WEST PHARMACEUTICAL SERVICES (WST) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WST - US9553061055 - Common Stock
278.44 USD
-2.39 (-0.85%)
278.44 USD
0 (0%)
Taking everything into account, WST scores 7 out of 10 in our fundamental rating. WST was compared to 57 industry peers in the Life Sciences Tools & Services industry. WST scores excellent points on both the profitability and health parts. This is a solid base for a good stock. WST has a decent growth rate and is not valued too expensively. 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.
WST had positive earnings in each of the past 5 years.
WST had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WST has a Return On Assets of 11.98%. This is amongst the best in the industry. WST outperforms 92.98% of its industry peers.
The Return On Equity of WST (16.11%) is better than 87.72% of its industry peers.
WST's Return On Invested Capital of 14.78% is amongst the best of the industry. WST outperforms 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 14.00%.
| 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 has a better Profit Margin (16.29%) than 85.96% of its industry peers.
WST's Profit Margin has improved in the last couple of years.
WST has a Operating Margin of 20.71%. This is amongst the best in the industry. WST outperforms 87.72% of its industry peers.
WST's Operating Margin has improved in the last couple of years.
The Gross Margin of WST (35.58%) is worse 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 | 20.71% | ||
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), WST is creating some value.
Compared to 1 year ago, WST has less shares outstanding
WST has less shares outstanding than it did 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 14.54. This indicates that WST is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of WST (14.54) is better than 98.25% 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.
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 63.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.55 | ||
| Altman-Z | 14.54 |
ROIC/WACC1.36
WACC10.88%
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.
Looking at the Current ratio, with a value of 2.87, WST is in line with its industry, outperforming 52.63% 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'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%.
WST shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.81% yearly.
Looking at the last year, WST shows a small growth in Revenue. The Revenue has grown by 4.92% in the last 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.
The Revenue is expected to grow by 6.45% on average over the next years.
EPS Next Y6.31%
EPS Next 2Y7.84%
EPS Next 3Y9.51%
EPS Next 5Y10.12%
Revenue Next Year6.28%
Revenue Next 2Y6.24%
Revenue Next 3Y6.44%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
WST is valuated quite expensively with a Price/Earnings ratio of 39.38.
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.
Compared to an average S&P500 Price/Earnings ratio of 26.92, WST is valued a bit more expensive.
With a Price/Forward Earnings ratio of 35.47, WST can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, WST is valued a bit cheaper than the industry average as 64.91% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.57, WST is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.38 | ||
| Fwd PE | 35.47 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WST indicates a somewhat cheap valuation: WST is cheaper than 66.67% of the companies listed 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 | 52.84 | ||
| EV/EBITDA | 25.03 |
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)2.49
EPS Next 2Y7.84%
EPS Next 3Y9.51%
5. Dividend
5.1 Amount
With a yearly dividend of 0.32%, 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 0.09. WST pays more dividend than 87.72% 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 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.32% |
5.2 History
The dividend of WST has a limited annual growth rate of 5.90%.
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)5.9%
Div Incr Years32
Div Non Decr Years34
5.3 Sustainability
12.34% 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.
DP12.34%
EPS Next 2Y7.84%
EPS Next 3Y9.51%
278.44
-2.39 (-0.85%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners97.92%
Inst Owner Change0%
Ins Owners0.33%
Ins Owner Change0%
Market Cap20.03B
Revenue(TTM)3.02B
Net Income(TTM)491.70M
Analysts80.95
Price Target354.05 (27.15%)
Short Float %2.88%
Short Ratio2.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.32% |
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)0.12%
PT rev (3m)10.53%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)3.33%
EPS NY rev (1m)0.09%
EPS NY rev (3m)5.04%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)-0.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.38 | ||
| Fwd PE | 35.47 | ||
| P/S | 6.64 | ||
| P/FCF | 52.84 | ||
| P/OCF | 28.87 | ||
| P/B | 6.56 | ||
| P/tB | 6.83 | ||
| EV/EBITDA | 25.03 |
EPS(TTM)7.07
EY2.54%
EPS(NY)7.85
Fwd EY2.82%
FCF(TTM)5.27
FCFY1.89%
OCF(TTM)9.64
OCFY3.46%
SpS41.95
BVpS42.42
TBVpS40.76
PEG (NY)6.24
PEG (5Y)2.49
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 | 14.54 |
F-Score6
WACC10.88%
ROIC/WACC1.36
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 Y6.31%
EPS Next 2Y7.84%
EPS Next 3Y9.51%
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 3Y6.44%
Revenue Next 5Y6.45%
EBIT growth 1Y6.71%
EBIT growth 3Y-8.01%
EBIT growth 5Y14.63%
EBIT Next Year37.43%
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.
What is the valuation status for WST stock?
ChartMill assigns a valuation rating of 4 / 10 to WEST PHARMACEUTICAL SERVICES (WST). This can be considered as Fairly Valued.
Can you provide the profitability details for WEST PHARMACEUTICAL SERVICES?
WEST PHARMACEUTICAL SERVICES (WST) has a profitability rating of 8 / 10.
Can you provide the financial health for WST stock?
The financial health rating of WEST PHARMACEUTICAL SERVICES (WST) is 8 / 10.
How sustainable is the dividend of WEST PHARMACEUTICAL SERVICES (WST) stock?
The dividend rating of WEST PHARMACEUTICAL SERVICES (WST) is 6 / 10 and the dividend payout ratio is 12.34%.