WEST PHARMACEUTICAL SERVICES (WST) Fundamental Analysis & Valuation
NYSE:WST • US9553061055
Current stock price
295.36 USD
+3.23 (+1.11%)
At close:
295.36 USD
0 (0%)
After Hours:
This WST fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. WST Profitability Analysis
1.1 Basic Checks
- In the past year WST was profitable.
- WST had a positive operating cash flow in the past year.
- 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 has a better Return On Assets (13.21%) than 96.49% of its industry peers.
- With an excellent Return On Equity value of 18.15%, WST belongs to the best of the industry, outperforming 91.23% of the companies in the same industry.
- WST has a better Return On Invested Capital (16.07%) than 94.74% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for WST is above the industry average of 11.01%.
- The 3 year average ROIC (15.83%) for WST is below the current ROIC(16.07%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.21% | ||
| ROE | 18.15% | ||
| ROIC | 16.07% |
ROA(3y)13.53%
ROA(5y)15.35%
ROE(3y)18.17%
ROE(5y)20.93%
ROIC(3y)15.83%
ROIC(5y)17.92%
1.3 Margins
- Looking at the Profit Margin, with a value of 16.85%, WST belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
- In the last couple of years the Profit Margin of WST has remained more or less at the same level.
- WST has a better Operating Margin (21.24%) than 87.72% of its industry peers.
- WST's Operating Margin has been stable in the last couple of years.
- Looking at the Gross Margin, with a value of 36.28%, 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 | 21.24% | ||
| PM (TTM) | 16.85% | ||
| GM | 36.28% |
OM growth 3Y-7.75%
OM growth 5Y1.08%
PM growth 3Y-7.51%
PM growth 5Y-0.08%
GM growth 3Y-3.01%
GM growth 5Y0.08%
2. WST Health Analysis
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.
- Compared to 5 years ago, WST has less shares outstanding
- WST has a better debt/assets ratio than last year.
2.2 Solvency
- WST has an Altman-Z score of 14.61. This indicates that WST is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 14.61, WST belongs to the best of the industry, outperforming 98.25% of the companies in the same industry.
- WST has a debt to FCF ratio of 0.45. This is a very positive value and a sign of high solvency as it would only need 0.45 years to pay back of all of its debts.
- WST's Debt to FCF ratio of 0.45 is amongst the best of the industry. WST outperforms 92.98% 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.
- Looking at the Debt to Equity ratio, with a value of 0.07, WST is in the better half of the industry, outperforming 68.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.45 | ||
| Altman-Z | 14.61 |
ROIC/WACC1.46
WACC10.97%
2.3 Liquidity
- WST has a Current Ratio of 2.71. This indicates that WST is financially healthy and has no problem in meeting its short term obligations.
- The Current ratio of WST (2.71) is comparable to the rest of the industry.
- WST has a Quick Ratio of 2.04. This indicates that WST is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 2.04, WST is in line with its industry, outperforming 47.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.71 | ||
| Quick Ratio | 2.04 |
3. WST Growth Analysis
3.1 Past
- WST shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.03%, which is quite impressive.
- WST shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.94% yearly.
- The Revenue has grown by 11.23% in the past year. This is quite good.
- Measured over the past years, WST shows a small growth in Revenue. The Revenue has been growing by 7.44% on average per year.
EPS 1Y (TTM)20.03%
EPS 3Y-5.25%
EPS 5Y8.94%
EPS Q2Q%46.9%
Revenue 1Y (TTM)11.23%
Revenue growth 3Y2.12%
Revenue growth 5Y7.44%
Sales Q2Q%21.05%
3.2 Future
- The Earnings Per Share is expected to grow by 9.01% on average over the next years. This is quite good.
- WST is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.95% yearly.
EPS Next Y11.24%
EPS Next 2Y11.04%
EPS Next 3Y11.52%
EPS Next 5Y9.01%
Revenue Next Year6.04%
Revenue Next 2Y6.13%
Revenue Next 3Y6.47%
Revenue Next 5Y7.95%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. WST Valuation Analysis
4.1 Price/Earnings Ratio
- WST is valuated quite expensively with a Price/Earnings ratio of 37.06.
- WST's Price/Earnings ratio is a bit cheaper when compared to the industry. WST is cheaper than 63.16% of the companies in the same industry.
- WST's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.54.
- Based on the Price/Forward Earnings ratio of 32.86, the valuation of WST can be described as expensive.
- Based on the Price/Forward Earnings ratio, WST is valued a bit cheaper than 63.16% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of WST to the average of the S&P500 Index (21.68), we can say WST is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.06 | ||
| Fwd PE | 32.86 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WST indicates a somewhat cheap valuation: WST is cheaper than 61.40% of the companies listed in the same industry.
- WST's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.48 | ||
| EV/EBITDA | 24.37 |
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)3.3
PEG (5Y)4.14
EPS Next 2Y11.04%
EPS Next 3Y11.52%
5. WST Dividend Analysis
5.1 Amount
- With a yearly dividend of 0.33%, WST is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.11, WST pays a better dividend. On top of this WST pays more dividend than 84.21% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, WST's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.33% |
5.2 History
- The dividend of WST has a limited annual growth rate of 5.48%.
- WST has been paying a dividend for at least 10 years, so it has a reliable track record.
- WST has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.48%
Div Incr Years33
Div Non Decr Years34
5.3 Sustainability
- WST pays out 11.39% 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.
DP11.39%
EPS Next 2Y11.04%
EPS Next 3Y11.52%
WST Fundamentals: All Metrics, Ratios and Statistics
295.36
+3.23 (+1.11%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Industry Strength17.39
Industry Growth53.42
Earnings (Last)04-23 2026-04-23/bmo
Earnings (Next)07-22 2026-07-22/bmo
Inst Owners97.62%
Inst Owner Change-0.55%
Ins Owners0.29%
Ins Owner Change0.38%
Market Cap21.29B
Revenue(TTM)3.22B
Net Income(TTM)542.70M
Analysts80.87
Price Target352.97 (19.51%)
Short Float %3.72%
Short Ratio2.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.33% |
Yearly Dividend0.85
Dividend Growth(5Y)5.48%
DP11.39%
Div Incr Years33
Div Non Decr Years34
Ex-Date04-29 2026-04-29 (0.22)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18%
Min EPS beat(2)10.24%
Max EPS beat(2)25.77%
EPS beat(4)4
Avg EPS beat(4)18.02%
Min EPS beat(4)10.24%
Max EPS beat(4)25.77%
EPS beat(8)7
Avg EPS beat(8)12.73%
EPS beat(12)11
Avg EPS beat(12)12.39%
EPS beat(16)14
Avg EPS beat(16)12.42%
Revenue beat(2)2
Avg Revenue beat(2)3.79%
Min Revenue beat(2)0.33%
Max Revenue beat(2)7.25%
Revenue beat(4)4
Avg Revenue beat(4)3.25%
Min Revenue beat(4)0.33%
Max Revenue beat(4)7.25%
Revenue beat(8)7
Avg Revenue beat(8)1.68%
Revenue beat(12)8
Avg Revenue beat(12)0.96%
Revenue beat(16)11
Avg Revenue beat(16)0.86%
PT rev (1m)0%
PT rev (3m)-7.08%
EPS NQ rev (1m)-0.08%
EPS NQ rev (3m)1.61%
EPS NY rev (1m)0.09%
EPS NY rev (3m)3.32%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)2.55%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.06 | ||
| Fwd PE | 32.86 | ||
| P/S | 6.61 | ||
| P/FCF | 46.48 | ||
| P/OCF | 29.76 | ||
| P/B | 7.12 | ||
| P/tB | 7.41 | ||
| EV/EBITDA | 24.37 |
EPS(TTM)7.97
EY2.7%
EPS(NY)8.99
Fwd EY3.04%
FCF(TTM)6.35
FCFY2.15%
OCF(TTM)9.92
OCFY3.36%
SpS44.69
BVpS41.49
TBVpS39.88
PEG (NY)3.3
PEG (5Y)4.14
Graham Number86.2537 (-70.8%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.21% | ||
| ROE | 18.15% | ||
| ROCE | 19.91% | ||
| ROIC | 16.07% | ||
| ROICexc | 18.95% | ||
| ROICexgc | 19.73% | ||
| OM | 21.24% | ||
| PM (TTM) | 16.85% | ||
| GM | 36.28% | ||
| FCFM | 14.22% |
ROA(3y)13.53%
ROA(5y)15.35%
ROE(3y)18.17%
ROE(5y)20.93%
ROIC(3y)15.83%
ROIC(5y)17.92%
ROICexc(3y)20.32%
ROICexc(5y)23.97%
ROICexgc(3y)21.34%
ROICexgc(5y)25.37%
ROCE(3y)19.61%
ROCE(5y)22.21%
ROICexgc growth 3Y-13.74%
ROICexgc growth 5Y-3.06%
ROICexc growth 3Y-13.28%
ROICexc growth 5Y-2.17%
OM growth 3Y-7.75%
OM growth 5Y1.08%
PM growth 3Y-7.51%
PM growth 5Y-0.08%
GM growth 3Y-3.01%
GM growth 5Y0.08%
F-Score7
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.45 | ||
| Debt/EBITDA | 0.24 | ||
| Cap/Depr | 145.7% | ||
| Cap/Sales | 7.99% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.1% | ||
| Profit Quality | 84.39% | ||
| Current Ratio | 2.71 | ||
| Quick Ratio | 2.04 | ||
| Altman-Z | 14.61 |
F-Score7
WACC10.97%
ROIC/WACC1.46
Cap/Depr(3y)224.35%
Cap/Depr(5y)223.25%
Cap/Sales(3y)11.53%
Cap/Sales(5y)10.68%
Profit Quality(3y)73.64%
Profit Quality(5y)69.18%
High Growth Momentum
Growth
EPS 1Y (TTM)20.03%
EPS 3Y-5.25%
EPS 5Y8.94%
EPS Q2Q%46.9%
EPS Next Y11.24%
EPS Next 2Y11.04%
EPS Next 3Y11.52%
EPS Next 5Y9.01%
Revenue 1Y (TTM)11.23%
Revenue growth 3Y2.12%
Revenue growth 5Y7.44%
Sales Q2Q%21.05%
Revenue Next Year6.04%
Revenue Next 2Y6.13%
Revenue Next 3Y6.47%
Revenue Next 5Y7.95%
EBIT growth 1Y16.64%
EBIT growth 3Y-5.8%
EBIT growth 5Y8.6%
EBIT Next Year43.62%
EBIT Next 3Y20.28%
EBIT Next 5Y16.28%
FCF growth 1Y18.62%
FCF growth 3Y2.19%
FCF growth 5Y9.48%
OCF growth 1Y-5.46%
OCF growth 3Y1.4%
OCF growth 5Y9.82%
WEST PHARMACEUTICAL SERVICES / WST Fundamental Analysis 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 3 / 10 to WEST PHARMACEUTICAL SERVICES (WST). This can be considered as Overvalued.
How profitable is WEST PHARMACEUTICAL SERVICES (WST) stock?
WEST PHARMACEUTICAL SERVICES (WST) has a profitability rating of 8 / 10.
What is the financial health of WEST PHARMACEUTICAL SERVICES (WST) stock?
The financial health rating of WEST PHARMACEUTICAL SERVICES (WST) is 8 / 10.
What is the expected EPS growth for WEST PHARMACEUTICAL SERVICES (WST) stock?
The Earnings per Share (EPS) of WEST PHARMACEUTICAL SERVICES (WST) is expected to grow by 11.24% in the next year.