Exploring NYSE:WST's dividend characteristics.

Last update: Dec 20, 2024

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.

Dividend Analysis for NYSE:WST

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 0.64. WST pays more dividend than 85.71% 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 11.73% 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.

Looking at the Health

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 18.51. This indicates that WST is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 18.51, WST belongs to the top of the industry, outperforming 98.21% of the companies in the same industry.
The Debt to FCF ratio of WST is 0.64, which is an excellent value as it means it would take WST, only 0.64 years of fcf income to pay off all of its debts.
WST has a better Debt to FCF ratio (0.64) than 91.07% of its industry peers.
A Debt/Equity ratio of 0.07 indicates that WST is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.07, WST is in the better half of the industry, outperforming 66.07% of the companies in the same industry.
A Current Ratio of 3.00 indicates that WST has no problem at all paying its short term obligations.
A Quick Ratio of 2.23 indicates that WST has no problem at all paying its short term obligations.

Profitability Analysis 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:

Looking at the Return On Assets, with a value of 13.59%, WST belongs to the top of the industry, outperforming 94.64% of the companies in the same industry.
With an excellent Return On Equity value of 18.15%, WST belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
With an excellent Return On Invested Capital value of 15.28%, WST belongs to the best of the industry, outperforming 94.64% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for WST is significantly above the industry average of 9.98%.
The last Return On Invested Capital (15.28%) for WST is well below the 3 year average (20.47%), which needs to be investigated, but indicates that WST had better years and this may not be a problem.
The Profit Margin of WST (17.37%) is better than 91.07% of its industry peers.
WST's Profit Margin has improved in the last couple of years.
The Operating Margin of WST (20.37%) is better than 87.50% 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.

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

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.