WEST PHARMACEUTICAL SERVICES (WST) Fundamental Analysis & Valuation
NYSE:WST • US9553061055
Current stock price
259.35 USD
+2.5 (+0.97%)
At close:
259.35 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
- WST had positive earnings in the past year.
- In the past year WST had a positive cash flow from operations.
- 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
- With an excellent Return On Assets value of 11.56%, WST belongs to the best of the industry, outperforming 92.98% of the companies in the same industry.
- WST has a Return On Equity of 15.54%. This is amongst the best in the industry. WST outperforms 91.23% of its industry peers.
- WST has a Return On Invested Capital of 14.09%. This is amongst the best in the industry. WST outperforms 94.74% of its industry peers.
- WST had an Average Return On Invested Capital over the past 3 years of 15.83%. This is above the industry average of 11.38%.
| 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
- With an excellent Profit Margin value of 16.06%, WST belongs to the best of the industry, outperforming 84.21% of the companies in the same industry.
- WST's Profit Margin has been stable in the last couple of years.
- WST has a better Operating Margin (20.53%) than 87.72% of its industry peers.
- WST's Operating Margin has been stable in the last couple of years.
- WST has a worse Gross Margin (35.91%) than 61.40% of its industry peers.
- WST's Gross Margin has been stable in the last couple of years.
| 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
- 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.
- WST has a better debt/assets ratio than last year.
2.2 Solvency
- WST has an Altman-Z score of 13.17. This indicates that WST is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of WST (13.17) is better than 98.25% of its industry peers.
- 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.
- WST has a Debt to FCF ratio of 0.44. This is amongst the best in the industry. WST outperforms 92.98% of its industry peers.
- WST has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.06, WST is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.44 | ||
| Altman-Z | 13.17 |
ROIC/WACC1.3
WACC10.87%
2.3 Liquidity
- A Current Ratio of 3.02 indicates that WST has no problem at all paying its short term obligations.
- WST has a Current ratio (3.02) which is comparable to the rest of the 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.
- Looking at the Quick ratio, with a value of 2.34, WST is in line with its industry, outperforming 54.39% of the companies in the same industry.
| 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%.
- Measured over the past years, WST shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.94% on average per year.
- 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
- WST is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.50% yearly.
- Based on estimates for the next years, WST will show a small growth in Revenue. The Revenue will grow by 5.60% on average per year.
EPS Next Y11.14%
EPS Next 2Y11.07%
EPS Next 3Y11.63%
EPS Next 5Y9.5%
Revenue Next Year6.04%
Revenue Next 2Y6.14%
Revenue Next 3Y6.48%
Revenue Next 5Y5.6%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- 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. WST Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 35.58, 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 63.16% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of WST to the average of the S&P500 Index (26.21), we can say WST is valued slightly more expensively.
- A Price/Forward Earnings ratio of 32.01 indicates a quite expensive valuation of WST.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of WST indicates a somewhat cheap valuation: WST is cheaper than 61.40% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 23.10, WST is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.58 | ||
| Fwd PE | 32.01 |
4.2 Price Multiples
- 68.42% of the companies in the same industry are more expensive than WST, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of WST indicates a somewhat cheap valuation: WST is cheaper than 61.40% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.87 | ||
| EV/EBITDA | 22.35 |
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 decent profitability rating of WST may justify a higher PE ratio.
PEG (NY)3.19
PEG (5Y)3.98
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.
- Compared to an average industry Dividend Yield of 0.12, WST pays a better dividend. On top of this WST pays more dividend than 82.46% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.89, 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 5.48%.
- WST has paid a dividend for at least 10 years, which is a reliable track record.
- WST has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.48%
Div Incr Years33
Div Non Decr Years34
5.3 Sustainability
- WST pays out 12.40% 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.
DP12.4%
EPS Next 2Y11.07%
EPS Next 3Y11.63%
WST Fundamentals: All Metrics, Ratios and Statistics
259.35
+2.5 (+0.97%)
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 Change0%
Ins Owners0.33%
Ins Owner Change0.38%
Market Cap18.69B
Revenue(TTM)3.07B
Net Income(TTM)493.70M
Analysts80.87
Price Target328.99 (26.85%)
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 Years33
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)0.09%
EPS NQ rev (3m)2.02%
EPS NY rev (1m)0%
EPS NY rev (3m)3.21%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)2.75%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.58 | ||
| Fwd PE | 32.01 | ||
| P/S | 6.08 | ||
| P/FCF | 39.87 | ||
| P/OCF | 24.77 | ||
| P/B | 5.89 | ||
| P/tB | 6.11 | ||
| EV/EBITDA | 22.35 |
EPS(TTM)7.29
EY2.81%
EPS(NY)8.1
Fwd EY3.12%
FCF(TTM)6.51
FCFY2.51%
OCF(TTM)10.47
OCFY4.04%
SpS42.65
BVpS44.06
TBVpS42.43
PEG (NY)3.19
PEG (5Y)3.98
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 | 13.17 |
F-Score7
WACC10.87%
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 2Y6.14%
Revenue Next 3Y6.48%
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.