WEST PHARMACEUTICAL SERVICES (WST) Stock Fundamental Analysis
USA - NYSE:WST - US9553061055 - Common Stock
277.41 USD
+1.94 (+0.7%)
277.41 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to WST. WST was compared to 58 industry peers in the Life Sciences Tools & Services industry. WST has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. WST is not valued too expensively and it also shows a decent growth rate. These ratings could make WST a good candidate 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.
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
With an excellent Return On Assets value of 11.98%, WST belongs to the best of the industry, outperforming 91.38% of the companies in the same industry.
WST has a better Return On Equity (16.11%) than 87.93% of its industry peers.
WST has a better Return On Invested Capital (14.78%) than 89.66% of its industry peers.
WST had an Average Return On Invested Capital over the past 3 years of 17.99%. This is above the industry average of 13.50%.
| 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
The Profit Margin of WST (16.29%) is better than 86.21% of its industry peers.
WST's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 20.71%, WST belongs to the best of the industry, outperforming 86.21% of the companies in the same industry.
In the last couple of years the Operating Margin of WST has grown nicely.
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
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
Compared to 1 year ago, WST has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 14.39 indicates that WST is not in any danger for bankruptcy at the moment.
WST has a better Altman-Z score (14.39) 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.
WST has a better Debt to FCF ratio (0.55) 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.
The Debt to Equity ratio of WST (0.07) is better than 65.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.55 | ||
| Altman-Z | 14.39 |
ROIC/WACC1.44
WACC10.24%
2.3 Liquidity
A Current Ratio of 2.87 indicates that WST has no problem at all paying its short term obligations.
WST has a Current ratio of 2.87. This is comparable to the rest of the industry: WST outperforms 56.90% of its industry peers.
A Quick Ratio of 2.18 indicates that WST has no problem at all paying its short term obligations.
WST has a Quick ratio (2.18) which is comparable to the rest of the 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.
The Earnings Per Share has been growing by 15.81% on average over the past years. This is quite good.
Looking at the last year, WST shows a small growth in Revenue. The Revenue has grown by 4.92% in the last 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)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
The Earnings Per Share is expected to grow by 10.12% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.45% on average over the next years.
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
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
WST is valuated quite expensively with a Price/Earnings ratio of 39.24.
60.34% of the companies in the same industry are more expensive than WST, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of WST to the average of the S&P500 Index (26.35), we can say WST is valued slightly more expensively.
With a Price/Forward Earnings ratio of 35.71, 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 63.79% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 33.72. WST is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.24 | ||
| Fwd PE | 35.71 |
4.2 Price Multiples
WST's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WST is cheaper than 70.69% of the companies in the same industry.
WST's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WST is cheaper than 60.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.62 | ||
| EV/EBITDA | 24.71 |
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)6.41
PEG (5Y)2.48
EPS Next 2Y7.28%
EPS Next 3Y8.97%
5. Dividend
5.1 Amount
With a yearly dividend of 0.31%, WST is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.49, WST pays a better dividend. On top of this WST pays more dividend than 86.21% 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 2.36.
| 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 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
12.34% 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.
DP12.34%
EPS Next 2Y7.28%
EPS Next 3Y8.97%
277.41
+1.94 (+0.7%)
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-0.53%
Ins Owners0.33%
Ins Owner Change0%
Market Cap19.95B
Revenue(TTM)3.02B
Net Income(TTM)491.70M
Analysts80.95
Price Target352.25 (26.98%)
Short Float %2.12%
Short Ratio2.33
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)9.97%
PT rev (3m)9.89%
EPS NQ rev (1m)3.44%
EPS NQ rev (3m)3.67%
EPS NY rev (1m)4.85%
EPS NY rev (3m)13.01%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)0.55%
Revenue NY rev (1m)0.65%
Revenue NY rev (3m)1.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.24 | ||
| Fwd PE | 35.71 | ||
| P/S | 6.61 | ||
| P/FCF | 52.62 | ||
| P/OCF | 28.75 | ||
| P/B | 6.54 | ||
| P/tB | 6.8 | ||
| EV/EBITDA | 24.71 |
EPS(TTM)7.07
EY2.55%
EPS(NY)7.77
Fwd EY2.8%
FCF(TTM)5.27
FCFY1.9%
OCF(TTM)9.65
OCFY3.48%
SpS41.97
BVpS42.43
TBVpS40.77
PEG (NY)6.41
PEG (5Y)2.48
Graham Number82.16
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 | 14.39 |
F-Score6
WACC10.24%
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)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 3 / 10 to WEST PHARMACEUTICAL SERVICES (WST). This can be considered as Overvalued.
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 39.24 and the Price/Book (PB) ratio is 6.54.
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.