WEST PHARMACEUTICAL SERVICES (WST) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WST - US9553061055 - Common Stock
280.23 USD
-1.54 (-0.55%)
280.23 USD
0 (0%)
Overall WST gets a fundamental rating of 7 out of 10. We evaluated WST against 58 industry peers in the Life Sciences Tools & Services industry. WST scores excellent points on both the profitability and health parts. This is a solid base for a good stock. WST is not valued too expensively and it also shows a decent growth rate. These ratings would make WST suitable 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's Return On Assets of 11.98% is amongst the best of the industry. WST outperforms 93.10% of its industry peers.
WST has a better Return On Equity (16.11%) than 87.93% of its industry peers.
With an excellent Return On Invested Capital value of 14.78%, WST belongs to the best of the industry, outperforming 89.66% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for WST is above the industry average of 13.53%.
| 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
With an excellent Profit Margin value of 16.29%, WST belongs to the best of the industry, outperforming 86.21% of the companies in the same industry.
In the last couple of years the Profit Margin of WST has grown nicely.
With an excellent Operating Margin value of 20.71%, WST belongs to the best of the industry, outperforming 87.93% of the companies in the same industry.
In the last couple of years the Operating Margin of WST has grown nicely.
With a Gross Margin value of 35.58%, WST is not doing good in the industry: 60.34% of the companies in the same industry are doing better.
WST's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), WST is creating some value.
WST has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, WST has less shares outstanding
The debt/assets ratio for WST is higher compared to a year ago.
2.2 Solvency
WST has an Altman-Z score of 14.57. This indicates that WST is financially healthy and has little risk of bankruptcy at the moment.
WST's Altman-Z score of 14.57 is amongst the best of the industry. WST outperforms 98.28% of its industry peers.
The Debt to FCF ratio of WST is 0.55, which is an excellent value as it means it would take WST, only 0.55 years of fcf income to pay off 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.
WST's Debt to Equity ratio of 0.07 is fine compared to the rest of the industry. WST outperforms 65.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.55 | ||
| Altman-Z | 14.57 |
ROIC/WACC1.45
WACC10.22%
2.3 Liquidity
WST has a Current Ratio of 2.87. This indicates that WST is financially healthy and has no problem in meeting its short term obligations.
WST has a Current ratio of 2.87. This is comparable to the rest of the industry: WST outperforms 55.17% of its industry peers.
WST has a Quick Ratio of 2.18. This indicates that WST is financially healthy and has no problem in meeting its short term obligations.
WST has a Quick ratio of 2.18. This is comparable to the rest of the industry: WST outperforms 50.00% of its industry peers.
| 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.
Looking at the last year, WST shows a small growth in Revenue. The Revenue has grown by 4.92% in the last year.
Measured over the past years, WST shows a quite strong growth in Revenue. The Revenue has been growing by 9.48% on average per year.
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
The Earnings Per Share is expected to grow by 10.12% on average over the next years. This is quite good.
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 39.64 indicates a quite expensive valuation of WST.
WST's Price/Earnings is on the same level as the industry average.
WST's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.46.
Based on the Price/Forward Earnings ratio of 36.07, the valuation of WST can be described as expensive.
Based on the Price/Forward Earnings ratio, WST is valued a bit cheaper than 62.07% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.10, WST is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.64 | ||
| Fwd PE | 36.07 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WST indicates a somewhat cheap valuation: WST is cheaper than 67.24% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, WST is valued a bit cheaper than 60.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.18 | ||
| EV/EBITDA | 25.12 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of WST may justify a higher PE ratio.
PEG (NY)6.48
PEG (5Y)2.51
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.
Compared to an average industry Dividend Yield of 0.45, WST pays a better dividend. On top of this WST pays more dividend than 87.93% of the companies listed in the same industry.
With a Dividend Yield of 0.31, WST pays less dividend than the S&P500 average, which is at 2.32.
| 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%
280.23
-1.54 (-0.55%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners97.94%
Inst Owner Change-0.61%
Ins Owners0.33%
Ins Owner Change0%
Market Cap20.16B
Revenue(TTM)3.02B
Net Income(TTM)491.70M
Analysts80.95
Price Target349.43 (24.69%)
Short Float %2.62%
Short Ratio2.7
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)0.39%
PT rev (3m)10.31%
EPS NQ rev (1m)0.32%
EPS NQ rev (3m)3.18%
EPS NY rev (1m)4.79%
EPS NY rev (3m)5.08%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-0.17%
Revenue NY rev (1m)0.45%
Revenue NY rev (3m)0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.64 | ||
| Fwd PE | 36.07 | ||
| P/S | 6.68 | ||
| P/FCF | 53.18 | ||
| P/OCF | 29.06 | ||
| P/B | 6.61 | ||
| P/tB | 6.88 | ||
| EV/EBITDA | 25.12 |
EPS(TTM)7.07
EY2.52%
EPS(NY)7.77
Fwd EY2.77%
FCF(TTM)5.27
FCFY1.88%
OCF(TTM)9.64
OCFY3.44%
SpS41.95
BVpS42.42
TBVpS40.76
PEG (NY)6.48
PEG (5Y)2.51
Graham Number82.14
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 | 14.57 |
F-Score6
WACC10.22%
ROIC/WACC1.45
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 4 / 10 to WEST PHARMACEUTICAL SERVICES (WST). This can be considered as Fairly Valued.
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 39.64 and the Price/Book (PB) ratio is 6.61.
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.