NYSE:WST

Stock Analysis Report

West Pharmaceutical Services

Executive Summary

West Pharmaceutical Services, Inc. manufactures and sells containment and delivery systems for injectable drugs and healthcare products in the United States, Germany, France, Other European countries, South Korea, and internationally.

Snowflake

Fundamentals

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

How has West Pharmaceutical Services's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-3.7%

NYSE:WST

-0.9%

US Medical Equipment

1.3%

US Market


1 Year Return

19.6%

NYSE:WST

9.1%

US Medical Equipment

2.0%

US Market

WST outperformed the Medical Equipment industry which returned 8.7% over the past year.

WST outperformed the Market in United States of America which returned 1.7% over the past year.


Share holder returns

WSTIndustryMarket
7 Day-3.7%-0.9%1.3%
30 Day-0.6%0.7%3.9%
90 Day19.5%4.4%3.4%
1 Year20.2%19.6%10.0%9.1%4.2%2.0%
3 Year80.3%77.2%70.7%65.5%47.2%37.6%
5 Year232.9%221.9%130.7%104.3%60.5%42.9%

Price Volatility Vs. Market

How volatile is West Pharmaceutical Services's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is West Pharmaceutical Services undervalued based on future cash flows and its price relative to the stock market?

46.63x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

West Pharmaceutical Services's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

West Pharmaceutical Services's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

West Pharmaceutical Services is overvalued based on earnings compared to the US Medical Equipment industry average.

West Pharmaceutical Services is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

West Pharmaceutical Services is poor value based on expected growth next year.


Price Based on Value of Assets

West Pharmaceutical Services is overvalued based on assets compared to the US Medical Equipment industry average.


Next Steps

Future Growth

How is West Pharmaceutical Services expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

10.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

West Pharmaceutical Services's revenue is expected to grow by 6.5% yearly, however this is not considered high growth (20% yearly).

West Pharmaceutical Services's earnings are expected to grow by 10% yearly, however this is not considered high growth (20% yearly).

West Pharmaceutical Services's revenue growth is positive but not above the United States of America market average.

West Pharmaceutical Services's earnings growth is positive but not above the United States of America market average.

West Pharmaceutical Services's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

West Pharmaceutical Services is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

13.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

West Pharmaceutical Services's year on year earnings growth rate has been positive over the past 5 years.

West Pharmaceutical Services's 1-year earnings growth exceeds its 5-year average (51.8% vs 13.9%)

West Pharmaceutical Services's earnings growth has exceeded the US Medical Equipment industry average in the past year (51.8% vs 28.9%).


Return on Equity

West Pharmaceutical Services has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

West Pharmaceutical Services used its assets more efficiently than the US Medical Equipment industry average last year based on Return on Assets.


Return on Capital Employed

West Pharmaceutical Services has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is West Pharmaceutical Services's financial position?


Financial Position Analysis

West Pharmaceutical Services is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

West Pharmaceutical Services's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

West Pharmaceutical Services's level of debt (13.6%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (37.6% vs 13.6% today).

Debt is well covered by operating cash flow (160.4%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 46.5x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 4.8x debt.


Next Steps

Dividend

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

0.45%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase West Pharmaceutical Services before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

West Pharmaceutical Services's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

West Pharmaceutical Services's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

West Pharmaceutical Services is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.

West Pharmaceutical Services is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of West Pharmaceutical Services's dividends as it is not paying a notable one for United States of America.


Future Payout to Shareholders

No need to calculate the sustainability of West Pharmaceutical Services's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of West Pharmaceutical Services's salary, the management and board of directors tenure and is there insider trading?

3.7yrs

Average management tenure


CEO

Eric Green (49yo)

4.4yrs

Tenure

US$4,756,563

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 17, 2015. Mr. Green served as Executive Vice President and ...


CEO Compensation Analysis

Insufficient data for Eric to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.

Eric's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.7yrs

Average Tenure

54.5yo

Average Age

The tenure for the West Pharmaceutical Services management team is about average.


Board Age and Tenure

6.6yrs

Average Tenure

58.5yo

Average Age

The tenure for the West Pharmaceutical Services board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • David Montecalvo (54yo)

    Senior VP and Chief Operations & Supply Chain Officer

    • Tenure: 3yrs
    • Compensation: US$1.11m
  • Richard Luzzi (67yo)

    Senior Vice President of Human Resources

    • Tenure: 17.3yrs
  • Eric Green (49yo)

    CEO, President & Director

    • Tenure: 4.4yrs
    • Compensation: US$4.76m
  • Quintin Lai

    Vice President of Corporate Development

    • Tenure: 3.7yrs
  • George Miller (64yo)

    Senior VP

    • Tenure: 3.8yrs
    • Compensation: US$1.37m
  • Eric Resnick (55yo)

    CTO & VP

    • Tenure: 3.5yrs
  • Karen Flynn (56yo)

    Chief Commercial Officer & Senior VP

    • Tenure: 3.7yrs
    • Compensation: US$1.90m
  • Annette Favorite (54yo)

    Chief Human Resources Officer & Senior VP

    • Tenure: 3.9yrs
    • Compensation: US$1.14m
  • Bernard Birkett (50yo)

    Senior VP

    • Tenure: 1.3yrs
  • Emily Denney

    Vice President of Global Communications

    • Tenure: 0yrs

Board Members

  • Myla Lai-Goldman (61yo)

    Director

    • Tenure: 5.6yrs
    • Compensation: US$243.61k
  • Thomas Hofmann (67yo)

    Director

    • Tenure: 11.9yrs
    • Compensation: US$257.92k
  • Pat Zenner (72yo)

    Chairman of the Board

    • Tenure: 4.2yrs
    • Compensation: US$368.43k
  • Mark Buthman (58yo)

    Director

    • Tenure: 8.6yrs
    • Compensation: US$273.85k
  • Doug Michels (62yo)

    Director

    • Tenure: 8.6yrs
    • Compensation: US$291.05k
  • Paula Johnson (59yo)

    Director

    • Tenure: 13.9yrs
    • Compensation: US$271.35k
  • Paolo Pucci (58yo)

    Director

    • Tenure: 3yrs
    • Compensation: US$241.62k
  • Eric Green (49yo)

    CEO, President & Director

    • Tenure: 4.4yrs
    • Compensation: US$4.76m
  • Bill Feehery (48yo)

    Director

    • Tenure: 7.6yrs
    • Compensation: US$258.50k
  • Deb Keller (56yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$193.87k

Company Information

West Pharmaceutical Services, Inc.'s company bio, 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$10.635b
  • Shares outstanding: 73.75m
  • Website: https://www.westpharma.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WSTNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 1972
WPSDB (Deutsche Boerse AG)YesCommon StockDEEURDec 1972

Biography

West Pharmaceutical Services, Inc. manufactures and sells containment and delivery systems for injectable drugs and healthcare products in the United States, Germany, France, Other European countries, Sout ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/15 23:45
End of Day Share Price2019/09/13 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.