West Pharmaceutical Services (WST) Stock Analysis
Here is a fundamental analysis of West Pharmaceutical Services (WST), benchmarking its profitability, financial strength, dividend and valuation against its industry group peers.
Performance
Cumulative Growth
Trailing Returns
Performance at a Glance
| Metric | Current stock: WST | Industry group median |
|---|---|---|
| 1-Year Return | 46.68% | 44.56% |
Risk
Drawdown
Risk at a Glance
| Metric | Current stock: WST | Industry group median |
|---|---|---|
| 1-Year Volatility | 41.40% | 67.11% |
| Beta | 1.17 | 0.93 |
Company Profile
| Profile Item | WST |
|---|---|
| Name | West Pharmaceutical Services, Inc. |
| Country/Region | United States |
| GICS Sector | Health Care |
| GICS Industry Group | Pharmaceuticals, Biotechnology & Life Sciences |
| GICS Industry | Life Sciences Tools & Services |
| GICS Sub-Industry | Life Sciences Tools & Services |
| Market Capitalization | 23.23 billion USD |
| Currency | USD |
| Exchange | NYSE |
| Listing Date | March 17, 1980 |
| Security Type | Common Stock |
Valuation
Price-to-Earnings Ratio (TTM)
West Pharmaceutical Services (WST) trades at P/E ratio of 44.08, in the richer earnings-multiple quartile for its industry. That premium needs support from growth, durable earnings, or stronger business quality.
WST
Pharmaceuticals, Biotechnology & Life Sciences industry group
44.08
Group distribution
- Max
- 77.14
- WST
- 44.08
- Q3
- 43.78
- Median
- 24.68
- Q1
- 15.27
- Min
- 1.70
Largest peers
- ABBV
- 111.09
- WST
- 44.08
- LLY
- 40.32
- MRK
- 33.54
- JNJ
- 27.94
- AZN
- 26.96
- NVS
- 21.93
Price-to-Sales Ratio (TTM)
West Pharmaceutical Services (WST) trades at 7.21 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.
WST
Pharmaceuticals, Biotechnology & Life Sciences industry group
7.21
Group distribution
- Max
- 55.38
- Q3
- 24.42
- WST
- 7.21
- Median
- 6.98
- Q1
- 3.30
- Min
- 0.01
Largest peers
- LLY
- 13.98
- WST
- 7.21
- ABBV
- 6.40
- JNJ
- 6.02
- NVS
- 5.16
- AZN
- 4.59
- MRK
- 4.47
Price-to-Book Ratio (MRQ)
West Pharmaceutical Services (WST) trades at 7.80 on P/B ratio, in the higher book-value quartile. The market is paying a premium to book, so stronger ROE, cleaner assets, or a better growth profile need to justify it.
WST
Pharmaceuticals, Biotechnology & Life Sciences industry group
7.80
Group distribution
- Max
- 13.23
- WST
- 7.80
- Q3
- 6.38
- Median
- 3.46
- Q1
- 1.64
- Min
- -5.17
Largest peers
- LLY
- 32.45
- WST
- 7.80
- NVS
- 7.58
- JNJ
- 7.14
- MRK
- 6.41
- AZN
- 5.85
- ABBV
- -60.45
Valuation at a Glance
| Metric | Current stock: WST | Industry group median |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 44.08 | 24.68 |
| Price-to-Sales Ratio (TTM) | 7.21 | 6.98 |
| Price-to-Book Ratio (MRQ) | 7.80 | 3.46 |
| Free Cash Flow Yield | 1.19% | -2.37% |
Profitability
Return on Equity (TTM)
West Pharmaceutical Services (WST) posts ROE of 19.13%, in the upper peer quartile. That suggests the company earns more from each dollar of shareholders’ equity than most industry peers, a useful capital-efficiency signal.
WST
Pharmaceuticals, Biotechnology & Life Sciences industry group
19.13%
Group distribution
- Max
- 101.32%
- WST
- 19.13%
- Q3
- 2.92%
- Median
- -31.26%
- Q1
- -62.68%
- Min
- -158.89%
Largest peers
- LLY
- 107.46%
- NVS
- 34.93%
- JNJ
- 26.42%
- AZN
- 23.48%
- WST
- 19.13%
- MRK
- 18.94%
- ABBV
- --
Net Profit Margin (TTM)
West Pharmaceutical Services (WST) keeps 16.85% of revenue as net profit on net margin, above the industry benchmark range. That is unusually strong bottom-line conversion, though tax effects, asset sales, or other one-off gains should be checked before treating it as durable.
WST
Pharmaceuticals, Biotechnology & Life Sciences industry group
16.85%
Group distribution
- WST
- 16.85%
- Max
- 12.76%
- Q3
- 4.00%
- Median
- 0.00%
- Q1
- -2.26%
- Min
- -11.53%
Largest peers
- LLY
- 34.99%
- NVS
- 23.92%
- JNJ
- 21.83%
- AZN
- 17.19%
- WST
- 16.85%
- MRK
- 13.59%
- ABBV
- 5.79%
Operating Profit Margin (TTM)
West Pharmaceutical Services (WST) turns 21.70% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.
WST
Pharmaceuticals, Biotechnology & Life Sciences industry group
21.70%
Group distribution
- Max
- 100.30%
- WST
- 21.70%
- Q3
- 4.40%
- Median
- 0.00%
- Q1
- -131.52%
- Min
- -333.43%
Largest peers
- LLY
- 49.39%
- MRK
- 38.60%
- ABBV
- 32.16%
- NVS
- 30.48%
- AZN
- 27.94%
- JNJ
- 27.41%
- WST
- 21.70%
Profitability at a Glance
| Metric | Current stock: WST | Industry group median |
|---|---|---|
| Return on Equity (TTM) | 19.13% | -31.26% |
| Return on Assets (TTM) | 11.21% | -14.70% |
| Net Profit Margin (TTM) | 16.85% | 0.00% |
| Operating Profit Margin (TTM) | 21.70% | 0.00% |
| Gross Profit Margin (TTM) | 36.28% | 33.58% |
Financial Strength
Current Ratio (MRQ)
West Pharmaceutical Services (WST) has current ratio of 2.71, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.
WST
Pharmaceuticals, Biotechnology & Life Sciences industry group
2.71
Group distribution
- Max
- 24.81
- Q3
- 11.75
- Median
- 5.57
- WST
- 2.71
- Q1
- 2.69
- Min
- 0.23
Largest peers
- WST
- 2.71
- LLY
- 1.50
- MRK
- 1.30
- JNJ
- 1.03
- AZN
- 0.91
- NVS
- 0.85
- ABBV
- 0.80
Debt-to-Equity Ratio (MRQ)
West Pharmaceutical Services (WST) has debt-to-equity ratio of 0.11, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.
WST
Pharmaceuticals, Biotechnology & Life Sciences industry group
0.11
Group distribution
- Max
- 1.60
- Q3
- 0.68
- Median
- 0.15
- WST
- 0.11
- Q1
- 0.02
- Min
- 0.00
Largest peers
- LLY
- 1.39
- NVS
- 1.21
- MRK
- 1.07
- AZN
- 0.72
- JNJ
- 0.68
- WST
- 0.11
- ABBV
- --
Financial Strength at a Glance
| Metric | Current stock: WST | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 2.71 | 5.57 |
| Debt-to-Equity Ratio (MRQ) | 0.11 | 0.15 |
| Net Debt / EBITDA | -0.23 | 1.09 |
Dividends
Dividend Yield (TTM)
West Pharmaceutical Services (WST) has dividend yield of 0.27%, above the entire industry range. That headline income is large, but yields this far above peers often come from a falling share price or an at-risk payout, so dividend safety matters more than the percentage itself.
WST
Pharmaceuticals, Biotechnology & Life Sciences industry group
0.27%
Group distribution
- WST
- 0.27%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- NVS
- 3.10%
- ABBV
- 3.04%
- MRK
- 2.86%
- JNJ
- 2.23%
- AZN
- 1.77%
- LLY
- 0.61%
- WST
- 0.27%
Dividend Payout Ratio (TTM)
West Pharmaceutical Services (WST) has payout ratio of 11.50%, above the peer distribution for its industry. The dividend consumes more reported earnings than peers normally do, leaving unusually thin earnings cover.
WST
Pharmaceuticals, Biotechnology & Life Sciences industry group
11.50%
Group distribution
- WST
- 11.50%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- ABBV
- 325.98%
- MRK
- 93.52%
- NVS
- 67.91%
- JNJ
- 60.25%
- AZN
- 47.70%
- LLY
- 22.13%
- WST
- 11.50%
Dividends at a Glance
| Metric | Current stock: WST | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 0.27% | 0.00% |
| Dividend Payout Ratio (TTM) | 11.50% | 0.00% |