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Westlake Chemical Piotroski F-Score

: 7 (As of Today)
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Good Sign:

Piotroski F-Score is 7, indicating very healthy situation.

The zones of discrimination were as such:

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

Westlake Chemical has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

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

NYSE:WLK' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 5   Max: 9
Current: 7

3
9

During the past 13 years, the highest Piotroski F-Score of Westlake Chemical was 9. The lowest was 3. And the median was 5.


Westlake Chemical Piotroski F-Score Historical Data

The historical data trend for Westlake Chemical'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 Chemical Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.00 7.00 6.00 4.00 6.00

Westlake Chemical Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
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 6.00 5.00 8.00 7.00

Competitive Comparison

For the Specialty Chemicals subindustry, Westlake Chemical'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 Chemical Piotroski F-Score Distribution

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

* The bar in red indicates where Westlake Chemical'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 (Sep21) TTM:Last Year (Sep20) TTM:
Net Income was 113 + 242 + 522 + 607 = $1,484 Mil.
Cash Flow from Operations was 431 + 265 + 617 + 755 = $2,068 Mil.
Revenue was 1965 + 2357 + 2859 + 3055 = $10,236 Mil.
Gross Profit was 323 + 509 + 872 + 1018 = $2,722 Mil.
Average Total Assets from the begining of this year (Sep20)
to the end of this year (Sep21) was
(13694 + 13835 + 14050 + 14719 + 17108) / 5 = $14681.2 Mil.
Total Assets at the begining of this year (Sep20) was $13,694 Mil.
Long-Term Debt & Capital Lease Obligation was $5,321 Mil.
Total Current Assets was $6,435 Mil.
Total Current Liabilities was $1,898 Mil.
Net Income was 72 + 145 + 15 + 57 = $289 Mil.

Revenue was 1883 + 1932 + 1709 + 1898 = $7,422 Mil.
Gross Profit was 250 + 283 + 169 + 248 = $950 Mil.
Average Total Assets from the begining of last year (Sep19)
to the end of last year (Sep20) was
(13107 + 13261 + 14163 + 13555 + 13694) / 5 = $13556 Mil.
Total Assets at the begining of last year (Sep19) was $13,107 Mil.
Long-Term Debt & Capital Lease Obligation was $4,054 Mil.
Total Current Assets was $3,381 Mil.
Total Current Liabilities was $1,218 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 Chemical's current Net Income (TTM) was 1,484. ==> 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 Chemical's current Cash Flow from Operations (TTM) was 2,068. ==> 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 (Sep20)
=1484/13694
=0.10836863

ROA (Last Year)=Net Income/Total Assets (Sep19)
=289/13107
=0.02204929

Westlake Chemical's return on assets of this year was 0.10836863. Westlake Chemical's return on assets of last year was 0.02204929. ==> 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 Chemical's current Net Income (TTM) was 1,484. Westlake Chemical's current Cash Flow from Operations (TTM) was 2,068. ==> 2,068 > 1,484 ==> 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: Sep21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep20 to Sep21
=5321/14681.2
=0.36243631

Gearing (Last Year: Sep20)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep19 to Sep20
=4054/13556
=0.29905577

Westlake Chemical's gearing of this year was 0.36243631. Westlake Chemical's gearing of last year was 0.29905577. ==> 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: Sep21)=Total Current Assets/Total Current Liabilities
=6435/1898
=3.39041096

Current Ratio (Last Year: Sep20)=Total Current Assets/Total Current Liabilities
=3381/1218
=2.77586207

Westlake Chemical's current ratio of this year was 3.39041096. Westlake Chemical's current ratio of last year was 2.77586207. ==> This year's current ratio is higher. ==> Score 1.

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 Chemical's number of shares in issue this year was 128.766. Westlake Chemical's number of shares in issue last year was 127.954. ==> 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
=2722/10236
=0.26592419

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=950/7422
=0.12799784

Westlake Chemical's gross margin of this year was 0.26592419. Westlake Chemical's gross margin of last year was 0.12799784. ==> 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 (Sep20)
=10236/13694
=0.74748065

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Sep19)
=7422/13107
=0.5662623

Westlake Chemical's asset turnover of this year was 0.74748065. Westlake Chemical's asset turnover of last year was 0.5662623. ==> 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+1+0+1+1
=7

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

Westlake Chemical has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

Westlake Chemical  (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 Chemical Piotroski F-Score Related Terms

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


Westlake Chemical Business Description

Westlake Chemical 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 Chemical Corp is a vertically integrated manufacturer and marketer of basic chemicals, vinyls, polymers and building products. Its products are used for flexible and rigid packaging, automotive products, coatings, water treatment, refrigerants, residential and commercial construction and others. The company operates in the business segments of Olefins and Vinyls. The Olefins segment manufactures and markets polyethylene, styrene monomer and various ethylene co-products. The Vinyl segment manufactures and markets polyvinyl chloride, vinyl chloride monomer, ethylene dichloride, chlor-alkali, chlorinated derivative products, and ethylene. It sells products across the United States and around the world, of which a majority of the revenue is derived from the United States.
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 Chemical Headlines

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