WEST PHARMACEUTICAL SERVICES (WST) Stock Fundamental Analysis
NYSE:WST - New York Stock Exchange, Inc. - US9553061055 - Common Stock - Currency: USD
Overall WST gets a fundamental rating of 6 out of 10. We evaluated WST 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
WST had positive earnings in the past year.
WST had a positive operating cash flow in the past year.
Each year in the past 5 years WST has been profitable.
WST had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of WST (12.91%) is better than 92.86% of its industry peers.
WST's Return On Equity of 17.41% is amongst the best of the industry. WST outperforms 89.29% of its industry peers.
WST has a Return On Invested Capital of 15.53%. This is amongst the best in the industry. WST outperforms 92.86% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WST is significantly above the industry average of 12.87%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.91% | ||
| ROE | 17.41% | ||
| ROIC | 15.53% |
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 16.13%. This is amongst the best in the industry. WST outperforms 92.86% of its industry peers.
WST's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 20.21%, WST belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
WST's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 34.54%, WST is doing worse than 66.07% of the companies in the same industry.
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 | 20.21% | ||
| PM (TTM) | 16.13% | ||
| GM | 34.54% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WST is still 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
WST has an Altman-Z score of 13.00. This indicates that WST is financially healthy and has little risk of bankruptcy at the moment.
WST's Altman-Z score of 13.00 is amongst the best of the industry. WST outperforms 98.21% of its industry peers.
The Debt to FCF ratio of WST is 0.67, which is an excellent value as it means it would take WST, only 0.67 years of fcf income to pay off all of its debts.
WST has a Debt to FCF ratio of 0.67. This is amongst the best in the industry. WST outperforms 92.86% of its industry peers.
WST has a Debt/Equity ratio of 0.08. This is a healthy value indicating a solid balance between debt and equity.
WST has a Debt to Equity ratio of 0.08. This is in the better half of the industry: WST outperforms 66.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.67 | ||
| Altman-Z | 13 |
ROIC/WACC1.53
WACC10.14%
2.3 Liquidity
A Current Ratio of 2.77 indicates that WST has no problem at all paying its short term obligations.
WST's Current ratio of 2.77 is in line compared to the rest of the industry. WST outperforms 50.00% of its industry peers.
WST has a Quick Ratio of 2.03. This indicates that WST is financially healthy and has no problem in meeting its short term obligations.
WST has a Quick ratio of 2.03. This is comparable to the rest of the industry: WST outperforms 44.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.77 | ||
| Quick Ratio | 2.03 |
3. Growth
3.1 Past
WST shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.32%.
The Earnings Per Share has been growing by 15.81% on average over the past years. This is quite good.
The Revenue has decreased by -1.12% 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)-13.32%
EPS 3Y-7.79%
EPS 5Y15.81%
EPS Q2Q%-7.05%
Revenue 1Y (TTM)-1.12%
Revenue growth 3Y0.72%
Revenue growth 5Y9.48%
Sales Q2Q%0.37%
3.2 Future
WST is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.79% yearly.
WST is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.60% yearly.
EPS Next Y-8.2%
EPS Next 2Y2.96%
EPS Next 3Y6.37%
EPS Next 5Y9.79%
Revenue Next Year0.55%
Revenue Next 2Y3.51%
Revenue Next 3Y4.55%
Revenue Next 5Y6.6%
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
A Price/Earnings ratio of 31.71 indicates a quite expensive valuation of WST.
Based on the Price/Earnings ratio, WST is valued a bit cheaper than the industry average as 60.71% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of WST to the average of the S&P500 Index (28.88), we can say WST is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 29.42, 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.
When comparing the Price/Forward Earnings ratio of WST to the average of the S&P500 Index (21.20), we can say WST is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.71 | ||
| Fwd PE | 29.42 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WST is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
WST's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WST is cheaper than 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.59 | ||
| EV/EBITDA | 20.24 |
4.3 Compensation for Growth
The excellent profitability rating of WST may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.01
EPS Next 2Y2.96%
EPS Next 3Y6.37%
5. Dividend
5.1 Amount
With a yearly dividend of 0.39%, WST is not a good candidate for dividend investing.
The stock price of WST dropped by -38.14% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 0.51, WST pays a better dividend. On top of this WST pays more dividend than 89.29% of the companies listed in the same industry.
With a Dividend Yield of 0.39, WST pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.39% |
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
12.76% 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.
DP12.76%
EPS Next 2Y2.96%
EPS Next 3Y6.37%
NYSE:WST (5/1/2025, 2:55:00 PM)
210.53
-0.76 (-0.36%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners97.06%
Inst Owner Change0.37%
Ins Owners0.34%
Ins Owner Change0.17%
Market Cap15.22B
Analysts80
Price Target285.82 (35.76%)
Short Float %1.95%
Short Ratio1.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.39% |
Yearly Dividend0.81
Dividend Growth(5Y)5.9%
DP12.76%
Div Incr Years32
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.68%
Min EPS beat(2)4.78%
Max EPS beat(2)16.59%
EPS beat(4)3
Avg EPS beat(4)7.48%
Min EPS beat(4)-13.56%
Max EPS beat(4)22.11%
EPS beat(8)7
Avg EPS beat(8)9.6%
EPS beat(12)10
Avg EPS beat(12)10.57%
EPS beat(16)14
Avg EPS beat(16)12.07%
Revenue beat(2)2
Avg Revenue beat(2)0.52%
Min Revenue beat(2)0.12%
Max Revenue beat(2)0.91%
Revenue beat(4)3
Avg Revenue beat(4)0.14%
Min Revenue beat(4)-4.69%
Max Revenue beat(4)4.21%
Revenue beat(8)4
Avg Revenue beat(8)-0.17%
Revenue beat(12)7
Avg Revenue beat(12)0.08%
Revenue beat(16)10
Avg Revenue beat(16)0.66%
PT rev (1m)0.36%
PT rev (3m)-23.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-26.7%
EPS NY rev (1m)0.2%
EPS NY rev (3m)-18.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.46%
Revenue NY rev (1m)0.31%
Revenue NY rev (3m)-4.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.71 | ||
| Fwd PE | 29.42 | ||
| P/S | 5.26 | ||
| P/FCF | 49.59 | ||
| P/OCF | 22.9 | ||
| P/B | 5.67 | ||
| P/tB | 5.93 | ||
| EV/EBITDA | 20.24 |
EPS(TTM)6.64
EY3.15%
EPS(NY)7.16
Fwd EY3.4%
FCF(TTM)4.25
FCFY2.02%
OCF(TTM)9.19
OCFY4.37%
SpS40.06
BVpS37.12
TBVpS35.49
PEG (NY)N/A
PEG (5Y)2.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.91% | ||
| ROE | 17.41% | ||
| ROCE | 18.93% | ||
| ROIC | 15.53% | ||
| ROICexc | 17.87% | ||
| ROICexgc | 18.69% | ||
| OM | 20.21% | ||
| PM (TTM) | 16.13% | ||
| GM | 34.54% | ||
| FCFM | 10.6% |
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 Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.67 | ||
| Debt/EBITDA | 0.28 | ||
| Cap/Depr | 223.84% | ||
| Cap/Sales | 12.35% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.21% | ||
| Profit Quality | 65.69% | ||
| Current Ratio | 2.77 | ||
| Quick Ratio | 2.03 | ||
| Altman-Z | 13 |
F-Score5
WACC10.14%
ROIC/WACC1.53
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)-13.32%
EPS 3Y-7.79%
EPS 5Y15.81%
EPS Q2Q%-7.05%
EPS Next Y-8.2%
EPS Next 2Y2.96%
EPS Next 3Y6.37%
EPS Next 5Y9.79%
Revenue 1Y (TTM)-1.12%
Revenue growth 3Y0.72%
Revenue growth 5Y9.48%
Sales Q2Q%0.37%
Revenue Next Year0.55%
Revenue Next 2Y3.51%
Revenue Next 3Y4.55%
Revenue Next 5Y6.6%
EBIT growth 1Y-11.55%
EBIT growth 3Y-8.01%
EBIT growth 5Y14.63%
EBIT Next Year26.57%
EBIT Next 3Y14.6%
EBIT Next 5Y16.06%
FCF growth 1Y-25.15%
FCF growth 3Y-5.79%
FCF growth 5Y2.8%
OCF growth 1Y-6.51%
OCF growth 3Y3.81%
OCF growth 5Y12.22%