WEST PHARMACEUTICAL SERVICES (WST) Stock Fundamental Analysis
USA - NYSE:WST - US9553061055 - Common Stock
252.22 USD
-2.63 (-1.03%)
252.22 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
In the past year WST was profitable.
In the past year WST had a positive cash flow from operations.
In the past 5 years WST has always been profitable.
WST had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WST's Return On Assets of 12.34% is amongst the best of the industry. WST outperforms 91.07% of its industry peers.
Looking at the Return On Equity, with a value of 16.65%, WST belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 15.09%, WST belongs to the top of the industry, outperforming 91.07% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for WST is above the industry average of 15.41%.
| 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
WST's Profit Margin of 16.48% is amongst the best of the industry. WST outperforms 87.50% of its industry peers.
In the last couple of years the Profit Margin of WST has grown nicely.
WST has a Operating Margin of 20.81%. This is amongst the best in the industry. WST outperforms 89.29% 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.
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 | 20.81% | ||
| 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
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
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 13.80. This indicates that WST is financially healthy and has little risk of bankruptcy at the moment.
WST has a better Altman-Z score (13.80) than 96.43% of its industry peers.
WST has a debt to FCF ratio of 0.60. This is a very positive value and a sign of high solvency as it would only need 0.60 years to pay back of all of its debts.
WST's Debt to FCF ratio of 0.60 is amongst the best of the industry. WST outperforms 89.29% of its industry peers.
A Debt/Equity ratio of 0.07 indicates that WST is not too dependend on debt financing.
WST has a Debt to Equity ratio of 0.07. This is in the better half of the industry: WST outperforms 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.6 | ||
| Altman-Z | 13.8 |
ROIC/WACC1.46
WACC10.35%
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.
A Quick Ratio of 2.08 indicates that WST has no problem at all paying its short term obligations.
WST's Quick ratio of 2.08 is in line compared to the rest of the industry. WST outperforms 46.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.78 | ||
| Quick Ratio | 2.08 |
3. Growth
3.1 Past
The earnings per share for WST have decreased by -1.56% in the last 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.
The Revenue has been growing slightly by 2.90% in the past year.
The Revenue has been growing by 9.48% on average over the past years. This is quite good.
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 9.35% on average over the next years. This is quite good.
Based on estimates for the next years, WST will show a small growth in Revenue. The Revenue will grow by 6.57% on average per year.
EPS Next Y0.99%
EPS Next 2Y6.12%
EPS Next 3Y8.3%
EPS Next 5Y9.35%
Revenue Next Year5.56%
Revenue Next 2Y5.79%
Revenue Next 3Y5.95%
Revenue Next 5Y6.57%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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 36.24, which means the current valuation is very expensive for WST.
Compared to the rest of the industry, the Price/Earnings ratio of WST indicates a somewhat cheap valuation: WST is cheaper than 62.50% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.38, WST is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 33.18, the valuation of WST can be described as expensive.
Based on the Price/Forward Earnings ratio, WST is valued a bit cheaper than 62.50% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.86. WST is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.24 | ||
| Fwd PE | 33.18 |
4.2 Price Multiples
WST's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WST is cheaper than 69.64% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as WST.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.72 | ||
| EV/EBITDA | 23.16 |
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.
The excellent profitability rating of WST may justify a higher PE ratio.
PEG (NY)36.51
PEG (5Y)2.29
EPS Next 2Y6.12%
EPS Next 3Y8.3%
5. Dividend
5.1 Amount
WST has a yearly dividend return of 0.36%, which is pretty low.
WST's Dividend Yield is rather good when compared to the industry average which is at 0.54. WST pays more dividend than 87.50% of the companies in the same industry.
With a Dividend Yield of 0.36, WST pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.36% |
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 2Y6.12%
EPS Next 3Y8.3%
252.22
-2.63 (-1.03%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners97.71%
Inst Owner Change0.6%
Ins Owners0.33%
Ins Owner Change0.59%
Market Cap18.14B
Analysts81.05
Price Target320.57 (27.1%)
Short Float %2.15%
Short Ratio2.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.36% |
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)0.01%
PT rev (3m)13.2%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.59%
EPS NY rev (1m)0%
EPS NY rev (3m)7.22%
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 | 36.24 | ||
| Fwd PE | 33.18 | ||
| P/S | 6.13 | ||
| P/FCF | 52.72 | ||
| P/OCF | 26.8 | ||
| P/B | 6.19 | ||
| P/tB | 6.46 | ||
| EV/EBITDA | 23.16 |
EPS(TTM)6.96
EY2.76%
EPS(NY)7.6
Fwd EY3.01%
FCF(TTM)4.78
FCFY1.9%
OCF(TTM)9.41
OCFY3.73%
SpS41.17
BVpS40.73
TBVpS39.06
PEG (NY)36.51
PEG (5Y)2.29
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 | 13.8 |
F-Score5
WACC10.35%
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)-1.56%
EPS 3Y-7.79%
EPS 5Y15.81%
EPS Q2Q%21.05%
EPS Next Y0.99%
EPS Next 2Y6.12%
EPS Next 3Y8.3%
EPS Next 5Y9.35%
Revenue 1Y (TTM)2.9%
Revenue growth 3Y0.72%
Revenue growth 5Y9.48%
Sales Q2Q%9.17%
Revenue Next Year5.56%
Revenue Next 2Y5.79%
Revenue Next 3Y5.95%
Revenue Next 5Y6.57%
EBIT growth 1Y1.97%
EBIT growth 3Y-8.01%
EBIT growth 5Y14.63%
EBIT Next Year30.78%
EBIT Next 3Y17.54%
EBIT Next 5Y14.9%
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%