Westlake Chemical Partners LPWLKP -0.18%85 Operating Margin % is 28.32% as of Mar. 2026, which is 12% below its 10-year median of 32.00. GuruFocus rates WLKP with a GF Score™ of 85/100 and a GF Value™ of $24.08 (Fairly Valued). The stock has 8 warning signs investors should review. Among 1,584 Chemicals companies, Westlake Chemical Partners LP ranks better than 97.6% on this metric.
Westlake Chemical Partners LP (NYSE:WLKP) 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 Nokias 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 Chemical Partners LP Operating Margin % Related Terms
Westlake Chemical Partners LP Operating Margin % Historical Data
* 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 Chemical Partners LP Operating Margin % Chart
WLKP vs LXU, ASPI, RYAM: Operating Margin % Comparison
For the Chemicals subindustry, Westlake Chemical Partners LP'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 Chemical Partners LP Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Westlake Chemical Partners LP's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Westlake Chemical Partners LP's Operating Margin % falls into.
Westlake Chemical Partners LP 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.
* 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 Chemical Partners LP (WLKP) has a Operating Margin % of 28.32% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Westlake Chemical Partners LP and its competitors. This is 12% below median its historical median of 32.00. Over the past decade, Westlake Chemical Partners LP's Operating Margin % has ranged from 21.82 to 37.14. According to the industry distribution chart, Westlake Chemical Partners LP ranks #38 out of 1584 companies in the Chemicals industry, placing it in the top 2.4%.
Is Westlake Chemical Partners LP's Operating Margin % too high?
Westlake Chemical Partners LP's current Operating Margin % of 28.32% is 12% below median its 10-year median of 32.00. Over the past 10 years, this metric has ranged from a low of 21.82 to a high of 37.14. The Chemicals industry median Operating Margin % is 6.03. Westlake Chemical Partners LP's value of 28.32% is 370% above this industry median. Based on the distribution chart, Westlake Chemical Partners LP ranks #38 out of 1584 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Westlake Chemical Partners LP has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Westlake Chemical Partners LP's Operating Margin % compare to LXU and ASPI?
According to the Chemicals industry distribution chart, Westlake Chemical Partners LP ranks #38 out of 1584 companies for Operating Margin %. This places Westlake Chemical Partners LP in the top 2% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.03. Westlake Chemical Partners LP's value of 28.32% is 370% above this benchmark. Historically, Westlake Chemical Partners LP's own Operating Margin % has ranged from 21.82 to 37.14 over the past decade. While the company's 10-year median is 32.00 vs. the industry median of 6.03, Westlake Chemical Partners LP has consistently been above the industry average. 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 6.03, based on 1,584 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. Westlake Chemical Partners LP's current Operating Margin % of 28.32% is 370% above the industry median. 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 Chemical Partners LP and its competitors. For the Chemicals industry, the median Operating Margin % is 6.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Westlake Chemical Partners LP's current Operating Margin % is 28.32%, which is 12% below median its own 10-year median of 32.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Westlake Chemical Partners LP stock overvalued right now?
Based on GuruFocus' analysis, Westlake Chemical Partners LP (WLKP) is currently considered Fairly Valued. The stock's GF Value™ is $24.08, compared to a current price of $22.65 — trading 5.9% below its estimated fair value. The current Operating Margin % is 28.32%, which is 12% below median its 10-year median of 32.00 and 370% above the Chemicals industry median of 6.03. Westlake Chemical Partners LP's overall GF Score™ is 85/100 with 8 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 Chemical Partners LP (WLKP), the current Operating Margin % is 28.32% 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 Chemical Partners LP (WLKP) Overvalued in 2026?
Based on GuruFocus' analysis, Westlake Chemical Partners LP stock appears to be undervalued.
The current stock price of $22.65 is trading 5.9% below its estimated GF Value™ of $24.08.
GuruFocus considers Westlake Chemical Partners LP to be Fairly Valued.
Key valuation signals for WLKP:
Operating Margin %: 28.32% (12% below median its 10-year median of 32.00)
GF Value™: $24.08 vs. price of $22.65 (5.9% below fair value)
Industry Position: 370% above the Chemicals median (#38 of 1584)
No single metric tells the full story. See the WLKP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Westlake Chemical Partners LP Business Description
Westlake Chemical Partners LP is a part of the chemical industry in the United States. Its operations are conducted through OpCo, it acquires and develops ethylene production facilities, which convert ethane into ethylene. OpCo sells ethylene and its co-products, such as propylene, crude butadiene, pyrolysis gasoline, and hydrogen, to Westlake and other customers located in the United States. Its assets include three ethylene production facilities in Calvert City, Kentucky, and Lake Charles, Louisiana.
85GF Score
Get the complete analysis for WLKP
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
WLKP has been successfully added to your 
