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WST

West Pharmaceutical Services NYSE:WST Stock Report

Last Price

US$246.39

Market Cap

US$18.2b

7D

-6.6%

1Y

-42.4%

Updated

27 Sep, 2022

Data

Company Financials +
WST fundamental analysis
Snowflake Score
Valuation1/6
Future Growth1/6
Past Performance5/6
Financial Health6/6
Dividends0/6

WST Stock Overview

West Pharmaceutical Services, Inc. designs, manufactures, and sells 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

Summary of all time highs, changes and price drops for West Pharmaceutical Services
Historical stock prices
Current Share PriceUS$246.39
52 Week HighUS$475.00
52 Week LowUS$244.71
Beta1.18
1 Month Change-18.89%
3 Month Change-17.74%
1 Year Change-42.36%
3 Year Change76.40%
5 Year Change160.40%
Change since IPO5,121.51%

Recent News & Updates

Sep 14
Is West Pharmaceutical Services, Inc. (NYSE:WST) Expensive For A Reason? A Look At Its Intrinsic Value

Is West Pharmaceutical Services, Inc. (NYSE:WST) Expensive For A Reason? A Look At Its Intrinsic Value

Does the September share price for West Pharmaceutical Services, Inc. ( NYSE:WST ) reflect what it's really worth...

Aug 31
Is There Now An Opportunity In West Pharmaceutical Services, Inc. (NYSE:WST)?

Is There Now An Opportunity In West Pharmaceutical Services, Inc. (NYSE:WST)?

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

Aug 18
Do West Pharmaceutical Services' (NYSE:WST) Earnings Warrant Your Attention?

Do West Pharmaceutical Services' (NYSE:WST) Earnings Warrant Your Attention?

The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even...

Shareholder Returns

WSTUS Life SciencesUS Market
7D-6.6%-5.3%-5.8%
1Y-42.4%-32.7%-22.1%

Return vs Industry: WST underperformed the US Life Sciences industry which returned -34.2% over the past year.

Return vs Market: WST underperformed the US Market which returned -23.7% over the past year.

Price Volatility

Is WST's price volatile compared to industry and market?
WST volatility
WST Average Weekly Movement5.1%
Life Sciences Industry Average Movement9.7%
Market Average Movement6.9%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.8%

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
192310,065Eric Greenhttps://www.westpharma.com

West Pharmaceutical Services, Inc. designs, manufactures, and sells containment and delivery systems for injectable drugs and healthcare products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It 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$18.24b
Earnings (TTM)US$685.60m
Revenue (TTM)US$2.93b

26.6x

P/E Ratio

6.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WST income statement (TTM)
RevenueUS$2.93b
Cost of RevenueUS$1.73b
Gross ProfitUS$1.19b
Other ExpensesUS$509.30m
EarningsUS$685.60m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)9.26
Gross Margin40.80%
Net Profit Margin23.41%
Debt/Equity Ratio10.4%

How did WST perform over the long term?

See historical performance and comparison

Dividends

0.3%

Current Dividend Yield

8%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is WST undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for WST?

Other financial metrics that can be useful for relative valuation.

WST key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue6.1x
Enterprise Value/EBITDA19.6x
PEG Ratio3x

Price to Earnings Ratio vs Peers

How does WST's PE Ratio compare to its peers?

WST PE Ratio vs Peers
The above table shows the PE ratio for WST vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average24.8x
PKI PerkinElmer
22.1x3.9%US$14.9b
WAT Waters
23.1x6.4%US$16.2b
MTD Mettler-Toledo International
30.3x7.4%US$24.9b
AVTR Avantor
23.6x20.0%US$13.5b
WST West Pharmaceutical Services
26.6x9.0%US$18.2b

Price-To-Earnings vs Peers: WST is expensive based on its Price-To-Earnings Ratio (26.6x) compared to the peer average (24.8x).


Price to Earnings Ratio vs Industry

How does WST's PE Ratio compare vs other companies in the US Life Sciences Industry?

Price-To-Earnings vs Industry: WST is expensive based on its Price-To-Earnings Ratio (26.6x) compared to the US Life Sciences industry average (25.3x)


Price to Earnings Ratio vs Fair Ratio

What is WST's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

WST PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio26.6x
Fair PE Ratio24.2x

Price-To-Earnings vs Fair Ratio: WST is expensive based on its Price-To-Earnings Ratio (26.6x) compared to the estimated Fair Price-To-Earnings Ratio (24.2x).


Share Price vs Fair Value

What is the Fair Price of WST when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: WST ($246.39) is trading above our estimate of fair value ($245.56)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is West Pharmaceutical Services forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


9.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WST's forecast earnings growth (9% per year) is above the savings rate (1.9%).

Earnings vs Market: WST's earnings (9% per year) are forecast to grow slower than the US market (14.7% per year).

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

Revenue vs Market: WST's revenue (7.3% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: WST's revenue (7.3% 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 (19.2%).


Discover growth companies

Past Performance

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

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


34.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: WST has high quality earnings.

Growing Profit Margin: WST's current net profit margins (23.4%) are higher than last year (20.6%).


Past Earnings Growth Analysis

Earnings Trend: WST's earnings have grown significantly by 34.2% per year over the past 5 years.

Accelerating Growth: WST's earnings growth over the past year (32%) is below its 5-year average (34.2% per year).

Earnings vs Industry: WST earnings growth over the past year (32%) exceeded the Life Sciences industry 15.6%.


Return on Equity

High ROE: WST's Return on Equity (28.3%) is considered high.


Discover strong past performing companies

Financial Health

How is West Pharmaceutical Services's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: WST's short term assets ($1.8B) exceed its short term liabilities ($565.1M).

Long Term Liabilities: WST's short term assets ($1.8B) exceed its long term liabilities ($372.2M).


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 18% to 10.4% over the past 5 years.

Debt Coverage: WST's debt is well covered by operating cash flow (267.9%).

Interest Coverage: WST's interest payments on its debt are well covered by EBIT (112.7x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


0.29%

Current Dividend Yield

Dividend Yield vs Market

West Pharmaceutical Services Dividend Yield vs Market
How does West Pharmaceutical Services dividend yield compare to the market?
SegmentDividend Yield
Company (West Pharmaceutical Services)0.3%
Market Bottom 25% (US)1.7%
Market Top 25% (US)4.7%
Industry Average (Life Sciences)0.3%
Analyst forecast in 3 Years (West Pharmaceutical Services)0.3%

Notable Dividend: WST's dividend (0.29%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.67%).

High Dividend: WST's dividend (0.29%) is low compared to the top 25% of dividend payers in the US market (4.68%).


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.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

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


Discover strong dividend paying companies

Management

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

2.9yrs

Average management tenure


CEO

Eric Green (52 yo)

7.33yrs

Tenure

US$9,472,757

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. He has been a Director of West Pharmaceutical Servic...


CEO Compensation Analysis

Eric Green's Compensation vs West Pharmaceutical Services Earnings
How has Eric Green's remuneration changed compared to West Pharmaceutical Services's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$686m

Mar 31 2022n/an/a

US$684m

Dec 31 2021US$9mUS$1m

US$662m

Sep 30 2021n/an/a

US$613m

Jun 30 2021n/an/a

US$519m

Mar 31 2021n/an/a

US$423m

Dec 31 2020US$8mUS$989k

US$346m

Sep 30 2020n/an/a

US$312m

Jun 30 2020n/an/a

US$286m

Mar 31 2020n/an/a

US$261m

Dec 31 2019US$7mUS$936k

US$242m

Sep 30 2019n/an/a

US$230m

Jun 30 2019n/an/a

US$229m

Mar 31 2019n/an/a

US$219m

Dec 31 2018US$5mUS$880k

US$207m

Sep 30 2018n/an/a

US$155m

Jun 30 2018n/an/a

US$151m

Mar 31 2018n/an/a

US$133m

Dec 31 2017US$5mUS$824k

US$151m

Sep 30 2017n/an/a

US$190m

Jun 30 2017n/an/a

US$176m

Mar 31 2017n/an/a

US$182m

Dec 31 2016US$4mUS$749k

US$144m

Sep 30 2016n/an/a

US$138m

Jun 30 2016n/an/a

US$102m

Mar 31 2016n/an/a

US$85m

Dec 31 2015US$8mUS$474k

US$96m

Compensation vs Market: Eric's total compensation ($USD9.47M) is about average for companies of similar size in the US market ($USD13.05M).

Compensation vs Earnings: Eric's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: WST's management team is considered experienced (2.9 years average tenure).


Board Members

Experienced Board: WST's board of directors are considered experienced (7.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: WST insiders have only sold shares in the past 3 months.


Recent Insider Transactions

NYSE:WST Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
02 Aug 22SellUS$4,836,074Bernard BirkettIndividual14,174US$343.38
01 Aug 22SellUS$1,848,306Silji AbrahamIndividual5,374US$343.93

Ownership Breakdown

What is the ownership structure of WST?
Owner TypeNumber of SharesOwnership Percentage
State or Government32,7670.04%
Individual Insiders389,3900.5%
General Public4,311,6275.8%
Institutions69,314,20393.6%

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


Top Shareholders

Top 25 shareholders own 65.01% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
11.93%
The Vanguard Group, Inc.
8,833,095$2.2b1.34%0.05%
10.88%
BlackRock, Inc.
8,055,736$2.0b-0.32%0.05%
8.44%
T. Rowe Price Group, Inc.
6,247,573$1.5b-2.09%0.19%
4.49%
State Street Global Advisors, Inc.
3,323,709$818.9m-2.07%0.05%
3.71%
Franklin Resources, Inc.
2,746,153$676.6m-1.27%0.3%
3.24%
Stichting Pensioenfonds ABP
2,401,569$591.7m-5.42%0.86%
2.68%
FMR LLC
1,986,311$489.4m0.8%0.05%
1.95%
Geode Capital Management, LLC
1,441,523$355.2m0.87%0.05%
1.58%
Baron Capital Group, Inc.
1,171,557$288.7m-0.01%0.81%
1.49%
WCM Investment Management, LLC
1,102,039$271.5m-27.81%0.64%
1.34%
Durable Capital Partners, LP
994,036$244.9m32.83%2.74%
1.33%
Neuberger Berman Investment Advisers LLC
988,014$243.4m-7.77%0.25%
1.33%
Brown Advisory Incorporated
983,142$242.2m-10.08%0.44%
1.15%
Artisan Partners Limited Partnership
853,248$210.2m56.65%0.22%
1.15%
AllianceBernstein L.P.
852,646$210.1m34.95%0.09%
1.12%
Northern Trust Global Investments
827,423$203.9m-5.73%0.04%
0.9%
Legal & General Investment Management Limited
666,217$164.1m-7.39%0.05%
0.89%
Norges Bank Investment Management
655,650$161.5m0%0.02%
0.89%
BNY Mellon Asset Management
655,354$161.5m13.74%0.04%
0.84%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
624,518$153.9m-12.22%0.05%
0.83%
Massachusetts Financial Services Company
612,891$151.0m-17.39%0.04%
0.78%
Walter Scott & Partners Limited
578,960$142.6m4141.47%0.4%
0.74%
California Public Employees' Retirement System
544,944$134.3m-1.52%0.13%
0.67%
UBS Asset Management
496,448$122.3m-16.35%0.02%
0.67%
Capital Research and Management Company
494,635$121.9m0.03%0.01%

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$18.245b
  • Shares outstanding: 74.05m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WSTNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 1972
WPSDB (Deutsche Boerse AG)YesCommon StockDEEURDec 1972
WPSXTRA (XETRA Trading Platform)YesCommon StockDEEURDec 1972
WST *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNDec 1972
W2ST34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 35 REPR 1 COM USD0.25BRBRLAug 2021

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/27 00:00
End of Day Share Price2022/09/27 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.