WEST PHARMACEUTICAL SERVICES (WST) Stock Fundamental Analysis
USA - NYSE:WST - US9553061055 - Common Stock
254.85 USD
-0.13 (-0.05%)
254.85 USD
0 (0%)
WST gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 55 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 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.
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
The Return On Assets of WST (12.34%) is better than 89.09% of its industry peers.
WST has a Return On Equity of 16.65%. This is amongst the best in the industry. WST outperforms 87.27% of its industry peers.
WST has a Return On Invested Capital of 15.09%. This is amongst the best in the industry. WST outperforms 90.91% 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 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.
In the last couple of years the Profit Margin of WST has grown nicely.
The Operating Margin of WST (20.81%) is better than 89.09% of its industry peers.
WST's Operating Margin has improved in the last couple of years.
The Gross Margin of WST (35.27%) is worse than 60.00% 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
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.
Compared to 5 years ago, WST has less shares outstanding
WST has a worse debt/assets ratio than last year.
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's Altman-Z score of 13.80 is amongst the best of the industry. WST outperforms 96.36% 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.
The Debt to FCF ratio of WST (0.60) is better than 89.09% 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 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.6 | ||
| Altman-Z | 13.8 |
ROIC/WACC1.46
WACC10.36%
2.3 Liquidity
A Current Ratio of 2.78 indicates that WST has no problem at all paying its short term obligations.
WST has a Current ratio of 2.78. This is comparable to the rest of the industry: WST outperforms 50.91% of its industry peers.
A Quick Ratio of 2.08 indicates that WST has no problem at all paying its short term obligations.
The Quick ratio of WST (2.08) is comparable to the rest of the 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.
WST shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.81% yearly.
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
Based on estimates for the next years, WST will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.35% on average per year.
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
WST is valuated quite expensively with a Price/Earnings ratio of 36.62.
63.64% of the companies in the same industry are more expensive than WST, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.38, WST is valued a bit more expensive.
With a Price/Forward Earnings ratio of 33.52, 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 61.82% of the companies listed 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 | 36.62 | ||
| Fwd PE | 33.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WST is valued a bit cheaper than 70.91% 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 | 53.27 | ||
| EV/EBITDA | 23.17 |
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)36.89
PEG (5Y)2.32
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.
Compared to an average industry Dividend Yield of 1.09, WST pays a better dividend. On top of this WST pays more dividend than 89.09% of the companies listed 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 been paying a dividend for at least 10 years, so it has 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
12.32% of the earnings are spent on dividend by WST. This is a low number and sustainable payout ratio.
WST's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP12.32%
EPS Next 2Y6.12%
EPS Next 3Y8.3%
254.85
-0.13 (-0.05%)
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 Cap18.33B
Analysts81.05
Price Target320.57 (25.79%)
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)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 | 36.62 | ||
| Fwd PE | 33.52 | ||
| P/S | 6.19 | ||
| P/FCF | 53.27 | ||
| P/OCF | 27.08 | ||
| P/B | 6.26 | ||
| P/tB | 6.53 | ||
| EV/EBITDA | 23.17 |
EPS(TTM)6.96
EY2.73%
EPS(NY)7.6
Fwd EY2.98%
FCF(TTM)4.78
FCFY1.88%
OCF(TTM)9.41
OCFY3.69%
SpS41.17
BVpS40.73
TBVpS39.06
PEG (NY)36.89
PEG (5Y)2.32
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
WACC10.36%
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%