WLK

Basic Materials

Westlake Corporation · Chemicals - Specialty · $11B

UQS Score — Balanced Preset
31.7
Below Average

Westlake Corporation scores 31.7/100 using the Balanced preset.

UQS vs Basic Materials Sector
WLK
31.7
Sector avg
38.2
Quality
Weak
Moat
Weak
Growth
Weak
Risk
Good
Valuation
Good

What is Westlake Corporation?

Westlake Corporation is a large-cap manufacturer of petrochemicals, polymers, and building products serving customers across North America and globally. Founded in 1986 and headquartered in Houston, the company operates across two distinct business segments.

Westlake generates revenue through two segments. The Performance and Essential Materials segment produces chemicals such as polyethylene, PVC, vinyl chloride monomer, and chlor-alkali products sold to chemical processors and plastics fabricators. The Housing and Infrastructure Products segment manufactures PVC siding, trim, pipe, roofing products, decorative stone, and windows sold to residential construction contractors, municipalities, and supply warehouses. Together, these segments serve markets ranging from packaging and automotive to water treatment and residential construction.

Westlake Corporation was founded in 1986 and is headquartered in Houston, Texas.

  • PVC and polyethylene resins for industrial and packaging markets
  • Chlor-alkali and chlorinated derivative chemicals
  • Residential PVC siding, trim, and molding products
  • PVC pipe, fittings, and compounds for infrastructure
  • Roofing applications and decorative stone for homebuilders

Is WLK a Good Stock to Buy?

UQS Score rates WLK as Below Average overall.

Westlake's strongest pillars are Risk and Valuation, both rated Good. The Risk profile suggests the company carries a manageable financial structure relative to sector peers, while the Valuation pillar indicates the stock may not be pricing in excessive optimism — a relevant consideration for cyclical materials names.

Quality, Moat, and Growth are all rated Weak, reflecting the challenges of competing in commodity-driven chemicals markets where pricing power and differentiation are difficult to sustain.

See the exact pillar breakdown and full financial metrics by signing up for a UQS Pro account. Sign up free →

Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.

Does WLK pay dividends?

Yes — Westlake Corporation pays a dividend.

Westlake pays a regular dividend, which is relatively uncommon among commodity chemical producers and signals a degree of financial discipline. The dividend may appeal to income-oriented investors seeking exposure to the basic materials sector. Given the cyclical nature of the business, investors should consider how earnings variability across chemical cycles could affect future dividend sustainability.

When does WLK report earnings?

Westlake Corporation reports earnings on a quarterly cadence, typical for US-listed equities.

Results tend to reflect the cyclical dynamics of petrochemical and building products markets, with revenue and margins sensitive to feedstock costs, housing activity, and broader industrial demand. The Growth pillar rating of Weak suggests recent performance has not demonstrated consistent expansion relative to sector peers.

For the most recent quarter's results, visit Westlake Corporation's investor relations page directly.

WLK Price History

+24.0% over 5Y

Monthly close, adjusted for stock splits and dividend reinvestment.

Return Calculator

What if I invested in Westlake Corporation?

$
Today it would be worth
$13,497
That's a +35.0% total return, or +6.2% annualized.

Based on Westlake Corporation's historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.

WLK Long-term Outlook

Westlake's fundamental outlook is shaped by the interplay between its commodity chemicals exposure and its more stable building products business. The Weak Growth pillar suggests limited near-term expansion catalysts, while the Good Risk rating indicates the balance sheet is not a primary concern. Valuation rated Good may offer some downside cushion if chemical cycle conditions deteriorate further. The path to improvement likely depends on a recovery in PVC demand and residential construction activity.

Growth drivers

  • Recovery in residential construction driving demand for PVC building products
  • Potential improvement in petrochemical pricing as global supply-demand rebalances
  • Cross-selling opportunities between the two business segments

Key risks

  • Commodity price volatility compressing margins in the Performance and Essential Materials segment
  • Slowdown in housing starts reducing demand for siding, pipe, and roofing products
  • Limited pricing power in commodity chemical markets constraining quality and moat improvement

WLK vs Peers

Westlake operates in a competitive landscape that spans specialty chemicals and building materials, with peers differing meaningfully in business mix and market positioning.

RPMWLK scores lower
RPM International Inc.

RPM focuses on specialty coatings and sealants with a stronger brand portfolio, giving it more pricing power than commodity chemical producers like Westlake.

SOLSWLK scores lower
Solstice Advanced Materials Inc.

Solstice targets advanced and specialty materials markets, differentiating itself from Westlake's broader commodity-oriented chemicals and building products mix.

IFFSimilar UQS
International Flavors & Fragrances Inc.

IFF operates in flavors, fragrances, and specialty ingredients — a higher-margin, less cyclical space compared to Westlake's petrochemical and PVC-driven revenue streams.

Frequently Asked Questions

What does Westlake Corporation do?

Westlake Corporation manufactures petrochemicals, polymers, and building products. Its two segments cover commodity chemicals like PVC and polyethylene as well as residential construction products including siding, pipe, roofing, and windows. Customers range from plastics fabricators to homebuilders and municipalities.

Does WLK pay dividends?

Yes, Westlake Corporation pays a regular dividend. This is notable for a commodity chemicals producer and reflects a degree of financial discipline. Investors should be aware that dividend sustainability can be influenced by the cyclical nature of petrochemical and housing markets.

When does WLK report earnings?

Westlake reports earnings on a quarterly cadence, consistent with US-listed large-cap equities. For the exact timing of upcoming releases, check Westlake Corporation's official investor relations page, as our data source does not cover specific future earnings dates.

Is WLK a good stock to buy?

UQS Score rates WLK as Below Average overall. The Risk and Valuation pillars are rated Good, which provides some relative comfort, but Quality, Moat, and Growth are all rated Weak. Whether WLK fits your portfolio depends on your view of the chemical cycle and your risk tolerance. See the full pillar breakdown on UQS Pro.

Is WLK overvalued?

The UQS Valuation pillar for WLK is rated Good, suggesting the stock is not pricing in excessive optimism relative to its fundamentals. For cyclical commodity producers, valuation context matters across the cycle — the complete metrics are available to UQS Pro members.

How does WLK compare to its competitors?

Westlake competes in both commodity chemicals and building products, making direct comparisons nuanced. Peers like RPM International and IFF operate in higher-margin specialty segments, while Westlake's scale in PVC and chlor-alkali gives it volume advantages. UQS Pro members can view side-by-side pillar comparisons.

What is WLK's market cap bracket?

Westlake Corporation is classified as a large-cap company. This places it among the more established names in the Basic Materials sector, with the scale to serve diverse industrial and residential construction markets across multiple geographies.

Who founded Westlake Corporation?

Westlake Corporation was founded in 1986. The company was formerly known as Westlake Chemical Corporation and rebranded to Westlake Corporation in February 2022 to reflect its expanded building products business alongside its chemicals operations.

Is WLK a long-term quality investment?

As a long-term quality indicator, WLK's UQS profile presents a mixed picture. The Good Risk and Valuation ratings offer some stability, but Weak scores across Quality, Moat, and Growth suggest the business has not yet demonstrated the durable competitive advantages typically associated with long-term compounders in the materials sector.

What is the main competitive advantage of Westlake Corporation?

Westlake's scale across integrated PVC production — from chlor-alkali inputs through to finished building products — provides some cost advantages. However, the UQS Moat pillar is rated Weak, indicating that durable pricing power and differentiation remain limited in its commodity-oriented markets.

What sector does WLK belong to?

Westlake Corporation belongs to the Basic Materials sector. Within that sector, it spans petrochemicals and polymers as well as residential building products, giving it exposure to both industrial demand cycles and housing market trends.

Is WLK a growth stock or value stock?

Based on UQS pillar labels, WLK leans toward neither category cleanly. The Growth pillar is rated Weak, suggesting limited expansion momentum, while the Valuation pillar is rated Good — characteristics more consistent with a value-oriented profile than a high-growth one.

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Pro Analysis

WLK — Score History

2025303540Apr 2Apr 12Apr 22May 2May 12May 22May 24v5
Score changes· 16 most recent
DateUQSQualityMoatGrowthRiskValueChange
May 17, 202631.70.614.037.068.369.6+0.2
May 9, 202631.50.614.036.968.368.2+5.0
May 8, 202626.50.014.036.136.967.9-5.3
May 7, 202631.80.614.038.069.267.9+0.4
May 6, 202631.40.614.038.069.265.0+0.2
May 3, 202631.20.614.037.969.264.1-0.1
Apr 27, 202631.30.614.037.969.264.9+0.2
Apr 26, 202631.10.614.037.269.264.40.0
Apr 23, 202631.10.614.037.269.264.1+0.1
Apr 19, 202631.00.614.037.269.263.6+0.2

WLK — Pillar Breakdown

Quality

0.6/100 (25%)

Westlake Corporation currently shows below-average quality metrics, suggesting challenges with profitability.

Capital Efficiency (ROIC)Weak

How effectively capital is deployed to generate returns.

Return on EquityWeak

Profitability relative to shareholders' equity.

Operating ProfitabilityWeak

Ability to convert revenue into operating profit.

Net ProfitabilityWeak

Bottom-line profit as a share of revenue.

Gross Profit / AssetsWeak

Asset productivity — how much gross profit each dollar of assets generates.

Cash GenerationWeak

Free cash flow relative to market value.

Growth

37.0/100 (20%)

Westlake Corporation shows steady but unspectacular growth, typical for mature companies.

Recent Revenue TrendWeak

Revenue trajectory over the last twelve months.

3Y Revenue CAGRWeak

Compound annual revenue growth rate over 3 years.

EPS GrowthWeak

Year-over-year earnings per share growth.

Forward Revenue OutlookModerate

Analyst consensus for future revenue growth.

Forward EPS GrowthStrong

Analyst consensus for future earnings growth.

Risk

68.3/100 (15%)

Westlake Corporation maintains a reasonable risk profile with manageable debt levels.

Financial LeverageStrong

Debt levels relative to earnings capacity.

Debt/EquityStrong

Total debt relative to shareholder equity.

Current RatioModerate

Short-term liquidity — ability to pay near-term obligations.

Interest CoverageWeak

Earnings capacity relative to interest payments.

Valuation

69.6/100 (15%)

Westlake Corporation trades at a reasonable valuation with decent earnings yield and FCF multiples.

Earnings YieldModerate

Inverse of forward P/E — higher yield means cheaper stock.

PEG RatioStrong

P/E relative to earnings growth — lower is more attractive.

Moat

14/100 (25%)

Westlake Corporation operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for WLK.

Score Composition

Quality
0.6×25%0.1
Growth
37.0×20%7.4
Risk
68.3×15%10.2
Valuation
69.6×15%10.4
Moat
14.0×25%3.5
Total
31.7Below Average

Financial Data

More Stock Analysis

How is the WLK UQS Score Calculated?

The UQS (Unified Quality Score) for Westlake Corporation is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.

Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.

Moat (25%) assesses Westlake Corporation's competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.

Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.

Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.

Valuation (15%) measures whether Westlake Corporation is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.

Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.