WEST PHARMACEUTICAL SERVICES (WST) Stock Fundamental Analysis
NYSE:WST - New York Stock Exchange, Inc. - US9553061055 - Common Stock - Currency: USD
Taking everything into account, WST scores 7 out of 10 in our fundamental rating. WST was compared to 57 industry peers in the Life Sciences Tools & Services industry. Both the health and profitability get an excellent rating, making WST a very profitable company, without any liquidiy or solvency issues. WST has a decent growth rate and is not valued too expensively. WST also has an excellent dividend rating. These ratings could make WST a good candidate for dividend investing.
1. Profitability
1.1 Basic Checks
WST had positive earnings in the past year.
WST had a positive operating cash flow in the past year.
In the past 5 years WST has always been profitable.
WST had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WST has a Return On Assets of 13.52%. This is amongst the best in the industry. WST outperforms 94.74% of its industry peers.
The Return On Equity of WST (18.37%) is better than 92.98% of its industry peers.
WST has a better Return On Invested Capital (15.52%) than 96.49% of its industry peers.
WST had an Average Return On Invested Capital over the past 3 years of 17.99%. This is significantly above the industry average of 9.60%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.52% | ||
| ROE | 18.37% | ||
| ROIC | 15.52% |
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
The Profit Margin of WST (17.03%) is better than 92.98% of its industry peers.
WST's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 20.22%, WST belongs to the best of the industry, outperforming 85.96% of the companies in the same industry.
In the last couple of years the Operating Margin of WST has grown nicely.
Looking at the Gross Margin, with a value of 34.51%, WST is doing worse than 66.67% of the companies in the same industry.
In the last couple of years the Gross Margin of WST has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.22% | ||
| PM (TTM) | 17.03% | ||
| GM | 34.51% |
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.
WST has less shares outstanding than it did 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 12.38. This indicates that WST is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 12.38, WST belongs to the top of the industry, outperforming 98.25% of the companies in the same industry.
The Debt to FCF ratio of WST is 0.74, which is an excellent value as it means it would take WST, only 0.74 years of fcf income to pay off all of its debts.
WST has a Debt to FCF ratio of 0.74. This is amongst the best in the industry. WST outperforms 92.98% of its industry peers.
WST has a Debt/Equity ratio of 0.08. This is a healthy value indicating a solid balance between debt and equity.
WST has a Debt to Equity ratio of 0.08. This is in the better half of the industry: WST outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.74 | ||
| Altman-Z | 12.38 |
ROIC/WACC1.37
WACC11.32%
2.3 Liquidity
WST has a Current Ratio of 2.79. This indicates that WST is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.79, WST is in line with its industry, outperforming 49.12% of the companies in the same industry.
WST has a Quick Ratio of 2.11. This indicates that WST is financially healthy and has no problem in meeting its short term obligations.
WST has a Quick ratio (2.11) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.79 | ||
| Quick Ratio | 2.11 |
3. Growth
3.1 Past
The earnings per share for WST have decreased strongly by -16.46% in the last 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.
The Revenue has decreased by -1.92% in the past year.
WST shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.48% yearly.
EPS 1Y (TTM)-16.46%
EPS 3Y-7.79%
EPS 5Y15.81%
EPS Q2Q%-0.55%
Revenue 1Y (TTM)-1.92%
Revenue growth 3Y0.72%
Revenue growth 5Y9.48%
Sales Q2Q%2.3%
3.2 Future
The Earnings Per Share is expected to grow by 13.52% 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 6.66% yearly.
EPS Next Y-7.24%
EPS Next 2Y3.69%
EPS Next 3Y5.17%
EPS Next 5Y13.52%
Revenue Next Year1.1%
Revenue Next 2Y4.02%
Revenue Next 3Y4.41%
Revenue Next 5Y6.66%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
WST is valuated quite expensively with a Price/Earnings ratio of 31.25.
73.68% of the companies in the same industry are more expensive than WST, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of WST to the average of the S&P500 Index (29.63), we can say WST is valued inline with the index average.
The Price/Forward Earnings ratio is 33.68, which means the current valuation is very expensive for WST.
WST's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WST is cheaper than 63.16% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, WST is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.25 | ||
| Fwd PE | 33.68 |
4.2 Price Multiples
WST's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. WST is cheaper than 87.72% 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 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.26 | ||
| EV/EBITDA | 19.55 |
4.3 Compensation for Growth
The excellent profitability rating of WST may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.98
EPS Next 2Y3.69%
EPS Next 3Y5.17%
5. Dividend
5.1 Amount
With a yearly dividend of 0.41%, WST is not a good candidate for dividend investing.
In the last 3 months the price of WST has falen by -33.38%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
WST's Dividend Yield is rather good when compared to the industry average which is at 0.42. WST pays more dividend than 92.98% of the companies in the same industry.
With a Dividend Yield of 0.41, WST pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
5.2 History
The dividend of WST is nicely growing with an annual growth rate of 6.31%!
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)6.31%
Div Incr Years32
Div Non Decr Years34
5.3 Sustainability
12.00% 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.
DP12%
EPS Next 2Y3.69%
EPS Next 3Y5.17%
210.91
+7.26 (+3.56%)
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 Change1.84%
Ins Owners0.34%
Ins Owner Change0%
Market Cap15.27B
Analysts80
Price Target307.48 (45.79%)
Short Float %1.87%
Short Ratio2.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
Yearly Dividend0.77
Dividend Growth(5Y)6.31%
DP12%
Div Incr Years32
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.45%
Min EPS beat(2)4.78%
Max EPS beat(2)22.11%
EPS beat(4)3
Avg EPS beat(4)8.65%
Min EPS beat(4)-13.56%
Max EPS beat(4)22.11%
EPS beat(8)7
Avg EPS beat(8)9.71%
EPS beat(12)10
Avg EPS beat(12)9.8%
EPS beat(16)14
Avg EPS beat(16)13.64%
Revenue beat(2)2
Avg Revenue beat(2)2.17%
Min Revenue beat(2)0.12%
Max Revenue beat(2)4.21%
Revenue beat(4)3
Avg Revenue beat(4)0.58%
Min Revenue beat(4)-4.69%
Max Revenue beat(4)4.21%
Revenue beat(8)4
Avg Revenue beat(8)-0.08%
Revenue beat(12)6
Avg Revenue beat(12)-0.09%
Revenue beat(16)10
Avg Revenue beat(16)1.14%
PT rev (1m)2.49%
PT rev (3m)9.72%
EPS NQ rev (1m)0.35%
EPS NQ rev (3m)0.35%
EPS NY rev (1m)0.15%
EPS NY rev (3m)0.36%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)0.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.25 | ||
| Fwd PE | 33.68 | ||
| P/S | 5.28 | ||
| P/FCF | 55.26 | ||
| P/OCF | 23.38 | ||
| P/B | 5.69 | ||
| P/tB | 5.95 | ||
| EV/EBITDA | 19.55 |
EPS(TTM)6.75
EY3.2%
EPS(NY)6.26
Fwd EY2.97%
FCF(TTM)3.82
FCFY1.81%
OCF(TTM)9.02
OCFY4.28%
SpS39.95
BVpS37.04
TBVpS35.43
PEG (NY)N/A
PEG (5Y)1.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.52% | ||
| ROE | 18.37% | ||
| ROCE | 18.91% | ||
| ROIC | 15.52% | ||
| ROICexc | 18.4% | ||
| ROICexgc | 19.26% | ||
| OM | 20.22% | ||
| PM (TTM) | 17.03% | ||
| GM | 34.51% | ||
| FCFM | 9.55% |
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%
ROICexcg growth 3Y-17.09%
ROICexcg 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-Score5
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.74 | ||
| Debt/EBITDA | 0.28 | ||
| Cap/Depr | 242.6% | ||
| Cap/Sales | 13.03% | ||
| Interest Coverage | 1169.8 | ||
| Cash Conversion | 88.26% | ||
| Profit Quality | 56.1% | ||
| Current Ratio | 2.79 | ||
| Quick Ratio | 2.11 | ||
| Altman-Z | 12.38 |
F-Score5
WACC11.32%
ROIC/WACC1.37
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)-16.46%
EPS 3Y-7.79%
EPS 5Y15.81%
EPS Q2Q%-0.55%
EPS Next Y-7.24%
EPS Next 2Y3.69%
EPS Next 3Y5.17%
EPS Next 5Y13.52%
Revenue 1Y (TTM)-1.92%
Revenue growth 3Y0.72%
Revenue growth 5Y9.48%
Sales Q2Q%2.3%
Revenue Next Year1.1%
Revenue Next 2Y4.02%
Revenue Next 3Y4.41%
Revenue Next 5Y6.66%
EBIT growth 1Y-17.05%
EBIT growth 3Y-8.01%
EBIT growth 5Y14.63%
EBIT Next Year46.18%
EBIT Next 3Y22.79%
EBIT Next 5Y18.09%
FCF growth 1Y-33.32%
FCF growth 3Y-5.79%
FCF growth 5Y2.8%
OCF growth 1Y-15.85%
OCF growth 3Y3.81%
OCF growth 5Y12.22%