West Pharmaceutical Services
Market Cap
US$12.7b
Last Updated
2020/02/22 00:54 UTC
Data Sources
Company Financials +
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.
Rewards
Risk Analysis
No risks detected for WST from our risk checks.
Snowflake Analysis
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
Stable Share Price: WST has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-2.5%
WST
-0.2%
US Medical Equipment
0.06%
US Market
1 Year Return
63.2%
WST
20.7%
US Medical Equipment
19.3%
US Market
Return vs Industry: WST exceeded the US Medical Equipment industry which returned 20.7% over the past year.
Return vs Market: WST exceeded the US Market which returned 19.3% over the past year.
Shareholder returns
| WST | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.5% | -0.2% | 0.06% |
| 30 Day | 8.7% | -0.7% | 1.7% |
| 90 Day | 16.2% | 7.6% | 9.0% |
| 1 Year | 63.9%63.2% | 21.7%20.7% | 21.8%19.3% |
| 3 Year | 105.6%102.3% | 80.8%75.7% | 49.5%39.9% |
| 5 Year | 220.7%211.0% | 116.0%93.3% | 73.1%54.1% |
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
4 days ago | Simply Wall St
Results: West Pharmaceutical Services Beat Earnings Expectations And Analysts Now Have New Forecasts1 week ago | Simply Wall St
Is It Time To Consider Buying West Pharmaceutical Services, Inc. (NYSE:WST)?3 weeks ago | Simply Wall St
Does West Pharmaceutical Services (NYSE:WST) Deserve A Spot On Your Watchlist?Valuation
Is West Pharmaceutical Services undervalued compared to its fair value and its price relative to the market?
52.1x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: WST ($171.67) is trading above our estimate of fair value ($124.5)
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 (52.6x) compared to the Medical Equipment industry average (47.4x).
PE vs Market: WST is poor value based on its PE Ratio (52.6x) compared to the US market (18.5x).
Price to Earnings Growth Ratio
PEG Ratio: WST is poor value based on its PEG Ratio (5.4x)
Price to Book Ratio
PB vs Industry: WST is overvalued based on its PB Ratio (8.5x) compared to the US Medical Equipment industry average (4.1x).
Next Steps
Future Growth
How is West Pharmaceutical Services forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
9.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WST's forecast earnings growth (9.6% per year) is above the savings rate (1.7%).
Earnings vs Market: WST's earnings (9.6% per year) are forecast to grow slower than the US market (14.2% per year).
High Growth Earnings: WST's earnings are forecast to grow, but not significantly.
Revenue vs Market: WST's revenue (6.4% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: WST's revenue (6.4% 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 (15.5%).
Next Steps
Past Performance
How has West Pharmaceutical Services performed over the past 5 years?
16.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WST has high quality earnings.
Growing Profit Margin: WST's current net profit margins (13.1%) are higher than last year (12%).
Past Earnings Growth Analysis
Earnings Trend: WST's earnings have grown by 16.4% per year over the past 5 years.
Accelerating Growth: WST's earnings growth over the past year (16.8%) exceeds its 5-year average (16.4% per year).
Earnings vs Industry: WST earnings growth over the past year (16.8%) exceeded the Medical Equipment industry 2.7%.
Return on Equity
High ROE: WST's Return on Equity (16.2%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is West Pharmaceutical Services's financial position?
Financial Position Analysis
Short Term Liabilities: WST's short term assets ($1.0B) exceed its short term liabilities ($335.0M).
Long Term Liabilities: WST's short term assets ($1.0B) exceed its long term liabilities ($351.4M).
Debt to Equity History and Analysis
Debt Level: WST's debt to equity ratio (13.1%) is considered satisfactory.
Reducing Debt: WST's debt to equity ratio has reduced from 35.4% to 13.1% over the past 5 years.
Debt Coverage: WST's debt is well covered by operating cash flow (171.2%).
Interest Coverage: WST's interest payments on its debt are well covered by EBIT (62.4x coverage).
Balance Sheet
Inventory Level: WST has a high level of physical assets or inventory.
Debt Coverage by Assets: WST's debt is covered by short term assets (assets are 5.1x debt).
Next Steps
Dividend
What is West Pharmaceutical Services's current dividend yield, its reliability and sustainability?
0.38%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: WST's dividend (0.37%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: WST's dividend (0.37%) is low compared to the top 25% of dividend payers in the US market (3.71%).
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?
4.0yrs
Average management tenure
CEO
Eric Green (49yo)
4.8yrs
Tenure
US$5,378,813
Compensation
Mr. Eric M. Green has been the Chief Executive Officer of West Pharmaceutical Services, Inc. since April 24, 2015 and its President since April 2015. Mr. Green served as Executive Vice President and Presid ...
CEO Compensation Analysis
Compensation vs Market: Eric's total compensation ($USD5.38M) is below average for companies of similar size in the US market ($USD10.79M).
Compensation vs Earnings: Eric's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Director | 4.8yrs | US$5.38m | 0.075% $9.6m | |
| Senior VP | 1.7yrs | US$2.80m | 0.013% $1.6m | |
| Senior VP and Chief Operations & Supply Chain Officer | 3.4yrs | US$1.52m | 0.0022% $279.4k | |
| Chief Digital & Transformation Officer and Senior VP | 2yrs | US$1.49m | 0.0062% $785.0k | |
| CTO & VP | 3.9yrs | no data | no data | |
| Vice President of Corporate Development | 4.1yrs | no data | 0.0056% $710.0k | |
| Senior VP | 4.3yrs | US$1.37m | 0.0088% $1.1m | |
| Chief Human Resources Officer & Senior VP | 4.3yrs | US$1.14m | 0.0093% $1.2m | |
| Senior Vice President of Human Resources | 17.7yrs | no data | no data | |
| Senior VP of Commercial Products & Emerging Markets | 0.3yrs | no data | no data |
4.0yrs
Average Tenure
54yo
Average Age
Experienced Management: WST's management team is considered experienced (4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Director | 4.8yrs | US$5.38m | 0.075% $9.6m | |
| Director | 6yrs | US$246.87k | 0.017% $2.2m | |
| Director | 12.3yrs | US$260.83k | 0.054% $6.8m | |
| Chairman of the Board | 4.6yrs | US$372.63k | 0.079% $10.1m | |
| Director | 9yrs | US$278.91k | 0.037% $4.7m | |
| Independent Director | 9yrs | US$280.60k | 0.037% $4.7m | |
| Director | 14.3yrs | US$277.00k | 0.053% $6.7m | |
| Director | 3.4yrs | US$242.23k | 0.0086% $1.1m | |
| Director | 8yrs | US$263.39k | 0.030% $3.8m | |
| Independent Director | 2.7yrs | US$241.81k | no data |
7.0yrs
Average Tenure
58.5yo
Average Age
Experienced Board: WST's board of directors are considered experienced (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.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
West Pharmaceutical Services's company bio, employee growth, exchange listings and data sources
Key Information
- Name: West Pharmaceutical Services
- Ticker: WST
- Exchange: NYSE
- Founded:
- Industry: Health Care Supplies
- Sector: Healthcare
- Market Cap: US$12.702b
- Shares outstanding: 73.99m
- Website: https://www.westpharma.com
Number of Employees
Location
- West Pharmaceutical Services
- 101 Gordon Drive
- Lionville
- Pennsylvania
- 19341
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| WST | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Dec 1972 |
| WPS | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Dec 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, South Korea, and internationally. The company operates through 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, and washing and sterilization processes and services to enhance the quality of packaging components. It also provides drug containment solutions, including CZ, a cyclic olefin polymer in the form of vials, syringes, and cartridges; and self-injection devices, as well as a range of integrated services, including analytical lab services, pre-approval primary packaging support and engineering development, regulatory expertise, and after-sales technical support. This segment serves biologic, generic, and pharmaceutical drug companies. The Contract-Manufactured Products segment is involved in the design, manufacture, and automated assembly of components and devices used in surgical, diagnostic, ophthalmic, injectable, and other drug delivery systems, as well as consumer products. This segment serves pharmaceutical, diagnostic, and medical device companies. The company distributes its products through its sales force and distribution network, as well as contract sales agents and regional distributors. The company was founded in 1923 and is headquartered in Exton, Pennsylvania.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/22 00:54 |
| End of Day Share Price | 2020/02/21 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.