Stock fact sheet · data as of
Western Midstream Partners, LP (WES): fair value, margin of safety and Wheel Score
Ticker symbol WES · Energy · Oil & Gas Midstream · United States · Partnership units · Blend Income
WES trades as units of Western Midstream Partners, LP, a limited partnership: owners receive a K-1 tax form instead of a 1099, and the payouts are distributions rather than dividends.
Is WES undervalued?
Western Midstream Partners, LP (WES) closed at 42.54 on 5 Nov 2026. The GLS average fair value - the simple average of the 9 valuation models that produced a positive number - is 49.40, so the price sits 14% below it. 5 of the 9 models value the shares above the current price. A margin of safety between 10% and 30% is where most of the Sunday Scan candidates come from.
There is a wide gap between GLS Growth (25.12) and Graham Growth (76.42). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
Ranked against every other company we cover, neither cheapness nor growth clearly wins for WES, so the nightly engine files it under Blend (value score 41, growth score 44, out of 100). It also carries the Income tag (Income = a dividend yield of 4% or more).
Nine valuation models for WES
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 71.15 | +67% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 26.93 | -37% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 76.42 | +80% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 26.07 | -39% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 25.12 | -41% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 69.50 | +63% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 60.92 | +43% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 54.44 | +28% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 34.02 | -20% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -22.21 | -152% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 49.71 | +17% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Western Midstream Partners, LP scores 6 of 9 on the Piotroski F-score: a middling result that passes the "Piotroski 6 or more" Wheel Trade Filter. Some of the nine tests on profitability, leverage and efficiency are failed, so the accounts are worth a look before selling a put on the name. On durability WES scores 5.9/10 on the GLS Moat - a middle reading; the Moat Score tab on the Quote page's Financials view shows which of the four parts hold it back.
Returns on capital are moderate - ROIC 9.0%, ROE 29.1%, ROA 7.8% - with debt at 2.22 times equity and a free-cash-flow yield of 6.3%. Debt of 2.22 times equity is on the high side for the sector and is worth checking against the cash flow before treating the stock as a long-term hold.
The dividend yield is high at 8.70% (payout ratio 149%) - a payout above 100% of earnings, which is not covered by profits. A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual. Revenue comes mainly from Service Fee Based 80%, Product 10%, Service Product Based 9% (quarter Q2 FY2026).
Institutional ownership scores 6/10, insider activity 7/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 6 / 9 | ROIC | 9.0% |
|---|---|---|---|
| GLS Moat | 5.9 / 10 | ROE | 29.1% |
| Debt / equity | 2.22 | ROA | 7.8% |
| Free-cash-flow yield | 6.3% | Payout ratio | 149% |
| Institutions | 6 / 10 | Insiders · Congress | 7 · 5 / 10 |
Wheel Score 37: Weak
With a Wheel Score of 37 Western Midstream Partners, LP sits in the Weak band. It fails filter 5, can repay its debt - 3.8 years to repay its debt (over 3); Red Flags (weak) is its weakest part.
Implied volatility is 27% on the near-the-money contracts 20-60 days out: enough to pass the 25-80% Wheel Trade Filter, but under the 35-60% sweet spot the score rewards most. Chain open interest is 24,572 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 2.3M shares a day on a market cap of $17.6B, with a beta of 0.71 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score rates that good.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded a day |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Passes | Piotroski F-score 6 or more out of 9 (a company with no score on file passes) |
| 5 | Can repay its debt | Fails | 3.8 years to repay its debt (over 3) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Fair | 14% below fair value | |
| Premium | Fair | implied volatility 27% | |
| Moat | Fair | moat 5.9/10 | |
| Health | Good | Piotroski 6/9 | |
| Red Flags | Weak | Red Flags score 62/100 | |
| Option trading | Fair | 2,290 contracts a day, 24,572 open interest | |
| Stability | Good | beta 0.71, $17.6B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
No upcoming earnings date is recorded for WES in the nightly calendar.
No analyst upgrades or downgrades were recorded in the last 30 days.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Oil & Gas Midstream
The 12 companies below are the closest to Western Midstream Partners, LP by market cap within the Oil & Gas Midstream industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| PAA Plains All American Pipeline, L.P. | 25.21 | 51.86 | +51% | 50Fair | $17.8B |
| VNOM Viper Energy, Inc. | 41.06 | 47.78 | +14% | 74Good | $14.7B |
| TCPA TransCanada PipeLines Limited 6 | 21.13 | 37.12 | +43% | 34No options | $21.4B |
| DTM DT Midstream, Inc. | 117.58 | 81.85 | -44% | 34Weak | $12.0B |
| CQP Cheniere Energy Partners, L.P. | 56.68 | 123.94 | +54% | 51Fair | $27.4B |
| PBA Pembina Pipeline Corporation | 48.73 | 34.41 | -42% | 35Weak | $28.3B |
| VG Venture Global, Inc. | 12.00 | 24.59 | +51% | 52Fair | $30.0B |
| AM Antero Midstream Corporation | 19.86 | 27.31 | +27% | 44Weak | $9.4B |
| SOBO South Bow Corporation | 34.05 | 45.58 | +25% | 50Fair | $7.1B |
| HESM Hess Midstream LP | 31.80 | 50.30 | +37% | 54Fair | $6.6B |
| OKE ONEOK, Inc. | 88.60 | 113.66 | +22% | 48Weak | $55.9B |
| MPLX MPLX Lp | 56.25 | 61.40 | +8% | 35Weak | $57.0B |
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Start free See the Sunday ScanQuestions about WES
Is WES undervalued right now?
By the GLS models, moderately: at 42.54 the stock trades 14% below the average fair value of 49.40 (data as of 5 Nov 2026).
What is the Wheel Score of WES and what does it mean?
WES scores 37 out of 100 (Weak) - it fails Wheel Trade Filter 5. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for WES?
49.40 per share as of 5 Nov 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Western Midstream Partners, LP report earnings next?
No upcoming earnings date is recorded for WES in our calendar as of 5 Nov 2026; the Calendars page is refreshed every morning.
Does WES have listed options, and how liquid are they?
Yes. The nightly snapshot found 116 listed contracts with 24,572 open interest across all expiries and implied volatility of 27% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.
Is WES a partnership?
Yes. WES trades as units of Western Midstream Partners, LP, a limited partnership: owners receive a K-1 tax form instead of a 1099, and the payouts are distributions rather than dividends.