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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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.
In the past 5 years WST has always been profitable.
Each year in the past 5 years WST had a positive operating cash flow.
1.2 Ratios
WST's Return On Assets of 12.91% is amongst the best of the industry. WST outperforms 92.86% of its industry peers.
With an excellent Return On Equity value of 17.41%, WST belongs to the best of the industry, outperforming 89.29% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 15.53%, WST belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for WST is significantly above the industry average of 12.97%.
| 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
The Profit Margin of WST (16.13%) is better than 92.86% of its industry peers.
WST's Profit Margin has improved in the last couple of years.
The Operating Margin of WST (20.21%) is better than 85.71% of its industry peers.
WST's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 34.54%, WST is not doing good in the industry: 66.07% 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 | 20.21% | ||
| 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
WST has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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
WST has an Altman-Z score of 13.13. This indicates that WST is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 13.13, WST belongs to the top of the industry, outperforming 98.21% of the companies in the same industry.
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.
The Debt to FCF ratio of WST (0.67) is better than 91.07% of its industry peers.
A Debt/Equity ratio of 0.08 indicates that WST is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.08, WST is doing good in the industry, outperforming 66.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.67 | ||
| Altman-Z | 13.13 |
ROIC/WACC1.46
WACC10.62%
2.3 Liquidity
WST has a Current Ratio of 2.77. This indicates that WST is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 2.77, WST perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
A Quick Ratio of 2.03 indicates that WST has no problem at all paying its short term obligations.
The Quick ratio of WST (2.03) is comparable to the rest of the industry.
| 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.
Based on estimates for the next years, WST will show a small growth in Revenue. The Revenue will grow by 6.60% on average per year.
EPS Next Y-5.81%
EPS Next 2Y3.34%
EPS Next 3Y7.55%
EPS Next 5Y9.79%
Revenue Next Year2.68%
Revenue Next 2Y4.25%
Revenue Next 3Y5.03%
Revenue Next 5Y6.6%
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 31.47, 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 60.71% 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 26.03.
The Price/Forward Earnings ratio is 28.99, 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 60.71% of the companies are valued more expensively.
WST's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.47 | ||
| Fwd PE | 28.99 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WST is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WST indicates a somewhat cheap valuation: WST is cheaper than 60.71% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.92 | ||
| EV/EBITDA | 20.51 |
4.3 Compensation for Growth
The excellent profitability rating of WST may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.99
EPS Next 2Y3.34%
EPS Next 3Y7.55%
5. Dividend
5.1 Amount
With a yearly dividend of 0.40%, WST is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.53, WST pays a better dividend. On top of this WST pays more dividend than 87.50% of the companies listed in the same industry.
With a Dividend Yield of 0.40, WST pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
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
WST pays out 12.76% of its income as dividend. This is a sustainable payout ratio.
WST's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP12.76%
EPS Next 2Y3.34%
EPS Next 3Y7.55%
208.95
-6.48 (-3.01%)
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 Change0.67%
Ins Owners0.34%
Ins Owner Change0.75%
Market Cap15.01B
Analysts81.11
Price Target283.11 (35.49%)
Short Float %3.53%
Short Ratio2.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
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)10.59%
Min EPS beat(2)4.78%
Max EPS beat(2)16.4%
EPS beat(4)3
Avg EPS beat(4)7.43%
Min EPS beat(4)-13.56%
Max EPS beat(4)22.11%
EPS beat(8)7
Avg EPS beat(8)9.57%
EPS beat(12)10
Avg EPS beat(12)10.56%
EPS beat(16)14
Avg EPS beat(16)12.06%
Revenue beat(2)2
Avg Revenue beat(2)0.44%
Min Revenue beat(2)0.12%
Max Revenue beat(2)0.77%
Revenue beat(4)3
Avg Revenue beat(4)0.1%
Min Revenue beat(4)-4.69%
Max Revenue beat(4)4.21%
Revenue beat(8)4
Avg Revenue beat(8)-0.19%
Revenue beat(12)7
Avg Revenue beat(12)0.06%
Revenue beat(16)10
Avg Revenue beat(16)0.65%
PT rev (1m)-1.12%
PT rev (3m)-26.35%
EPS NQ rev (1m)2.77%
EPS NQ rev (3m)-15.82%
EPS NY rev (1m)2.6%
EPS NY rev (3m)-14.2%
Revenue NQ rev (1m)2.28%
Revenue NQ rev (3m)-2.5%
Revenue NY rev (1m)2.4%
Revenue NY rev (3m)-2.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.47 | ||
| Fwd PE | 28.99 | ||
| P/S | 5.18 | ||
| P/FCF | 48.92 | ||
| P/OCF | 22.59 | ||
| P/B | 5.6 | ||
| P/tB | 5.85 | ||
| EV/EBITDA | 20.51 |
EPS(TTM)6.64
EY3.18%
EPS(NY)7.21
Fwd EY3.45%
FCF(TTM)4.27
FCFY2.04%
OCF(TTM)9.25
OCFY4.43%
SpS40.3
BVpS37.34
TBVpS35.71
PEG (NY)N/A
PEG (5Y)1.99
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 | 13.13 |
F-Score5
WACC10.62%
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)-13.32%
EPS 3Y-7.79%
EPS 5Y15.81%
EPS Q2Q%-7.05%
EPS Next Y-5.81%
EPS Next 2Y3.34%
EPS Next 3Y7.55%
EPS Next 5Y9.79%
Revenue 1Y (TTM)-1.12%
Revenue growth 3Y0.72%
Revenue growth 5Y9.48%
Sales Q2Q%0.37%
Revenue Next Year2.68%
Revenue Next 2Y4.25%
Revenue Next 3Y5.03%
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%