WESTLAKE CHEMICAL Reports 27.5% Revenue Drop in FY2023 Q2
August 12, 2023
🌧️Earnings Overview
Westlake Chemical ($NYSE:WLK)’s second quarter of FY2023, ended June 30 2023, reported total revenue of USD 3251.0 million, representing a decrease of 27.5% from the same period in the prior year. Net income for this same period was USD 297.0 million, a decrease of 65.4% from the corresponding period in the previous year.
Analysis
GoodWhale has performed an analysis of WESTLAKE CHEMICAL‘s wellbeing. According to Star Chart, WESTLAKE CHEMICAL is strong in dividend, growth, and medium in asset, profitability. It has a high health score of 9/10 considering its cashflows and debt, which suggests that it is capable to safely ride out any crisis without the risk of bankruptcy. WESTLAKE CHEMICAL is classified as ‘rhino’, a type of company that has achieved moderate revenue or earnings growth. This makes it an attractive investment opportunity for investors who are looking for mid-term returns with low risk. Those who are looking for long-term growth may find this company a great fit due to its consistent performance over the years. Additionally, those who are looking for stable dividend payments may also find this stock attractive as dividend yield is strong. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Westlake Chemical. More…
| Total Revenues | Net Income | Net Margin |
| 13.86k | 1.31k | 9.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Westlake Chemical. More…
| Operations | Investing | Financing |
| 2.85k | -1.18k | -341 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Westlake Chemical. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 20.98k | 9.9k | 82.58 |
Key Ratios Snapshot
Some of the financial key ratios for Westlake Chemical are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 22.2% | 51.6% | 13.5% |
| FCF Margin | ROE | ROA |
| 12.5% | 11.2% | 5.6% |
Peers
Westlake Corp is one of the leading producers of petrochemicals and synthetic resins in the world. The company has a strong foothold in the Asia-Pacific region and has significant operations in China, Japan, and South Korea. Westlake’s competitors include Sankyo Kasei Corp, NOF Corp, and Shikoku Chemicals Corp.
– Sankyo Kasei Corp ($TSE:8138)
Sankyo Kasei Corp is a Japanese company with a market cap of 4.24B as of 2022. The company has a Return on Equity of 1.69%. Sankyo Kasei Corp is involved in the manufacturing of chemicals, pharmaceuticals, and other products.
– NOF Corp ($TSE:4403)
NOF Corp is a Japanese chemical company with a market cap of 425.07B as of 2022. The company has a Return on Equity of 12.06%. NOF Corp is a leading manufacturer of chemicals, plastics, and other materials. The company’s products are used in a wide variety of industries, including automotive, electronics, and construction. NOF Corp is a publicly traded company on the Tokyo Stock Exchange.
– Shikoku Chemicals Corp ($TSE:4099)
Shikoku Chemicals Corp is a Japanese chemical company with a market cap of 67.17B as of 2022. The company has a Return on Equity of 7.74%. Shikoku Chemicals Corp is engaged in the manufacture and sale of chemicals and related products. The company’s products include plastics, resins, pigments, dyes, and other chemicals.
Summary
Investors should take note of Westlake Chemical‘s FY2023 Q2 earnings report, which showed a 27.5% decrease in total revenue and a 65.4% drop in net income compared to the same period in the prior year. This marks the company’s second consecutive quarter of decreased revenue and income, indicating a potential downward trend in performance. Investors may want to closely monitor Westlake Chemical’s future earnings reports and consider potential risks to their investment before making any decisions.
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