WEST PHARMACEUTICAL SERVICES (WST) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WST - US9553061055 - Common Stock
274.3 USD
-2.36 (-0.85%)
274.3 USD
0 (0%)
Overall WST gets a fundamental rating of 7 out of 10. We evaluated WST against 57 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 has a correct valuation and a medium growth rate. This makes WST very considerable for 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.
Each year in the past 5 years WST has been profitable.
WST had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.98%, WST belongs to the top of the industry, outperforming 92.98% of the companies in the same industry.
WST has a better Return On Equity (16.11%) than 87.72% of its industry peers.
With an excellent Return On Invested Capital value of 14.78%, WST belongs to the best of the industry, outperforming 89.47% of the companies in the same industry.
WST had an Average Return On Invested Capital over the past 3 years of 17.99%. This is above the industry average of 13.99%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.98% | ||
| ROE | 16.11% | ||
| ROIC | 14.78% |
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
WST has a Profit Margin of 16.29%. This is amongst the best in the industry. WST outperforms 85.96% of its industry peers.
In the last couple of years the Profit Margin of WST has grown nicely.
WST has a better Operating Margin (20.71%) than 87.72% of its industry peers.
WST's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 35.58%, WST perfoms like the industry average, outperforming 40.35% 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 | 20.71% | ||
| PM (TTM) | 16.29% | ||
| GM | 35.58% |
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.
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 a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 14.36 indicates that WST is not in any danger for bankruptcy at the moment.
The Altman-Z score of WST (14.36) is better than 98.25% of its industry peers.
WST has a debt to FCF ratio of 0.55. This is a very positive value and a sign of high solvency as it would only need 0.55 years to pay back of all of its debts.
The Debt to FCF ratio of WST (0.55) is better than 91.23% 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.
WST has a better Debt to Equity ratio (0.07) than 61.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.55 | ||
| Altman-Z | 14.36 |
ROIC/WACC1.37
WACC10.79%
2.3 Liquidity
WST has a Current Ratio of 2.87. This indicates that WST is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of WST (2.87) is comparable to the rest of the industry.
A Quick Ratio of 2.18 indicates that WST has no problem at all paying its short term obligations.
WST has a Quick ratio (2.18) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.87 | ||
| Quick Ratio | 2.18 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.59% over the past year.
The Earnings Per Share has been growing by 15.81% on average over the past years. This is quite good.
The Revenue has been growing slightly by 4.92% in the past year.
The Revenue has been growing by 9.48% on average over the past years. This is quite good.
EPS 1Y (TTM)4.59%
EPS 3Y-7.79%
EPS 5Y15.81%
EPS Q2Q%5.95%
Revenue 1Y (TTM)4.92%
Revenue growth 3Y0.72%
Revenue growth 5Y9.48%
Sales Q2Q%7.73%
3.2 Future
WST is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.12% yearly.
Based on estimates for the next years, WST will show a small growth in Revenue. The Revenue will grow by 6.45% on average per year.
EPS Next Y6.22%
EPS Next 2Y7.7%
EPS Next 3Y9.35%
EPS Next 5Y10.12%
Revenue Next Year6.28%
Revenue Next 2Y6.24%
Revenue Next 3Y6.4%
Revenue Next 5Y6.45%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
WST is valuated quite expensively with a Price/Earnings ratio of 38.80.
Based on the Price/Earnings ratio, WST is valued a bit cheaper than the industry average as 61.40% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of WST to the average of the S&P500 Index (26.57), we can say WST is valued slightly more expensively.
WST is valuated quite expensively with a Price/Forward Earnings ratio of 35.03.
63.16% of the companies in the same industry are more expensive than WST, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.04, WST is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.8 | ||
| Fwd PE | 35.03 |
4.2 Price Multiples
WST's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WST is cheaper than 66.67% of the companies in the same industry.
61.40% of the companies in the same industry are more expensive than WST, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.05 | ||
| EV/EBITDA | 24.66 |
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.
The excellent profitability rating of WST may justify a higher PE ratio.
PEG (NY)6.24
PEG (5Y)2.45
EPS Next 2Y7.7%
EPS Next 3Y9.35%
5. Dividend
5.1 Amount
With a yearly dividend of 0.31%, WST is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.09, WST pays a better dividend. On top of this WST pays more dividend than 87.72% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, WST's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.31% |
5.2 History
The dividend of WST has a limited annual growth rate of 5.90%.
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)5.9%
Div Incr Years32
Div Non Decr Years34
5.3 Sustainability
WST pays out 12.34% 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.
DP12.34%
EPS Next 2Y7.7%
EPS Next 3Y9.35%
274.3
-2.36 (-0.85%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners97.94%
Inst Owner Change-0.58%
Ins Owners0.33%
Ins Owner Change0%
Market Cap19.73B
Revenue(TTM)3.02B
Net Income(TTM)491.70M
Analysts80.95
Price Target354.05 (29.07%)
Short Float %2.89%
Short Ratio2.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.31% |
Yearly Dividend0.81
Dividend Growth(5Y)5.9%
DP12.34%
Div Incr Years32
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.04%
Min EPS beat(2)15.4%
Max EPS beat(2)20.68%
EPS beat(4)4
Avg EPS beat(4)14.32%
Min EPS beat(4)4.78%
Max EPS beat(4)20.68%
EPS beat(8)7
Avg EPS beat(8)11.13%
EPS beat(12)11
Avg EPS beat(12)13.12%
EPS beat(16)14
Avg EPS beat(16)10.97%
Revenue beat(2)2
Avg Revenue beat(2)2.72%
Min Revenue beat(2)1.1%
Max Revenue beat(2)4.33%
Revenue beat(4)4
Avg Revenue beat(4)1.58%
Min Revenue beat(4)0.12%
Max Revenue beat(4)4.33%
Revenue beat(8)6
Avg Revenue beat(8)0.82%
Revenue beat(12)8
Avg Revenue beat(12)1.03%
Revenue beat(16)10
Avg Revenue beat(16)0.44%
PT rev (1m)-0.8%
PT rev (3m)9%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)3.17%
EPS NY rev (1m)0.1%
EPS NY rev (3m)5.18%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)-0.16%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.8 | ||
| Fwd PE | 35.03 | ||
| P/S | 6.54 | ||
| P/FCF | 52.05 | ||
| P/OCF | 28.44 | ||
| P/B | 6.47 | ||
| P/tB | 6.73 | ||
| EV/EBITDA | 24.66 |
EPS(TTM)7.07
EY2.58%
EPS(NY)7.83
Fwd EY2.85%
FCF(TTM)5.27
FCFY1.92%
OCF(TTM)9.64
OCFY3.52%
SpS41.95
BVpS42.42
TBVpS40.76
PEG (NY)6.24
PEG (5Y)2.45
Graham Number82.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.98% | ||
| ROE | 16.11% | ||
| ROCE | 18.01% | ||
| ROIC | 14.78% | ||
| ROICexc | 18.05% | ||
| ROICexgc | 18.84% | ||
| OM | 20.71% | ||
| PM (TTM) | 16.29% | ||
| GM | 35.58% | ||
| FCFM | 12.56% |
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%
ROICexgc growth 3Y-17.09%
ROICexgc 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-Score6
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.55 | ||
| Debt/EBITDA | 0.26 | ||
| Cap/Depr | 190.61% | ||
| Cap/Sales | 10.43% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.8% | ||
| Profit Quality | 77.1% | ||
| Current Ratio | 2.87 | ||
| Quick Ratio | 2.18 | ||
| Altman-Z | 14.36 |
F-Score6
WACC10.79%
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)4.59%
EPS 3Y-7.79%
EPS 5Y15.81%
EPS Q2Q%5.95%
EPS Next Y6.22%
EPS Next 2Y7.7%
EPS Next 3Y9.35%
EPS Next 5Y10.12%
Revenue 1Y (TTM)4.92%
Revenue growth 3Y0.72%
Revenue growth 5Y9.48%
Sales Q2Q%7.73%
Revenue Next Year6.28%
Revenue Next 2Y6.24%
Revenue Next 3Y6.4%
Revenue Next 5Y6.45%
EBIT growth 1Y6.71%
EBIT growth 3Y-8.01%
EBIT growth 5Y14.63%
EBIT Next Year37.42%
EBIT Next 3Y18.61%
EBIT Next 5Y15.08%
FCF growth 1Y-9.74%
FCF growth 3Y-5.79%
FCF growth 5Y2.8%
OCF growth 1Y-9.68%
OCF growth 3Y3.81%
OCF growth 5Y12.22%
WEST PHARMACEUTICAL SERVICES / WST FAQ
What is the fundamental rating for WST stock?
ChartMill assigns a fundamental rating of 7 / 10 to WST.
Can you provide the valuation status for WEST PHARMACEUTICAL SERVICES?
ChartMill assigns a valuation rating of 4 / 10 to WEST PHARMACEUTICAL SERVICES (WST). This can be considered as Fairly Valued.
What is the profitability of WST stock?
WEST PHARMACEUTICAL SERVICES (WST) has a profitability rating of 8 / 10.
What are the PE and PB ratios of WEST PHARMACEUTICAL SERVICES (WST) stock?
The Price/Earnings (PE) ratio for WEST PHARMACEUTICAL SERVICES (WST) is 38.8 and the Price/Book (PB) ratio is 6.47.
What is the earnings growth outlook for WEST PHARMACEUTICAL SERVICES?
The Earnings per Share (EPS) of WEST PHARMACEUTICAL SERVICES (WST) is expected to grow by 6.22% in the next year.