build Portfolios
In addition to having Westlake Chemical in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Chemicals Makers Thematic Idea Now
Chemicals Makers
Companies developing chemicals for crops, soil as well as human, and animals. The Chemicals Makers theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Chemicals Makers Theme or any other thematic opportunities.
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Check out Westlake Chemical Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For more information on how to buy Westlake Stock please use our How to buy in Westlake Stock guide.You can also try the AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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Is Westlake Chemical's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Westlake Chemical. If investors know Westlake will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Westlake Chemical listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.29) | Dividend Share 1.714 | Earnings Share 3.7 | Revenue Per Share 98.18 | Quarterly Revenue Growth (0.14) |
The market value of Westlake Chemical is measured differently than its book value, which is the value of Westlake that is recorded on the company's balance sheet. Investors also form their own opinion of Westlake Chemical's value that differs from its market value or its book value, called intrinsic value, which is Westlake Chemical's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Westlake Chemical's market value can be influenced by many factors that don't directly affect Westlake Chemical's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Westlake Chemical's value and its price as these two are different measures arrived at by different means. Investors typically determine if Westlake Chemical is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Westlake Chemical's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.