WEST PHARMACEUTICAL SERVICES (WST) Fundamental Analysis & Valuation
NYSE:WST • US9553061055
Current stock price
250.64 USD
+5.5 (+2.24%)
At close:
250.64 USD
0 (0%)
After Hours:
This WST fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. WST Profitability Analysis
1.1 Basic Checks
- In the past year WST was profitable.
- WST had a positive operating cash flow in the past year.
- In the past 5 years WST has always been profitable.
- In the past 5 years WST always reported a positive cash flow from operatings.
1.2 Ratios
- WST has a better Return On Assets (11.56%) than 92.86% of its industry peers.
- WST's Return On Equity of 15.54% is amongst the best of the industry. WST outperforms 91.07% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 14.09%, WST belongs to the top of the industry, outperforming 94.64% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for WST is above the industry average of 11.80%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.56% | ||
| ROE | 15.54% | ||
| ROIC | 14.09% |
ROA(3y)13.53%
ROA(5y)15.35%
ROE(3y)18.17%
ROE(5y)20.93%
ROIC(3y)15.83%
ROIC(5y)17.92%
1.3 Margins
- Looking at the Profit Margin, with a value of 16.06%, WST belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
- WST's Profit Margin has been stable in the last couple of years.
- With an excellent Operating Margin value of 20.53%, WST belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
- In the last couple of years the Operating Margin of WST has remained more or less at the same level.
- The Gross Margin of WST (35.91%) is worse than 60.71% of its industry peers.
- 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 | 20.53% | ||
| PM (TTM) | 16.06% | ||
| GM | 35.91% |
OM growth 3Y-7.75%
OM growth 5Y1.08%
PM growth 3Y-7.51%
PM growth 5Y-0.08%
GM growth 3Y-3.01%
GM growth 5Y0.08%
2. WST Health Analysis
2.1 Basic Checks
- WST has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some 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
- WST has an Altman-Z score of 12.92. This indicates that WST is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 12.92, WST belongs to the best of the industry, outperforming 98.21% of the companies in the same industry.
- The Debt to FCF ratio of WST is 0.44, which is an excellent value as it means it would take WST, only 0.44 years of fcf income to pay off all of its debts.
- With an excellent Debt to FCF ratio value of 0.44, WST belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
- A Debt/Equity ratio of 0.06 indicates that WST is not too dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.06, WST is doing good in the industry, outperforming 66.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.44 | ||
| Altman-Z | 12.92 |
ROIC/WACC1.3
WACC10.83%
2.3 Liquidity
- A Current Ratio of 3.02 indicates that WST has no problem at all paying its short term obligations.
- With a Current ratio value of 3.02, WST perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
- WST has a Quick Ratio of 2.34. This indicates that WST is financially healthy and has no problem in meeting its short term obligations.
- WST has a Quick ratio (2.34) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.02 | ||
| Quick Ratio | 2.34 |
3. WST Growth Analysis
3.1 Past
- WST shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 8.00%.
- The Earnings Per Share has been growing by 8.94% on average over the past years. This is quite good.
- The Revenue has been growing slightly by 6.25% in the past year.
- The Revenue has been growing slightly by 7.44% on average over the past years.
EPS 1Y (TTM)8%
EPS 3Y-5.25%
EPS 5Y8.94%
EPS Q2Q%12.09%
Revenue 1Y (TTM)6.25%
Revenue growth 3Y2.12%
Revenue growth 5Y7.44%
Sales Q2Q%7.51%
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 9.50% on average per year.
- The Revenue is expected to grow by 5.60% on average over the next years.
EPS Next Y11.14%
EPS Next 2Y11.07%
EPS Next 3Y11.63%
EPS Next 5Y9.5%
Revenue Next Year6.04%
Revenue Next 2Y6.1%
Revenue Next 3Y6.43%
Revenue Next 5Y5.6%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same 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. WST Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 34.38, WST can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, WST is valued a bit cheaper than the industry average as 64.29% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 25.35. WST is valued slightly more expensive when compared to this.
- Based on the Price/Forward Earnings ratio of 30.94, the valuation of WST can be described as expensive.
- Based on the Price/Forward Earnings ratio, WST is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
- WST is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.61, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.38 | ||
| Fwd PE | 30.94 |
4.2 Price Multiples
- WST's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WST is cheaper than 69.64% 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 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.53 | ||
| EV/EBITDA | 21.79 |
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 a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.09
PEG (5Y)3.84
EPS Next 2Y11.07%
EPS Next 3Y11.63%
5. WST Dividend Analysis
5.1 Amount
- WST has a yearly dividend return of 0.32%, which is pretty low.
- WST's Dividend Yield is rather good when compared to the industry average which is at 0.11. WST pays more dividend than 83.93% of the companies in the same industry.
- With a Dividend Yield of 0.32, WST pays less dividend than the S&P500 average, which is at 1.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.32% |
5.2 History
- The dividend of WST has a limited annual growth rate of 5.48%.
- 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)5.48%
Div Incr Years32
Div Non Decr Years34
5.3 Sustainability
- 12.40% 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.
DP12.4%
EPS Next 2Y11.07%
EPS Next 3Y11.63%
WST Fundamentals: All Metrics, Ratios and Statistics
250.64
+5.5 (+2.24%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)02-12 2026-02-12/bmo
Earnings (Next)04-23 2026-04-23/bmo
Inst Owners97.62%
Inst Owner Change-2.08%
Ins Owners0.33%
Ins Owner Change0.38%
Market Cap18.07B
Revenue(TTM)3.07B
Net Income(TTM)493.70M
Analysts80.87
Price Target328.99 (31.26%)
Short Float %3.58%
Short Ratio2.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.32% |
Yearly Dividend0.85
Dividend Growth(5Y)5.48%
DP12.4%
Div Incr Years32
Div Non Decr Years34
Ex-Date04-29 2026-04-29 (0.22)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.82%
Min EPS beat(2)10.24%
Max EPS beat(2)15.4%
EPS beat(4)4
Avg EPS beat(4)15.68%
Min EPS beat(4)10.24%
Max EPS beat(4)20.68%
EPS beat(8)7
Avg EPS beat(8)12.16%
EPS beat(12)11
Avg EPS beat(12)11.7%
EPS beat(16)14
Avg EPS beat(16)11.27%
Revenue beat(2)2
Avg Revenue beat(2)0.72%
Min Revenue beat(2)0.33%
Max Revenue beat(2)1.1%
Revenue beat(4)4
Avg Revenue beat(4)1.63%
Min Revenue beat(4)0.33%
Max Revenue beat(4)4.33%
Revenue beat(8)7
Avg Revenue beat(8)1.11%
Revenue beat(12)8
Avg Revenue beat(12)0.49%
Revenue beat(16)10
Avg Revenue beat(16)0.34%
PT rev (1m)0%
PT rev (3m)-7.08%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)1.98%
EPS NY rev (1m)3.22%
EPS NY rev (3m)3.21%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.72%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.38 | ||
| Fwd PE | 30.94 | ||
| P/S | 5.88 | ||
| P/FCF | 38.53 | ||
| P/OCF | 23.93 | ||
| P/B | 5.69 | ||
| P/tB | 5.91 | ||
| EV/EBITDA | 21.79 |
EPS(TTM)7.29
EY2.91%
EPS(NY)8.1
Fwd EY3.23%
FCF(TTM)6.51
FCFY2.6%
OCF(TTM)10.47
OCFY4.18%
SpS42.65
BVpS44.06
TBVpS42.43
PEG (NY)3.09
PEG (5Y)3.84
Graham Number85.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.56% | ||
| ROE | 15.54% | ||
| ROCE | 17.45% | ||
| ROIC | 14.09% | ||
| ROICexc | 18.03% | ||
| ROICexgc | 18.82% | ||
| OM | 20.53% | ||
| PM (TTM) | 16.06% | ||
| GM | 35.91% | ||
| FCFM | 15.25% |
ROA(3y)13.53%
ROA(5y)15.35%
ROE(3y)18.17%
ROE(5y)20.93%
ROIC(3y)15.83%
ROIC(5y)17.92%
ROICexc(3y)20.32%
ROICexc(5y)23.97%
ROICexgc(3y)21.34%
ROICexgc(5y)25.37%
ROCE(3y)19.61%
ROCE(5y)22.21%
ROICexgc growth 3Y-13.74%
ROICexgc growth 5Y-3.06%
ROICexc growth 3Y-13.28%
ROICexc growth 5Y-2.17%
OM growth 3Y-7.75%
OM growth 5Y1.08%
PM growth 3Y-7.51%
PM growth 5Y-0.08%
GM growth 3Y-3.01%
GM growth 5Y0.08%
F-Score7
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.44 | ||
| Debt/EBITDA | 0.26 | ||
| Cap/Depr | 166.8% | ||
| Cap/Sales | 9.3% | ||
| Interest Coverage | 2103.33 | ||
| Cash Conversion | 94.07% | ||
| Profit Quality | 94.98% | ||
| Current Ratio | 3.02 | ||
| Quick Ratio | 2.34 | ||
| Altman-Z | 12.92 |
F-Score7
WACC10.83%
ROIC/WACC1.3
Cap/Depr(3y)224.35%
Cap/Depr(5y)223.25%
Cap/Sales(3y)11.53%
Cap/Sales(5y)10.68%
Profit Quality(3y)73.64%
Profit Quality(5y)69.18%
High Growth Momentum
Growth
EPS 1Y (TTM)8%
EPS 3Y-5.25%
EPS 5Y8.94%
EPS Q2Q%12.09%
EPS Next Y11.14%
EPS Next 2Y11.07%
EPS Next 3Y11.63%
EPS Next 5Y9.5%
Revenue 1Y (TTM)6.25%
Revenue growth 3Y2.12%
Revenue growth 5Y7.44%
Sales Q2Q%7.51%
Revenue Next Year6.04%
Revenue Next 2Y6.1%
Revenue Next 3Y6.43%
Revenue Next 5Y5.6%
EBIT growth 1Y7.88%
EBIT growth 3Y-5.8%
EBIT growth 5Y8.6%
EBIT Next Year43.23%
EBIT Next 3Y19.91%
EBIT Next 5Y13.54%
FCF growth 1Y69.65%
FCF growth 3Y2.19%
FCF growth 5Y9.48%
OCF growth 1Y15.52%
OCF growth 3Y1.4%
OCF growth 5Y9.82%
WEST PHARMACEUTICAL SERVICES / WST Fundamental Analysis FAQ
What is the fundamental rating for WST stock?
ChartMill assigns a fundamental rating of 6 / 10 to WST.
What is the valuation status for WST stock?
ChartMill assigns a valuation rating of 3 / 10 to WEST PHARMACEUTICAL SERVICES (WST). This can be considered as Overvalued.
How profitable is WEST PHARMACEUTICAL SERVICES (WST) stock?
WEST PHARMACEUTICAL SERVICES (WST) has a profitability rating of 7 / 10.
What is the financial health of WEST PHARMACEUTICAL SERVICES (WST) stock?
The financial health rating of WEST PHARMACEUTICAL SERVICES (WST) is 8 / 10.
What is the expected EPS growth for WEST PHARMACEUTICAL SERVICES (WST) stock?
The Earnings per Share (EPS) of WEST PHARMACEUTICAL SERVICES (WST) is expected to grow by 11.14% in the next year.