Westlake Corporation Common Stock (WLK)

FairStock Score: 37/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett/Graham-style investor, I start with what Westlake is: a specialty chemicals and housing/infrastructure manufacturer. The filed record shows real cyclicality. In fiscal 2023, the year ended 2023-12-31, it earned $479.0M on $12.5B revenue; in fiscal 2024, the year ended 2024-12-31, net income was $602.0M on $12.1B revenue. Then fiscal 2025, the year ended 2025-12-31, turned ugly: revenue fell to $11.2B and net income was a loss of $1.5B, or -$11.70 per diluted share. The latest filed quarter, fiscal Q2 2026, the quarter ended 2026-06-30, was better: revenue of $3.3B and net income of $260.0M, or $2.01 per diluted share. Still, trailing free cash flow is -$265.0M and FCF yield is -3.4%, so the 3.09% dividend yield is not currently covered by internally generated cash. At the 2026-10-13 close of $61.86, the FairStock P/B is 0.91, which is below book, but P/E is -6.46 because EPS is -$9.58. ROCE is only 0.37%, ROE is -11.91%, and EV/EBITDA is 146.25, showing how depressed earnings and EBITDA are. The Piotroski F-Score of 9/9 is a positive sign of accounting improvement, but Altman Z-Score of 1.53 suggests financial stress. Debt/equity of 0.64 is manageable but not trivial. FairStock classifies this as a TURNAROUND, with a loss in the latest year after earlier profits. I see a low-beta, asset-backed cyclical with recovery potential, but no durable moat is evident at these returns. Price is not expensive on assets, but the business must prove normalized cash earnings before it can be called a true value.

In plain English: Westlake makes chemicals and products used in housing and infrastructure. The business has been weak lately: it lost a lot of money in fiscal 2025 and used more cash than it brought in over the past year, though the most recent quarter showed a profit. The stock price looks low compared with the company's accounting net assets, but weak profits and debt make it hard to call it a clear bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer