Westlake Corporation research snapshot
WLK AI stock analysis currently reads Westlake Corporation as a scaled, vertically integrated producer of housing and infrastructure products, PVC, polyethylene, chlor-alkali, and epoxy materials. At the July 12, 2026 data cutoff, WLK closed at $75.49 on July 10, with a verified market capitalization near $9.67 billion. Westlake reported $11.17 billion of 2025 sales but a $1.51 billion net loss attributable to the company, while Q1 2026 sales fell to $2.65 billion and the company reported a $169 million attributable net loss. The potential upside depends on cost savings, asset rationalization, better chemical spreads, and housing demand. The main risk is that a cyclical recovery arrives too slowly to offset weak cash flow, debt service, and ongoing restructuring. This page uses scenarios and explicit risk controls rather than a certain stock price prediction, and is for informational use only.
Current price
$75.49 July 10, 2026 close
Market cap
$9.67 billion verified market capitalization
AI score
48 / 100
Rating
Integrated materials and building-products franchise, but current earnings and cash flow make the recovery thesis high risk
Trend status
Bearish intermediate trend: price is below the 50-day and 200-day moving averages, with RSI near 35
Data cutoff (updated weekly)
July 12, 2026
Informational use only. This page is not investment advice.
| Dimension | Conclusion | Confidence |
|---|---|---|
| Business quality | Westlake combines a profitable housing and infrastructure products segment with a much more cyclical performance and essential materials segment. The business is useful and asset-backed, but recent consolidated economics are weak. | High |
| Moat | The main advantages are vertical integration, scale, product breadth, logistics, customer relationships, and downstream use of PVC in building products. Commodity chemicals remain price competitive and can be oversupplied. | Medium |
| Management | CEO Jean-Marc Gilson brings global chemicals experience. Management is rationalizing high-cost assets, pursuing cost savings, and adding the Wilhelmshaven PVC and VCM site, but the key test is return on capital through the next cycle. | Medium |
| Financial trend | FY2025 revenue declined 8.0% to $11.17 billion, attributable net loss was $1.508 billion, free cash flow was negative $530 million, and Q1 2026 remained loss-making despite sequential PEM improvement. | High |
| Valuation | At $75.49, the stock was about 1.13x book value and 2.80% on the annual dividend. A 20.51x earnings reference uses the 2026 non-GAAP EPS consensus of $3.68, not current GAAP earnings, while TTM FCF yield was negative 5.25%. | Medium-high |
| Technical trend | WLK was below the 50-day average near $87.41 and the 200-day average near $87.57. RSI near 34.60 showed weak momentum without proving that the stock had formed a durable bottom. | Medium |
| Risk level | Risk is high because chemicals are cyclical, the company carries material debt, cash flow is under pressure, plant shutdowns and litigation created charges, and feedstock, energy, trade, environmental, and demand conditions can move margins quickly. | High |
| AI confidence | High for reported facts and exact calculations, medium for technical timing and forward scenarios. | High data confidence |
| Investment certainty | Low to medium certainty. The data supports a recovery-monitoring framework, not a universal buy or sell label. | Low-medium |
WLK AI stock forecast
The WLK AI stock forecast uses the StockAnalysis FY2026 non-GAAP EPS consensus of $3.68 as an explicit, non-GAAP starting input. The audited three-year scenario calculation produced reference values near $98.0 for the bullish case, $68.2 for the base case, and $32.2 for the bearish case. These are model outputs before dividends and are not promises about future prices.
$88 to $110
More likely if cost savings and footprint optimization lift PEM margins, PVC and polyethylene spreads recover, plant reliability improves, HIP demand stays resilient, the Wilhelmshaven acquisition integrates well, and the market accepts a higher earnings multiple.
$60 to $80
More likely if revenue stabilizes, the 2026 recovery is gradual, HIP remains profitable, PEM losses narrow but do not normalize, capex and dividends remain funded, and investors value the company near a mid-cycle but cautious multiple.
$25 to $40
More likely if chemical spreads remain depressed, demand weakens, feedstock and energy costs rise, shutdown savings are delayed, cash flow stays negative, or debt and impairment concerns force a lower multiple on reduced normalized earnings.
WLK AI technical analysis
WLK AI technical analysis is weak as of the July 12, 2026 cutoff. The July 10 close was $75.49, below the StockAnalysis 50-day moving average of $87.41 and 200-day moving average of $87.57. RSI was 34.60, average 20-day volume was about 1.23 million shares, beta was 0.62, and the 52-week range was $56.33 to $124.23. These are reference zones, not trade instructions.
| Level | Value | Why it matters |
|---|---|---|
| Current price | $75.49 | StockAnalysis reported the July 10, 2026 market close. The price is below both major moving averages. |
| Near support | $70 to $75 | This is a round-number reference band around the current quote. A hold would show short-term stabilization, not a confirmed reversal. |
| Deeper support | $56.33 to $60 | The lower end uses the reported 52-week low of $56.33. A test of this area would put the recovery thesis under significant pressure. |
| First resistance | $87 to $90 | This zone surrounds the 50-day and 200-day moving averages near $87.41 and $87.57. Reclaiming it would be necessary for a more constructive intermediate chart. |
| Recovery resistance | $102 to $105 | This area is close to the analyst-consensus price reference near $102.20 and should be treated as a recovery checkpoint, not a technical promise. |
| Moving averages | 50-day $87.41; 200-day $87.57 | The price was below both averages at the cutoff, so the intermediate trend remained bearish. |
| Momentum | RSI 34.60, weak and near oversold reference territory | A low RSI can reflect selling pressure or an early stabilization attempt. It does not identify a bottom by itself. |
| Volume and volatility | 1.23 million average 20-day shares; beta 0.62 | Use participation and price range together. A move above the moving-average zone needs more than a low-volume price bounce. |
| Invalidation | Sustained close below $56.33 | A decisive break below the 52-week low would invalidate the current range-recovery reference and require a fresh review of liquidity, debt, margins, and the operating thesis. |
WLK AI trading strategy
The WLK AI trading strategy below is a rules-based research framework, not personal advice. It links price behavior with chemical spreads, housing demand, cost savings, cash flow, debt, and plant reliability. Any use of this framework requires fresh market data and independent risk limits.
Treat a move above $87 to $90 as a confirmation checkpoint only if it comes with improving volume, narrower PEM losses, stable HIP margins, and evidence that the cost-savings plan is translating into cash earnings.
A failed reclaim followed by a close below $70 weakens the short-term setup. A break below $56.33 invalidates the broader range-recovery reference.
If WLK holds the $70 to $75 area while PVC, polyethylene, chlor-alkali, and epoxy conditions stabilize, compare the price with book value, normalized EPS, debt service, and free cash flow before treating weakness as a valuation opportunity.
Do not average down only because the stock is below its moving averages or 52-week high. Recheck cash, debt maturities, capex, dividends, and restructuring cash costs first.
Track PEM operating income and EBITDA excluding identified items, HIP sales and margin, PVC and PE prices, chlorine and caustic soda volumes, natural gas and ethane costs, operating cash flow, capex, net debt, the dividend, shutdown savings, and the Wilhelmshaven integration.
Lower confidence if sales growth depends on price rather than volume, cash flow remains negative after normal seasonality, debt rises, or management needs additional restructuring actions to reach the recovery case.
Investment research summary
Customers pay Westlake for essential chemical building blocks and finished building products used in housing, infrastructure, packaging, automotive, healthcare, coatings, and industrial applications. The economic engine is integrated production, capacity utilization, product pricing, and disciplined asset management.
The moat is operational rather than purely brand-based: vertical integration from ethylene and chlor-alkali into vinyls, polyethylene, epoxy, and building products; scale; logistics; technical know-how; and customer relationships. Commodity chemicals remain exposed to new capacity and price competition, so the moat can narrow in a prolonged downcycle.
The thesis can fail if PVC, PE, chlor-alkali, and epoxy spreads stay weak; if energy and feedstock costs rise; if asset closures create service or reliability problems; if demand from housing and industry falls; if debt reduces flexibility; or if the recent impairment signals a more permanent loss of earning power.
Jean-Marc Gilson became CEO in 2024 after leading Mitsubishi Chemical and Roquette. Management is combining footprint optimization and cost savings with selective capacity actions, while the June 2026 Wilhelmshaven acquisition adds 380,000 metric tons of annual PVC capacity. The capital-allocation test is whether these actions create acceptable returns without weakening liquidity.
Long-term demand for housing, water infrastructure, electrification, packaging, and durable materials supports the category. This is a favorable industrial need but not a straight-line growth market. Over a 20-year lens, Westlake is better viewed as a cyclical infrastructure and materials supplier than as a civilization-level technology platform.
The exact valuation check at $75.49 showed 1.13x book value and a 2.80% dividend yield. A 20.51x earnings reference uses the $3.68 FY2026 non-GAAP EPS consensus, while TTM free cash flow per share was negative $3.96. The base scenario near $68.20 is below the current quote, so the margin of safety depends on evidence of normalized earnings rather than the headline multiple alone.
Source-backed data
Every metric below includes a source and last verification date.
| Metric | Value | Source | Last verified |
|---|---|---|---|
| Current price reference | $75.49 at the July 10, 2026 market close | StockAnalysis price and statistics pages | July 12, 2026 |
| Market capitalization and shares | $9.67 billion and 128.12 million shares; price times shares matched the reported market cap with 0.02% variance | StockAnalysis and financial_rigor.py | July 12, 2026 |
| FY2025 revenue and net loss to common | $11.170 billion revenue and $1.508 billion net loss attributable to Westlake Corporation; both matched the StockAnalysis FY2025 dataset at 0.00% variance | Westlake 2025 Form 10-K and StockAnalysis financials | July 12, 2026 |
| FY2025 segment sales | $4.148 billion HIP sales and $7.022 billion PEM sales, compared with $4.317 billion and $7.825 billion in 2024 | Westlake 2025 Form 10-K | July 12, 2026 |
| Q1 2026 operating snapshot | $2.652 billion sales, $169 million net loss attributable to Westlake, $150 million EBITDA, and $235 million EBITDA excluding identified items | Westlake Q1 2026 results release | July 12, 2026 |
| Cash, short-term investments, and debt | Q1 2026 cash plus available-for-sale securities totaled $2.476 billion; SEC carrying value of indebtedness was $5.570 billion, while StockAnalysis reported $6.38 billion total debt using a different data convention | Westlake Q1 2026 release and StockAnalysis statistics | July 12, 2026 |
| FY2026 consensus reference | $11.94 billion revenue and $3.68 non-GAAP EPS consensus; StockAnalysis states that EPS and forward PE use adjusted numbers | StockAnalysis forecast | July 12, 2026 |
| Technical reference set | 50-day average $87.41, 200-day average $87.57, RSI 34.60, average 20-day volume 1.23 million, beta 0.62, 52-week range $56.33 to $124.23 | StockAnalysis statistics | July 12, 2026 |
| Wilhelmshaven acquisition | Westlake completed the acquisition of a German PVC and VCM site with stated capacity of 380,000 metric tons of PVC per year on June 15, 2026 | Westlake investor release | July 12, 2026 |
| Dividend reference | $0.53 quarterly dividend declared for Q1 2026, or about $2.115 per share on the trailing data set | Westlake investor relations and StockAnalysis financials | July 12, 2026 |
This WLK AI stock analysis is an informational tool, not investment advice, a recommendation, or a promise of returns. Forecast ranges are scenario outputs based on available data and stated assumptions, and they can be wrong. Verify prices, filings, earnings, debt, taxes, dividends, and technical indicators independently before making any investment or trading decision.
Design trading strategies visually with 10+ indicators. Set entry/exit conditions and risk management, then generate Pine Script code with no coding required.
Filter and discover stocks based on market cap, dividend yield, P/E ratio, sector, and more. Screen thousands of stocks with real-time data.
Smart AI-driven stock selection with fundamental screening, analyst estimates, and key metrics. Filter by P/E, market cap, dividends, and more.
