Uncovering Dividend Opportunities with NYSE:WST.

Last update: Jun 14, 2024

Discover WEST PHARMACEUTICAL SERVICES (NYSE:WST)—a stock that our stock screener has recognized as a solid dividend pick with strong fundamentals. NYSE:WST showcases decent financial health and profitability while providing a sustainable dividend. We'll explore the specifics further.

A Closer Look at Dividend for NYSE:WST

ChartMill assigns a Dividend Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing various dividend elements, such as yield, historical performance, dividend growth, and sustainability. NYSE:WST has been awarded a 7 for its dividend quality:

Compared to an average industry Dividend Yield of 0.64, WST pays a better dividend. On top of this WST pays more dividend than 86.44% of the companies listed in the same industry.
The dividend of WST is nicely growing with an annual growth rate of 6.31%!
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.
WST pays out 10.13% 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.

What does the Health looks like for NYSE:WST

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:WST has received a 8 out of 10:

WST has an Altman-Z score of 19.12. This indicates that WST is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of WST (19.12) is better than 98.31% of its industry peers.
The Debt to FCF ratio of WST is 0.53, which is an excellent value as it means it would take WST, only 0.53 years of fcf income to pay off all of its debts.
WST has a better Debt to FCF ratio (0.53) than 94.92% of its industry peers.
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 67.80% of the companies in the same industry.
A Current Ratio of 2.61 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 8 for profitability:

WST's Return On Assets of 15.79% is amongst the best of the industry. WST outperforms 94.92% of its industry peers.
WST has a Return On Equity of 21.22%. This is amongst the best in the industry. WST outperforms 93.22% of its industry peers.
WST has a Return On Invested Capital of 18.45%. This is amongst the best in the industry. WST outperforms 94.92% of its industry peers.
WST had an Average Return On Invested Capital over the past 3 years of 20.47%. This is significantly above the industry average of 10.68%.
With an excellent Profit Margin value of 19.42%, WST belongs to the best of the industry, outperforming 96.61% of the companies in the same industry.
WST's Profit Margin has improved in the last couple of years.
WST has a better Operating Margin (22.59%) than 91.53% of its industry peers.
In the last couple of years the Operating Margin of WST has grown nicely.
In the last couple of years the Gross Margin of WST has grown nicely.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

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.