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Westlake Corp (WLK)

Undervalued
Basic MaterialsSpecialty ChemicalsUnited States

Fundamental

36

Price

$62.31

Market Cap

$8.54B

Part 1 · What the company is worth

Overview

Westlake Corporation manufactures and markets performance and essential materials, and housing and infrastructure products in the United States, Canada, Germany, China, Mexico, Brazil, France, Italy, and internationally. It operates through two segments, Performance and Essential Materials and The Housing and Infrastructure Products. The Performance and Essential Materials segment offers ethylene, polyethylene, chlor-alkali, chlorinated derivative products, ethylene dichloride, vinyl chloride monomer, polyvinyl chloride (PVC), epoxy specialty resins, and base epoxy resins and intermediaries. The Housing and Infrastructure Products segment provides residential PVC sidings; PVC trim and mouldings; architectural stone veneers; windows; PVC decking; polymer composite and cement roof tiles; PVC pipes and fittings for various water, sewer, electrical, and industrial applications; and PVC compounds for various housing, medical, and automobile products. This segment also offers consumer and commercial products, such as landscape edging; industrial, home, and office matting; marine dock edging; and masonry joint controls. It offers its products to chemical processors; plastics fabricators; small construction contractors; municipalities; and supply warehouses for use in various consumer and industrial markets, including residential construction, flexible and rigid packaging, automotive products, healthcare products, water treatment, wind turbines, and coatings, as well as other durable and non-durable goods. The company was formerly known as Westlake Chemical Corporation and changed its name to Westlake Corporation in February 2022. Westlake Corporation was founded in 1986 and is headquartered in Houston, Texas. Westlake Corporation is a subsidiary of TTWF LP.

No editorial profile for this company yet

Direct competitors

Who this company fights with for the same customers

No editorial profile for this company yet

No competitor list for this company yet.

Balance Sheet & Liquidity

Revenue

$11.29B

Trailing 12 months (through 6/30/2026)

Net Income

$-1.24B

Trailing 12 months (through 6/30/2026)

Free Cash Flow

$-530M

Total Equity

$8.79B

Total Liabilities

$10.67B

Current Ratio

2.45

Interest Coverage

6.13

Debt/EBITDA

-

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Historical statement

Margins over time

Debt over time

How heavy the debt is

Growth grid

Growth — Revenue

Fair Value Estimation

CyclicalUndervalued

Fair Value

$188.17

Current Price

$62.31

Margin of Safety

+66.9%

Fair Value Range

$122.31 - $254.03

Spread across the valuation methods used, not a statistically calibrated confidence interval.

Estimation Methods

Analyst price target:$92.31
Discounted cash flow (DCF):Not applicable to this type of company
Earnings multiple (P/E):Not enough data to compute it
Graham growth formula:Not applicable to this type of company
Earnings power value (EPV):Not enough data to compute it
Justified P/B:Not applicable to this type of company
Dividend discount (Gordon):Not applicable to this type of company
P/FFO, funds from operations:Not applicable to this type of company
Mid-cycle earnings:$260.06
Revenue multiple:Not applicable to this type of company
Analyst Consensus:Buy (9B / 10H / 1S)
Last Earnings Surprise:+11.99%

Valuation Metrics

P/E Ratio

-

ROE

-17.2%

P/B Ratio

0.91

P/FCF

-

Gross Margin

9.6%

ROIC

-5.8%

Profitability Radar

Value Creation (Economic Moat)

ROIC

-5.8%

WACC

5.9%

ROIC − WACC

-11.6 pp

ROIC is below the cost of capital — the company is destroying value for every dollar invested.

Fundamental Analysis Criteria

Passed (6)

  • P/B Ratio 0.91
  • Debt/Equity ratio
  • Current Ratio
  • Interest Coverage
  • Revenue Growth 5Y 8.3%
  • Share Dilution -0.7%

Failed (14)

  • EPS shows upward trend
  • Price CAGR 2.38%
  • ROIC -5.7%
  • Gross Margin 9.6%
  • Operating Margin -11.0%
  • Positive Free Cash Flow
  • Return on Tangible Assets
  • Low reliance on intangibles
  • DCF valuation (Fairly valued)
  • ROE -13.9%
  • Analyst Consensus 45% Buy
  • Earnings Surprise avg -96.7%
  • Net Margin Trend -10.9% vs -0.6%
  • Piotroski F-Score 3/9

Unavailable (7)

  • P/FCF NaN
  • Dividend Payout NaN%
  • CapEx intensity
  • Debt/EBITDA
  • Price below Graham Number
  • PEG Ratio (need PE > 0 and growth > 0)
  • Earnings Quality (OCF/Net Income)

Piotroski F-Score

3/9

Serious financial concerns

score
criteria

Earnings Quality

-

Low quality: investigate accounting

Share Dilution

-0.7%

Buying back shares. Shareholder friendly

Institutional Holdings

No institutional filings reported for this company.

Governance

Executive Team

NameTitleAge
Mr. Albert Yuan ChaoExecutive Chairman75
Mr. James Y. ChaoSenior Chairman77
Mr. Jean-Marc GilsonPresident, CEO & Director62
Mr. Mark Steven Bender CPASpecial Advisor68
Mr. Jonathan H. BakshtSenior VP & CFO49
Mr. Tommy E. DarbyVP & Chief Accounting Officer44
Mr. Jeffrey A. HolyVice President of Finance & Investor Relations45
Mr. L. Benjamin Ederington J.D.Executive Vice President of Legal & External Affairs54
Mr. Scott T. SzwejbkaSenior VP of Housing & Infrastructure Products Segment Head56
Mr. Brian J PowersSenior VP of Performance & Essential Materials Segment Head-

Audit Risk

7

Board Risk

9

Compensation Risk

2

Shareholder Rights Risk

7

Part 2 · The price and when to enter

This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.

Documents

  • Annual Report (10-K)

    A yearly overview of the business, its financial results, and the risks it faces.

    Filed on 2026-02-26

    View document
  • Quarterly Report (10-Q)

    A snapshot of financial performance for the most recent three-month period.

    Filed on 2026-08-05

    View document
  • Current Report (8-K)

    An announcement of a major event, such as a leadership change or big news.

    Filed on 2026-09-29

    View document

via SEC EDGAR

Income History

via SEC EDGAR

Latest News

Recent headlines for WLK, sourced from Markets Gazette.

  • 5/11/2026POSITIVE
    Top 3 Materials Stocks That May Surge in May

    The materials sector is showing potential buying opportunities in oversold stocks, with Westlake Corporation identified as a prime candidate. Its Relative Strength Index (RSI) is below 30, indicating it is in oversold territory. This suggests that the stock may be undervalued and poised for a rebound. Investors looking for potential gains in May should consider Westlake Corporation as a speculative opportunity, betting on a reversal of recent price declines.

  • 2/24/2026NEUTRAL
    Westlake (WLK) Q4 2025 Earnings Call Transcript

    The financial community awaits the full details from Westlake Corporation's (WLK) Q4 2025 earnings call transcript. While the complete content is not yet available, this event is a critical juncture for investors keen to understand the company's financial performance during the period. Earnings calls are essential for gaining direct insights from management regarding revenues, profits, margins, and crucially, future guidance. Analyzing these data points will allow for an assessment of Westlake's operational health and growth prospects within the chemical and building materials sectors, potentially influencing investment decisions.

  • 2/23/2026NEUTRAL
    Earnings Outlook For Westlake Chemical

    Investor attention is turning to Westlake Chemical (WLK) ahead of its upcoming earnings outlook release. While this announcement lacks specific details, its scheduling signals that crucial guidance is on the horizon, which will likely shape market sentiment toward the stock. Analysts and traders will be closely watching for official communications to gain insight into future performance, raw material cost management, and demand within its key segments, such as polymers and vinyl products. In the absence of concrete data, the current stance is one of watchful waiting. The forthcoming guidance will be pivotal in assessing the stock's trajectory and could trigger significant volatility depending on whether the forecasts beat, meet, or miss market consensus expectations.

via Markets Gazette