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WST

West Pharmaceutical ServicesNYSE:WST Stock Report

Last Price

US$379.78

Market Cap

US$28.1b

7D

-3.3%

1Y

26.8%

Updated

17 Jan, 2022

Data

Company Financials +
WST fundamental analysis
Snowflake Score
Valuation0/6
Future Growth1/6
Past Performance6/6
Financial Health6/6
Dividends0/6

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.

Rewards

Earnings are forecast to grow 6.19% per year

Earnings grew by 96.5% over the past year

Risk Analysis

No risks detected for WST from our risk checks.

West Pharmaceutical Services Competitors

Mettler-Toledo International

NYSE:MTD

US$34.8b

PerkinElmer

NYSE:PKI

US$22.5b

Intuitive Surgical

NasdaqGS:ISRG

US$109.9b

Stryker

NYSE:SYK

US$100.6b

Price History & Performance

Summary of all time highs, changes and price drops for West Pharmaceutical Services
Historical stock prices
Current Share PriceUS$379.78
52 Week HighUS$475.35
52 Week LowUS$253.86
Beta0.97
1 Month Change-15.57%
3 Month Change-9.05%
1 Year Change26.84%
3 Year Change260.84%
5 Year Change360.90%
Change since IPO7,948.32%

Recent News & Updates

Jan 11
West Pharmaceutical Services (NYSE:WST) Has A Rock Solid Balance Sheet

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...

Oct 28

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.

Oct 25
Why We Like The Returns At West Pharmaceutical Services (NYSE:WST)

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...

Shareholder Returns

WSTUS Life SciencesUS Market
7D-3.3%-3.3%-0.3%
1Y26.8%9.6%13.7%

Return vs Industry: WST exceeded the US Life Sciences industry which returned 9.6% over the past year.

Return vs Market: WST exceeded the US Market which returned 13.7% over the past year.

Price Volatility

Is WST's price volatile compared to industry and market?
WST volatility
WST Average Weekly Movement4.9%
Life Sciences Industry Average Movement8.7%
Market Average Movement6.6%
10% most volatile stocks in US Market15.9%
10% least volatile stocks in US Market2.4%

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

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$28.13b
Earnings (TTM)US$612.50m
Revenue (TTM)US$2.68b

45.9x

P/E Ratio

10.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WST income statement (TTM)
RevenueUS$2.68b
Cost of RevenueUS$1.59b
Gross ProfitUS$1.09b
ExpensesUS$473.80m
EarningsUS$612.50m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)8.27
Gross Margin40.52%
Net Profit Margin22.85%
Debt/Equity Ratio11.5%

How did WST perform over the long term?

See historical performance and comparison

Dividends

0.2%

Current Dividend Yield

8%

Payout Ratio

Does WST pay a reliable dividends?

See WST dividend history and benchmarks
When do you need to buy WST by to receive an upcoming dividend?
West Pharmaceutical Services dividend dates
Ex Dividend DateJan 18 2022
Dividend Pay DateFeb 02 2022
Days until Ex dividend0 days
Days until Dividend pay date15 days

Does WST pay a reliable dividends?

See WST dividend history and benchmarks

Valuation

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

45.93x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WST ($379.78) is trading above our estimate of fair value ($178.7)

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 (45.9x) compared to the US Life Sciences industry average (39.9x).

PE vs Market: WST is poor value based on its PE Ratio (45.9x) compared to the US market (17.4x).


Price to Earnings Growth Ratio

PEG Ratio: WST is poor value based on its PEG Ratio (7.4x)


Price to Book Ratio

PB vs Industry: WST is overvalued based on its PB Ratio (12.8x) compared to the US Life Sciences industry average (3.3x).


Future Growth

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

6.2%

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 (13% 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 (9.3% 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%).


Past Performance

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

28.0%

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.


Financial Health

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).


Balance Sheet


Dividend

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

0.19%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WST's dividend (0.19%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: WST's dividend (0.19%) is low compared to the top 25% of dividend payers in the US market (3.44%).


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?

3.6yrs

Average management tenure


CEO

Eric Green (51 yo)

6.75yrs

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 ($USD7.64M) is below average for companies of similar size in the US market ($USD11.18M).

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 (3.6 years average tenure).


Board Members

Experienced Board: WST's board of directors are considered experienced (7.9 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: Life Sciences Tools and Services
  • Sector: Pharmaceuticals & Biotech
  • Implied Market Cap: US$28.134b
  • Shares outstanding: 74.08m
  • 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 Analysis2022/01/17 23:40
End of Day Share Price2022/01/14 00:00
Earnings2021/09/30
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.