WEST PHARMACEUTICAL SERVICES (WST) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WST - US9553061055 - Common Stock
279.41 USD
+4.43 (+1.61%)
280.31 USD
+0.9 (+0.32%)
Overall WST gets a fundamental rating of 7 out of 10. We evaluated WST against 57 industry peers in the Life Sciences Tools & Services industry. WST scores excellent points on both the profitability and health parts. This is a solid base for a good stock. WST has a decent growth rate and is not valued too expensively. This makes WST very considerable for quality investing!
1. Profitability
1.1 Basic Checks
- WST had positive earnings in the past year.
- In the past year WST had a positive cash flow from operations.
- In the past 5 years WST has always been profitable.
- Each year in the past 5 years WST had a positive operating cash flow.
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.
- The Return On Equity of WST (16.11%) is better than 87.72% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 14.78%, WST belongs to the top of the industry, outperforming 89.47% of the companies in the same industry.
- WST had an Average Return On Invested Capital over the past 3 years of 17.99%. This is above the industry average of 13.75%.
| 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
- Looking at the Profit Margin, with a value of 16.29%, WST belongs to the top of the industry, outperforming 85.96% of the companies in the same industry.
- WST's Profit Margin has improved in the last couple of years.
- WST's Operating Margin of 20.71% is amongst the best of the industry. WST outperforms 87.72% of its industry peers.
- In the last couple of years the Operating Margin of WST has grown nicely.
- Looking at the Gross Margin, with a value of 35.58%, WST is in line with its industry, outperforming 40.35% 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), WST is creating some value.
- The number of shares outstanding for WST has been reduced compared to 1 year ago.
- Compared to 5 years ago, WST has less shares outstanding
- WST has a worse debt/assets ratio than last year.
2.2 Solvency
- WST has an Altman-Z score of 14.48. This indicates that WST is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 14.48, 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.
- WST has a better Debt to FCF ratio (0.55) than 91.23% of its industry peers.
- A Debt/Equity ratio of 0.07 indicates that WST is not too dependend on debt financing.
- The Debt to Equity ratio of WST (0.07) is better than 63.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.55 | ||
| Altman-Z | 14.48 |
ROIC/WACC1.36
WACC10.88%
2.3 Liquidity
- A Current Ratio of 2.87 indicates that WST has no problem at all paying its short term obligations.
- WST's Current ratio of 2.87 is in line compared to the rest of the industry. WST outperforms 52.63% of its industry peers.
- 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 of 2.18. This is comparable to the rest of the industry: WST outperforms 50.88% of 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.
- The Earnings Per Share has been growing by 15.81% on average over the past years. This is quite good.
- Looking at the last year, WST shows a small growth in Revenue. The Revenue has grown by 4.92% in the last year.
- The Revenue has been growing by 9.48% on average over the past years. This is quite good.
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.
- Based on estimates for the next years, WST will show a small growth in Revenue. The Revenue will grow by 6.45% on average per year.
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- WST is valuated quite expensively with a Price/Earnings ratio of 39.52.
- Compared to the rest of the industry, the Price/Earnings ratio of WST indicates a somewhat cheap valuation: WST is cheaper than 61.40% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of WST to the average of the S&P500 Index (27.54), we can say WST is valued slightly more expensively.
- Based on the Price/Forward Earnings ratio of 35.59, the valuation of WST can be described as expensive.
- WST's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WST is cheaper than 64.91% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.31. WST is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.52 | ||
| Fwd PE | 35.59 |
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.
- WST's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WST is cheaper than 61.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.02 | ||
| EV/EBITDA | 24.91 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WST does not grow enough to justify the current Price/Earnings ratio.
- WST has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)6.26
PEG (5Y)2.5
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 1.92.
| 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%
279.41
+4.43 (+1.61%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)10-23 2025-10-23/bmo
Earnings (Next)02-11 2026-02-11/amc
Inst Owners97.92%
Inst Owner Change0.13%
Ins Owners0.33%
Ins Owner Change0%
Market Cap20.10B
Revenue(TTM)3.02B
Net Income(TTM)491.70M
Analysts80.91
Price Target354.05 (26.71%)
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-Date01-28 2026-01-28 (0.22)
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)1.32%
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 | 39.52 | ||
| Fwd PE | 35.59 | ||
| P/S | 6.66 | ||
| P/FCF | 53.02 | ||
| P/OCF | 28.97 | ||
| P/B | 6.59 | ||
| P/tB | 6.86 | ||
| EV/EBITDA | 24.91 |
EPS(TTM)7.07
EY2.53%
EPS(NY)7.85
Fwd EY2.81%
FCF(TTM)5.27
FCFY1.89%
OCF(TTM)9.64
OCFY3.45%
SpS41.95
BVpS42.42
TBVpS40.76
PEG (NY)6.26
PEG (5Y)2.5
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 | 14.48 |
F-Score6
WACC10.88%
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%.