Why NYSE:WST is a Top Pick for Dividend Investors.

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.

Assessing Dividend 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:

• WST's Dividend Yield is rather good when compared to the industry average which is at 0.70. WST pays more dividend than 84.48% of the companies in the same industry.
• On average, the dividend of WST grows each year by 6.31%, which is quite nice.
• 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 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.

Understanding NYSE:WST's Health Score

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:

• An Altman-Z score of 18.39 indicates that WST is not in any danger for bankruptcy at the moment.
• The Altman-Z score of WST (18.39) is better than 98.28% 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 Debt to FCF ratio of 0.53. This is amongst the best in the industry. WST outperforms 94.83% 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.
• WST has a Debt to Equity ratio of 0.03. This is in the better half of the industry: WST outperforms 68.97% of its industry peers.
• A Current Ratio of 2.61 indicates that WST has no problem at all paying its short term obligations.

Profitability Assessment of NYSE:WST

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:WST, the assigned 8 is noteworthy for profitability:

• WST has a better Return On Assets (15.79%) than 96.55% of its industry peers.
• Looking at the Return On Equity, with a value of 21.22%, WST belongs to the top of the industry, outperforming 93.10% of the companies in the same industry.
• WST has a Return On Invested Capital of 18.45%. This is amongst the best in the industry. WST outperforms 94.83% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for WST is significantly above the industry average of 11.11%.
• WST has a better Profit Margin (19.42%) than 96.55% of its industry peers.
• WST's Profit Margin has improved in the last couple of years.
• Looking at the Operating Margin, with a value of 22.59%, WST belongs to the top of the industry, outperforming 91.38% of the companies in the same industry.
• 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.

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Our latest full fundamental report of WST contains the most current fundamental analsysis.

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.