WEST PHARMACEUTICAL SERVICES (WST) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WST - US9553061055 - Common Stock
274.98 USD
+3.15 (+1.16%)
274.98 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to WST. WST was compared to 57 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 has a decent growth rate and is not valued too expensively. These ratings would make WST suitable 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.
- In the past 5 years WST always reported a positive cash flow from operatings.
1.2 Ratios
- WST's Return On Assets of 11.98% is amongst the best of the industry. WST outperforms 92.98% of its industry peers.
- WST has a Return On Equity of 16.11%. This is amongst the best in the industry. WST outperforms 87.72% of its industry peers.
- The Return On Invested Capital of WST (14.78%) is better than 89.47% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for WST is above the industry average of 13.75%.
| 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
- The Profit Margin of WST (16.29%) is better than 85.96% of its industry peers.
- In the last couple of years the Profit Margin of WST has grown nicely.
- WST has a Operating Margin of 20.71%. This is amongst the best in the industry. WST outperforms 87.72% of its industry peers.
- In the last couple of years the Operating Margin of WST has grown nicely.
- WST has a Gross Margin (35.58%) which is comparable to the rest of the 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 | 20.71% | ||
| 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
- WST has an Altman-Z score of 14.17. This indicates that WST is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of WST (14.17) 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.
- WST's Debt to FCF ratio of 0.55 is amongst the best of the industry. WST outperforms 91.23% of its industry peers.
- A Debt/Equity ratio of 0.07 indicates that WST is not too dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.07, WST is doing good in the industry, outperforming 63.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.55 | ||
| Altman-Z | 14.17 |
ROIC/WACC1.35
WACC10.91%
2.3 Liquidity
- A Current Ratio of 2.87 indicates that WST has no problem at all paying its short term obligations.
- WST has a Current ratio (2.87) which is in line with its industry peers.
- A Quick Ratio of 2.18 indicates that WST has no problem at all paying its short term obligations.
- WST's Quick ratio of 2.18 is in line compared to the rest of the industry. WST outperforms 50.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.87 | ||
| Quick Ratio | 2.18 |
3. Growth
3.1 Past
- WST shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.59%.
- WST shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.81% yearly.
- WST shows a small growth in Revenue. In the last year, the Revenue has grown by 4.92%.
- 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
- Based on estimates for the next years, WST will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.12% on average per year.
- WST is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.45% yearly.
EPS Next Y6.31%
EPS Next 2Y7.84%
EPS Next 3Y9.51%
EPS Next 5Y10.12%
Revenue Next Year6.28%
Revenue Next 2Y6.24%
Revenue Next 3Y6.44%
Revenue Next 5Y6.45%
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- 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 38.89.
- Compared to the rest of the industry, the Price/Earnings ratio of WST indicates a somewhat cheap valuation: WST is cheaper than 61.40% of the companies listed in the same industry.
- WST's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.30.
- WST is valuated quite expensively with a Price/Forward Earnings ratio of 35.03.
- Based on the Price/Forward Earnings ratio, WST is valued a bit cheaper than the industry average as 64.91% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of WST to the average of the S&P500 Index (24.04), we can say WST is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.89 | ||
| Fwd PE | 35.03 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, WST is valued a bit cheaper than 66.67% 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 61.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.18 | ||
| EV/EBITDA | 24.22 |
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.
- WST has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)6.16
PEG (5Y)2.46
EPS Next 2Y7.84%
EPS Next 3Y9.51%
5. Dividend
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 0.09. WST pays more dividend than 87.72% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.92, WST's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.32% |
5.2 History
- The dividend of WST has a limited annual growth rate of 5.90%.
- WST has been paying a dividend for at least 10 years, so it has a reliable track record.
- WST has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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.
- The dividend of WST is growing, but earnings are growing more, so the dividend growth is sustainable.
DP12.34%
EPS Next 2Y7.84%
EPS Next 3Y9.51%
274.98
+3.15 (+1.16%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)10-23 2025-10-23/bmo
Earnings (Next)02-11 2026-02-11/amc
Inst Owners97.92%
Inst Owner Change0.13%
Ins Owners0.33%
Ins Owner Change0%
Market Cap19.78B
Revenue(TTM)3.02B
Net Income(TTM)491.70M
Analysts80.91
Price Target354.05 (28.75%)
Short Float %2.88%
Short Ratio2.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.32% |
Yearly Dividend0.81
Dividend Growth(5Y)5.9%
DP12.34%
Div Incr Years32
Div Non Decr Years34
Ex-Date01-28 2026-01-28 (0.22)
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)1.32%
PT rev (3m)10.53%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)3.33%
EPS NY rev (1m)0.09%
EPS NY rev (3m)5.04%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)-0.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.89 | ||
| Fwd PE | 35.03 | ||
| P/S | 6.55 | ||
| P/FCF | 52.18 | ||
| P/OCF | 28.51 | ||
| P/B | 6.48 | ||
| P/tB | 6.75 | ||
| EV/EBITDA | 24.22 |
EPS(TTM)7.07
EY2.57%
EPS(NY)7.85
Fwd EY2.85%
FCF(TTM)5.27
FCFY1.92%
OCF(TTM)9.64
OCFY3.51%
SpS41.95
BVpS42.42
TBVpS40.76
PEG (NY)6.16
PEG (5Y)2.46
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 | 14.17 |
F-Score6
WACC10.91%
ROIC/WACC1.35
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 Y6.31%
EPS Next 2Y7.84%
EPS Next 3Y9.51%
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 3Y6.44%
Revenue Next 5Y6.45%
EBIT growth 1Y6.71%
EBIT growth 3Y-8.01%
EBIT growth 5Y14.63%
EBIT Next Year37.43%
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.
What is the valuation status for WST stock?
ChartMill assigns a valuation rating of 4 / 10 to WEST PHARMACEUTICAL SERVICES (WST). This can be considered as Fairly Valued.
Can you provide the profitability details for WEST PHARMACEUTICAL SERVICES?
WEST PHARMACEUTICAL SERVICES (WST) has a profitability rating of 8 / 10.
Can you provide the financial health for WST stock?
The financial health rating of WEST PHARMACEUTICAL SERVICES (WST) is 8 / 10.
How sustainable is the dividend of WEST PHARMACEUTICAL SERVICES (WST) stock?
The dividend rating of WEST PHARMACEUTICAL SERVICES (WST) is 6 / 10 and the dividend payout ratio is 12.34%.