WEST PHARMACEUTICAL SERVICES (WST)
US9553061055 - Common Stock
WST gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 58 industry peers in the Life Sciences Tools & Services industry. Both the health and profitability get an excellent rating, making WST a very profitable company, without any liquidiy or solvency issues. WST is not valued too expensively and it also shows a decent growth rate. WST also has an excellent dividend rating. This makes WST very considerable for dividend and 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.
WST had positive earnings in each of the past 5 years.
WST had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WST has a Return On Assets of 15.79%. This is amongst the best in the industry. WST outperforms 94.83% of its industry peers.
WST has a Return On Equity of 21.22%. This is amongst the best in the industry. WST outperforms 93.10% of its industry peers.
WST has a Return On Invested Capital of 18.45%. This is amongst the best in the industry. WST outperforms 96.55% of its industry peers.
WST had an Average Return On Invested Capital over the past 3 years of 20.47%. This is significantly above the industry average of 9.86%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.79% | ||
| ROE | 21.22% | ||
| ROIC | 18.45% |
ROA(3y)17.22%
ROA(5y)14.88%
ROE(3y)23.59%
ROE(5y)20.96%
ROIC(3y)20.47%
ROIC(5y)17.74%
1.3 Margins
The Profit Margin of WST (19.42%) is better than 94.83% of its industry peers.
WST's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 22.59%, WST belongs to the best of the industry, outperforming 91.38% of the companies in the same industry.
In the last couple of years the Operating Margin of WST has grown nicely.
WST has a Gross Margin of 37.15%. This is in the lower half of the industry: WST underperforms 62.07% of its industry peers.
WST's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.59% | ||
| PM (TTM) | 19.42% | ||
| GM | 37.15% |
OM growth 3Y7.1%
OM growth 5Y10.38%
PM growth 3Y7.65%
PM growth 5Y10.8%
GM growth 3Y2.29%
GM growth 5Y3.81%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), WST is creating some value.
The number of shares outstanding for WST has been reduced compared to 1 year ago.
WST has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, WST has an improved debt to assets ratio.
2.2 Solvency
WST has an Altman-Z score of 20.48. This indicates that WST is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 20.48, WST belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Debt to FCF ratio of WST is 0.53, which is an excellent value as it means it would take WST, only 0.53 years of fcf income to pay off all of its debts.
WST has a Debt to FCF ratio of 0.53. This is amongst the best in the industry. WST outperforms 93.10% of its industry peers.
WST has a Debt/Equity ratio of 0.03. This is a healthy value indicating a solid balance between debt and equity.
WST's Debt to Equity ratio of 0.03 is fine compared to the rest of the industry. WST outperforms 65.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.53 | ||
| Altman-Z | 20.48 |
ROIC/WACC1.52
WACC12.13%
2.3 Liquidity
WST has a Current Ratio of 2.61. This indicates that WST is financially healthy and has no problem in meeting its short term obligations.
WST has a Current ratio of 2.61. This is comparable to the rest of the industry: WST outperforms 51.72% of its industry peers.
A Quick Ratio of 1.95 indicates that WST should not have too much problems paying its short term obligations.
WST's Quick ratio of 1.95 is in line compared to the rest of the industry. WST outperforms 48.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.61 | ||
| Quick Ratio | 1.95 |
3. Growth
3.1 Past
WST shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.15%.
WST shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.52% yearly.
The Revenue has been growing slightly by 1.56% in the past year.
Measured over the past years, WST shows a quite strong growth in Revenue. The Revenue has been growing by 11.43% on average per year.
EPS 1Y (TTM)-7.15%
EPS 3Y19.37%
EPS 5Y23.52%
EPS growth Q2Q-21.21%
Revenue 1Y (TTM)1.56%
Revenue growth 3Y11.17%
Revenue growth 5Y11.43%
Revenue growth Q2Q-2.96%
3.2 Future
Based on estimates for the next years, WST will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.41% on average per year.
WST is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.84% yearly.
EPS Next Y-4.75%
EPS Next 2Y6.37%
EPS Next 3Y8.14%
EPS Next 5Y8.41%
Revenue Next Year1.77%
Revenue Next 2Y5.36%
Revenue Next 3Y6.29%
Revenue Next 5Y9.84%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 47.65 indicates a quite expensive valuation of WST.
Based on the Price/Earnings ratio, WST is valued a bit cheaper than 68.97% of the companies in the same industry.
WST is valuated expensively when we compare the Price/Earnings ratio to 27.73, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 39.92, WST can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, WST is valued a bit cheaper than 67.24% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of WST to the average of the S&P500 Index (20.41), we can say WST is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.65 | ||
| Fwd PE | 39.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WST is valued a bit cheaper than 63.79% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, WST is valued a bit cheaper than 63.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 68.86 | ||
| EV/EBITDA | 32.62 |
4.3 Compensation for Growth
WST has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.03
EPS Next 2Y6.37%
EPS Next 3Y8.14%
5. Dividend
5.1 Amount
WST has a yearly dividend return of 0.22%, which is pretty low.
WST's Dividend Yield is rather good when compared to the industry average which is at 0.64. WST pays more dividend than 86.21% of the companies in the same industry.
With a Dividend Yield of 0.22, WST pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.22% |
5.2 History
On average, the dividend of WST grows each year by 6.31%, which is quite nice.
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)6.31%
Div Incr Years18
Div Non Decr Years18
5.3 Sustainability
WST pays out 10.13% of its income as dividend. This is a sustainable payout ratio.
The dividend of WST is growing, but earnings are growing more, so the dividend growth is sustainable.
DP10.13%
EPS Next 2Y6.37%
EPS Next 3Y8.14%
WEST PHARMACEUTICAL SERVICES
NYSE:WST (5/3/2024, 7:26:51 PM)
After market: 365.02 0 (0%)365.02
-3.44 (-0.93%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap26.59B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.22% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.65 | ||
| Fwd PE | 39.92 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)2.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.79% | ||
| ROE | 21.22% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 22.59% | ||
| PM (TTM) | 19.42% | ||
| GM | 37.15% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.61 | ||
| Quick Ratio | 1.95 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-7.15%
EPS 3Y19.37%
EPS 5Y
EPS growth Q2Q
EPS Next Y-4.75%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.56%
Revenue growth 3Y11.17%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y