WEST PHARMACEUTICAL SERVICES (WST)
US9553061055 - Common Stock
Overall WST gets a fundamental rating of 7 out of 10. We evaluated WST against 56 industry peers in the Life Sciences Tools & Services industry. WST has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. WST is not valued too expensively and it also shows a decent growth rate. Finally WST also has an excellent dividend rating. With these ratings, WST could be worth investigating further for dividend 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.
In the past 5 years WST has always been profitable.
In the past 5 years WST always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 13.59%, WST belongs to the best of the industry, outperforming 94.64% of the companies in the same industry.
WST has a Return On Equity of 18.15%. This is amongst the best in the industry. WST outperforms 92.86% of its industry peers.
With an excellent Return On Invested Capital value of 15.28%, WST belongs to the best of the industry, outperforming 94.64% of the companies in the same industry.
WST had an Average Return On Invested Capital over the past 3 years of 20.47%. This 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.59% | ||
| ROE | 18.15% | ||
| ROIC | 15.28% |
ROA(3y)17.22%
ROA(5y)14.88%
ROE(3y)23.59%
ROE(5y)20.96%
ROIC(3y)20.47%
ROIC(5y)17.74%
1.3 Margins
WST has a Profit Margin of 17.37%. This is amongst the best in the industry. WST outperforms 91.07% of its industry peers.
In the last couple of years the Profit Margin of WST has grown nicely.
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.
Looking at the Gross Margin, with a value of 34.87%, WST is doing worse than 62.50% of the companies in the same industry.
In the last couple of years the Gross Margin of WST has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.37% | ||
| PM (TTM) | 17.37% | ||
| GM | 34.87% |
OM growth 3Y7.1%
OM growth 5Y10.38%
PM growth 3Y7.65%
PM growth 5Y10.8%
GM growth 3Y2.29%
GM growth 5Y3.81%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WST is still creating some value.
Compared to 1 year ago, WST has less shares outstanding
WST has less shares outstanding than it did 5 years ago.
The debt/assets ratio for WST has been reduced compared to a year ago.
2.2 Solvency
WST has an Altman-Z score of 18.72. This indicates that WST is financially healthy and has little risk of bankruptcy at the moment.
WST's Altman-Z score of 18.72 is amongst the best of the industry. WST outperforms 98.21% 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.
Looking at the Debt to FCF ratio, with a value of 0.64, WST belongs to the top of the industry, outperforming 91.07% 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 66.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.64 | ||
| Altman-Z | 18.72 |
ROIC/WACC1.3
WACC11.73%
2.3 Liquidity
A Current Ratio of 3.00 indicates that WST has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.00, WST is in line with its industry, outperforming 55.36% of the companies in the same industry.
A Quick Ratio of 2.23 indicates that WST has no problem at all paying its short term obligations.
With a Quick ratio value of 2.23, WST perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3 | ||
| Quick Ratio | 2.23 |
3. Growth
3.1 Past
The earnings per share for WST have decreased strongly by -15.71% in the last year.
The Earnings Per Share has been growing by 23.52% on average over the past years. This is a very strong growth
WST shows a decrease in Revenue. In the last year, the revenue decreased by -1.71%.
Measured over the past years, WST shows a quite strong growth in Revenue. The Revenue has been growing by 11.43% on average per year.
EPS 1Y (TTM)-15.71%
EPS 3Y19.37%
EPS 5Y23.52%
EPS Q2Q%-14.35%
Revenue 1Y (TTM)-1.71%
Revenue growth 3Y11.17%
Revenue growth 5Y11.43%
Sales Q2Q%-0.07%
3.2 Future
The Earnings Per Share is expected to grow by 8.41% 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 5.93% yearly.
EPS Next Y-17.57%
EPS Next 2Y-3.07%
EPS Next 3Y3.51%
EPS Next 5Y8.41%
Revenue Next Year-2.51%
Revenue Next 2Y1.69%
Revenue Next 3Y4.05%
Revenue Next 5Y5.93%
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 decreasing.
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
With a Price/Earnings ratio of 49.02, WST can be considered very expensive at the moment.
67.86% of the companies in the same industry are more expensive than WST, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.73, WST is valued quite expensively.
With a Price/Forward Earnings ratio of 43.65, WST can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, WST is valued a bit cheaper than 60.71% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.83. WST is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.02 | ||
| Fwd PE | 43.65 |
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 67.86% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, WST is valued a bit cheaper than 60.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 74.63 | ||
| EV/EBITDA | 32.2 |
4.3 Compensation for Growth
WST has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.08
EPS Next 2Y-3.07%
EPS Next 3Y3.51%
5. Dividend
5.1 Amount
With a yearly dividend of 0.26%, WST is not a good candidate for dividend investing.
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.
Compared to an average S&P500 Dividend Yield of 2.34, WST's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.26% |
5.2 History
The dividend of WST is nicely growing with an annual growth rate of 6.31%!
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)6.31%
Div Incr Years32
Div Non Decr Years34
5.3 Sustainability
11.73% of the earnings are spent on dividend by WST. This is a low number and sustainable payout ratio.
WST's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP11.73%
EPS Next 2Y-3.07%
EPS Next 3Y3.51%
WEST PHARMACEUTICAL SERVICES
NYSE:WST (12/20/2024, 8:04:00 PM)
After market: 331.4 0 (0%)331.4
+4.39 (+1.34%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners95.96%
Inst Owner Change1.33%
Ins Owners0.34%
Ins Owner Change0.28%
Market Cap24.00B
Analysts80
Price Target365.4 (10.26%)
Short Float %1.62%
Short Ratio1.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.26% |
Dividend Growth(5Y)6.31%
DP11.73%
Div Incr Years32
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.27%
Min EPS beat(2)-13.56%
Max EPS beat(2)22.11%
EPS beat(4)3
Avg EPS beat(4)7.94%
Min EPS beat(4)-13.56%
Max EPS beat(4)22.11%
EPS beat(8)7
Avg EPS beat(8)12.53%
EPS beat(12)10
Avg EPS beat(12)9.85%
EPS beat(16)14
Avg EPS beat(16)14.47%
Revenue beat(2)1
Avg Revenue beat(2)-0.24%
Min Revenue beat(2)-4.69%
Max Revenue beat(2)4.21%
Revenue beat(4)2
Avg Revenue beat(4)0.05%
Min Revenue beat(4)-4.69%
Max Revenue beat(4)4.21%
Revenue beat(8)4
Avg Revenue beat(8)0.75%
Revenue beat(12)6
Avg Revenue beat(12)0.05%
Revenue beat(16)10
Avg Revenue beat(16)1.49%
PT rev (1m)4.3%
PT rev (3m)1.43%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-25.77%
EPS NY rev (1m)0.21%
EPS NY rev (3m)1.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.8%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.02 | ||
| Fwd PE | 43.65 | ||
| P/S | 8.34 | ||
| P/FCF | 74.63 | ||
| P/OCF | 34.17 | ||
| P/B | 8.72 | ||
| P/tB | 9.12 | ||
| EV/EBITDA | 32.2 |
EPS(TTM)6.76
EY2.04%
EPS(NY)7.59
Fwd EY2.29%
FCF(TTM)4.44
FCFY1.34%
OCF(TTM)9.7
OCFY2.93%
SpS39.72
BVpS38
TBVpS36.33
PEG (NY)N/A
PEG (5Y)2.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.59% | ||
| ROE | 18.15% | ||
| ROCE | 18.55% | ||
| ROIC | 15.28% | ||
| ROICexc | 18.09% | ||
| ROICexgc | 18.95% | ||
| OM | 20.37% | ||
| PM (TTM) | 17.37% | ||
| GM | 34.87% | ||
| FCFM | 11.18% |
ROA(3y)17.22%
ROA(5y)14.88%
ROE(3y)23.59%
ROE(5y)20.96%
ROIC(3y)20.47%
ROIC(5y)17.74%
ROICexc(3y)28.44%
ROICexc(5y)24.32%
ROICexgc(3y)30.26%
ROICexgc(5y)26.09%
ROCE(3y)24.85%
ROCE(5y)21.53%
ROICexcg growth 3Y5.89%
ROICexcg growth 5Y9.72%
ROICexc growth 3Y7.06%
ROICexc growth 5Y10.65%
OM growth 3Y7.1%
OM growth 5Y10.38%
PM growth 3Y7.65%
PM growth 5Y10.8%
GM growth 3Y2.29%
GM growth 5Y3.81%
F-Score5
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.64 | ||
| Debt/EBITDA | 0.28 | ||
| Cap/Depr | 252.86% | ||
| Cap/Sales | 13.24% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 95.38% | ||
| Profit Quality | 64.37% | ||
| Current Ratio | 3 | ||
| Quick Ratio | 2.23 | ||
| Altman-Z | 18.72 |
F-Score5
WACC11.73%
ROIC/WACC1.3
Cap/Depr(3y)235.61%
Cap/Depr(5y)197.79%
Cap/Sales(3y)10.36%
Cap/Sales(5y)9.21%
Profit Quality(3y)64.93%
Profit Quality(5y)76.11%
High Growth Momentum
Growth
EPS 1Y (TTM)-15.71%
EPS 3Y19.37%
EPS 5Y23.52%
EPS Q2Q%-14.35%
EPS Next Y-17.57%
EPS Next 2Y-3.07%
EPS Next 3Y3.51%
EPS Next 5Y8.41%
Revenue 1Y (TTM)-1.71%
Revenue growth 3Y11.17%
Revenue growth 5Y11.43%
Sales Q2Q%-0.07%
Revenue Next Year-2.51%
Revenue Next 2Y1.69%
Revenue Next 3Y4.05%
Revenue Next 5Y5.93%
EBIT growth 1Y-15.3%
EBIT growth 3Y19.07%
EBIT growth 5Y23%
EBIT Next Year3.36%
EBIT Next 3Y11.82%
EBIT Next 5Y17.99%
FCF growth 1Y-17.07%
FCF growth 3Y11.61%
FCF growth 5Y17.65%
OCF growth 1Y7.4%
OCF growth 3Y18.01%
OCF growth 5Y21.89%