WEST PHARMACEUTICAL SERVICES (WST) Fundamental Analysis & Valuation
NYSE:WST • US9553061055
Current stock price
237.03 USD
-3.3 (-1.37%)
At close:
238.1 USD
+1.07 (+0.45%)
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.
- In the past year WST had a positive cash flow from operations.
- WST had positive earnings in each of the past 5 years.
- Each year in the past 5 years WST had a positive operating cash flow.
1.2 Ratios
- WST's Return On Assets of 11.56% is amongst the best of the industry. WST outperforms 92.98% of its industry peers.
- Looking at the Return On Equity, with a value of 15.54%, WST belongs to the top of the industry, outperforming 89.47% of the companies in the same industry.
- WST has a Return On Invested Capital of 14.09%. This is amongst the best in the industry. WST outperforms 92.98% of its industry peers.
- WST had an Average Return On Invested Capital over the past 3 years of 15.83%. This is above the industry average of 11.85%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.56% | ||
| ROE | 15.54% | ||
| ROIC | 14.09% |
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
- WST has a better Profit Margin (16.06%) than 84.21% of its industry peers.
- In the last couple of years the Profit Margin of WST has remained more or less at the same level.
- WST's Operating Margin of 20.53% 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 remained more or less at the same level.
- The Gross Margin of WST (35.91%) is worse than 61.40% of its industry peers.
- WST's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.53% | ||
| PM (TTM) | 16.06% | ||
| GM | 35.91% |
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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WST is still 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.
- Compared to 1 year ago, WST has an improved debt to assets ratio.
2.2 Solvency
- WST has an Altman-Z score of 12.51. This indicates that WST is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 12.51, 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 0.44. This is a very positive value and a sign of high solvency as it would only need 0.44 years to pay back of all of its debts.
- The Debt to FCF ratio of WST (0.44) is better than 92.98% of its industry peers.
- WST has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of WST (0.06) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.44 | ||
| Altman-Z | 12.51 |
ROIC/WACC1.29
WACC10.92%
2.3 Liquidity
- A Current Ratio of 3.02 indicates that WST has no problem at all paying its short term obligations.
- WST has a Current ratio (3.02) which is in line with its industry peers.
- A Quick Ratio of 2.34 indicates that WST has no problem at all paying its short term obligations.
- WST has a Quick ratio of 2.34. This is comparable to the rest of the industry: WST outperforms 54.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.02 | ||
| Quick Ratio | 2.34 |
3. WST Growth Analysis
3.1 Past
- WST shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 8.00%.
- WST shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.94% yearly.
- WST shows a small growth in Revenue. In the last year, the Revenue has grown by 6.25%.
- The Revenue has been growing slightly by 7.44% on average over the past years.
EPS 1Y (TTM)8%
EPS 3Y-5.25%
EPS 5Y8.94%
EPS Q2Q%12.09%
Revenue 1Y (TTM)6.25%
Revenue growth 3Y2.12%
Revenue growth 5Y7.44%
Sales Q2Q%7.51%
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 9.50% on average per year.
- The Revenue is expected to grow by 5.60% on average over the next years.
EPS Next Y11.14%
EPS Next 2Y11.07%
EPS Next 3Y11.63%
EPS Next 5Y9.5%
Revenue Next Year6.01%
Revenue Next 2Y6.04%
Revenue Next 3Y6.31%
Revenue Next 5Y5.6%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. WST Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 32.51, the valuation of WST can be described as expensive.
- 63.16% of the companies in the same industry are more expensive than WST, based on the Price/Earnings ratio.
- WST's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.23.
- With a Price/Forward Earnings ratio of 29.26, WST can be considered very expensive at the moment.
- Based on the Price/Forward Earnings ratio, WST is valued a bit cheaper than 61.40% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of WST to the average of the S&P500 Index (23.28), we can say WST is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.51 | ||
| Fwd PE | 29.26 |
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 66.67% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, WST is valued a bit cheaper than the industry average as 63.16% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.41 | ||
| EV/EBITDA | 20.84 |
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 decent profitability rating of WST may justify a higher PE ratio.
PEG (NY)2.92
PEG (5Y)3.63
EPS Next 2Y11.07%
EPS Next 3Y11.63%
5. WST Dividend Analysis
5.1 Amount
- With a yearly dividend of 0.32%, 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 82.46% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.91, WST's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.32% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.48%
Div Incr Years32
Div Non Decr Years34
5.3 Sustainability
- WST pays out 12.40% of its income as dividend. This is a sustainable payout ratio.
- The dividend of WST is growing, but earnings are growing more, so the dividend growth is sustainable.
DP12.4%
EPS Next 2Y11.07%
EPS Next 3Y11.63%
WST Fundamentals: All Metrics, Ratios and Statistics
237.03
-3.3 (-1.37%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)02-12 2026-02-12/bmo
Earnings (Next)04-22 2026-04-22/bmo
Inst Owners97.62%
Inst Owner Change-2.08%
Ins Owners0.33%
Ins Owner Change0.38%
Market Cap17.09B
Revenue(TTM)3.07B
Net Income(TTM)493.70M
Analysts80.87
Price Target328.99 (38.8%)
Short Float %3.32%
Short Ratio2.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.32% |
Yearly Dividend0.85
Dividend Growth(5Y)5.48%
DP12.4%
Div Incr Years32
Div Non Decr Years34
Ex-Date04-29 2026-04-29 (0.22)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.82%
Min EPS beat(2)10.24%
Max EPS beat(2)15.4%
EPS beat(4)4
Avg EPS beat(4)15.68%
Min EPS beat(4)10.24%
Max EPS beat(4)20.68%
EPS beat(8)7
Avg EPS beat(8)12.16%
EPS beat(12)11
Avg EPS beat(12)11.7%
EPS beat(16)14
Avg EPS beat(16)11.27%
Revenue beat(2)2
Avg Revenue beat(2)0.72%
Min Revenue beat(2)0.33%
Max Revenue beat(2)1.1%
Revenue beat(4)4
Avg Revenue beat(4)1.63%
Min Revenue beat(4)0.33%
Max Revenue beat(4)4.33%
Revenue beat(8)7
Avg Revenue beat(8)1.11%
Revenue beat(12)8
Avg Revenue beat(12)0.49%
Revenue beat(16)10
Avg Revenue beat(16)0.34%
PT rev (1m)-6.91%
PT rev (3m)-5.85%
EPS NQ rev (1m)1.65%
EPS NQ rev (3m)1.77%
EPS NY rev (1m)3.22%
EPS NY rev (3m)3.47%
Revenue NQ rev (1m)2.4%
Revenue NQ rev (3m)2.48%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.51 | ||
| Fwd PE | 29.26 | ||
| P/S | 5.55 | ||
| P/FCF | 36.41 | ||
| P/OCF | 22.62 | ||
| P/B | 5.37 | ||
| P/tB | 5.58 | ||
| EV/EBITDA | 20.84 |
EPS(TTM)7.29
EY3.08%
EPS(NY)8.1
Fwd EY3.42%
FCF(TTM)6.51
FCFY2.75%
OCF(TTM)10.48
OCFY4.42%
SpS42.68
BVpS44.1
TBVpS42.47
PEG (NY)2.92
PEG (5Y)3.63
Graham Number85.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.56% | ||
| ROE | 15.54% | ||
| ROCE | 17.45% | ||
| ROIC | 14.09% | ||
| ROICexc | 18.03% | ||
| ROICexgc | 18.82% | ||
| OM | 20.53% | ||
| PM (TTM) | 16.06% | ||
| GM | 35.91% | ||
| FCFM | 15.25% |
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 Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.44 | ||
| Debt/EBITDA | 0.26 | ||
| Cap/Depr | 166.8% | ||
| Cap/Sales | 9.3% | ||
| Interest Coverage | 2103.33 | ||
| Cash Conversion | 94.07% | ||
| Profit Quality | 94.98% | ||
| Current Ratio | 3.02 | ||
| Quick Ratio | 2.34 | ||
| Altman-Z | 12.51 |
F-Score7
WACC10.92%
ROIC/WACC1.29
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)8%
EPS 3Y-5.25%
EPS 5Y8.94%
EPS Q2Q%12.09%
EPS Next Y11.14%
EPS Next 2Y11.07%
EPS Next 3Y11.63%
EPS Next 5Y9.5%
Revenue 1Y (TTM)6.25%
Revenue growth 3Y2.12%
Revenue growth 5Y7.44%
Sales Q2Q%7.51%
Revenue Next Year6.01%
Revenue Next 2Y6.04%
Revenue Next 3Y6.31%
Revenue Next 5Y5.6%
EBIT growth 1Y7.88%
EBIT growth 3Y-5.8%
EBIT growth 5Y8.6%
EBIT Next Year43.23%
EBIT Next 3Y19.91%
EBIT Next 5Y13.54%
FCF growth 1Y69.65%
FCF growth 3Y2.19%
FCF growth 5Y9.48%
OCF growth 1Y15.52%
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 6 / 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.
Can you provide the profitability details for WEST PHARMACEUTICAL SERVICES?
WEST PHARMACEUTICAL SERVICES (WST) has a profitability rating of 7 / 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 12.4%.