WEST PHARMACEUTICAL SERVICES (WST) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WST - US9553061055 - Common Stock
273.99 USD
+2.92 (+1.08%)
273.99 USD
0 (0%)
Overall WST gets a fundamental rating of 7 out of 10. We evaluated WST against 58 industry peers in the Life Sciences Tools & Services industry. WST gets an excellent profitability rating and is at the same time showing great financial health properties. WST has a correct valuation and a medium growth rate. This makes WST very considerable for quality investing!
1. Profitability
1.1 Basic Checks
WST had positive earnings in the past year.
WST had a positive operating cash flow in the past year.
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
With an excellent Return On Assets value of 11.98%, WST belongs to the best of the industry, outperforming 93.10% of the companies in the same industry.
WST has a Return On Equity of 16.11%. This is amongst the best in the industry. WST outperforms 87.93% of its industry peers.
WST's Return On Invested Capital of 14.78% is amongst the best of the industry. WST outperforms 89.66% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WST is above the industry average of 13.53%.
| 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's Profit Margin of 16.29% is amongst the best of the industry. WST outperforms 86.21% of its industry peers.
In the last couple of years the Profit Margin of WST has grown nicely.
Looking at the Operating Margin, with a value of 20.71%, WST belongs to the top of the industry, outperforming 87.93% of the companies in the same industry.
WST's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 35.58%, WST is doing worse than 60.34% of the companies in the same 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
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.
The debt/assets ratio for WST is higher compared to a year ago.
2.2 Solvency
WST has an Altman-Z score of 14.25. This indicates that WST is financially healthy and has little risk of bankruptcy at the moment.
WST has a Altman-Z score of 14.25. This is amongst the best in the industry. WST outperforms 98.28% 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 has a better Debt to FCF ratio (0.55) than 91.38% of its industry peers.
A Debt/Equity ratio of 0.07 indicates that WST is not too dependend on debt financing.
The Debt to Equity ratio of WST (0.07) is better than 65.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.55 | ||
| Altman-Z | 14.25 |
ROIC/WACC1.48
WACC10.01%
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.
With a Current ratio value of 2.87, WST perfoms like the industry average, outperforming 55.17% of the companies in the same 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
WST shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.59%.
Measured over the past years, WST shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.81% on average per year.
Looking at the last year, WST shows a small growth in Revenue. The Revenue has grown by 4.92% in the last 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
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.
The Revenue is expected to grow by 6.45% on average over the next years.
EPS Next Y6.12%
EPS Next 2Y7.28%
EPS Next 3Y8.97%
EPS Next 5Y10.12%
Revenue Next Year6.25%
Revenue Next 2Y6.18%
Revenue Next 3Y6.43%
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
With a Price/Earnings ratio of 38.75, WST can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of WST indicates a somewhat cheap valuation: WST is cheaper than 60.34% of the companies listed in the same industry.
WST is valuated expensively when we compare the Price/Earnings ratio to 25.65, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 35.27 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 63.79% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of WST to the average of the S&P500 Index (34.45), we can say WST is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.75 | ||
| Fwd PE | 35.27 |
4.2 Price Multiples
WST's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WST is cheaper than 72.41% of the companies in the same industry.
60.34% 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 | 51.97 | ||
| EV/EBITDA | 24.4 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
WST has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)6.33
PEG (5Y)2.45
EPS Next 2Y7.28%
EPS Next 3Y8.97%
5. Dividend
5.1 Amount
With a yearly dividend of 0.31%, 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 0.49. WST pays more dividend than 87.93% of the companies in the same industry.
With a Dividend Yield of 0.31, WST pays less dividend than the S&P500 average, which is at 2.41.
| 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 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 2Y7.28%
EPS Next 3Y8.97%
273.99
+2.92 (+1.08%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners98.39%
Inst Owner Change-0.61%
Ins Owners0.33%
Ins Owner Change0%
Market Cap19.70B
Revenue(TTM)3.02B
Net Income(TTM)491.70M
Analysts80.95
Price Target353.63 (29.07%)
Short Float %2.01%
Short Ratio2.03
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)10.4%
PT rev (3m)10.31%
EPS NQ rev (1m)2.91%
EPS NQ rev (3m)3.18%
EPS NY rev (1m)4.79%
EPS NY rev (3m)5.08%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)-0.17%
Revenue NY rev (1m)0.45%
Revenue NY rev (3m)0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.75 | ||
| Fwd PE | 35.27 | ||
| P/S | 6.53 | ||
| P/FCF | 51.97 | ||
| P/OCF | 28.4 | ||
| P/B | 6.46 | ||
| P/tB | 6.72 | ||
| EV/EBITDA | 24.4 |
EPS(TTM)7.07
EY2.58%
EPS(NY)7.77
Fwd EY2.84%
FCF(TTM)5.27
FCFY1.92%
OCF(TTM)9.65
OCFY3.52%
SpS41.97
BVpS42.43
TBVpS40.77
PEG (NY)6.33
PEG (5Y)2.45
Graham Number82.16
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 | 14.25 |
F-Score6
WACC10.01%
ROIC/WACC1.48
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 Y6.12%
EPS Next 2Y7.28%
EPS Next 3Y8.97%
EPS Next 5Y10.12%
Revenue 1Y (TTM)4.92%
Revenue growth 3Y0.72%
Revenue growth 5Y9.48%
Sales Q2Q%7.73%
Revenue Next Year6.25%
Revenue Next 2Y6.18%
Revenue Next 3Y6.43%
Revenue Next 5Y6.45%
EBIT growth 1Y6.71%
EBIT growth 3Y-8.01%
EBIT growth 5Y14.63%
EBIT Next Year31.72%
EBIT Next 3Y17.22%
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 38.75 and the Price/Book (PB) ratio is 6.46.
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 6.12% in the next year.