WEST PHARMACEUTICAL SERVICES (WST) Stock Fundamental Analysis
USA - NYSE:WST - US9553061055 - Common Stock
257.93 USD
+4.43 (+1.75%)
Taking everything into account, WST scores 6 out of 10 in our fundamental rating. WST was compared to 54 industry peers in the Life Sciences Tools & Services industry. WST scores excellent points on both the profitability and health parts. This is a solid base for a good stock. While showing a medium growth rate, WST is valued expensive at the moment.
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.
Each year in the past 5 years WST had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 12.34%, WST belongs to the best of the industry, outperforming 89.09% of the companies in the same industry.
Looking at the Return On Equity, with a value of 16.65%, WST belongs to the top of the industry, outperforming 87.27% 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 90.91% of the companies in the same industry.
WST had an Average Return On Invested Capital over the past 3 years of 17.99%. This is above the industry average of 15.96%.
| 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
The Profit Margin of WST (16.48%) is better than 87.27% of its industry peers.
WST's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 20.81%, WST belongs to the top of the industry, outperforming 89.09% of the companies in the same industry.
In the last couple of years the Operating Margin of WST has grown nicely.
With a Gross Margin value of 35.27%, WST is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
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.
WST has less shares outstanding than it did 1 year ago.
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
An Altman-Z score of 13.74 indicates that WST is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 13.74, WST belongs to the top of the industry, outperforming 96.36% 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's Debt to FCF ratio of 0.60 is amongst the best of the industry. WST outperforms 89.09% 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.
WST has a Debt to Equity ratio of 0.07. This is in the better half of the industry: WST outperforms 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.6 | ||
| Altman-Z | 13.74 |
ROIC/WACC1.47
WACC10.26%
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.
With a Current ratio value of 2.78, WST perfoms like the industry average, outperforming 50.91% 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 49.09% of the companies in the same industry.
| 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.
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.
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
WST is valuated quite expensively with a Price/Earnings ratio of 37.06.
Based on the Price/Earnings ratio, WST is valued a bit cheaper than the industry average as 63.64% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.30. WST is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 33.93, which means the current valuation is very expensive for WST.
Based on the Price/Forward Earnings ratio, WST is valued a bit cheaper than the industry average as 61.82% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.73, WST is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.06 | ||
| Fwd PE | 33.93 |
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 69.09% of the companies listed in the same industry.
WST's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.92 | ||
| EV/EBITDA | 23.04 |
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.
WST has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)37.34
PEG (5Y)2.34
EPS Next 2Y6.12%
EPS Next 3Y8.3%
5. Dividend
5.1 Amount
With a yearly dividend of 0.36%, WST is not a good candidate for dividend investing.
WST's Dividend Yield is rather good when compared to the industry average which is at 1.09. WST pays more dividend than 89.09% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, WST's dividend is way lower than the S&P500 average.
| 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%
NYSE:WST (9/15/2025, 11:39:42 AM)
257.93
+4.43 (+1.75%)
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 Cap18.55B
Analysts81.05
Price Target320.57 (24.29%)
Short Float %2.51%
Short Ratio2.54
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)7.55%
EPS NY rev (3m)7.22%
Revenue NQ rev (1m)0.75%
Revenue NQ rev (3m)4.27%
Revenue NY rev (1m)0.56%
Revenue NY rev (3m)2.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.06 | ||
| Fwd PE | 33.93 | ||
| P/S | 6.27 | ||
| P/FCF | 53.92 | ||
| P/OCF | 27.41 | ||
| P/B | 6.33 | ||
| P/tB | 6.6 | ||
| EV/EBITDA | 23.04 |
EPS(TTM)6.96
EY2.7%
EPS(NY)7.6
Fwd EY2.95%
FCF(TTM)4.78
FCFY1.85%
OCF(TTM)9.41
OCFY3.65%
SpS41.17
BVpS40.73
TBVpS39.06
PEG (NY)37.34
PEG (5Y)2.34
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 | 13.74 |
F-Score5
WACC10.26%
ROIC/WACC1.47
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%