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%)
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. Both the health and profitability get an excellent rating, making WST a very profitable company, without any liquidiy or solvency issues. WST has a decent growth rate and is not valued too expensively. These ratings could make WST a good candidate for quality investing.
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.
In the past 5 years WST has always been profitable.
WST had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 11.98%, WST belongs to the best 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.
The Return On Invested Capital of WST (14.78%) is better than 89.47% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WST 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
The Profit Margin of WST (16.29%) is better than 85.96% of its industry peers.
WST's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 20.71%, WST belongs to the best of the industry, outperforming 87.72% of the companies in the same industry.
In the last couple of years the Operating Margin of WST has grown nicely.
WST's Gross Margin of 35.58% is in line compared to the rest of the industry. WST outperforms 40.35% of its industry peers.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WST is still 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 14.36. This indicates that WST is financially healthy and has little risk of bankruptcy at the moment.
WST has a better Altman-Z score (14.36) than 98.25% of its industry peers.
The Debt to FCF ratio of WST is 0.55, which is an excellent value as it means it would take WST, only 0.55 years of fcf income to pay off 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's Debt to Equity ratio of 0.07 is fine compared to the rest of the industry. WST outperforms 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
WACC10.8%
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.
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 49.12% 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%.
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.
WST shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.48% yearly.
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.
WST is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.45% yearly.
EPS Next Y6.22%
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.
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
A Price/Earnings ratio of 38.80 indicates a quite expensive valuation of WST.
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.
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.
A Price/Forward Earnings ratio of 35.03 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 63.16% of the companies in the same industry.
WST's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 24.04.
| 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.
Based on the Price/Free Cash Flow ratio, WST is valued a bit cheaper than the industry average as 61.40% of the companies are valued more expensively.
| 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 an expensive valuation of the company.
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
WST has a yearly dividend return of 0.31%, which is pretty low.
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 1.88, 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 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 2Y7.7%
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 TargetN/A
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
WACC10.8%
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.