WST Stock 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.
West Pharmaceutical Services Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$367.80|
|52 Week High||US$475.35|
|52 Week Low||US$253.86|
|1 Month Change||-20.02%|
|3 Month Change||-11.89%|
|1 Year Change||22.56%|
|3 Year Change||244.61%|
|5 Year Change||339.43%|
|Change since IPO||7,694.44%|
Recent News & Updates
West Pharmaceutical Services (NYSE:WST) Has A Rock Solid Balance Sheet
Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...
West Pharmaceutical Services: Much To Admire But Risks Have Picked Up
WST’s order book looks in good shape and it has scaled up CAPEX plans which are likely to have a low payback period. WST is a dividend aristocrat. High valuations, the recent dollar strength, and a likely sequential decline in margins are notable risks to be monitored.
Why We Like The Returns At West Pharmaceutical Services (NYSE:WST)
There are a few key trends to look for if we want to identify the next multi-bagger. In a perfect world, we'd like to...
|WST||US Life Sciences||US Market|
Return vs Industry: WST exceeded the US Life Sciences industry which returned 1.8% over the past year.
Return vs Market: WST exceeded the US Market which returned 4.2% over the past year.
|WST Average Weekly Movement||4.9%|
|Life Sciences Industry Average Movement||9.1%|
|Market Average Movement||6.7%|
|10% most volatile stocks in US Market||15.5%|
|10% least volatile stocks in US Market||2.4%|
Stable Share Price: WST is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: WST's weekly volatility (5%) has been stable over the past year.
About the Company
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
|WST fundamental statistics|
Is WST overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|WST income statement (TTM)|
|Cost of Revenue||US$1.59b|
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
|Earnings per share (EPS)||8.27|
|Net Profit Margin||22.85%|
How did WST perform over the long term?See historical performance and comparison
0.2%Current Dividend Yield
Is West Pharmaceutical Services undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: WST ($367.8) is trading above our estimate of fair value ($179.36)
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 (44.5x) compared to the US Life Sciences industry average (39.3x).
PE vs Market: WST is poor value based on its PE Ratio (44.5x) compared to the US market (16.5x).
Price to Earnings Growth Ratio
PEG Ratio: WST is poor value based on its PEG Ratio (7.2x)
Price to Book Ratio
PB vs Industry: WST is overvalued based on its PB Ratio (12.4x) compared to the US Life Sciences industry average (3.2x).
How is West Pharmaceutical Services forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WST's forecast earnings growth (6.2% per year) is above the savings rate (2%).
Earnings vs Market: WST's earnings (6.2% per year) are forecast to grow slower than the US market (12.9% per year).
High Growth Earnings: WST's earnings are forecast to grow, but not significantly.
Revenue vs Market: WST's revenue (7.2% per year) is forecast to grow slower than the US market (9.1% per year).
High Growth Revenue: WST's revenue (7.2% 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 (19.3%).
How has West Pharmaceutical Services performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WST has high quality earnings.
Growing Profit Margin: WST's current net profit margins (22.8%) are higher than last year (15.3%).
Past Earnings Growth Analysis
Earnings Trend: WST's earnings have grown significantly by 28% per year over the past 5 years.
Accelerating Growth: WST's earnings growth over the past year (96.5%) exceeds its 5-year average (28% per year).
Earnings vs Industry: WST earnings growth over the past year (96.5%) exceeded the Life Sciences industry 72.2%.
Return on Equity
High ROE: WST's Return on Equity (27.8%) is considered high.
How is West Pharmaceutical Services's financial position?
Financial Position Analysis
Short Term Liabilities: WST's short term assets ($1.6B) exceed its short term liabilities ($558.6M).
Long Term Liabilities: WST's short term assets ($1.6B) exceed its long term liabilities ($381.7M).
Debt to Equity History and Analysis
Debt Level: WST has more cash than its total debt.
Reducing Debt: WST's debt to equity ratio has reduced from 20.1% to 11.5% over the past 5 years.
Debt Coverage: WST's debt is well covered by operating cash flow (225.1%).
Interest Coverage: WST's interest payments on its debt are well covered by EBIT (101.7x coverage).
What is West Pharmaceutical Services's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: WST's dividend (0.2%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.37%).
High Dividend: WST's dividend (0.2%) is low compared to the top 25% of dividend payers in the US market (3.61%).
Stability and Growth of Payments
Stable Dividend: WST is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: WST is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: WST is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of WST's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Eric Green (51 yo)
Mr. Eric M. Green has been the Chief Executive Officer of West Pharmaceutical Services, Inc. since April 24, 2015 and its President since December 2015. Mr. Green served as Executive Vice President and Pre...
CEO Compensation Analysis
Compensation vs Market: Eric's total compensation ($USD7.64M) is below average for companies of similar size in the US market ($USD11.47M).
Compensation vs Earnings: Eric's compensation has been consistent with company performance over the past year.
Experienced Management: WST's management team is considered experienced (3.6 years average tenure).
Experienced Board: WST's board of directors are considered experienced (7.9 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
West Pharmaceutical Services, Inc.'s employee growth, exchange listings and data sources
- Name: West Pharmaceutical Services, Inc.
- Ticker: WST
- Exchange: NYSE
- Founded: 1923
- Industry: Life Sciences Tools and Services
- Sector: Pharmaceuticals & Biotech
- Implied Market Cap: US$27.247b
- Shares outstanding: 74.08m
- Website: https://www.westpharma.com
Number of Employees
- West Pharmaceutical Services, Inc.
- 530 Herman O. West Drive
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/01/23 23:29|
|End of Day Share Price||2022/01/21 00:00|
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.