WEST PHARMACEUTICAL SERVICES (WST) Stock Fundamental Analysis
USA - NYSE:WST - US9553061055 - Common Stock
271.04 USD
-4.3 (-1.56%)
271.04 USD
0 (0%)
Taking everything into account, WST scores 7 out of 10 in our fundamental rating. WST was compared to 58 industry peers in the Life Sciences Tools & Services industry. WST has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. While showing a medium growth rate, WST is valued expensive at the moment. With these ratings, WST could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
WST had positive earnings in the past year.
In the past year WST had a positive cash flow from operations.
In the past 5 years WST has always been profitable.
In the past 5 years WST always reported a positive cash flow from operatings.
1.2 Ratios
WST has a better Return On Assets (11.98%) than 91.38% of its industry peers.
WST's Return On Equity of 16.11% is amongst the best of the industry. WST outperforms 87.93% of its industry peers.
WST's Return On Invested Capital of 14.78% is amongst the best of the industry. WST outperforms 89.66% of its industry peers.
WST had an Average Return On Invested Capital over the past 3 years of 17.99%. This is above the industry average of 13.50%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.98% | ||
| ROE | 16.11% | ||
| ROIC | 14.78% |
ROA(3y)15.07%
ROA(5y)15.52%
ROE(3y)20.26%
ROE(5y)21.56%
ROIC(3y)17.99%
ROIC(5y)18.35%
1.3 Margins
WST's Profit Margin of 16.29% is amongst the best of the industry. WST outperforms 87.93% of its industry peers.
WST's Profit Margin has improved in the last couple of years.
WST's Operating Margin of 20.71% is amongst the best of the industry. WST outperforms 86.21% of its industry peers.
WST's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 35.58%, WST is doing worse than 60.34% of the companies in the same industry.
In the last couple of years the Gross Margin of WST has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.71% | ||
| PM (TTM) | 16.29% | ||
| GM | 35.58% |
OM growth 3Y-8.66%
OM growth 5Y4.7%
PM growth 3Y-10.02%
PM growth 5Y5.33%
GM growth 3Y-6.03%
GM growth 5Y0.95%
2. Health
2.1 Basic Checks
WST has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, WST has less shares outstanding
Compared to 5 years ago, WST has less shares outstanding
Compared to 1 year ago, WST has a worse debt to assets ratio.
2.2 Solvency
WST has an Altman-Z score of 14.13. This indicates that WST is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 14.13, WST belongs to the best of the industry, outperforming 98.28% of the companies in the same industry.
WST has a debt to FCF ratio of 0.55. This is a very positive value and a sign of high solvency as it would only need 0.55 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.55, WST belongs to the best of the industry, outperforming 91.38% of the companies in the same industry.
WST has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of WST (0.07) is better than 65.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.55 | ||
| Altman-Z | 14.13 |
ROIC/WACC1.41
WACC10.45%
2.3 Liquidity
A Current Ratio of 2.87 indicates that WST has no problem at all paying its short term obligations.
WST has a Current ratio (2.87) which is in line with its industry peers.
A Quick Ratio of 2.18 indicates that WST has no problem at all paying its short term obligations.
The Quick ratio of WST (2.18) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.87 | ||
| Quick Ratio | 2.18 |
3. Growth
3.1 Past
WST shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.59%.
Measured over the past years, WST shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.81% on average per year.
WST shows a small growth in Revenue. In the last year, the Revenue has grown by 4.92%.
The Revenue has been growing by 9.48% on average over the past years. This is quite good.
EPS 1Y (TTM)4.59%
EPS 3Y-7.79%
EPS 5Y15.81%
EPS Q2Q%5.95%
Revenue 1Y (TTM)4.92%
Revenue growth 3Y0.72%
Revenue growth 5Y9.48%
Sales Q2Q%7.73%
3.2 Future
WST is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.12% yearly.
WST is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.45% yearly.
EPS Next Y6.12%
EPS Next 2Y7.28%
EPS Next 3Y8.97%
EPS Next 5Y10.12%
Revenue Next Year6.25%
Revenue Next 2Y6.18%
Revenue Next 3Y6.43%
Revenue Next 5Y6.45%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 38.34 indicates a quite expensive valuation of WST.
Compared to the rest of the industry, the Price/Earnings ratio of WST indicates a somewhat cheap valuation: WST is cheaper than 62.07% of the companies listed in the same industry.
WST is valuated rather expensively when we compare the Price/Earnings ratio to 26.06, which is the current average of the S&P500 Index.
WST is valuated quite expensively with a Price/Forward Earnings ratio of 34.89.
63.79% of the companies in the same industry are more expensive than WST, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 32.73. WST is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.34 | ||
| Fwd PE | 34.89 |
4.2 Price Multiples
WST's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WST is cheaper than 70.69% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as WST.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.41 | ||
| EV/EBITDA | 24.13 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WST does not grow enough to justify the current Price/Earnings ratio.
WST has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)6.27
PEG (5Y)2.42
EPS Next 2Y7.28%
EPS Next 3Y8.97%
5. Dividend
5.1 Amount
WST has a yearly dividend return of 0.31%, which is pretty low.
WST's Dividend Yield is rather good when compared to the industry average which is at 0.50. WST pays more dividend than 86.21% of the companies in the same industry.
With a Dividend Yield of 0.31, WST pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.31% |
5.2 History
The dividend of WST has a limited annual growth rate of 5.90%.
WST has paid a dividend for at least 10 years, which is a reliable track record.
WST has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.9%
Div Incr Years32
Div Non Decr Years34
5.3 Sustainability
12.34% of the earnings are spent on dividend by WST. This is a low number and sustainable payout ratio.
WST's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP12.34%
EPS Next 2Y7.28%
EPS Next 3Y8.97%
271.04
-4.3 (-1.56%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners98.39%
Inst Owner Change-0.53%
Ins Owners0.33%
Ins Owner Change0%
Market Cap19.49B
Revenue(TTM)3.02B
Net Income(TTM)491.70M
Analysts80.95
Price Target352.25 (29.96%)
Short Float %2.12%
Short Ratio2.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.31% |
Yearly Dividend0.81
Dividend Growth(5Y)5.9%
DP12.34%
Div Incr Years32
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.04%
Min EPS beat(2)15.4%
Max EPS beat(2)20.68%
EPS beat(4)4
Avg EPS beat(4)14.32%
Min EPS beat(4)4.78%
Max EPS beat(4)20.68%
EPS beat(8)7
Avg EPS beat(8)11.13%
EPS beat(12)11
Avg EPS beat(12)13.12%
EPS beat(16)14
Avg EPS beat(16)10.97%
Revenue beat(2)2
Avg Revenue beat(2)2.72%
Min Revenue beat(2)1.1%
Max Revenue beat(2)4.33%
Revenue beat(4)4
Avg Revenue beat(4)1.58%
Min Revenue beat(4)0.12%
Max Revenue beat(4)4.33%
Revenue beat(8)6
Avg Revenue beat(8)0.82%
Revenue beat(12)8
Avg Revenue beat(12)1.03%
Revenue beat(16)10
Avg Revenue beat(16)0.44%
PT rev (1m)9.97%
PT rev (3m)9.89%
EPS NQ rev (1m)3.44%
EPS NQ rev (3m)3.67%
EPS NY rev (1m)4.85%
EPS NY rev (3m)13.01%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)0.55%
Revenue NY rev (1m)0.65%
Revenue NY rev (3m)1.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.34 | ||
| Fwd PE | 34.89 | ||
| P/S | 6.46 | ||
| P/FCF | 51.41 | ||
| P/OCF | 28.09 | ||
| P/B | 6.39 | ||
| P/tB | 6.65 | ||
| EV/EBITDA | 24.13 |
EPS(TTM)7.07
EY2.61%
EPS(NY)7.77
Fwd EY2.87%
FCF(TTM)5.27
FCFY1.95%
OCF(TTM)9.65
OCFY3.56%
SpS41.97
BVpS42.43
TBVpS40.77
PEG (NY)6.27
PEG (5Y)2.42
Graham Number82.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.98% | ||
| ROE | 16.11% | ||
| ROCE | 18.01% | ||
| ROIC | 14.78% | ||
| ROICexc | 18.05% | ||
| ROICexgc | 18.84% | ||
| OM | 20.71% | ||
| PM (TTM) | 16.29% | ||
| GM | 35.58% | ||
| FCFM | 12.56% |
ROA(3y)15.07%
ROA(5y)15.52%
ROE(3y)20.26%
ROE(5y)21.56%
ROIC(3y)17.99%
ROIC(5y)18.35%
ROICexc(3y)23.92%
ROICexc(5y)24.8%
ROICexgc(3y)25.26%
ROICexgc(5y)26.44%
ROCE(3y)21.92%
ROCE(5y)22.37%
ROICexgc growth 3Y-17.09%
ROICexgc growth 5Y2.48%
ROICexc growth 3Y-16.41%
ROICexc growth 5Y3.44%
OM growth 3Y-8.66%
OM growth 5Y4.7%
PM growth 3Y-10.02%
PM growth 5Y5.33%
GM growth 3Y-6.03%
GM growth 5Y0.95%
F-Score6
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.55 | ||
| Debt/EBITDA | 0.26 | ||
| Cap/Depr | 190.61% | ||
| Cap/Sales | 10.43% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.8% | ||
| Profit Quality | 77.1% | ||
| Current Ratio | 2.87 | ||
| Quick Ratio | 2.18 | ||
| Altman-Z | 14.13 |
F-Score6
WACC10.45%
ROIC/WACC1.41
Cap/Depr(3y)247.41%
Cap/Depr(5y)221.86%
Cap/Sales(3y)11.72%
Cap/Sales(5y)10.45%
Profit Quality(3y)66.98%
Profit Quality(5y)67.4%
High Growth Momentum
Growth
EPS 1Y (TTM)4.59%
EPS 3Y-7.79%
EPS 5Y15.81%
EPS Q2Q%5.95%
EPS Next Y6.12%
EPS Next 2Y7.28%
EPS Next 3Y8.97%
EPS Next 5Y10.12%
Revenue 1Y (TTM)4.92%
Revenue growth 3Y0.72%
Revenue growth 5Y9.48%
Sales Q2Q%7.73%
Revenue Next Year6.25%
Revenue Next 2Y6.18%
Revenue Next 3Y6.43%
Revenue Next 5Y6.45%
EBIT growth 1Y6.71%
EBIT growth 3Y-8.01%
EBIT growth 5Y14.63%
EBIT Next Year31.72%
EBIT Next 3Y17.22%
EBIT Next 5Y15.08%
FCF growth 1Y-9.74%
FCF growth 3Y-5.79%
FCF growth 5Y2.8%
OCF growth 1Y-9.68%
OCF growth 3Y3.81%
OCF growth 5Y12.22%
WEST PHARMACEUTICAL SERVICES / WST FAQ
What is the fundamental rating for WST stock?
ChartMill assigns a fundamental rating of 7 / 10 to WST.
Can you provide the valuation status for WEST PHARMACEUTICAL SERVICES?
ChartMill assigns a valuation rating of 3 / 10 to WEST PHARMACEUTICAL SERVICES (WST). This can be considered as Overvalued.
What is the profitability of WST stock?
WEST PHARMACEUTICAL SERVICES (WST) has a profitability rating of 8 / 10.
What are the PE and PB ratios of WEST PHARMACEUTICAL SERVICES (WST) stock?
The Price/Earnings (PE) ratio for WEST PHARMACEUTICAL SERVICES (WST) is 38.34 and the Price/Book (PB) ratio is 6.39.
What is the earnings growth outlook for WEST PHARMACEUTICAL SERVICES?
The Earnings per Share (EPS) of WEST PHARMACEUTICAL SERVICES (WST) is expected to grow by 6.12% in the next year.