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Why Fundamental Investors Love Westlake Chemical Partners LP (NYSE:WLKP)

Westlake Chemical Partners LP (NYSE:WLKP) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of WLKP, it is a financially-sound company with a a excellent growth outlook, not yet priced into the stock. Below, I’ve touched on some key aspects you should know on a high level. If you’re interested in understanding beyond my high-level commentary, read the full report on Westlake Chemical Partners here.

Very undervalued with reasonable growth potential and pays a dividend

WLKP’s share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. Investors have the opportunity to buy into the stock to reap capital gains, if WLKP’s projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Compared to the rest of the chemicals industry, WLKP is also trading below its peers, relative to earnings generated. This further reaffirms that WLKP is potentially undervalued.

NYSE:WLKP Future Profit Jun 20th 18
NYSE:WLKP Future Profit Jun 20th 18

WLKP’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that WLKP has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. WLKP appears to have made good use of debt, producing operating cash levels of 1.04x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

NYSE:WLKP Historical Debt Jun 20th 18
NYSE:WLKP Historical Debt Jun 20th 18

Next Steps:

For Westlake Chemical Partners, I’ve compiled three relevant factors you should look at:

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  1. Historical Performance: What has WLKP’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

  2. Dividend Income vs Capital Gains: Does WLKP return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from WLKP as an investment.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of WLKP? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.