Balancing Dividends and Fundamentals: The Case of NYSE:WST.

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.

Deciphering NYSE:WST's Dividend Rating

To gauge a stock's dividend quality, ChartMill utilizes a Dividend Rating ranging from 0 to 10. This comprehensive assessment considers various dividend aspects, including yield, history, growth, and sustainability. NYSE:WST has achieved a 7 out of 10:

• WST's Dividend Yield is rather good when compared to the industry average which is at 0.65. WST pays more dividend than 87.50% 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 11.07% 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.

Health Assessment of NYSE:WST

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:WST has achieved a 8 out of 10:

• An Altman-Z score of 17.52 indicates that WST is not in any danger for bankruptcy at the moment.
• With an excellent Altman-Z score value of 17.52, WST belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
• The Debt to FCF ratio of WST is 0.59, which is an excellent value as it means it would take WST, only 0.59 years of fcf income to pay off all of its debts.
• WST has a Debt to FCF ratio of 0.59. This is amongst the best in the industry. WST outperforms 94.64% 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 69.64% of its industry peers.
• A Current Ratio of 2.34 indicates that WST has no problem at all paying its short term obligations.

Profitability Examination 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 8 is a significant indicator of profitability:

• WST has a better Return On Assets (15.04%) than 96.43% of its industry peers.
• The Return On Equity of WST (20.37%) is better than 92.86% of its industry peers.
• The Return On Invested Capital of WST (17.43%) is better than 94.64% 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 10.28%.
• With an excellent Profit Margin value of 18.25%, WST belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
• WST's Profit Margin has improved in the last couple of years.
• The Operating Margin of WST (20.99%) is better than 89.29% 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.

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

Keep in mind

This article should in no way be interpreted as advice. 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.