WEST PHARMACEUTICAL SERVICES (WST)
US9553061055 - Common Stock
Overall WST gets a fundamental rating of 7 out of 10. We evaluated WST against 55 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. While showing a medium growth rate, WST is valued expensive at the moment. Finally WST also has an excellent dividend rating. With these ratings, WST could be worth investigating further for dividend and quality 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
WST has a better Return On Assets (13.59%) than 94.55% of its industry peers.
The Return On Equity of WST (18.15%) is better than 92.73% of its industry peers.
WST has a better Return On Invested Capital (15.28%) than 94.55% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WST is significantly above the industry average of 10.42%.
The 3 year average ROIC (20.47%) for WST is well above the current ROIC(15.28%). The reason for the recent decline needs to be investigated.
| 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
The Profit Margin of WST (17.37%) is better than 90.91% of its industry peers.
WST's Profit Margin has improved in the last couple of years.
WST has a Operating Margin of 20.37%. This is amongst the best in the industry. WST outperforms 87.27% of its industry peers.
WST's Operating Margin has improved in the last couple of years.
WST's Gross Margin of 34.87% is on the low side compared to the rest of the industry. WST is outperformed by 63.64% of its industry peers.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), WST is creating 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 17.79. This indicates that WST is financially healthy and has little risk of bankruptcy at the moment.
WST's Altman-Z score of 17.79 is amongst the best of the industry. WST outperforms 100.00% of its industry peers.
WST has a debt to FCF ratio of 0.64. This is a very positive value and a sign of high solvency as it would only need 0.64 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.64, WST belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
WST has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
WST's Debt to Equity ratio of 0.07 is fine compared to the rest of the industry. WST outperforms 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.64 | ||
| Altman-Z | 17.79 |
ROIC/WACC1.36
WACC11.23%
2.3 Liquidity
WST has a Current Ratio of 3.00. This indicates that WST is financially healthy and has no problem in meeting its short term obligations.
WST's Current ratio of 3.00 is in line compared to the rest of the industry. WST outperforms 52.73% of its industry peers.
WST has a Quick Ratio of 2.23. This indicates that WST is financially healthy and has no problem in meeting its short term obligations.
With a Quick ratio value of 2.23, WST perfoms like the industry average, outperforming 49.09% 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.
WST shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.52% yearly.
The Revenue has decreased by -1.71% in the past year.
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
Based on estimates for the next years, WST will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.41% on average per year.
Based on estimates for the next years, WST will show a quite strong growth in Revenue. The Revenue will grow by 9.84% on average per year.
EPS Next Y-17.75%
EPS Next 2Y-3.02%
EPS Next 3Y3.53%
EPS Next 5Y8.41%
Revenue Next Year-2.54%
Revenue Next 2Y1.74%
Revenue Next 3Y4.15%
Revenue Next 5Y9.84%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 47.47, WST can be considered very expensive at the moment.
Based on the Price/Earnings ratio, WST is valued a bit cheaper than the industry average as 67.27% of the companies are valued more expensively.
WST's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.96.
A Price/Forward Earnings ratio of 42.22 indicates a quite expensive valuation of WST.
WST's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.82. WST is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.47 | ||
| Fwd PE | 42.22 |
4.2 Price Multiples
WST's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WST is cheaper than 67.27% of the companies in the same industry.
WST's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 72.26 | ||
| EV/EBITDA | 30.26 |
4.3 Compensation for Growth
The excellent profitability rating of WST may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.02
EPS Next 2Y-3.02%
EPS Next 3Y3.53%
5. Dividend
5.1 Amount
WST has a yearly dividend return of 0.25%, which is pretty low.
WST's Dividend Yield is rather good when compared to the industry average which is at 0.69. WST pays more dividend than 85.45% of the companies in the same industry.
With a Dividend Yield of 0.25, WST pays less dividend than the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.25% |
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 Years31
Div Non Decr Years33
5.3 Sustainability
WST pays out 11.73% 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.
DP11.73%
EPS Next 2Y-3.02%
EPS Next 3Y3.53%
WEST PHARMACEUTICAL SERVICES
NYSE:WST (11/21/2024, 8:04:00 PM)
After market: 320.88 0 (0%)320.88
+9.22 (+2.96%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap23.24B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.25% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.47 | ||
| Fwd PE | 42.22 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)2.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.59% | ||
| ROE | 18.15% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 20.37% | ||
| PM (TTM) | 17.37% | ||
| GM | 34.87% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3 | ||
| Quick Ratio | 2.23 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-15.71%
EPS 3Y19.37%
EPS 5Y
EPS Q2Q%
EPS Next Y-17.75%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.71%
Revenue growth 3Y11.17%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y