Exploring NYSE:WST's dividend characteristics.

Our stock screener has spotted WEST PHARMACEUTICAL SERVICES (NYSE:WST) as a good dividend stock with solid fundamentals. NYSE:WST shows decent health and profitability. At the same time it gives a good and sustainable dividend. We'll dive into each aspect below.

Exploring NYSE:WST's Dividend

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:

• WST's Dividend Yield is rather good when compared to the industry average which is at 0.63. WST pays more dividend than 86.44% of the companies in the same industry.
• The dividend of WST is nicely growing with an annual growth rate of 6.31%!
• WST has paid a dividend for at least 10 years, which is 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.
• 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.

Understanding NYSE:WST's Health Score

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:WST scores a 8 out of 10:

• An Altman-Z score of 21.40 indicates that WST is not in any danger for bankruptcy at the moment.
• The Altman-Z score of WST (21.40) is better than 98.31% 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.
• The Debt to FCF ratio of WST (0.50) is better than 94.92% of its industry peers.
• A Debt/Equity ratio of 0.03 indicates that WST is not too dependend on debt financing.
• Looking at the Debt to Equity ratio, with a value of 0.03, WST is in the better half of the industry, outperforming 62.71% of the companies in the same industry.
• A Current Ratio of 2.88 indicates that WST has no problem at all paying its short term obligations.
• WST has a Quick Ratio of 2.24. This indicates that WST is financially healthy and has no problem in meeting its short term obligations.

Assessing Profitability for NYSE:WST

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:WST, the assigned 9 is a significant indicator of profitability:

• The Return On Assets of WST (15.50%) is better than 94.92% of its industry peers.
• WST has a Return On Equity of 20.60%. This is amongst the best in the industry. WST outperforms 93.22% of its industry peers.
• WST has a better Return On Invested Capital (18.40%) than 96.61% 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 10.03%.
• WST has a Profit Margin of 20.12%. This is amongst the best in the industry. WST outperforms 94.92% of its industry peers.
• In the last couple of years the Profit Margin of WST has grown nicely.
• WST has a Operating Margin of 23.90%. This is amongst the best in the industry. WST outperforms 93.22% of its industry peers.
• WST's Operating Margin has improved in the last couple of years.
• WST's Gross Margin has improved in the last couple of years.

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

Check the latest full fundamental report of WST for a complete fundamental analysis.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.