WEST PHARMACEUTICAL SERVICES (WST) Stock Fundamental Analysis
NYSE:WST - US9553061055 - Common Stock
247.85 USD
+5.22 (+2.15%)
247.85 USD
0 (0%)
Overall WST gets a fundamental rating of 6 out of 10. We evaluated WST against 54 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 valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year WST was profitable.
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
WST has a better Return On Assets (12.34%) than 88.89% of its industry peers.
WST has a Return On Equity of 16.65%. This is amongst the best in the industry. WST outperforms 87.04% of its industry peers.
WST has a better Return On Invested Capital (15.09%) than 90.74% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WST is in line with the industry average of 16.00%.
| 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 has a Profit Margin of 16.48%. This is amongst the best in the industry. WST outperforms 87.04% of its industry peers.
WST's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 20.81%, WST belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
In the last couple of years the Operating Margin of WST has grown nicely.
WST's Gross Margin of 35.27% is in line compared to the rest of the industry. WST outperforms 40.74% 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.
WST has less shares outstanding than it did 1 year ago.
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
An Altman-Z score of 13.50 indicates that WST is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 13.50, WST belongs to the top of the industry, outperforming 96.30% 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.
WST has a Debt to FCF ratio of 0.60. This is amongst the best in the industry. WST outperforms 88.89% of its industry peers.
A Debt/Equity ratio of 0.07 indicates that WST is not too dependend on debt financing.
The Debt to Equity ratio of WST (0.07) is better than 64.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.6 | ||
| Altman-Z | 13.5 |
ROIC/WACC1.44
WACC10.51%
2.3 Liquidity
A Current Ratio of 2.78 indicates that WST has no problem at all paying its short term obligations.
With a Current ratio value of 2.78, WST perfoms like the industry average, outperforming 53.70% of the companies in the same 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.
With a Quick ratio value of 2.08, WST perfoms like the industry average, outperforming 48.15% of the companies in the same industry.
| 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%.
The Earnings Per Share has been growing by 15.81% on average over the past years. This is quite good.
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 9.35% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.57% on average over the next years.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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 35.61, 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 61.11% of the companies are valued more expensively.
WST's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.24.
With a Price/Forward Earnings ratio of 32.60, WST can be considered very expensive at the moment.
WST's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WST is cheaper than 61.11% of the companies in the same industry.
WST's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.61 | ||
| Fwd PE | 32.6 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WST indicates a somewhat cheap valuation: WST is cheaper than 70.37% of the companies listed 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 | 51.81 | ||
| EV/EBITDA | 22.51 |
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)35.88
PEG (5Y)2.25
EPS Next 2Y6.12%
EPS Next 3Y8.3%
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 0.54, WST pays a better dividend. On top of this WST pays more dividend than 88.89% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, 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 paid a dividend for at least 10 years, which is 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)5.9%
Div Incr Years32
Div Non Decr Years34
5.3 Sustainability
12.32% 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.
DP12.32%
EPS Next 2Y6.12%
EPS Next 3Y8.3%
247.85
+5.22 (+2.15%)
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 Cap17.82B
Analysts81.05
Price Target320.57 (29.34%)
Short Float %3.03%
Short Ratio2.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.37% |
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)14.32%
PT rev (3m)13.23%
EPS NQ rev (1m)4.3%
EPS NQ rev (3m)3.53%
EPS NY rev (1m)7.55%
EPS NY rev (3m)7.22%
Revenue NQ rev (1m)4.13%
Revenue NQ rev (3m)6.85%
Revenue NY rev (1m)2.81%
Revenue NY rev (3m)2.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.61 | ||
| Fwd PE | 32.6 | ||
| P/S | 6.02 | ||
| P/FCF | 51.81 | ||
| P/OCF | 26.34 | ||
| P/B | 6.08 | ||
| P/tB | 6.35 | ||
| EV/EBITDA | 22.51 |
EPS(TTM)6.96
EY2.81%
EPS(NY)7.6
Fwd EY3.07%
FCF(TTM)4.78
FCFY1.93%
OCF(TTM)9.41
OCFY3.8%
SpS41.17
BVpS40.73
TBVpS39.06
PEG (NY)35.88
PEG (5Y)2.25
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 | 13.5 |
F-Score5
WACC10.51%
ROIC/WACC1.44
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%