Westlake Corporation (WLK) AI Stock Analysis

Westlake Corporation manufactures and supplies petrochemicals, polymers, and building products across two primary segments: Performance and Essential Materials, and Housing and Infrastructure Products. Its Performance and Essential Materials unit produces polyethylene, styrene monomer, ethylene co-products, PVC, VCM, ethylene dichloride, chlor-alkali, and chlorinated derivatives. The Housing and Infrastructure Products unit manufactures residential PVC siding, trim, moldings, roofing applications, decorative stone, windows, PVC decking, films, pipe, and fittings. It also provides consumer and commercial items such as landscape edging and industrial matting, serving chemical processors, plastics fabricators, contractors, municipalities, and packaging, automotive, and healthcare markets.

Between FY2020 and FY2025, Westlake generated a 5-year revenue CAGR of 8.3%, with annual revenue declining from a peak of $15.79B in FY2022 to $11.17B in FY2025. In FY2025, revenue fell 8.0%, gross margin compressed to 2.6%, and operating margin turned to -14.1%, resulting in net income of -$1.51B and EPS of -$0.89. Free cash flow dropped from $306.0M in FY2024 to -$530.0M in FY2025. Over the trailing twelve months, revenue reached $11.29B with an operating margin of 11.2% and EPS of -$9.58. In the latest quarter ended June 30, 2026, quarterly revenue increased 10.8% year-over-year, while quarterly earnings declined 62.3%.

As of June 30, 2026, Westlake held $1.85B in cash and short-term investments against total debt of $5.75B, yielding net debt of $3.90B. Shareholders' equity was $8.71B, resulting in a debt-to-equity ratio of 0.66 and a current ratio of 2.45. Operating cash flow in FY2025 was $465.0M. During FY2025, capital expenditures consumed $995.0M, dividends paid totaled $272.0M, and share buybacks accounted for $63.0M, while the 5-year share count change was -0.1%.

Westlake has a market capitalization of $8.09B and an enterprise value of $12.82B. The stock trades at a forward P/E of 15.0x, above the 13.4x median of its US-listed Basic Materials peers. Its EV to EBITDA stands at 154.4x, compared to the peer group median of 10.5x, while its price-to-sales ratio of 0.7x sits below the peer median of 1.8x. Over the past year, WLK shares declined 14.5%, underperforming the S&P 500 return of 16.8%. Over a 5-year span, the stock fell 29.5%, compared to an 83.0% gain for the benchmark index.

Westlake pays a quarterly dividend totaling an annual forward dividend of $2.13 per share, representing a 3.37% dividend yield. The company has paid dividends for 23 consecutive years, with a 5-year annualized dividend growth rate of 14.6%. In FY2025, total dividends paid were $272.0M, and the stock traded with a payout ratio of 3.0%.

Wall Street coverage consists of 4 Strong Buy, 2 Buy, 10 Hold, and 1 Sell ratings. The mean price target of $81.65 implies an upside of 28.9% above the last close of $63.33. For the fiscal year ending December 31, 2026, analysts estimate EPS of $2.46 on revenue of $11.65B. For the subsequent year, 14 analysts project EPS of $2.66 and revenue of $11.89B. Westlake beat EPS estimates in 2 of the last 4 quarters, with its next earnings report scheduled for October 29, 2026.

This page is an AI-written research summary of Westlake Corporation (WLK). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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