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

Last update: Jan 10, 2025

Our stock screener has singled out WEST PHARMACEUTICAL SERVICES (NYSE:WST) as a promising choice for dividend investors. NYSE:WST not only scores well in profitability, solvency, and liquidity but also offers a decent dividend. We'll explore this further.

Looking at the Dividend

An integral part of ChartMill's stock analysis is the Dividend Rating, which spans from 0 to 10. This rating evaluates diverse dividend factors, including yield, historical data, growth, and sustainability. NYSE:WST has received 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 85.96% 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 11.73% 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.

A Closer Look at Health 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 9 out of 10:

An Altman-Z score of 18.98 indicates that WST is not in any danger for bankruptcy at the moment.
The Altman-Z score of WST (18.98) is better than 98.25% of its industry peers.
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 91.23% of its industry peers.
WST has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
WST's Debt to Equity ratio of 0.07 is fine compared to the rest of the industry. WST outperforms 66.67% of its industry peers.
A Current Ratio of 3.00 indicates that WST has no problem at all paying its short term obligations.
WST has a Quick Ratio of 2.23. This indicates that WST is financially healthy and has no problem in meeting its short term obligations.

Exploring NYSE:WST's Profitability

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 (13.59%) is better than 94.74% of its industry peers.
The Return On Equity of WST (18.15%) is better than 92.98% of its industry peers.
With an excellent Return On Invested Capital value of 15.28%, WST belongs to the best of the industry, outperforming 94.74% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for WST is significantly above the industry average of 9.61%.
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.
Looking at the Profit Margin, with a value of 17.37%, WST belongs to the top of the industry, outperforming 91.23% of the companies in the same industry.
In the last couple of years the Profit Margin of WST has grown nicely.
WST's Operating Margin of 20.37% is amongst the best of the industry. WST outperforms 87.72% of its industry peers.
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.

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.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.