WEST PHARMACEUTICAL SERVICES (WST) Stock Fundamental Analysis
NYSE:WST - New York Stock Exchange, Inc. - US9553061055 - Common Stock
WST gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 56 industry peers in the Life Sciences Tools & Services industry. WST scores excellent points on both the profitability and health parts. This is a solid base for a good stock. WST is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
WST had positive earnings in the past year.
In the past year WST had a positive cash flow from operations.
WST had positive earnings in each of the past 5 years.
WST had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WST's Return On Assets of 13.59% is amongst the best of the industry. WST outperforms 94.64% of its industry peers.
The Return On Equity of WST (18.15%) is better than 92.86% of its industry peers.
WST's Return On Invested Capital of 15.28% is amongst the best of the industry. WST outperforms 94.64% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WST is significantly above the industry average of 9.93%.
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
WST's Profit Margin of 17.37% is amongst the best of the industry. WST outperforms 91.07% of its industry peers.
WST's Profit Margin has improved in the last couple of years.
The Operating Margin of WST (20.37%) is better than 87.50% of its industry peers.
In the last couple of years the Operating Margin of WST has grown nicely.
Looking at the Gross Margin, with a value of 34.87%, WST is doing worse than 64.29% of the companies in the same industry.
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
WST has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for WST has been reduced compared to 1 year ago.
Compared to 5 years ago, WST has less shares outstanding
Compared to 1 year ago, WST has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 18.95 indicates that WST is not in any danger for bankruptcy at the moment.
The Altman-Z score of WST (18.95) is better than 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.
WST has a Debt to FCF ratio of 0.64. This is amongst the best in the industry. WST outperforms 91.07% 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 66.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.64 | ||
| Altman-Z | 18.95 |
ROIC/WACC1.44
WACC10.6%
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 has a Current ratio (3.00) which is in line with 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.
WST has a Quick ratio (2.23) which is in line with its industry peers.
| 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.
Measured over the past years, WST shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.52% on average per year.
Looking at the last year, WST shows a decrease in Revenue. The Revenue has decreased by -1.71% in the last 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
WST is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.87% yearly.
The Revenue is expected to grow by 5.33% on average over the next years.
EPS Next Y-17.57%
EPS Next 2Y-3.07%
EPS Next 3Y3.51%
EPS Next 5Y6.87%
Revenue Next Year-2.51%
Revenue Next 2Y1.64%
Revenue Next 3Y3.93%
Revenue Next 5Y5.33%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 50.99, WST can be considered very expensive at the moment.
66.07% of the companies in the same industry are more expensive than WST, based on the Price/Earnings ratio.
WST is valuated expensively when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 45.40 indicates a quite expensive valuation of WST.
WST's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WST is cheaper than 60.71% of the companies in the same industry.
WST is valuated expensively when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.99 | ||
| Fwd PE | 45.4 |
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 67.86% of the companies listed in the same industry.
WST's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 77.62 | ||
| EV/EBITDA | 32.69 |
4.3 Compensation for Growth
The excellent profitability rating of WST may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.17
EPS Next 2Y-3.07%
EPS Next 3Y3.51%
5. Dividend
5.1 Amount
With a yearly dividend of 0.25%, 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 0.62. WST pays more dividend than 85.71% 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 2.28.
| 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 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
WST pays out 11.73% of its income as dividend. This is a sustainable payout ratio.
The dividend of WST is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP11.73%
EPS Next 2Y-3.07%
EPS Next 3Y3.51%
WEST PHARMACEUTICAL SERVICES
NYSE:WST (1/21/2025, 8:04:00 PM)
After market: 344.69 0 (0%)344.69
+8.35 (+2.48%)
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 Change0.87%
Ins Owners0.34%
Ins Owner Change0.3%
Market Cap24.96B
Analysts78.75
Price Target375.03 (8.8%)
Short Float %2.08%
Short Ratio2.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.25% |
Yearly Dividend0.77
Dividend Growth(5Y)6.31%
DP11.73%
Div Incr Years32
Div Non Decr Years34
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.27%
Min EPS beat(2)-13.56%
Max EPS beat(2)22.11%
EPS beat(4)3
Avg EPS beat(4)7.94%
Min EPS beat(4)-13.56%
Max EPS beat(4)22.11%
EPS beat(8)7
Avg EPS beat(8)12.53%
EPS beat(12)10
Avg EPS beat(12)9.85%
EPS beat(16)14
Avg EPS beat(16)14.47%
Revenue beat(2)1
Avg Revenue beat(2)-0.24%
Min Revenue beat(2)-4.69%
Max Revenue beat(2)4.21%
Revenue beat(4)2
Avg Revenue beat(4)0.05%
Min Revenue beat(4)-4.69%
Max Revenue beat(4)4.21%
Revenue beat(8)4
Avg Revenue beat(8)0.75%
Revenue beat(12)6
Avg Revenue beat(12)0.05%
Revenue beat(16)10
Avg Revenue beat(16)1.49%
PT rev (1m)2.64%
PT rev (3m)4.1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-25.77%
EPS NY rev (1m)0%
EPS NY rev (3m)1.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.8%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.99 | ||
| Fwd PE | 45.4 | ||
| P/S | 8.68 | ||
| P/FCF | 77.62 | ||
| P/OCF | 35.54 | ||
| P/B | 9.07 | ||
| P/tB | 9.49 | ||
| EV/EBITDA | 32.69 |
EPS(TTM)6.76
EY1.96%
EPS(NY)7.59
Fwd EY2.2%
FCF(TTM)4.44
FCFY1.29%
OCF(TTM)9.7
OCFY2.81%
SpS39.72
BVpS38
TBVpS36.33
PEG (NY)N/A
PEG (5Y)2.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.59% | ||
| ROE | 18.15% | ||
| ROCE | 18.55% | ||
| ROIC | 15.28% | ||
| ROICexc | 18.09% | ||
| ROICexgc | 18.95% | ||
| OM | 20.37% | ||
| PM (TTM) | 17.37% | ||
| GM | 34.87% | ||
| FCFM | 11.18% |
ROA(3y)17.22%
ROA(5y)14.88%
ROE(3y)23.59%
ROE(5y)20.96%
ROIC(3y)20.47%
ROIC(5y)17.74%
ROICexc(3y)28.44%
ROICexc(5y)24.32%
ROICexgc(3y)30.26%
ROICexgc(5y)26.09%
ROCE(3y)24.85%
ROCE(5y)21.53%
ROICexcg growth 3Y5.89%
ROICexcg growth 5Y9.72%
ROICexc growth 3Y7.06%
ROICexc growth 5Y10.65%
OM growth 3Y7.1%
OM growth 5Y10.38%
PM growth 3Y7.65%
PM growth 5Y10.8%
GM growth 3Y2.29%
GM growth 5Y3.81%
F-Score5
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.64 | ||
| Debt/EBITDA | 0.28 | ||
| Cap/Depr | 252.86% | ||
| Cap/Sales | 13.24% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 95.38% | ||
| Profit Quality | 64.37% | ||
| Current Ratio | 3 | ||
| Quick Ratio | 2.23 | ||
| Altman-Z | 18.95 |
F-Score5
WACC10.6%
ROIC/WACC1.44
Cap/Depr(3y)235.61%
Cap/Depr(5y)197.79%
Cap/Sales(3y)10.36%
Cap/Sales(5y)9.21%
Profit Quality(3y)64.93%
Profit Quality(5y)76.11%
High Growth Momentum
Growth
EPS 1Y (TTM)-15.71%
EPS 3Y19.37%
EPS 5Y23.52%
EPS Q2Q%-14.35%
EPS Next Y-17.57%
EPS Next 2Y-3.07%
EPS Next 3Y3.51%
EPS Next 5Y6.87%
Revenue 1Y (TTM)-1.71%
Revenue growth 3Y11.17%
Revenue growth 5Y11.43%
Sales Q2Q%-0.07%
Revenue Next Year-2.51%
Revenue Next 2Y1.64%
Revenue Next 3Y3.93%
Revenue Next 5Y5.33%
EBIT growth 1Y-15.3%
EBIT growth 3Y19.07%
EBIT growth 5Y23%
EBIT Next Year2.82%
EBIT Next 3Y10.9%
EBIT Next 5Y9.67%
FCF growth 1Y-17.07%
FCF growth 3Y11.61%
FCF growth 5Y17.65%
OCF growth 1Y7.4%
OCF growth 3Y18.01%
OCF growth 5Y21.89%