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Westlake Piotroski F-Score

: 6 (As of Today)
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The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Westlake has an F-score of 6 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Westlake's Piotroski F-Score or its related term are showing as below:

WLK' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 6   Max: 9
Current: 6

During the past 13 years, the highest Piotroski F-Score of Westlake was 9. The lowest was 3. And the median was 6.


Westlake Piotroski F-Score Historical Data

The historical data trend for Westlake's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Westlake Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.00 6.00 4.00 6.00 6.00

Westlake Quarterly Data
Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.00 8.00 7.00 6.00 6.00

Competitive Comparison

For the Specialty Chemicals subindustry, Westlake's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Westlake Piotroski F-Score Distribution

For the Chemicals industry and Basic Materials sector, Westlake's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Westlake's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar22) TTM:Last Year (Mar21) TTM:
Net Income was 522 + 607 + 644 + 756 = $2,529 Mil.
Cash Flow from Operations was 617 + 755 + 757 + 700 = $2,829 Mil.
Revenue was 2859 + 3055 + 3507 + 4056 = $13,477 Mil.
Gross Profit was 872 + 1018 + 1096 + 1285 = $4,271 Mil.
Average Total Assets from the begining of this year (Mar21)
to the end of this year (Mar22) was
(14050 + 14719 + 17108 + 18459 + 19741) / 5 = $16815.4 Mil.
Total Assets at the begining of this year (Mar21) was $14,050 Mil.
Long-Term Debt & Capital Lease Obligation was $5,416 Mil.
Total Current Assets was $5,405 Mil.
Total Current Liabilities was $2,550 Mil.
Net Income was 15 + 57 + 113 + 242 = $427 Mil.

Revenue was 1709 + 1898 + 1965 + 2357 = $7,929 Mil.
Gross Profit was 169 + 248 + 323 + 509 = $1,249 Mil.
Average Total Assets from the begining of last year (Mar20)
to the end of last year (Mar21) was
(14163 + 13555 + 13694 + 13835 + 14050) / 5 = $13859.4 Mil.
Total Assets at the begining of last year (Mar20) was $14,163 Mil.
Long-Term Debt & Capital Lease Obligation was $3,930 Mil.
Total Current Assets was $3,734 Mil.
Total Current Liabilities was $1,326 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Westlake's current Net Income (TTM) was 2,529. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Westlake's current Cash Flow from Operations (TTM) was 2,829. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Mar21)
=2529/14050
=0.18

ROA (Last Year)=Net Income/Total Assets (Mar20)
=427/14163
=0.03014898

Westlake's return on assets of this year was 0.18. Westlake's return on assets of last year was 0.03014898. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Westlake's current Net Income (TTM) was 2,529. Westlake's current Cash Flow from Operations (TTM) was 2,829. ==> 2,829 > 2,529 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Mar22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar21 to Mar22
=5416/16815.4
=0.32208571

Gearing (Last Year: Mar21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar20 to Mar21
=3930/13859.4
=0.28356206

Westlake's gearing of this year was 0.32208571. Westlake's gearing of last year was 0.28356206. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Mar22)=Total Current Assets/Total Current Liabilities
=5405/2550
=2.11960784

Current Ratio (Last Year: Mar21)=Total Current Assets/Total Current Liabilities
=3734/1326
=2.81598793

Westlake's current ratio of this year was 2.11960784. Westlake's current ratio of last year was 2.81598793. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Westlake's number of shares in issue this year was 128.925. Westlake's number of shares in issue last year was 128.483. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=4271/13477
=0.31691029

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1249/7929
=0.15752302

Westlake's gross margin of this year was 0.31691029. Westlake's gross margin of last year was 0.15752302. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Mar21)
=13477/14050
=0.95921708

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Mar20)
=7929/14163
=0.55983902

Westlake's asset turnover of this year was 0.95921708. Westlake's asset turnover of last year was 0.55983902. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+0+0+0+1+1
=6

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Westlake has an F-score of 6 indicating the company's financial situation is typical for a stable company.

Westlake  (NYSE:WLK) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Westlake Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of Westlake's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Westlake Business Description

Westlake logo
Industry
Basic Materials » Chemicals NAICS : 325110 SIC : 2869
Traded in Other Exchanges
Address
2801 Post Oak Boulevard, Suite 600, Houston, TX, USA, 77056
Westlake Corp is a manufacturer and global supplier of chemicals, polymers and building products. Its Performance & Essential Materials segment offers a wide range of essential building blocks for making products utilized in everyday living, including olefins, vinyl chemicals, polyethylene, and epoxies. Its Housing & Infrastructure Products segment produces key finished goods for building products, pipe & fittings, and global compounds businesses.
Executives
Sheets Jeffrey Wayne director 600 N. DAIRY ASHFORD HOUSTON TX 77079
Chao John Tsung-chen director, 10 percent owner 26 GRAMERCY PARK SOUTH, 7EF NEW YORK NY 10003
Chao David Tsung-hung director, 10 percent owner 1000 UPTOWN PARK BLVD. #34 HOUSTON TX 77056
Haas Marius director ONE DELL WAY ROUND ROCK TX 78682
Graff Michael J director 2801 POST OAK BLVD, SUITE 600 HOUSTON TX 77056
Northcutt R Bruce director 2801 POST OAK BLVD, SUITE 600 HOUSTON TX 77056
Jenkins Dorothy C director, 10 percent owner 2801 POST OAK BLVD, SUITE 600 HOUSTON TX 77056
Lubel Kimberly S director P.O. BOX 696000 SAN ANTONIO TX 78269-6000
Mccollum Mark A director 3000 NORTH SAM HOUSTON PARKWAY E. HOUSTON TX 77002
Kearns Roger L. officer: EVP, Vinyls Chemicals 2801 POST OAK BLVD. HOUSTON TX 77056
Zoeller Johnathan Stevan officer: VP and CAO 2801 POST OAK BLVD. SUITE 600 HOUSTON TX 77056
Ttwfgp Llc 10 percent owner 2801 POST OAK BLVD, SUITE 600 HOUSTON TX 77056
Chao Albert director, 10 percent owner, officer: President & CEO 2801 POST OAK BLVD, SUITE 600 HOUSTON TX 77056
Kenner Andrew officer: SVP - Chemical Manufacturing 2801 POST OAK BLVD, SUITE 600 HOUSTON TX 77056
Bender Mark Steven officer: EVP and CFO 2801 POST OAK BLVD, SUITE 600 HOUSTON TX 77056

Westlake Headlines

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