41.67% operating margin is above average.
Revenue grew 6.6%, steady but not accelerating. Margins contracted 13.0pp, which offsets some of the top-line progress.
Net debt of $8.02B represents 5.4x FCF, leverage limits flexibility. Operating margin contracted 13.0pp YoY, cost discipline may be slipping.
14.7x earnings, 13.7x FCF. The multiple is below average. Either the market is pricing in deterioration you should investigate, or there's genuine value here.
Price History
Valuation & Multiples
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$4.05B
▲ +6.6% YoY
Net Income (TTM)
$1.21B
▼ -24.9% YoY
Op. Margin
41.01%
▼ -13.0pp YoY
ROIC
—
Cash Flow & Balance Sheet
FCF (TTM)
$1.34B
▲ +14.7% YoY
Op. Cash Flow (TTM)
$2.16B
▲ +4.0% YoY
Net Debt
$8.06B
Cash & Equiv.
$647M
5Y CAGR: +6.7%
5Y CAGR: +4.3%
Continue Research
SourceComputed from the 10-Q filed 6 May 2026, covering the period ending 31 Mar 2026, as reported to the SEC. Data last refreshed 11 Oct 2026. How this is calculated.
Price from market data, last close as of 21 Oct 2026. Fiscal year ends Dec. Sector medians are approximate S&P 500 benchmarks and update periodically.
Is Western Midstream Partners, LP (WES) overvalued?
At a P/E of 14.7 and a price-to-free-cash-flow of 13.7, Western Midstream Partners, LP (WES) trades above a two-stage DCF intrinsic value of about $37.87 per share, so at $44.58 the stock looks overvalued (15.1% above estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, Western Midstream Partners, LP scores 47/100 on Intrinsiqq's quality scorecard (a mixed business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 8.0%; see dividend safety for coverage and history. All figures are computed from SEC filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.
Frequently asked
What is Western Midstream Partners, LP's fair value?+
Intrinsiqq's two-stage DCF estimates an intrinsic value of about $37.87 per share for WES, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around $28.40. At today's $44.58, that puts the stock about 15.1% above estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Is Western Midstream Partners, LP a high-quality business?+
Western Midstream Partners, LP scores 47 out of 100 on Intrinsiqq's quality score, a weighted blend of 7 metrics each scored 0 to 100, which makes it a mixed business on these measures. Recent fundamentals include a 41.0% operating margin. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Does Western Midstream Partners, LP (WES) pay a dividend, and how much?+
Yes, Western Midstream Partners, LP pays a regular dividend of about $3.67 per share per year (typically in quarterly installments), a yield of roughly 8.0% at the current price. That is a payout ratio of about 121.0% of earnings, so the dividend is stretched at this level. Western Midstream Partners, LP has grown the dividend at roughly 28.0% a year over the past few years. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For WES's full payout history, growth streak and dividend-safety score, see the dividends tab.
Is Western Midstream Partners, LP a good stock to buy right now?+
That depends on valuation and quality together, not either alone. WES currently trades above its estimated intrinsic value and scores 47/100 on quality (mixed). It also yields about 8.0%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.
Related stocks: Natural Gas Transmission
Spot a number that looks wrong? Check it in WES's SEC filings or
Download this analysis as a PDF (Pro)
Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
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