WEST PHARMACEUTICAL SERVICES (WST) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WST - US9553061055 - Common Stock
275.52 USD
+0.29 (+0.11%)
275.52 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to WST. WST was compared to 57 industry peers in the Life Sciences Tools & Services industry. WST gets an excellent profitability rating and is at the same time showing great financial health properties. WST has a decent growth rate and is not valued too expensively. With these ratings, WST could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
In the past year WST was profitable.
In the past year WST had a positive cash flow from operations.
WST had positive earnings in each of the past 5 years.
WST had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WST's Return On Assets of 11.98% is amongst the best of the industry. WST outperforms 92.98% of its industry peers.
WST has a Return On Equity of 16.11%. This is amongst the best in the industry. WST outperforms 87.72% of its industry peers.
WST has a Return On Invested Capital of 14.78%. This is amongst the best in the industry. WST outperforms 89.47% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WST is above the industry average of 14.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.98% | ||
| ROE | 16.11% | ||
| ROIC | 14.78% |
ROA(3y)15.07%
ROA(5y)15.52%
ROE(3y)20.26%
ROE(5y)21.56%
ROIC(3y)17.99%
ROIC(5y)18.35%
1.3 Margins
WST has a better Profit Margin (16.29%) than 85.96% of its industry peers.
In the last couple of years the Profit Margin of WST has grown nicely.
The Operating Margin of WST (20.71%) is better than 87.72% of its industry peers.
WST's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 35.58%, WST is doing worse than 61.40% of the companies in the same industry.
WST's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.71% | ||
| PM (TTM) | 16.29% | ||
| GM | 35.58% |
OM growth 3Y-8.66%
OM growth 5Y4.7%
PM growth 3Y-10.02%
PM growth 5Y5.33%
GM growth 3Y-6.03%
GM growth 5Y0.95%
2. Health
2.1 Basic Checks
WST has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for WST has been reduced compared to 1 year ago.
The number of shares outstanding for WST has been reduced compared to 5 years ago.
The debt/assets ratio for WST is higher compared to a year ago.
2.2 Solvency
WST has an Altman-Z score of 14.31. This indicates that WST is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 14.31, WST belongs to the best of the industry, outperforming 98.25% of the companies in the same industry.
The Debt to FCF ratio of WST is 0.55, which is an excellent value as it means it would take WST, only 0.55 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.55, WST belongs to the best of the industry, outperforming 91.23% of the companies in the same industry.
A Debt/Equity ratio of 0.07 indicates that WST is not too dependend on debt financing.
WST has a better Debt to Equity ratio (0.07) than 63.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.55 | ||
| Altman-Z | 14.31 |
ROIC/WACC1.36
WACC10.87%
2.3 Liquidity
A Current Ratio of 2.87 indicates that WST has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.87, WST is in line with its industry, outperforming 52.63% of the companies in the same industry.
WST has a Quick Ratio of 2.18. This indicates that WST is financially healthy and has no problem in meeting its short term obligations.
WST has a Quick ratio (2.18) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.87 | ||
| Quick Ratio | 2.18 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.59% over the past year.
Measured over the past years, WST shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.81% on average per year.
Looking at the last year, WST shows a small growth in Revenue. The Revenue has grown by 4.92% in the last year.
Measured over the past years, WST shows a quite strong growth in Revenue. The Revenue has been growing by 9.48% on average per year.
EPS 1Y (TTM)4.59%
EPS 3Y-7.79%
EPS 5Y15.81%
EPS Q2Q%5.95%
Revenue 1Y (TTM)4.92%
Revenue growth 3Y0.72%
Revenue growth 5Y9.48%
Sales Q2Q%7.73%
3.2 Future
Based on estimates for the next years, WST will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.12% on average per year.
The Revenue is expected to grow by 6.45% on average over the next years.
EPS Next Y6.31%
EPS Next 2Y7.84%
EPS Next 3Y9.51%
EPS Next 5Y10.12%
Revenue Next Year6.28%
Revenue Next 2Y6.24%
Revenue Next 3Y6.44%
Revenue Next 5Y6.45%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 38.97 indicates a quite expensive valuation of WST.
WST's Price/Earnings ratio is a bit cheaper when compared to the industry. WST is cheaper than 61.40% of the companies in the same industry.
WST is valuated rather expensively when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 35.10, WST can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WST indicates a somewhat cheap valuation: WST is cheaper than 64.91% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.88. WST is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.97 | ||
| Fwd PE | 35.1 |
4.2 Price Multiples
WST's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WST is cheaper than 66.67% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, WST is valued a bit cheaper than 61.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.28 | ||
| EV/EBITDA | 24.52 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of WST may justify a higher PE ratio.
PEG (NY)6.17
PEG (5Y)2.46
EPS Next 2Y7.84%
EPS Next 3Y9.51%
5. Dividend
5.1 Amount
WST has a yearly dividend return of 0.32%, which is pretty low.
WST's Dividend Yield is rather good when compared to the industry average which is at 0.09. WST pays more dividend than 87.72% of the companies in the same industry.
With a Dividend Yield of 0.32, WST pays less dividend than the S&P500 average, which is at 1.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.32% |
5.2 History
The dividend of WST has a limited annual growth rate of 5.90%.
WST has paid a dividend for at least 10 years, which is a reliable track record.
WST has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.9%
Div Incr Years32
Div Non Decr Years34
5.3 Sustainability
12.34% of the earnings are spent on dividend by WST. This is a low number and sustainable payout ratio.
The dividend of WST is growing, but earnings are growing more, so the dividend growth is sustainable.
DP12.34%
EPS Next 2Y7.84%
EPS Next 3Y9.51%
275.52
+0.29 (+0.11%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners97.92%
Inst Owner Change0%
Ins Owners0.33%
Ins Owner Change0%
Market Cap19.82B
Revenue(TTM)3.02B
Net Income(TTM)491.70M
Analysts80.91
Price Target354.05 (28.5%)
Short Float %2.88%
Short Ratio2.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.32% |
Yearly Dividend0.81
Dividend Growth(5Y)5.9%
DP12.34%
Div Incr Years32
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.04%
Min EPS beat(2)15.4%
Max EPS beat(2)20.68%
EPS beat(4)4
Avg EPS beat(4)14.32%
Min EPS beat(4)4.78%
Max EPS beat(4)20.68%
EPS beat(8)7
Avg EPS beat(8)11.13%
EPS beat(12)11
Avg EPS beat(12)13.12%
EPS beat(16)14
Avg EPS beat(16)10.97%
Revenue beat(2)2
Avg Revenue beat(2)2.72%
Min Revenue beat(2)1.1%
Max Revenue beat(2)4.33%
Revenue beat(4)4
Avg Revenue beat(4)1.58%
Min Revenue beat(4)0.12%
Max Revenue beat(4)4.33%
Revenue beat(8)6
Avg Revenue beat(8)0.82%
Revenue beat(12)8
Avg Revenue beat(12)1.03%
Revenue beat(16)10
Avg Revenue beat(16)0.44%
PT rev (1m)0.12%
PT rev (3m)10.53%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)3.33%
EPS NY rev (1m)0.09%
EPS NY rev (3m)5.04%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)-0.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.97 | ||
| Fwd PE | 35.1 | ||
| P/S | 6.57 | ||
| P/FCF | 52.28 | ||
| P/OCF | 28.57 | ||
| P/B | 6.5 | ||
| P/tB | 6.76 | ||
| EV/EBITDA | 24.52 |
EPS(TTM)7.07
EY2.57%
EPS(NY)7.85
Fwd EY2.85%
FCF(TTM)5.27
FCFY1.91%
OCF(TTM)9.64
OCFY3.5%
SpS41.95
BVpS42.42
TBVpS40.76
PEG (NY)6.17
PEG (5Y)2.46
Graham Number82.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.98% | ||
| ROE | 16.11% | ||
| ROCE | 18.01% | ||
| ROIC | 14.78% | ||
| ROICexc | 18.05% | ||
| ROICexgc | 18.84% | ||
| OM | 20.71% | ||
| PM (TTM) | 16.29% | ||
| GM | 35.58% | ||
| FCFM | 12.56% |
ROA(3y)15.07%
ROA(5y)15.52%
ROE(3y)20.26%
ROE(5y)21.56%
ROIC(3y)17.99%
ROIC(5y)18.35%
ROICexc(3y)23.92%
ROICexc(5y)24.8%
ROICexgc(3y)25.26%
ROICexgc(5y)26.44%
ROCE(3y)21.92%
ROCE(5y)22.37%
ROICexgc growth 3Y-17.09%
ROICexgc growth 5Y2.48%
ROICexc growth 3Y-16.41%
ROICexc growth 5Y3.44%
OM growth 3Y-8.66%
OM growth 5Y4.7%
PM growth 3Y-10.02%
PM growth 5Y5.33%
GM growth 3Y-6.03%
GM growth 5Y0.95%
F-Score6
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.55 | ||
| Debt/EBITDA | 0.26 | ||
| Cap/Depr | 190.61% | ||
| Cap/Sales | 10.43% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.8% | ||
| Profit Quality | 77.1% | ||
| Current Ratio | 2.87 | ||
| Quick Ratio | 2.18 | ||
| Altman-Z | 14.31 |
F-Score6
WACC10.87%
ROIC/WACC1.36
Cap/Depr(3y)247.41%
Cap/Depr(5y)221.86%
Cap/Sales(3y)11.72%
Cap/Sales(5y)10.45%
Profit Quality(3y)66.98%
Profit Quality(5y)67.4%
High Growth Momentum
Growth
EPS 1Y (TTM)4.59%
EPS 3Y-7.79%
EPS 5Y15.81%
EPS Q2Q%5.95%
EPS Next Y6.31%
EPS Next 2Y7.84%
EPS Next 3Y9.51%
EPS Next 5Y10.12%
Revenue 1Y (TTM)4.92%
Revenue growth 3Y0.72%
Revenue growth 5Y9.48%
Sales Q2Q%7.73%
Revenue Next Year6.28%
Revenue Next 2Y6.24%
Revenue Next 3Y6.44%
Revenue Next 5Y6.45%
EBIT growth 1Y6.71%
EBIT growth 3Y-8.01%
EBIT growth 5Y14.63%
EBIT Next Year37.43%
EBIT Next 3Y18.61%
EBIT Next 5Y15.08%
FCF growth 1Y-9.74%
FCF growth 3Y-5.79%
FCF growth 5Y2.8%
OCF growth 1Y-9.68%
OCF growth 3Y3.81%
OCF growth 5Y12.22%
WEST PHARMACEUTICAL SERVICES / WST FAQ
What is the fundamental rating for WST stock?
ChartMill assigns a fundamental rating of 7 / 10 to WST.
What is the valuation status for WST stock?
ChartMill assigns a valuation rating of 4 / 10 to WEST PHARMACEUTICAL SERVICES (WST). This can be considered as Fairly Valued.
Can you provide the profitability details for WEST PHARMACEUTICAL SERVICES?
WEST PHARMACEUTICAL SERVICES (WST) has a profitability rating of 8 / 10.
Can you provide the financial health for WST stock?
The financial health rating of WEST PHARMACEUTICAL SERVICES (WST) is 8 / 10.
How sustainable is the dividend of WEST PHARMACEUTICAL SERVICES (WST) stock?
The dividend rating of WEST PHARMACEUTICAL SERVICES (WST) is 6 / 10 and the dividend payout ratio is 12.34%.