Fact based stock research
Western Midstream Partners (NYSE:WES)

US9586691035

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

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Western Midstream Partners stock research in summary

westernmidstream.com

ANALYSIS: With an Obermatt Combined Rank of 27 (worse than 73% compared with investment alternatives), Western Midstream Partners (Oil & Gas Transportation, USA) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Western Midstream Partners are low in value (priced high) with a consolidated Value Rank of 41 (worse than 59% of alternatives), and are riskily financed (Safety Rank of 25, which means above-average debt burdens) but show above-average growth (Growth Rank of 55). ...read more

RECOMMENDATION: A Combined Rank of 27, is a hold recommendation based on Western Midstream Partners's financial characteristics. As the company Western Midstream Partners shows low value with an Obermatt Value Rank of 41 (59% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 55% of comparable companies (Obermatt Growth Rank is 55). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 25 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for Western Midstream Partners, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	41
Growth Rank	55
Safety Rank	25
Combined Rank	27

Country	USA
Industry	Oil & Gas Transportation
Index	Dividends USA
Size class	X-Large

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Western Midstream Partners

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	56	30	39	41
GROWTH
GROWTH	41	9	79	55
SAFETY
SAFETY	42	21	32	25
SENTIMENT
SENTIMENT	n/a	75	63	^new
360° VIEW
360° VIEW	n/a	13	54	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Western Midstream Partners is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	56	30	39	41
GROWTH
GROWTH	41	9	79	55
SAFETY
SAFETY	42	21	32	25
COMBINED
COMBINED	36	1	48	27

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of Western Midstream Partners the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 41 (worse than 59% compared with alternatives), Western Midstream Partners shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Western Midstream Partners. Price-to-Profit (also referred to as price-earnings, P/E) is 67 which means that the stock price compared with what market professionals expect for future profits is lower than for 67% of comparable companies, indicating a good value concerning Western Midstream Partners's profit levels. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 6, which means that the stock price is lower as regards to invested capital than for 6% of comparable investments. On the other hand, Price-to-Sales is less favorable than 94% of alternatives (only 6% of peers have an even less favorable ratio). The same is valid for dividend yield, which is lower than 0% of comparable companies, making the stock more expensive as regards to the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 41, is a hold recommendation based on Western Midstream Partners's stock price compared with the company's operational size and dividend yields. This is a puzzling picture, because it means that profits are high while dividends are low. Since the stock price is low compared with invested capital but high in respect to expected revenues, it means that the company has more invested capital than peers for generating the same amount of revenue. Since profits are higher, it could be a "cash cow" situation (using the classic Boston Consulting BCG matrix naming convention) where the company is on a downward trend, still living from the profits of past products. As the company pays low dividends, it may harbor the opinion that a turnaround is possible, and it rather invests the cash than pay it out to shareholders, thus sealing the company's fate early. Any investment optimism should only be a buy trigger once thorough research is completed. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is especially important in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	19	12	14	6
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	72	58	64	67
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	20	26	10	6
DIVIDEND YIELD
DIVIDEND YIELD	94	85	92	100
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	56	30	39	41

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Western Midstream Partners; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 55 (better than 55% compared with alternatives), Western Midstream Partners shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Western Midstream Partners. Profit Growth has a rank of 90, which means that currently professionals expect the company to grow its profits more than 90% of its competitors. This is a good sign for shareholders, which is confirmed by an above-average Stock Returns rank of 87 (above 87% of alternative investments). But Sales Growth has a below the median rank of 36, which means that, currently, professionals expect the company to grow less than 64% of its competitors, and Capital Growth also has a lower rank of 6. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 55, is a buy recommendation for growth and momentum investors. Because revenues and invested capital are the more solid growth indicators, the positive development on the profit side is less relevant. It may have been caused by cost-cutting, which may be a negative growth indicator. Finally, the above-average stock returns recently are a thing of the past and not a good indicator of future returns. Investors should be confident that the cost-cutting initiative leading to higher profits is to benefit the company's future. If not, there is little growth momentum, and investment is only advisable if the Value Ranks suggest a good investment timing for Western Midstream Partners. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	14	34	71	36
PROFIT GROWTH
PROFIT GROWTH	n/a	24	69	90
CAPITAL GROWTH
CAPITAL GROWTH	n/a	12	24	6
STOCK RETURNS
STOCK RETURNS	84	45	81	87
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	41	9	79	55

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Western Midstream Partners.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 25 (better than 25% compared with alternatives), the company Western Midstream Partners has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Western Midstream Partners is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Western Midstream Partners and the other two below average. Refinancing is at 59, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 59% of its competitors. But Leverage is high with a rank of 10, meaning the company has an above-average debt-to-equity ratio. It has more debt than 90% of its competitors. Liquidity is also on the riskier side with a rank of 32, meaning the company generates less profit to service its debt than 68% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 25 (worse than 75% compared with alternatives), Western Midstream Partners has a financing structure that is riskier than that of its competitors. A good Refinancing Rank means that the problems of the company may not be around the corner. But high Leverage is only good if things go well, and low Liquidity is a signal for caution. The financing signals for Western Midstream Partners are on the riskier side, requiring the company's future to be on the safer side. Investors may want to look at Growth and Sentiment ranks before making an investment decision. In the long-term, investors may have a debt challenge with Western Midstream Partners and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	22	7	12	10
REFINANCING
REFINANCING	55	45	78	59
LIQUIDITY
LIQUIDITY	65	76	18	32
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	42	21	32	25

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Western Midstream Partners and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	86	46	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	40	75	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	84	72	^new
MARKET PULSE
MARKET PULSE	n/a	24	24	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	75	63	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Western Midstream Partners.
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