WEST PHARMACEUTICAL SERVICES (WST) Stock Fundamental Analysis
USA - NYSE:WST - US9553061055 - Common Stock
297.47 USD
-9.78 (-3.18%)
297.47 USD
0 (0%)
Overall WST gets a fundamental rating of 6 out of 10. We evaluated WST against 58 industry peers in the Life Sciences Tools & Services industry. WST has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. WST is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year WST was profitable.
WST had a positive operating cash flow in the past year.
Each year in the past 5 years WST has been profitable.
Each year in the past 5 years WST had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 12.34%, WST belongs to the top of the industry, outperforming 91.23% of the companies in the same industry.
WST has a Return On Equity of 16.65%. This is amongst the best in the industry. WST outperforms 87.72% of its industry peers.
With an excellent Return On Invested Capital value of 15.09%, WST belongs to the best of the industry, outperforming 89.47% of the companies in the same industry.
WST had an Average Return On Invested Capital over the past 3 years of 17.99%. This is above the industry average of 14.44%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.34% | ||
| ROE | 16.65% | ||
| ROIC | 15.09% |
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 (16.48%) is better than 87.72% of its industry peers.
In the last couple of years the Profit Margin of WST has grown nicely.
The Operating Margin of WST (20.81%) is better than 85.96% of its industry peers.
In the last couple of years the Operating Margin of WST has grown nicely.
WST has a Gross Margin of 35.27%. This is comparable 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 | 20.81% | ||
| PM (TTM) | 16.48% | ||
| GM | 35.27% |
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.
WST has less shares outstanding than it did 5 years ago.
WST has a worse debt/assets ratio than last year.
2.2 Solvency
WST has an Altman-Z score of 15.59. This indicates that WST is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 15.59, WST belongs to the top of the industry, outperforming 98.25% of the companies in the same industry.
WST has a debt to FCF ratio of 0.60. This is a very positive value and a sign of high solvency as it would only need 0.60 years to pay back of all of its debts.
WST's Debt to FCF ratio of 0.60 is amongst the best of the industry. WST outperforms 89.47% 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.
Looking at the Debt to Equity ratio, with a value of 0.07, WST is in the better half of the industry, outperforming 64.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.6 | ||
| Altman-Z | 15.59 |
ROIC/WACC1.44
WACC10.46%
2.3 Liquidity
WST has a Current Ratio of 2.78. This indicates that WST is financially healthy and has no problem in meeting its short term obligations.
WST has a Current ratio (2.78) which is in line with its industry peers.
A Quick Ratio of 2.08 indicates that WST has no problem at all paying its short term obligations.
WST has a Quick ratio (2.08) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.78 | ||
| Quick Ratio | 2.08 |
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.
WST shows a decrease in Revenue. In the last year, the revenue decreased by -1.92%.
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)-1.92%
Revenue growth 3Y0.72%
Revenue growth 5Y9.48%
Sales Q2Q%7.73%
3.2 Future
The Earnings Per Share is expected to grow by 10.80% on average over the next years. This is quite good.
WST is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.52% yearly.
EPS Next Y1.27%
EPS Next 2Y6.23%
EPS Next 3Y8.74%
EPS Next 5Y10.8%
Revenue Next Year5.77%
Revenue Next 2Y6%
Revenue Next 3Y6.25%
Revenue Next 5Y7.52%
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
The Price/Earnings ratio is 42.07, which means the current valuation is very expensive for WST.
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 is valuated expensively when we compare the Price/Earnings ratio to 26.89, which is the current average of the S&P500 Index.
WST is valuated quite expensively with a Price/Forward Earnings ratio of 39.05.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WST indicates a somewhat cheap valuation: WST is cheaper than 63.16% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.99, WST is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.07 | ||
| Fwd PE | 39.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WST is valued a bit cheaper than the industry average as 68.42% of the companies are valued more expensively.
WST's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 62.18 | ||
| EV/EBITDA | 27.1 |
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 excellent profitability rating of WST may justify a higher PE ratio.
PEG (NY)33.1
PEG (5Y)2.66
EPS Next 2Y6.23%
EPS Next 3Y8.74%
5. Dividend
5.1 Amount
WST has a yearly dividend return of 0.29%, which is pretty low.
WST's Dividend Yield is rather good when compared to the industry average which is at 0.47. WST pays more dividend than 84.21% of the companies in the same industry.
With a Dividend Yield of 0.29, WST pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.29% |
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
12.32% 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.
DP12.32%
EPS Next 2Y6.23%
EPS Next 3Y8.74%
297.47
-9.78 (-3.18%)
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 Change0.11%
Ins Owners0.33%
Ins Owner Change0.59%
Market Cap21.39B
Revenue(TTM)2.89B
Net Income(TTM)487.70M
Analysts81
Price Target320.32 (7.68%)
Short Float %2.34%
Short Ratio2.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.29% |
Yearly Dividend0.81
Dividend Growth(5Y)5.9%
DP12.32%
Div Incr Years32
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.54%
Min EPS beat(2)16.4%
Max EPS beat(2)20.68%
EPS beat(4)4
Avg EPS beat(4)15.99%
Min EPS beat(4)4.78%
Max EPS beat(4)22.11%
EPS beat(8)7
Avg EPS beat(8)11.1%
EPS beat(12)10
Avg EPS beat(12)11.41%
EPS beat(16)14
Avg EPS beat(16)10.85%
Revenue beat(2)2
Avg Revenue beat(2)2.55%
Min Revenue beat(2)0.77%
Max Revenue beat(2)4.33%
Revenue beat(4)4
Avg Revenue beat(4)2.36%
Min Revenue beat(4)0.12%
Max Revenue beat(4)4.33%
Revenue beat(8)5
Avg Revenue beat(8)0.51%
Revenue beat(12)7
Avg Revenue beat(12)0.35%
Revenue beat(16)10
Avg Revenue beat(16)0.48%
PT rev (1m)-0.08%
PT rev (3m)14.23%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)4.32%
EPS NY rev (1m)0.06%
EPS NY rev (3m)7.85%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)4.04%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)3.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.07 | ||
| Fwd PE | 39.05 | ||
| P/S | 7.23 | ||
| P/FCF | 62.18 | ||
| P/OCF | 31.61 | ||
| P/B | 7.3 | ||
| P/tB | 7.62 | ||
| EV/EBITDA | 27.1 |
EPS(TTM)7.07
EY2.38%
EPS(NY)7.62
Fwd EY2.56%
FCF(TTM)4.78
FCFY1.61%
OCF(TTM)9.41
OCFY3.16%
SpS41.17
BVpS40.73
TBVpS39.06
PEG (NY)33.1
PEG (5Y)2.66
Graham Number80.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.34% | ||
| ROE | 16.65% | ||
| ROCE | 18.4% | ||
| ROIC | 15.09% | ||
| ROICexc | 17.81% | ||
| ROICexgc | 18.6% | ||
| OM | 20.81% | ||
| PM (TTM) | 16.48% | ||
| GM | 35.27% | ||
| FCFM | 11.62% |
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-Score5
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.6 | ||
| Debt/EBITDA | 0.26 | ||
| Cap/Depr | 204.99% | ||
| Cap/Sales | 11.24% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.96% | ||
| Profit Quality | 70.54% | ||
| Current Ratio | 2.78 | ||
| Quick Ratio | 2.08 | ||
| Altman-Z | 15.59 |
F-Score5
WACC10.46%
ROIC/WACC1.44
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 Y1.27%
EPS Next 2Y6.23%
EPS Next 3Y8.74%
EPS Next 5Y10.8%
Revenue 1Y (TTM)-1.92%
Revenue growth 3Y0.72%
Revenue growth 5Y9.48%
Sales Q2Q%7.73%
Revenue Next Year5.77%
Revenue Next 2Y6%
Revenue Next 3Y6.25%
Revenue Next 5Y7.52%
EBIT growth 1Y1.97%
EBIT growth 3Y-8.01%
EBIT growth 5Y14.63%
EBIT Next Year31.72%
EBIT Next 3Y17.22%
EBIT Next 5Y17.09%
FCF growth 1Y-13.31%
FCF growth 3Y-5.79%
FCF growth 5Y2.8%
OCF growth 1Y-4.29%
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 6 / 10 to WST.
Can you provide the valuation status for WEST PHARMACEUTICAL SERVICES?
ChartMill assigns a valuation rating of 3 / 10 to WEST PHARMACEUTICAL SERVICES (WST). This can be considered as Overvalued.
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 42.07 and the Price/Book (PB) ratio is 7.3.
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 1.27% in the next year.