Westlake Chemical Partners LP Common Units representing limited partner interests (WLKP)

FairStock Score: 68/100 — STEADY

Key Financials

Strengths

• Generates $314 million in annual free cash flow (39.8% yield on market cap)
• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• High return on equity of 36.6% demonstrating efficient capital deployment
• Attractive 8.4% dividend yield providing steady income returns

Concerns

• Altman Z-Score of 1.6 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Westlake Chemical Partners LP Common Units representing limited partner interests is a micro-cap basic materials company valued at $790 million. Revenue stands at $1.2 billion. From a quality standpoint, Westlake shows solid Piotroski F-Score of 7/9 and distressed Altman Z-Score of 1.6 warrants caution. On valuation, the stock is reasonably priced at 16.3x earnings, with trades above its Graham Number with a negative 48% margin. Growth dynamics show revenue growing at 11.4% and profit growth of -3.0%. The 8.4% dividend yield adds an income component for patient holders. Our composite FairStock Score of 68/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $314 million in annual free cash flow (39.8% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the basic materials space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer