WEST PHARMACEUTICAL SERVICES (WST) Fundamental Analysis & Valuation
NYSE:WST • US9553061055
Current stock price
254.8 USD
+2.06 (+0.82%)
At close:
254.8 USD
0 (0%)
After Hours:
This WST fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. WST Profitability Analysis
1.1 Basic Checks
- WST had positive earnings in the past year.
- WST had a positive operating cash flow in the past year.
- WST had positive earnings in each of the past 5 years.
- In the past 5 years WST always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 11.56%, WST belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
- WST has a Return On Equity of 15.54%. This is amongst the best in the industry. WST outperforms 91.07% of its industry peers.
- The Return On Invested Capital of WST (14.09%) is better than 94.64% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for WST is above the industry average of 11.80%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.56% | ||
| ROE | 15.54% | ||
| ROIC | 14.09% |
ROA(3y)13.53%
ROA(5y)15.35%
ROE(3y)18.17%
ROE(5y)20.93%
ROIC(3y)15.83%
ROIC(5y)17.92%
1.3 Margins
- WST has a Profit Margin of 16.06%. This is amongst the best in the industry. WST outperforms 85.71% of its industry peers.
- In the last couple of years the Profit Margin of WST has remained more or less at the same level.
- Looking at the Operating Margin, with a value of 20.53%, WST belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
- In the last couple of years the Operating Margin of WST has remained more or less at the same level.
- With a Gross Margin value of 35.91%, WST is not doing good in the industry: 60.71% of the companies in the same industry are doing better.
- 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 | 20.53% | ||
| PM (TTM) | 16.06% | ||
| GM | 35.91% |
OM growth 3Y-7.75%
OM growth 5Y1.08%
PM growth 3Y-7.51%
PM growth 5Y-0.08%
GM growth 3Y-3.01%
GM growth 5Y0.08%
2. WST Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WST is still 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 has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 13.09 indicates that WST is not in any danger for bankruptcy at the moment.
- WST has a better Altman-Z score (13.09) than 98.21% of its industry peers.
- The Debt to FCF ratio of WST is 0.44, which is an excellent value as it means it would take WST, only 0.44 years of fcf income to pay off all of its debts.
- With an excellent Debt to FCF ratio value of 0.44, WST belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
- A Debt/Equity ratio of 0.06 indicates that WST is not too dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.06, WST is doing good in the industry, outperforming 66.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.44 | ||
| Altman-Z | 13.09 |
ROIC/WACC1.29
WACC10.91%
2.3 Liquidity
- WST has a Current Ratio of 3.02. This indicates that WST is financially healthy and has no problem in meeting its short term obligations.
- The Current ratio of WST (3.02) is comparable to the rest of the industry.
- A Quick Ratio of 2.34 indicates that WST has no problem at all paying its short term obligations.
- Looking at the Quick ratio, with a value of 2.34, WST is in line with its industry, outperforming 55.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.02 | ||
| Quick Ratio | 2.34 |
3. WST Growth Analysis
3.1 Past
- WST shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 8.00%.
- The Earnings Per Share has been growing by 8.94% on average over the past years. This is quite good.
- WST shows a small growth in Revenue. In the last year, the Revenue has grown by 6.25%.
- Measured over the past years, WST shows a small growth in Revenue. The Revenue has been growing by 7.44% on average per year.
EPS 1Y (TTM)8%
EPS 3Y-5.25%
EPS 5Y8.94%
EPS Q2Q%12.09%
Revenue 1Y (TTM)6.25%
Revenue growth 3Y2.12%
Revenue growth 5Y7.44%
Sales Q2Q%7.51%
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 9.50% on average per year.
- WST is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.60% yearly.
EPS Next Y11.14%
EPS Next 2Y11.07%
EPS Next 3Y11.63%
EPS Next 5Y9.5%
Revenue Next Year6.04%
Revenue Next 2Y6.1%
Revenue Next 3Y6.43%
Revenue Next 5Y5.6%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. WST Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 34.95, which means the current valuation is very expensive for WST.
- WST's Price/Earnings ratio is a bit cheaper when compared to the industry. WST is cheaper than 64.29% of the companies in the same industry.
- WST is valuated rather expensively when we compare the Price/Earnings ratio to 25.60, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 31.45, which means the current valuation is very expensive for WST.
- Based on the Price/Forward Earnings ratio, WST is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 22.84. WST is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.95 | ||
| Fwd PE | 31.45 |
4.2 Price Multiples
- 67.86% of the companies in the same industry are more expensive than WST, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of WST indicates a somewhat cheap valuation: WST is cheaper than 64.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.17 | ||
| EV/EBITDA | 22.16 |
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 a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.14
PEG (5Y)3.91
EPS Next 2Y11.07%
EPS Next 3Y11.63%
5. WST Dividend Analysis
5.1 Amount
- WST has a yearly dividend return of 0.32%, which is pretty low.
- WST's Dividend Yield is rather good when compared to the industry average which is at 0.11. WST pays more dividend than 83.93% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.88, WST's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.32% |
5.2 History
- The dividend of WST has a limited annual growth rate of 5.48%.
- WST has been paying a dividend for at least 10 years, so it has 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)5.48%
Div Incr Years32
Div Non Decr Years34
5.3 Sustainability
- WST pays out 12.40% 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.
DP12.4%
EPS Next 2Y11.07%
EPS Next 3Y11.63%
WST Fundamentals: All Metrics, Ratios and Statistics
254.8
+2.06 (+0.82%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)02-12 2026-02-12/bmo
Earnings (Next)04-23 2026-04-23/bmo
Inst Owners97.62%
Inst Owner Change-2.08%
Ins Owners0.33%
Ins Owner Change0.38%
Market Cap18.37B
Revenue(TTM)3.07B
Net Income(TTM)493.70M
Analysts80.87
Price Target328.99 (29.12%)
Short Float %3.58%
Short Ratio2.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.32% |
Yearly Dividend0.85
Dividend Growth(5Y)5.48%
DP12.4%
Div Incr Years32
Div Non Decr Years34
Ex-Date04-29 2026-04-29 (0.22)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.82%
Min EPS beat(2)10.24%
Max EPS beat(2)15.4%
EPS beat(4)4
Avg EPS beat(4)15.68%
Min EPS beat(4)10.24%
Max EPS beat(4)20.68%
EPS beat(8)7
Avg EPS beat(8)12.16%
EPS beat(12)11
Avg EPS beat(12)11.7%
EPS beat(16)14
Avg EPS beat(16)11.27%
Revenue beat(2)2
Avg Revenue beat(2)0.72%
Min Revenue beat(2)0.33%
Max Revenue beat(2)1.1%
Revenue beat(4)4
Avg Revenue beat(4)1.63%
Min Revenue beat(4)0.33%
Max Revenue beat(4)4.33%
Revenue beat(8)7
Avg Revenue beat(8)1.11%
Revenue beat(12)8
Avg Revenue beat(12)0.49%
Revenue beat(16)10
Avg Revenue beat(16)0.34%
PT rev (1m)0%
PT rev (3m)-7.08%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)1.98%
EPS NY rev (1m)3.22%
EPS NY rev (3m)3.21%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.72%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.95 | ||
| Fwd PE | 31.45 | ||
| P/S | 5.97 | ||
| P/FCF | 39.17 | ||
| P/OCF | 24.33 | ||
| P/B | 5.78 | ||
| P/tB | 6.01 | ||
| EV/EBITDA | 22.16 |
EPS(TTM)7.29
EY2.86%
EPS(NY)8.1
Fwd EY3.18%
FCF(TTM)6.51
FCFY2.55%
OCF(TTM)10.47
OCFY4.11%
SpS42.65
BVpS44.06
TBVpS42.43
PEG (NY)3.14
PEG (5Y)3.91
Graham Number85.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.56% | ||
| ROE | 15.54% | ||
| ROCE | 17.45% | ||
| ROIC | 14.09% | ||
| ROICexc | 18.03% | ||
| ROICexgc | 18.82% | ||
| OM | 20.53% | ||
| PM (TTM) | 16.06% | ||
| GM | 35.91% | ||
| FCFM | 15.25% |
ROA(3y)13.53%
ROA(5y)15.35%
ROE(3y)18.17%
ROE(5y)20.93%
ROIC(3y)15.83%
ROIC(5y)17.92%
ROICexc(3y)20.32%
ROICexc(5y)23.97%
ROICexgc(3y)21.34%
ROICexgc(5y)25.37%
ROCE(3y)19.61%
ROCE(5y)22.21%
ROICexgc growth 3Y-13.74%
ROICexgc growth 5Y-3.06%
ROICexc growth 3Y-13.28%
ROICexc growth 5Y-2.17%
OM growth 3Y-7.75%
OM growth 5Y1.08%
PM growth 3Y-7.51%
PM growth 5Y-0.08%
GM growth 3Y-3.01%
GM growth 5Y0.08%
F-Score7
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.44 | ||
| Debt/EBITDA | 0.26 | ||
| Cap/Depr | 166.8% | ||
| Cap/Sales | 9.3% | ||
| Interest Coverage | 2103.33 | ||
| Cash Conversion | 94.07% | ||
| Profit Quality | 94.98% | ||
| Current Ratio | 3.02 | ||
| Quick Ratio | 2.34 | ||
| Altman-Z | 13.09 |
F-Score7
WACC10.91%
ROIC/WACC1.29
Cap/Depr(3y)224.35%
Cap/Depr(5y)223.25%
Cap/Sales(3y)11.53%
Cap/Sales(5y)10.68%
Profit Quality(3y)73.64%
Profit Quality(5y)69.18%
High Growth Momentum
Growth
EPS 1Y (TTM)8%
EPS 3Y-5.25%
EPS 5Y8.94%
EPS Q2Q%12.09%
EPS Next Y11.14%
EPS Next 2Y11.07%
EPS Next 3Y11.63%
EPS Next 5Y9.5%
Revenue 1Y (TTM)6.25%
Revenue growth 3Y2.12%
Revenue growth 5Y7.44%
Sales Q2Q%7.51%
Revenue Next Year6.04%
Revenue Next 2Y6.1%
Revenue Next 3Y6.43%
Revenue Next 5Y5.6%
EBIT growth 1Y7.88%
EBIT growth 3Y-5.8%
EBIT growth 5Y8.6%
EBIT Next Year43.23%
EBIT Next 3Y19.91%
EBIT Next 5Y13.54%
FCF growth 1Y69.65%
FCF growth 3Y2.19%
FCF growth 5Y9.48%
OCF growth 1Y15.52%
OCF growth 3Y1.4%
OCF growth 5Y9.82%
WEST PHARMACEUTICAL SERVICES / WST Fundamental Analysis FAQ
What is the fundamental rating for WST stock?
ChartMill assigns a fundamental rating of 6 / 10 to WST.
What is the valuation status for WST stock?
ChartMill assigns a valuation rating of 3 / 10 to WEST PHARMACEUTICAL SERVICES (WST). This can be considered as Overvalued.
How profitable is WEST PHARMACEUTICAL SERVICES (WST) stock?
WEST PHARMACEUTICAL SERVICES (WST) has a profitability rating of 7 / 10.
What is the financial health of WEST PHARMACEUTICAL SERVICES (WST) stock?
The financial health rating of WEST PHARMACEUTICAL SERVICES (WST) is 8 / 10.
What is the expected EPS growth for WEST PHARMACEUTICAL SERVICES (WST) stock?
The Earnings per Share (EPS) of WEST PHARMACEUTICAL SERVICES (WST) is expected to grow by 11.14% in the next year.