Westlake WLK
United StatesBasic Materials · Specialty ChemicalsUSD
85.62 USD (+39.2%)
16 analysts
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Westlake Corporation is a diversified chemical company that produces and sells basic chemicals, vinyls, and building materials, with integrated operations ranging from raw materials to finished products.
Key points
from its scores- ✓Favourable backdrop7.2
- ✓Attractive dividend7.1
- ✕Little competitive advantage2.1
- ✕Poor share-price trend3.3
- ✕Demanding valuation4.7
AI analysis
bottom line, main risk, context and newsThe company does not offer a clear margin of safety and its leveraged balance sheet makes it vulnerable to a high-rate environment and elevated energy costs.
Westlake shows mediocre financial health (score 5.7) with net debt of 3.58x EBITDA and an operating margin of 11.22%, while its valuation (forward P/E 20.76) is not particularly cheap. Revenue growth of 10.8% is positive, but leverage and sensitivity to European natural gas are the main drags.
High leverage (Net Debt/EBITDA of 3.58) combined with exposure to European natural gas costs and a potentially peak chemical cycle, which could compress margins and make debt servicing difficult.
Context and risks
Westlake is an energy-intensive chemical company and its operating margin (11.22%) is sensitive to the European natural gas cost (TTF), which does not follow crude oil and remains elevated. Additionally, its high leverage (Net Debt/EBITDA of 3.58) exposes it to the tightening of US rates, where the 10-year yield is rising to 5.28%.
Is Westlake stock cheap or expensive?
at the analysis dateOn EV / EBITDA, it trades in line with the Basic Materials median (within 15%).
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| EV / EBITDA | 11.0 | 10.0 | +10% |
| Price / book | 0.9 | 2.3 | −60% |
| Price / sales | 0.7 | 2.2 | −68% |
Sector: median of the 141 Basic Materials companies analysed. In bold, the multiples used for the comparison.
Valuation score: 4.7 out of 10 (median for Basic Materials: 5.8).
Average analyst target: 85.62 USD, +39.2% versus the price.
Classic formulas with standard assumptions (5.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Basic Materials medianValuation
- Forward P/E
- 20.8
- EV / EBITDA
- 11.0
- Price / book
- 0.9
- Price / sales
- 0.7
- PEG
- 1.70
- Market cap
- 7.9B USD
- Enterprise value
- 12.4B USD
Profitability
- ROE
- −11.9%
- ROA
- 0.4%
- ROIC (approx.)
- 8.7%
- Gross margin
- 10.2%
- Operating margin
- 11.2%
- Net margin
- −10.9%
- Free cash flow
- 23.1M USD
- FCF yield
- 0.3%
- Cash conversion
- 2%
Solvency
- Total debt
- 5.9B USD
- Net debt
- 4.0B USD
- Cash
- 1.9B USD
- EBITDA
- 1.1B USD
- Net debt / EBITDA
- 3.58
- Debt / equity
- 63.81
- Current ratio
- 2.45
- Quick ratio
- 1.65
Growth
- Revenue growth
- +10.8%
- EPS (TTM)
- −9.58 USD
- EPS (forward)
- 2.96 USD
Dividend
- Dividend yield
- 3.5%
- Payout
- 69.6%
Risk and market
- Beta
- 0.69
- Analyst consensus
- Buy (16)
- Target price
- 85.62 USD
- 52-week range
- 56.33 – 124.23
Recent news
All WLK news →Compare it with its sector
All 141 in Basic Materials →Frequently asked questions about Westlake
Is Westlake stock cheap or expensive?
On EV / EBITDA, it trades in line with the Basic Materials median (within 15%). Valuation score: 4.7 out of 10 (median for Basic Materials: 5.8). Average analyst target: 85.62 USD, +39.2% versus the price. This is not investment advice.
What score does Westlake get on MeridIAn Screener?
It scores 4.8 out of 10, rank 1,797 of 2,130 (better than 16% of the companies analysed). Its strongest category is Risk & Context (7.2) and its weakest, Quality / Moat (2.1). Analysis of 08/10/2026.
How much is Westlake worth on the stock market?
Its market capitalisation is 7.9B USD and its enterprise value, debt included, is 12.4B USD.
How much debt does Westlake have?
Its net debt (debt minus cash) is 4.0B USD. That is 3.58 times its EBITDA; the Basic Materials median is 1.41.
Does Westlake pay a dividend?
Yes: its dividend yield is 3.46% and it pays out 70% of its earnings.
How has Westlake stock performed over the last year?
It has fallen 16.5% over the last year, excluding dividends. Over the last 52 weeks it has traded between 56.33 and 124.23 USD. Past performance does not guarantee future results.
What do analysts think of Westlake?
16 analysts cover it; their average recommendation is “Buy” and their average target is 85.62 USD (+39.2% versus the price). It is an estimate, not market data.