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Westlake Chemical Corporation (WLK)

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Upturn Advisory Summary
01/09/2026: WLK (1-star) has a low Upturn Star Rating. Not recommended to BUY.
1 Year Target Price $82.07
1 Year Target Price $82.07
| 6 | Strong Buy |
| 1 | Buy |
| 8 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -10.82% | Avg. Invested days 31 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating ![]() | Upturn Advisory Performance | Stock Returns Performance |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 10.20B USD | Price to earnings Ratio - | 1Y Target Price 82.07 |
Price to earnings Ratio - | 1Y Target Price 82.07 | ||
Volume (30-day avg) 15 | Beta 0.91 | 52 Weeks Range 55.84 - 116.71 | Updated Date 01/8/2026 |
52 Weeks Range 55.84 - 116.71 | Updated Date 01/8/2026 | ||
Dividends yield (FY) 2.83% | Basic EPS (TTM) -7.43 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin -8.34% | Operating Margin (TTM) -0.78% |
Management Effectiveness
Return on Assets (TTM) 0.1% | Return on Equity (TTM) -8.7% |
Valuation
Trailing PE - | Forward PE 39.37 | Enterprise Value 12792501629 | Price to Sales(TTM) 0.89 |
Enterprise Value 12792501629 | Price to Sales(TTM) 0.89 | ||
Enterprise Value to Revenue 1.11 | Enterprise Value to EBITDA 26.49 | Shares Outstanding 128273152 | Shares Floating 33696092 |
Shares Outstanding 128273152 | Shares Floating 33696092 | ||
Percent Insiders 74.16 | Percent Institutions 34.16 |
Upturn AI SWOT
Westlake Chemical Corporation

Company Overview
History and Background
Westlake Chemical Corporation was founded in 1986 by T.T. Chao. It has grown from a modest polyethylene producer into a diversified international manufacturer and supplier of petrochemicals, polymers, and building products. Key milestones include its IPO in 2004, and significant acquisitions that have expanded its product portfolio and geographic reach, such as the acquisition of Axiall Corporation in 2016 and Boral North America's North American building products business in 2021.
Core Business Areas
- Olefins: Produces ethylene, a key building block for many plastics, as well as styrene, a component in synthetic rubber and plastics. These are fundamental petrochemicals used in a wide range of industrial and consumer products.
- Vinyls: Manufactures polyvinyl chloride (PVC), a versatile plastic used in construction (pipes, window profiles, flooring), automotive parts, and healthcare products. This segment also includes chlor-alkali products like chlorine and caustic soda.
- Housing and Infrastructure Products: Produces a variety of building products derived from vinyl and other materials, including pipe and fittings, siding, trim, decorative stone, and roofing products. These products serve the new construction and renovation markets.
Leadership and Structure
Westlake Chemical Corporation is led by a Board of Directors and a senior management team. Albert Chao serves as President and Chief Executive Officer. The company operates through its two primary segments: Performance and Essential Materials, and Housing and Infrastructure Products.
Top Products and Market Share
Key Offerings
- Ethylene: A primary olefin used in the production of polyethylene, the world's most common plastic. Competitors include Dow Inc. (DOW), LyondellBasell Industries N.V. (LYB), and Exxon Mobil Corporation (XOM). Westlake is a significant producer in North America.
- Polyvinyl Chloride (PVC): A widely used plastic for pipes, windows, flooring, and other construction materials. Major competitors include Shin-Etsu Chemical Co., Ltd. (global), Formosa Plastics Corporation (FPT), and INEOS Group. Westlake is one of the largest PVC producers globally.
- Caustic Soda: A key chemical used in industries like pulp and paper, alumina, soaps and detergents. Competitors include Olin Corporation (OLN) and Dow Inc. (DOW).
- Building Products (Siding, Trim, Roofing): A range of vinyl and composite building materials for residential and commercial construction. Competitors include companies like CertainTeed, Royal Building Products, and Boral (now part of Westlake).
Market Dynamics
Industry Overview
The petrochemical and building products industries are cyclical, influenced by global economic conditions, raw material costs (especially oil and natural gas), and demand from end markets like construction and automotive. The industry is also increasingly focused on sustainability and the circular economy.
Positioning
Westlake Chemical Corporation is positioned as a leading integrated manufacturer of petrochemicals, polymers, and building products. Its vertical integration from basic petrochemicals to finished building products provides cost advantages and supply chain control. The company benefits from its broad product portfolio and diverse end-market exposure.
Total Addressable Market (TAM)
The global petrochemicals market is valued in the hundreds of billions of dollars, with the global building products market also being a multi-hundred billion dollar market. Westlake operates within significant segments of these markets. Its TAM is substantial, and the company holds considerable market share in specific product categories within North America and globally.
Upturn SWOT Analysis
Strengths
- Vertically integrated operations providing cost efficiencies and supply chain control.
- Diversified product portfolio serving multiple end markets.
- Strong market positions in key product lines like PVC and olefins.
- Strategic acquisitions that have expanded scale and product offerings.
- Experienced management team with a track record of growth.
Weaknesses
- Exposure to cyclicality in commodity prices (feedstocks and finished products).
- Significant capital expenditure required for plant maintenance and expansions.
- Environmental regulations and potential liabilities associated with chemical production.
Opportunities
- Growing demand for building products driven by infrastructure spending and housing trends.
- Increased focus on sustainable materials and circular economy initiatives.
- Expansion into higher-growth geographic regions or product segments.
- Further integration of acquired businesses to realize synergies.
- Innovation in product development to meet evolving customer needs.
Threats
- Volatile raw material and energy costs.
- Global economic slowdown impacting demand.
- Increased competition from domestic and international players.
- Stringent environmental regulations and potential carbon taxes.
- Geopolitical risks affecting supply chains and trade.
Competitors and Market Share
Key Competitors
- Dow Inc. (DOW)
- LyondellBasell Industries N.V. (LYB)
- Formosa Plastics Corporation (FPT)
- Olin Corporation (OLN)
- Shin-Etsu Chemical Co., Ltd. (global, not solely US listed)
- CertainTeed (Saint-Gobain) (not independently US listed)
- Royal Building Products (part of Westlake)
Competitive Landscape
Westlake competes based on scale, vertical integration, product quality, and customer relationships. Its integrated model provides a competitive edge in cost control. However, it faces intense competition from global chemical giants and specialized building product manufacturers. Pricing power can be limited during periods of oversupply.
Major Acquisitions
Boral North America's Building Products Business
- Year: 2021
- Acquisition Price (USD millions): 2150
- Strategic Rationale: To significantly expand Westlake's presence in the building products sector, particularly in roofing, siding, and decorative stone, and to enhance its housing and infrastructure solutions portfolio.
Axiall Corporation
- Year: 2016
- Acquisition Price (USD millions): 3200
- Strategic Rationale: To create a leading North American vinyls producer, combining Axiall's significant chlor-alkali and vinyls assets with Westlake's existing PVC and olefins businesses, enhancing scale and integration.
Growth Trajectory and Initiatives
Historical Growth: Westlake has demonstrated growth through both organic expansion and strategic acquisitions. Its expansion into building products via acquisitions has been a significant growth driver. The company has also grown its petrochemical capacity over time.
Future Projections: Analyst projections for Westlake typically anticipate continued growth driven by demand in construction and infrastructure, as well as ongoing integration of recent acquisitions. Future growth will likely be influenced by commodity price trends, global economic outlook, and the company's ability to capitalize on sustainability initiatives.
Recent Initiatives: Recent initiatives include the significant acquisition of Boral North America's building products business, aimed at strengthening its position in the housing and infrastructure market. The company also continues to invest in its manufacturing facilities to improve efficiency and sustainability.
Summary
Westlake Chemical Corporation is a well-established, vertically integrated player in petrochemicals and building products. Its strengths lie in its diverse product range, significant market share in key areas like PVC, and a history of strategic acquisitions that have fueled growth. The company is well-positioned to benefit from infrastructure spending and housing market trends. However, it must navigate the inherent cyclicality of its core markets, volatile commodity prices, and increasing environmental regulations. Continued focus on operational efficiency and strategic integration of acquisitions will be key to maintaining its strong competitive standing.
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Sources and Disclaimers
Data Sources:
- Westlake Chemical Corporation Investor Relations
- Company SEC Filings (10-K, 10-Q)
- Financial News and Analysis Websites (e.g., Bloomberg, Reuters, Yahoo Finance)
- Industry Research Reports
Disclaimers:
This JSON output is generated based on publicly available information and AI analysis. It is intended for informational purposes only and does not constitute financial advice. Market share data and competitive landscape are estimates and can vary. Financial performance is subject to market fluctuations. Investors should conduct their own due diligence before making investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Westlake Chemical Corporation
Exchange NYSE | Headquaters Houston, TX, United States | ||
IPO Launch date 2004-08-11 | President & CEO Mr. Jean-Marc Gilson | ||
Sector Basic Materials | Industry Specialty Chemicals | Full time employees 15540 | Website https://www.westlake.com |
Full time employees 15540 | Website https://www.westlake.com | ||
Westlake Corporation manufactures and markets performance and essential materials, and housing and infrastructure products in the United States, Canada, Germany, China, Mexico, Brazil, France, Italy, and internationally. The Performance and Essential Materials segment offers ethylene, polyethylene, styrene, chlor-alkali, chlorinated derivative products, ethylene dichloride, vinyl chloride monomer, polyvinyl chloride (PVC), epoxy specialty resins, and base epoxy resins and intermediaries. The Housing and Infrastructure Products segment provides residential PVC sidings; PVC trim and mouldings; architectural stone veneers; windows; PVC decking; PVC films for various inflatables, wallcovering, and tape and roofing applications; polymer composite and cement roof tiles; PVC pipes and fittings for various water, sewer, electrical, and industrial applications; and PVC compounds for various housing, medical, and automobile products. This segment also offers consumer and commercial products, such as landscape edging; industrial, home, and office matting; marine dock edging; and masonry joint controls. It offers its products to chemical processors; plastics fabricators; small construction contractors; municipalities; and supply warehouses for use in various consumer and industrial markets, including residential construction, flexible and rigid packaging, automotive products, healthcare products, water treatment, wind turbines, and coatings, as well as other durable and non-durable goods. The company was formerly known as Westlake Chemical Corporation and changed its name to Westlake Corporation in February 2022. Westlake Corporation was founded in 1986 and is headquartered in Houston, Texas. Westlake Corporation is a subsidiary of TTWF LP.

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