Analyzing NYSE:WST's Dividend Potential.

Last update: Mar 1, 2024

Unearth the potential of WEST PHARMACEUTICAL SERVICES (NYSE:WST) as a dividend stock recommended by our stock screening tool. NYSE:WST maintains a robust financial footing and delivers a sustainable dividend. We'll delve into the details below.

Dividend Analysis for NYSE:WST

ChartMill assigns a proprietary Dividend Rating to each stock. The score is computed by evaluating various valuation aspects, like the yield, the history, the dividend growth and sustainability. NYSE:WST was assigned a score of 7 for dividend:

Compared to an average industry Dividend Yield of 0.64, WST pays a better dividend. On top of this WST pays more dividend than 86.67% of the companies listed in the same industry.
On average, the dividend of WST grows each year by 6.31%, which is quite nice.
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.
WST pays out 9.61% 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.

Evaluating Health: NYSE:WST

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:WST has earned a 8 out of 10:

WST has an Altman-Z score of 19.79. This indicates that WST is financially healthy and has little risk of bankruptcy at the moment.
WST has a Altman-Z score of 19.79. This is amongst the best in the industry. WST outperforms 98.33% of its industry peers.
The Debt to FCF ratio of WST is 0.50, which is an excellent value as it means it would take WST, only 0.50 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.50, WST belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
WST has a Debt/Equity ratio of 0.03. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.03, WST is in the better half of the industry, outperforming 63.33% of the companies in the same industry.
WST has a Current Ratio of 2.88. This indicates that WST is financially healthy and has no problem in meeting its short term obligations.
A Quick Ratio of 2.24 indicates that WST has no problem at all paying its short term obligations.

Evaluating Profitability: NYSE:WST

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:WST was assigned a score of 9 for profitability:

Looking at the Return On Assets, with a value of 15.50%, WST belongs to the top of the industry, outperforming 96.67% of the companies in the same industry.
WST has a Return On Equity of 20.60%. This is amongst the best in the industry. WST outperforms 91.67% of its industry peers.
WST has a better Return On Invested Capital (18.40%) than 96.67% 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 9.15%.
WST has a better Profit Margin (20.12%) than 95.00% of its industry peers.
WST's Profit Margin has improved in the last couple of years.
The Operating Margin of WST (23.90%) is better than 95.00% of its industry peers.
WST's Operating Margin has improved in the last couple of years.
In the last couple of years the Gross Margin of WST has grown nicely.

More Best Dividend stocks can be found in our Best Dividend screener.

For an up to date full fundamental analysis you can check the fundamental report of WST

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.