WEST PHARMACEUTICAL SERVICES (WST) Stock Fundamental Analysis
NYSE:WST - New York Stock Exchange, Inc. - US9553061055 - Common Stock - Currency: USD
Taking everything into account, WST scores 6 out of 10 in our fundamental rating. WST was compared to 55 industry peers in the Life Sciences Tools & Services industry. WST gets an excellent profitability rating and is at the same time showing great financial health properties. WST is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
WST had positive earnings in the past year.
WST had a positive operating cash flow in the past year.
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
With an excellent Return On Assets value of 12.91%, WST belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
The Return On Equity of WST (17.41%) is better than 89.09% of its industry peers.
WST has a better Return On Invested Capital (15.53%) than 90.91% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WST is above the industry average of 13.60%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.91% | ||
| ROE | 17.41% | ||
| ROIC | 15.53% |
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
Looking at the Profit Margin, with a value of 16.13%, WST belongs to the top of the industry, outperforming 92.73% of the companies in the same industry.
WST's Profit Margin has improved in the last couple of years.
WST has a Operating Margin of 20.21%. This is amongst the best in the industry. WST outperforms 85.45% of its industry peers.
In the last couple of years the Operating Margin of WST has grown nicely.
WST has a Gross Margin of 34.54%. This is in the lower half of the industry: WST underperforms 65.45% of its industry peers.
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 | 20.21% | ||
| PM (TTM) | 16.13% | ||
| GM | 34.54% |
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.
Compared to 1 year ago, WST has less shares outstanding
The number of shares outstanding for WST has been reduced compared to 5 years ago.
The debt/assets ratio for WST is higher compared to a year ago.
2.2 Solvency
WST has an Altman-Z score of 13.43. This indicates that WST is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 13.43, WST belongs to the best of the industry, outperforming 96.36% of the companies in the same industry.
WST has a debt to FCF ratio of 0.67. This is a very positive value and a sign of high solvency as it would only need 0.67 years to pay back of all of its debts.
The Debt to FCF ratio of WST (0.67) is better than 90.91% of its industry peers.
WST has a Debt/Equity ratio of 0.08. This is a healthy value indicating a solid balance between debt and equity.
WST has a better Debt to Equity ratio (0.08) than 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.67 | ||
| Altman-Z | 13.43 |
ROIC/WACC1.55
WACC10.04%
2.3 Liquidity
A Current Ratio of 2.77 indicates that WST has no problem at all paying its short term obligations.
With a Current ratio value of 2.77, WST perfoms like the industry average, outperforming 50.91% of the companies in the same industry.
WST has a Quick Ratio of 2.03. This indicates that WST is financially healthy and has no problem in meeting its short term obligations.
WST has a Quick ratio of 2.03. This is comparable to the rest of the industry: WST outperforms 47.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.77 | ||
| Quick Ratio | 2.03 |
3. Growth
3.1 Past
WST shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.32%.
WST shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.81% yearly.
WST shows a decrease in Revenue. In the last year, the revenue decreased by -1.12%.
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)-13.32%
EPS 3Y-7.79%
EPS 5Y15.81%
EPS Q2Q%-7.05%
Revenue 1Y (TTM)-1.12%
Revenue growth 3Y0.72%
Revenue growth 5Y9.48%
Sales Q2Q%0.37%
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 9.79% on average per year.
WST is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.60% yearly.
EPS Next Y-5.81%
EPS Next 2Y3.34%
EPS Next 3Y7.55%
EPS Next 5Y9.79%
Revenue Next Year2.68%
Revenue Next 2Y4.25%
Revenue Next 3Y5.03%
Revenue Next 5Y6.6%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 33.42, 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 63.64% of the companies in the same industry.
WST's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.32.
The Price/Forward Earnings ratio is 30.78, which means the current valuation is very expensive for WST.
WST's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WST is cheaper than 63.64% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.13, WST is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.42 | ||
| Fwd PE | 30.78 |
4.2 Price Multiples
WST's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WST is cheaper than 70.91% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WST is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.95 | ||
| EV/EBITDA | 21.14 |
4.3 Compensation for Growth
WST has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.11
EPS Next 2Y3.34%
EPS Next 3Y7.55%
5. Dividend
5.1 Amount
With a yearly dividend of 0.37%, WST is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.51, WST pays a better dividend. On top of this WST pays more dividend than 87.27% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, WST's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.37% |
5.2 History
The dividend of WST has a limited annual growth rate of 5.90%.
WST has been paying a dividend for at least 10 years, so it has a reliable track record.
WST has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.9%
Div Incr Years32
Div Non Decr Years34
5.3 Sustainability
12.76% of the earnings are spent on dividend by WST. This is a low number and sustainable payout ratio.
The dividend of WST is growing, but earnings are growing more, so the dividend growth is sustainable.
DP12.76%
EPS Next 2Y3.34%
EPS Next 3Y7.55%
221.91
-3 (-1.33%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners97.98%
Inst Owner Change1.16%
Ins Owners0.34%
Ins Owner Change0.75%
Market Cap15.94B
Analysts82.22
Price Target283.2 (27.62%)
Short Float %3.15%
Short Ratio2.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.37% |
Yearly Dividend0.81
Dividend Growth(5Y)5.9%
DP12.76%
Div Incr Years32
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.59%
Min EPS beat(2)4.78%
Max EPS beat(2)16.4%
EPS beat(4)3
Avg EPS beat(4)7.43%
Min EPS beat(4)-13.56%
Max EPS beat(4)22.11%
EPS beat(8)7
Avg EPS beat(8)9.57%
EPS beat(12)10
Avg EPS beat(12)10.56%
EPS beat(16)14
Avg EPS beat(16)12.06%
Revenue beat(2)2
Avg Revenue beat(2)0.44%
Min Revenue beat(2)0.12%
Max Revenue beat(2)0.77%
Revenue beat(4)3
Avg Revenue beat(4)0.1%
Min Revenue beat(4)-4.69%
Max Revenue beat(4)4.21%
Revenue beat(8)4
Avg Revenue beat(8)-0.19%
Revenue beat(12)7
Avg Revenue beat(12)0.06%
Revenue beat(16)10
Avg Revenue beat(16)0.65%
PT rev (1m)0.03%
PT rev (3m)-0.56%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.4%
EPS NY rev (1m)0%
EPS NY rev (3m)1.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.78%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.42 | ||
| Fwd PE | 30.78 | ||
| P/S | 5.51 | ||
| P/FCF | 51.95 | ||
| P/OCF | 23.99 | ||
| P/B | 5.94 | ||
| P/tB | 6.21 | ||
| EV/EBITDA | 21.14 |
EPS(TTM)6.64
EY2.99%
EPS(NY)7.21
Fwd EY3.25%
FCF(TTM)4.27
FCFY1.92%
OCF(TTM)9.25
OCFY4.17%
SpS40.3
BVpS37.34
TBVpS35.71
PEG (NY)N/A
PEG (5Y)2.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.91% | ||
| ROE | 17.41% | ||
| ROCE | 18.93% | ||
| ROIC | 15.53% | ||
| ROICexc | 17.87% | ||
| ROICexgc | 18.69% | ||
| OM | 20.21% | ||
| PM (TTM) | 16.13% | ||
| GM | 34.54% | ||
| FCFM | 10.6% |
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%
ROICexcg growth 3Y-17.09%
ROICexcg 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-Score5
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.67 | ||
| Debt/EBITDA | 0.28 | ||
| Cap/Depr | 223.84% | ||
| Cap/Sales | 12.35% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.21% | ||
| Profit Quality | 65.69% | ||
| Current Ratio | 2.77 | ||
| Quick Ratio | 2.03 | ||
| Altman-Z | 13.43 |
F-Score5
WACC10.04%
ROIC/WACC1.55
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)-13.32%
EPS 3Y-7.79%
EPS 5Y15.81%
EPS Q2Q%-7.05%
EPS Next Y-5.81%
EPS Next 2Y3.34%
EPS Next 3Y7.55%
EPS Next 5Y9.79%
Revenue 1Y (TTM)-1.12%
Revenue growth 3Y0.72%
Revenue growth 5Y9.48%
Sales Q2Q%0.37%
Revenue Next Year2.68%
Revenue Next 2Y4.25%
Revenue Next 3Y5.03%
Revenue Next 5Y6.6%
EBIT growth 1Y-11.55%
EBIT growth 3Y-8.01%
EBIT growth 5Y14.63%
EBIT Next Year26.95%
EBIT Next 3Y15.99%
EBIT Next 5Y16.06%
FCF growth 1Y-25.15%
FCF growth 3Y-5.79%
FCF growth 5Y2.8%
OCF growth 1Y-6.51%
OCF growth 3Y3.81%
OCF growth 5Y12.22%