WEST PHARMACEUTICAL SERVICES (WST) Fundamental Analysis & Valuation
NYSE:WST • US9553061055
Current stock price
265.93 USD
+6.58 (+2.54%)
At close:
265.93 USD
0 (0%)
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
- WST had positive earnings in the past year.
- In the past year WST had a positive cash flow from operations.
- Each year in the past 5 years WST has been profitable.
- In the past 5 years WST always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 11.56%, WST belongs to the top of the industry, outperforming 92.98% of the companies in the same industry.
- The Return On Equity of WST (15.54%) is better than 91.23% of its industry peers.
- With an excellent Return On Invested Capital value of 14.09%, WST belongs to the best of the industry, outperforming 94.74% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for WST is above the industry average of 11.38%.
| 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
- Looking at the Profit Margin, with a value of 16.06%, WST belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
- WST's Profit Margin has been stable in the last couple of years.
- WST has a better Operating Margin (20.53%) than 87.72% of its industry peers.
- WST's Operating Margin has been stable in the last couple of years.
- WST has a worse Gross Margin (35.91%) than 61.40% of its industry peers.
- 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 | 20.53% | ||
| 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.
- Compared to 1 year ago, WST has less shares outstanding
- WST has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, WST has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 13.27 indicates that WST is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 13.27, 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 0.44, which is an excellent value as it means it would take WST, only 0.44 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 0.44, WST belongs to the top of the industry, outperforming 92.98% of the companies in the same industry.
- WST has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
- With a decent Debt to Equity ratio value of 0.06, WST is doing good in the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.44 | ||
| Altman-Z | 13.27 |
ROIC/WACC1.3
WACC10.86%
2.3 Liquidity
- WST has a Current Ratio of 3.02. This indicates that WST is financially healthy and has no problem in meeting its short term obligations.
- WST has a Current ratio of 3.02. This is comparable to the rest of the industry: WST outperforms 56.14% of its industry peers.
- A Quick Ratio of 2.34 indicates that WST has no problem at all paying its short term obligations.
- The Quick ratio of WST (2.34) is comparable to the rest of the industry.
| 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.
- Looking at the last year, WST shows a small growth in Revenue. The Revenue has grown by 6.25% in the last year.
- Measured over the past years, WST shows a small growth in Revenue. The Revenue has been growing by 7.44% on average per year.
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.
- Based on estimates for the next years, WST will show a small growth in Revenue. The Revenue will grow by 5.60% on average per year.
EPS Next Y11.14%
EPS Next 2Y11.07%
EPS Next 3Y11.63%
EPS Next 5Y9.5%
Revenue Next Year6.04%
Revenue Next 2Y6.14%
Revenue Next 3Y6.48%
Revenue Next 5Y5.6%
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. WST Valuation Analysis
4.1 Price/Earnings Ratio
- WST is valuated quite expensively with a Price/Earnings ratio of 36.48.
- WST's Price/Earnings ratio is a bit cheaper when compared to the industry. WST is cheaper than 63.16% of the companies in the same industry.
- WST's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.91.
- The Price/Forward Earnings ratio is 32.82, which means the current valuation is very expensive for WST.
- Based on the Price/Forward Earnings ratio, WST is valued a bit cheaper than 61.40% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 23.69, WST is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.48 | ||
| Fwd PE | 32.82 |
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 | 40.88 | ||
| EV/EBITDA | 22.57 |
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 decent profitability rating of WST may justify a higher PE ratio.
PEG (NY)3.27
PEG (5Y)4.08
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.
- WST's Dividend Yield is rather good when compared to the industry average which is at 0.12. WST pays more dividend than 82.46% of the companies in the same industry.
- With a Dividend Yield of 0.32, WST pays less dividend than the S&P500 average, which is at 1.89.
| 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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.48%
Div Incr Years33
Div Non Decr Years34
5.3 Sustainability
- 12.40% 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.
DP12.4%
EPS Next 2Y11.07%
EPS Next 3Y11.63%
WST Fundamentals: All Metrics, Ratios and Statistics
265.93
+6.58 (+2.54%)
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)04-23 2026-04-23/bmo
Inst Owners97.62%
Inst Owner Change0%
Ins Owners0.33%
Ins Owner Change0.38%
Market Cap19.17B
Revenue(TTM)3.07B
Net Income(TTM)493.70M
Analysts80.87
Price Target328.99 (23.71%)
Short Float %3.58%
Short Ratio2.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.32% |
Yearly Dividend0.85
Dividend Growth(5Y)5.48%
DP12.4%
Div Incr Years33
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)0%
PT rev (3m)-7.08%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)2.02%
EPS NY rev (1m)0%
EPS NY rev (3m)3.21%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)2.75%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.48 | ||
| Fwd PE | 32.82 | ||
| P/S | 6.24 | ||
| P/FCF | 40.88 | ||
| P/OCF | 25.4 | ||
| P/B | 6.04 | ||
| P/tB | 6.27 | ||
| EV/EBITDA | 22.57 |
EPS(TTM)7.29
EY2.74%
EPS(NY)8.1
Fwd EY3.05%
FCF(TTM)6.51
FCFY2.45%
OCF(TTM)10.47
OCFY3.94%
SpS42.65
BVpS44.06
TBVpS42.43
PEG (NY)3.27
PEG (5Y)4.08
Graham Number85.01
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 | 13.27 |
F-Score7
WACC10.86%
ROIC/WACC1.3
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 Year6.04%
Revenue Next 2Y6.14%
Revenue Next 3Y6.48%
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.
How profitable is WEST PHARMACEUTICAL SERVICES (WST) stock?
WEST PHARMACEUTICAL SERVICES (WST) has a profitability rating of 7 / 10.
What is the financial health of WEST PHARMACEUTICAL SERVICES (WST) stock?
The financial health rating of WEST PHARMACEUTICAL SERVICES (WST) is 8 / 10.
What is the expected EPS growth for WEST PHARMACEUTICAL SERVICES (WST) stock?
The Earnings per Share (EPS) of WEST PHARMACEUTICAL SERVICES (WST) is expected to grow by 11.14% in the next year.