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WST

West Pharmaceutical ServicesNYSE:WST Stock Report

Market Cap

US$32.7b

7D

-0.7%

1Y

62.1%

Updated

27 Sep, 2021

Data

Company Financials +
WST fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance6/6
Financial Health6/6
Dividends0/6

WST Overview

West Pharmaceutical Services, Inc. designs and produces containment and delivery systems for injectable drugs and healthcare products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.

Rewards

Earnings grew by 81.7% over the past year

Risk Analysis

No risks detected for WST from our risk checks.

West Pharmaceutical Services Competitors

Price History & Performance

Summary of all time highs, changes and price drops for West Pharmaceutical Services
Historical stock prices
Current Share PriceUS$441.59
52 Week HighUS$253.86
52 Week LowUS$475.35
Beta1
1 Month Change-1.20%
3 Month Change22.66%
1 Year Change62.12%
3 Year Change259.02%
5 Year Change492.90%
Change since IPO9,258.20%

Recent News & Updates

Sep 13
West Pharmaceutical Services (NYSE:WST) Seems To Use Debt Rather Sparingly

West Pharmaceutical Services (NYSE:WST) Seems To Use Debt Rather Sparingly

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Aug 02
What Does West Pharmaceutical Services, Inc.'s (NYSE:WST) Share Price Indicate?

What Does West Pharmaceutical Services, Inc.'s (NYSE:WST) Share Price Indicate?

Today we're going to take a look at the well-established West Pharmaceutical Services, Inc. ( NYSE:WST ). The company's...

Shareholder Returns

WSTUS Medical EquipmentUS Market
7D-0.7%-0.8%2.0%
1Y62.1%32.6%32.8%

Return vs Industry: WST exceeded the US Medical Equipment industry which returned 32.6% over the past year.

Return vs Market: WST exceeded the US Market which returned 32.8% over the past year.

Price Volatility

Is WST's price volatile compared to industry and market?
WST volatility
WST Beta1
Industry Beta0.88
Market Beta1

Stable Share Price: WST is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: WST's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19239,200Eric Greenhttps://www.westpharma.com

West Pharmaceutical Services, Inc. designs and produces containment and delivery systems for injectable drugs and healthcare products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company operates in two segments, Proprietary Products and Contract-Manufactured Products. The Proprietary Products segment offers stoppers and seals for injectable packaging systems; syringe and cartridge components, including custom solutions for the needs of injectable drug applications, as well as administration systems that enhance the safe delivery of drugs through advanced reconstitution, mixing, and transfer technologies; and films, coatings, washing, and vision inspection and sterilization processes and services to enhance the quality of packaging components.

West Pharmaceutical Services Fundamentals Summary

How do West Pharmaceutical Services's earnings and revenue compare to its market cap?
WST fundamental statistics
Market CapUS$32.67b
Earnings (TTM)US$519.20m
Revenue (TTM)US$2.52b

62.9x

P/E Ratio

13.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WST income statement (TTM)
RevenueUS$2.52b
Cost of RevenueUS$1.53b
Gross ProfitUS$992.70m
ExpensesUS$473.50m
EarningsUS$519.20m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)7.02
Gross Margin39.35%
Net Profit Margin20.58%
Debt/Equity Ratio12.5%

How did WST perform over the long term?

See historical performance and comparison

Dividends

0.2%

Current Dividend Yield

10%

Payout Ratio

Valuation

Is West Pharmaceutical Services undervalued compared to its fair value and its price relative to the market?

62.92x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WST ($441.59) is trading above our estimate of fair value ($126.7)

Significantly Below Fair Value: WST is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: WST is poor value based on its PE Ratio (62.9x) compared to the US Medical Equipment industry average (51.4x).

PE vs Market: WST is poor value based on its PE Ratio (62.9x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: WST is poor value based on its PEG Ratio (37.9x)


Price to Book Ratio

PB vs Industry: WST is overvalued based on its PB Ratio (16.1x) compared to the US Medical Equipment industry average (4.7x).


Future Growth

How is West Pharmaceutical Services forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

1.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WST's forecast earnings growth (1.7% per year) is below the savings rate (2%).

Earnings vs Market: WST's earnings (1.7% per year) are forecast to grow slower than the US market (15% per year).

High Growth Earnings: WST's earnings are forecast to grow, but not significantly.

Revenue vs Market: WST's revenue (4.9% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: WST's revenue (4.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WST's Return on Equity is forecast to be low in 3 years time (17.8%).


Past Performance

How has West Pharmaceutical Services performed over the past 5 years?

25.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WST has high quality earnings.

Growing Profit Margin: WST's current net profit margins (20.6%) are higher than last year (14.7%).


Past Earnings Growth Analysis

Earnings Trend: WST's earnings have grown significantly by 25.4% per year over the past 5 years.

Accelerating Growth: WST's earnings growth over the past year (81.7%) exceeds its 5-year average (25.4% per year).

Earnings vs Industry: WST earnings growth over the past year (81.7%) exceeded the Medical Equipment industry 40.5%.


Return on Equity

High ROE: WST's Return on Equity (25.5%) is considered high.


Financial Health

How is West Pharmaceutical Services's financial position?


Financial Position Analysis

Short Term Liabilities: WST's short term assets ($1.5B) exceed its short term liabilities ($472.6M).

Long Term Liabilities: WST's short term assets ($1.5B) exceed its long term liabilities ($428.3M).


Debt to Equity History and Analysis

Debt Level: WST's debt to equity ratio (12.5%) is considered satisfactory.

Reducing Debt: WST's debt to equity ratio has reduced from 18.6% to 12.5% over the past 5 years.

Debt Coverage: WST's debt is well covered by operating cash flow (196.9%).

Interest Coverage: WST's interest payments on its debt are well covered by EBIT (84.6x coverage).


Balance Sheet


Dividend

What is West Pharmaceutical Services's current dividend yield, its reliability and sustainability?

0.15%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WST's dividend (0.15%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.3%).

High Dividend: WST's dividend (0.15%) is low compared to the top 25% of dividend payers in the US market (3.57%).


Stability and Growth of Payments

Stable Dividend: WST is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: WST is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: WST is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WST's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Eric Green (51 yo)

6.42yrs

Tenure

US$7,642,296

Compensation

Mr. Eric M. Green has been the Chief Executive Officer of West Pharmaceutical Services, Inc. since April 24, 2015 and its President since December 2015. Mr. Green served as Executive Vice President and Pre...


CEO Compensation Analysis

Compensation vs Market: Eric's total compensation ($USD7.64M) is below average for companies of similar size in the US market ($USD11.29M).

Compensation vs Earnings: Eric's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: WST's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: WST's board of directors are considered experienced (6.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

West Pharmaceutical Services, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: West Pharmaceutical Services, Inc.
  • Ticker: WST
  • Exchange: NYSE
  • Founded: 1923
  • Industry: Health Care Supplies
  • Sector: Healthcare
  • Market Cap: US$32.668b
  • Shares outstanding: 73.98m
  • Website: https://www.westpharma.com

Number of Employees


Location

  • West Pharmaceutical Services, Inc.
  • 530 Herman O. West Drive
  • Exton
  • Pennsylvania
  • 19341-0645
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/27 22:56
End of Day Share Price2021/09/27 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.