WEST PHARMACEUTICAL SERVICES (WST) Stock Fundamental Analysis
USA - NYSE:WST - US9553061055 - Common Stock
267.19 USD
+4.24 (+1.61%)
267.19 USD
0 (0%)
WST gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 56 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.
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
Looking at the Return On Assets, with a value of 12.34%, WST belongs to the top of the industry, outperforming 91.07% of the companies in the same industry.
The Return On Equity of WST (16.65%) is better than 87.50% of its industry peers.
The Return On Invested Capital of WST (15.09%) is better than 89.29% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WST is above the industry average of 14.93%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.34% | ||
| ROE | 16.65% | ||
| ROIC | 15.09% |
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 16.48%, WST belongs to the best of the industry, outperforming 87.50% 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 (20.81%) than 85.71% of its industry peers.
WST's Operating Margin has improved in the last couple of years.
WST has a worse Gross Margin (35.27%) than 60.71% of its industry peers.
WST's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.81% | ||
| PM (TTM) | 16.48% | ||
| GM | 35.27% |
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.
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.
WST has a worse debt/assets ratio than last year.
2.2 Solvency
WST has an Altman-Z score of 14.14. 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 14.14, WST belongs to the top of the industry, outperforming 98.21% of the companies in the same industry.
The Debt to FCF ratio of WST is 0.60, which is an excellent value as it means it would take WST, only 0.60 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of WST (0.60) is better than 89.29% 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.
Looking at the Debt to Equity ratio, with a value of 0.07, WST is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.6 | ||
| Altman-Z | 14.14 |
ROIC/WACC1.45
WACC10.43%
2.3 Liquidity
WST has a Current Ratio of 2.78. This indicates that WST is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of WST (2.78) is comparable to the rest of the industry.
WST has a Quick Ratio of 2.08. This indicates that WST is financially healthy and has no problem in meeting its short term obligations.
WST has a Quick ratio of 2.08. This is comparable to the rest of the industry: WST outperforms 48.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.78 | ||
| Quick Ratio | 2.08 |
3. Growth
3.1 Past
WST shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.56%.
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.
The Revenue has been growing slightly by 2.90% in the past 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)-1.56%
EPS 3Y-7.79%
EPS 5Y15.81%
EPS Q2Q%21.05%
Revenue 1Y (TTM)2.9%
Revenue growth 3Y0.72%
Revenue growth 5Y9.48%
Sales Q2Q%9.17%
3.2 Future
The Earnings Per Share is expected to grow by 10.80% 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 7.52% yearly.
EPS Next Y1.21%
EPS Next 2Y6.44%
EPS Next 3Y8.59%
EPS Next 5Y10.8%
Revenue Next Year5.56%
Revenue Next 2Y5.84%
Revenue Next 3Y6.09%
Revenue Next 5Y7.52%
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
The Price/Earnings ratio is 38.39, which means the current valuation is very expensive for WST.
Based on the Price/Earnings ratio, WST is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
WST is valuated rather expensively when we compare the Price/Earnings ratio to 27.31, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 34.94, 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 62.50% of the companies in the same industry.
WST is valuated expensively when we compare the Price/Forward Earnings ratio to 22.85, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.39 | ||
| Fwd PE | 34.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WST is valued a bit cheaper than 67.86% of the companies in the same industry.
WST's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.85 | ||
| EV/EBITDA | 23.91 |
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.
The excellent profitability rating of WST may justify a higher PE ratio.
PEG (NY)31.63
PEG (5Y)2.43
EPS Next 2Y6.44%
EPS Next 3Y8.59%
5. Dividend
5.1 Amount
WST has a yearly dividend return of 0.33%, which is pretty low.
Compared to an average industry Dividend Yield of 0.51, WST pays a better dividend. On top of this WST pays more dividend than 87.50% 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 | 0.33% |
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 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
WST pays out 12.32% 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.
DP12.32%
EPS Next 2Y6.44%
EPS Next 3Y8.59%
267.19
+4.24 (+1.61%)
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 Change0.06%
Ins Owners0.33%
Ins Owner Change0.59%
Market Cap19.21B
Analysts81
Price Target320.32 (19.88%)
Short Float %2.35%
Short Ratio2.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.33% |
Yearly Dividend0.81
Dividend Growth(5Y)5.9%
DP12.32%
Div Incr Years32
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.54%
Min EPS beat(2)16.4%
Max EPS beat(2)20.68%
EPS beat(4)4
Avg EPS beat(4)15.99%
Min EPS beat(4)4.78%
Max EPS beat(4)22.11%
EPS beat(8)7
Avg EPS beat(8)11.1%
EPS beat(12)10
Avg EPS beat(12)11.41%
EPS beat(16)14
Avg EPS beat(16)10.85%
Revenue beat(2)2
Avg Revenue beat(2)2.55%
Min Revenue beat(2)0.77%
Max Revenue beat(2)4.33%
Revenue beat(4)4
Avg Revenue beat(4)2.36%
Min Revenue beat(4)0.12%
Max Revenue beat(4)4.33%
Revenue beat(8)5
Avg Revenue beat(8)0.51%
Revenue beat(12)7
Avg Revenue beat(12)0.35%
Revenue beat(16)10
Avg Revenue beat(16)0.48%
PT rev (1m)-0.08%
PT rev (3m)13.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.43%
EPS NY rev (1m)0.22%
EPS NY rev (3m)7.79%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.39 | ||
| Fwd PE | 34.94 | ||
| P/S | 6.49 | ||
| P/FCF | 55.85 | ||
| P/OCF | 28.39 | ||
| P/B | 6.56 | ||
| P/tB | 6.84 | ||
| EV/EBITDA | 23.91 |
EPS(TTM)6.96
EY2.6%
EPS(NY)7.65
Fwd EY2.86%
FCF(TTM)4.78
FCFY1.79%
OCF(TTM)9.41
OCFY3.52%
SpS41.17
BVpS40.73
TBVpS39.06
PEG (NY)31.63
PEG (5Y)2.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.34% | ||
| ROE | 16.65% | ||
| ROCE | 18.4% | ||
| ROIC | 15.09% | ||
| ROICexc | 17.81% | ||
| ROICexgc | 18.6% | ||
| OM | 20.81% | ||
| PM (TTM) | 16.48% | ||
| GM | 35.27% | ||
| FCFM | 11.62% |
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 Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.6 | ||
| Debt/EBITDA | 0.26 | ||
| Cap/Depr | 204.99% | ||
| Cap/Sales | 11.24% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.96% | ||
| Profit Quality | 70.54% | ||
| Current Ratio | 2.78 | ||
| Quick Ratio | 2.08 | ||
| Altman-Z | 14.14 |
F-Score5
WACC10.43%
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)-1.56%
EPS 3Y-7.79%
EPS 5Y15.81%
EPS Q2Q%21.05%
EPS Next Y1.21%
EPS Next 2Y6.44%
EPS Next 3Y8.59%
EPS Next 5Y10.8%
Revenue 1Y (TTM)2.9%
Revenue growth 3Y0.72%
Revenue growth 5Y9.48%
Sales Q2Q%9.17%
Revenue Next Year5.56%
Revenue Next 2Y5.84%
Revenue Next 3Y6.09%
Revenue Next 5Y7.52%
EBIT growth 1Y1.97%
EBIT growth 3Y-8.01%
EBIT growth 5Y14.63%
EBIT Next Year31.72%
EBIT Next 3Y17.22%
EBIT Next 5Y17.09%
FCF growth 1Y-13.31%
FCF growth 3Y-5.79%
FCF growth 5Y2.8%
OCF growth 1Y-4.29%
OCF growth 3Y3.81%
OCF growth 5Y12.22%