Westlake (LTS:0LVK) Operating Margin %: -5.81% (As of Mar. 2026)


LTS:0LVK Westlake Corp LTS:0LVK
74 GF Score
Price $74.57
GF Value $104.70
Valuation Modestly Undervalued
! 4 Warning Signs
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What is Westlake Operating Margin %?

Westlake LTS:0LVK -2.32% 74 Operating Margin % is -5.81% as of Mar. 2026. GuruFocus rates LTS:0LVK with a GF Score™ of 74/100 and a GF Value™ of $104.70 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,580 Chemicals companies, Westlake ranks worse than 83.99% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. Westlake's Operating Income for the three months ended in Mar. 2026 was $-154 Mil. Westlake's Revenue for the three months ended in Mar. 2026 was $2,652 Mil. Therefore, Westlake's Operating Margin % for the quarter that ended in Mar. 2026 was -5.81%.

The historical rank and industry rank for Westlake's Operating Margin % or its related term are showing as below:

LTS:0LVK' s Operating Margin % Range Over the Past 10 Years
Min: -3.1   Med: 11.68   Max: 24.15
Current: -3.1


LTS:0LVK's Operating Margin % is ranked worse than
83.99% of 1580 companies
in the Chemicals industry
Industry Median: 6.015 vs LTS:0LVK: -3.10

Westlake's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

Westlake's Operating Income for the three months ended in Mar. 2026 was $-154 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $-340 Mil.


Westlake  (LTS:0LVK) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Westlake Operating Margin % Related Terms


Westlake Operating Margin % Historical Data

* Premium members only.

The historical data trend for Westlake's Operating Margin % 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.

Westlake Operating Margin % Chart

Westlake Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 24.15 19.68 9.82 7.96 -1.89

Westlake Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Operating Margin % Get a 7-Day Free Trial 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 -0.88 0.20 -0.78 -6.71 -5.81

LTS:0LVK vs ESI, EMN, AXTA: Operating Margin % Comparison

For the Specialty Chemicals subindustry, Westlake's Operating Margin %, along with its competitors' market caps and Operating Margin % 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 Operating Margin % vs Chemicals Industry

For the Chemicals industry and Basic Materials sector, Westlake's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Westlake's Operating Margin % falls into.


LTS:0LVK
74GF Score
Westlake Corp LTS:0LVK
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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Westlake Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Westlake's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as

Operating Margin %=Operating Income (A: Dec. 2025 ) / Revenue (A: Dec. 2025 )
=-211 / 11170
=-1.89 %

Westlake's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as

Operating Margin %=Operating Income (Q: Mar. 2026 ) / Revenue (Q: Mar. 2026 )
=-154 / 2652
=-5.81 %

* 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.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of -5.81% mean?
Westlake (LTS:0LVK) has a Operating Margin % of -5.81% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Westlake and its competitors. According to the industry distribution chart, Westlake ranks #1327 out of 1580 companies in the Chemicals industry, placing it in the top 84%.
Is Westlake's Operating Margin % too high?
Westlake's current Operating Margin % is -5.81%. Based on the distribution chart, Westlake ranks #1327 out of 1580 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, Westlake has a GF Score™ of 74/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Westlake's Operating Margin % compare to ESI and EMN?
According to the Chemicals industry distribution chart, Westlake ranks #1327 out of 1580 companies for Operating Margin %. This places Westlake in the lower half of its industry. The industry median Operating Margin % is 6.02. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Chemicals company?
The median Operating Margin % among Chemicals companies is 6.02, based on 1,580 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Westlake and its competitors. For the Chemicals industry, the median Operating Margin % is 6.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Westlake's current Operating Margin % is -5.81%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Westlake stock overvalued right now?
Based on GuruFocus' analysis, Westlake (LTS:0LVK) is currently considered Modestly Undervalued. The stock's GF Value™ is $104.70, compared to a current price of $74.57 — trading 28.8% below its estimated fair value. The current Operating Margin % is -5.81%. Westlake's overall GF Score™ is 74/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Westlake (LTS:0LVK), the current Operating Margin % is -5.81% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Westlake (LTS:0LVK) Overvalued in 2026?

Based on GuruFocus' analysis, Westlake stock appears to be undervalued. The current stock price of $74.57 is trading 28.8% below its estimated GF Value™ of $104.70. GuruFocus considers Westlake to be Modestly Undervalued.

Key valuation signals for LTS:0LVK:

  • Operating Margin %: -5.81%
  • GF Value™: $104.70 vs. price of $74.57 (28.8% below fair value)
  • GF Score™: 74/100 with 4 warning signs

No single metric tells the full story. See the LTS:0LVK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Westlake Business Description

Address 2801 Post Oak Boulevard, Suite 600, Houston, TX, USA, 77056
Westlake is a forward-integrated commodity chemicals firm based in Houston. It began as a single low-density polyethylene plant and expanded its capabilities to include ethylene, vinyl chloride monomers, and polyvinyl chloride over the next two decades. The acquisition of Axiall in 2016 made it a North American leader in chlor-alkali and PVC. Today, Westlake has two defined segments: performance and essential materials, and housing and infrastructure products. The HIP segment began operating in 2022 following a series of acquisitions in the building products space. The firm aims to maximize the value of its chemical production by integrating with the HIP segment, realizing the higher margins of finished commercial goods.
74GF Score

Get the complete analysis for LTS:0LVK

Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$74.57
Price
$104.70
GF Value