WEST PHARMACEUTICAL SERVICES (WST) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WST - US9553061055 - Common Stock
281.77 USD
-2.54 (-0.89%)
281.77 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. Both the health and profitability get an excellent rating, making WST a very profitable company, without any liquidiy or solvency issues. WST has a correct valuation and a medium growth rate. This makes WST very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year WST was profitable.
In the past year WST had a positive cash flow from operations.
Each year in the past 5 years WST has been profitable.
WST had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WST has a better Return On Assets (11.98%) than 93.10% of its industry peers.
WST has a Return On Equity of 16.11%. This is amongst the best in the industry. WST outperforms 87.93% of its industry peers.
WST has a Return On Invested Capital of 14.78%. This is amongst the best in the industry. WST outperforms 89.66% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WST is above the industry average of 13.53%.
| 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.
WST's Profit Margin has improved in the last couple of years.
WST has a better Operating Margin (20.71%) than 87.93% 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.
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
WST has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
WST has less shares outstanding than it did 1 year ago.
WST has less shares outstanding than it did 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 14.57. This indicates that WST is financially healthy and has little risk of bankruptcy at the moment.
WST has a better Altman-Z score (14.57) than 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.
The Debt to FCF ratio of WST (0.55) is better than 91.38% of its industry peers.
WST has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.07, WST is doing good in the industry, outperforming 65.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.55 | ||
| Altman-Z | 14.57 |
ROIC/WACC1.46
WACC10.12%
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.
The Current ratio of WST (2.87) is comparable to the rest of the industry.
A Quick Ratio of 2.18 indicates that WST has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.18, WST is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.87 | ||
| Quick Ratio | 2.18 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.59% over the past year.
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.
Based on estimates for the next years, WST will show a small growth in Revenue. The Revenue will grow by 6.45% on average per year.
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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
With a Price/Earnings ratio of 39.85, WST can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of WST is on the same level as its industry peers.
When comparing the Price/Earnings ratio of WST to the average of the S&P500 Index (26.41), we can say WST is valued expensively.
With a Price/Forward Earnings ratio of 36.27, WST can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WST indicates a somewhat cheap valuation: WST is cheaper than 62.07% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.40, WST is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.85 | ||
| Fwd PE | 36.27 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WST is valued a bit cheaper than 67.24% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WST indicates a somewhat cheap valuation: WST is cheaper than 60.34% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.47 | ||
| 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)6.51
PEG (5Y)2.52
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 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
12.34% 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%
281.77
-2.54 (-0.89%)
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-0.61%
Ins Owners0.33%
Ins Owner Change0%
Market Cap20.27B
Revenue(TTM)3.02B
Net Income(TTM)491.70M
Analysts80.95
Price Target353.63 (25.5%)
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 | 39.85 | ||
| Fwd PE | 36.27 | ||
| P/S | 6.72 | ||
| P/FCF | 53.47 | ||
| P/OCF | 29.22 | ||
| P/B | 6.64 | ||
| P/tB | 6.91 | ||
| EV/EBITDA | 25.12 |
EPS(TTM)7.07
EY2.51%
EPS(NY)7.77
Fwd EY2.76%
FCF(TTM)5.27
FCFY1.87%
OCF(TTM)9.64
OCFY3.42%
SpS41.95
BVpS42.42
TBVpS40.76
PEG (NY)6.51
PEG (5Y)2.52
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
WACC10.12%
ROIC/WACC1.46
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 39.85 and the Price/Book (PB) ratio is 6.64.
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.