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

FairStock Score: 68/100 — STEADY

Key Financials

AI Analysis

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

I look for a business I can understand, run by able people, at a sensible price. Westlake Chemical Partners is an ethylene producer: it takes ethane and turns it into ethylene and co-products. Ethylene is a commodity, so pricing power is limited. That shows in the figures. In fiscal 2025, revenue was about $1.2 billion and net income was $48.7 million, down from $62.4 million in fiscal 2024. In the latest quarter, fiscal Q2 2026, revenue was $297.1 million and net income was $14.2 million, roughly flat against fiscal Q2 2025's $297.1 million revenue and $14.6 million net income. The partnership does throw off cash: trailing free cash flow is $409.1 million, a 55.0% yield on the $743.7 million market cap. That is striking, but I ask whether it is sustainable and whether it belongs to common units after capital needs and distributions. The balance sheet has debt-to-equity of 0.52, and an Altman Z-Score of 1.59 suggests some financial fragility. At the 2026-10-13 close of $21.10, FairStock's P/E is 12.87, P/B 1.50, EV/EBITDA 2.45, and dividend yield 8.89%. The Graham Number is $16.30, so the price is about 29.45% above that conservative benchmark. ROE is 41.80% and ROCE is 17.61%, which look strong. FairStock scores it 68/100 and classifies it as cyclical chemicals because earnings follow the economic cycle. I would call it a high-yield, cash-generative but cyclical partnership, not a wide-moat compounder; the price offers some cash-flow appeal but not a Graham margin of safety.

In plain English: Westlake Chemical Partners LP owns plants that turn ethane into ethylene, a building block for plastics, and sells related byproducts. The business is profitable and generates a lot of cash, but filed results show profit slipped from fiscal 2024 to fiscal 2025 and was roughly flat in the latest quarter. At $21.10, the price looks cheaper than cash flow but more expensive than a conservative asset-and-earnings measure, so it looks mixed rather than clearly cheap.

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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