Manufactures and supplies polyethylene, a widely used plastic in packaging and consumer goods. Now — the numbers.
That much dependence is a risk in itself: if this one line weakens, the whole company feels it directly.
The company closed last year at a loss: costs ran above sales. The picture changes only if spending is reined in.
Before the clock runs out, either sales must climb sharply or new money must come in. This is the most critical line in the whole picture.
Buys outnumber sells, but taken together the trades don’t add up to a strong signal of confidence.
We compared this company with its own sector across five subjects.
A score of 50 means class average.
Clearly below the class average.
Clearly below the class average.
Clearly below the class average.
Clearly below the class average.
Clearly below the class average.
Growth: Sales growth trails the sector average.
Business Quality: Profit power and business quality trail similar companies in the sector.
The stock trades 56% below its peak. The market has trimmed its expectations for the company.
It pays out $2.12 per share each year — regular cash for whoever holds the stock.
A loss of $1.5B against $11.2B in annual sales. And on top of that, sales fell from the year before.
At the current pace of spending, the cash lasts about 1.9 years. After that, the company needs to find new money.
On our five-subject report card, WLK sits behind the class. A low grade doesn’t mean “doomed” — it means “big claim, small proof.”
The takeaway: WLK’s sales are going backwards, and it closed last year at a loss. The road back runs through both.
Analysts’ average target sits above today’s price, yet the valuation grade (45/100) says the stock isn’t cheap.