West Pharmaceutical Services (WST) Stock Analysis
This is a peer-relative look at West Pharmaceutical Services (WST): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Pharmaceuticals, Biotechnology & Life Sciences peers, so every number reads in context rather than in isolation.
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 | 27.85 billion USD |
| Currency | USD |
| Exchange | NYSE |
| Listing Date | March 17, 1980 |
| Security Type | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | Current stock: WST | Industry group median |
|---|---|---|
| Total Return (1Y) | 51.68% | 24.62% |
| Total Return (3Y, Annualized) | 7.13% | 20.37% |
| Total Return (5Y, Annualized) | 0.05% | -4.02% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | Current stock: WST | Industry group median |
|---|---|---|
| Volatility (1Y, Annualized) | 31.45% | 66.36% |
| Beta (5Y) | 1.13 | 0.93 |
| Max Drawdown (5Y) | -59.29% | -80.19% |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | Current stock: WST | Industry group median |
|---|---|---|
| Sharpe Ratio (1Y) | 1.51 | 0.36 |
| Sortino Ratio (1Y) | 2.35 | 0.58 |
Profitability
ROE (TTM)
West Pharmaceutical Services (WST) posts ROE of 21.23%, 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
21.23%
Group distribution
- Max
- 109.18%
- WST
- 21.23%
- Q3
- 6.23%
- Median
- -26.66%
- Q1
- -64.05%
- Min
- -167.77%
Largest peers
- LLY
- 86.02%
- NVS
- 24.33%
- AZN
- 22.57%
- WST
- 21.23%
- JNJ
- 20.02%
- MRK
- 5.06%
- ABBV
- --
Net Margin (TTM)
West Pharmaceutical Services (WST) keeps 18.81% 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
18.81%
Group distribution
- WST
- 18.81%
- Max
- 18.05%
- Q3
- 4.78%
- Median
- 0.00%
- Q1
- -4.14%
- Min
- -17.05%
Largest peers
- LLY
- 31.90%
- WST
- 18.81%
- AZN
- 17.68%
- NVS
- 17.49%
- JNJ
- 16.20%
- ABBV
- 15.67%
- MRK
- 3.64%
Operating Margin (TTM)
West Pharmaceutical Services (WST) turns 25.37% 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
25.37%
Group distribution
- Max
- 83.12%
- WST
- 25.37%
- Q3
- 14.77%
- Median
- 0.00%
- Q1
- -78.82%
- Min
- -207.40%
Largest peers
- LLY
- 53.66%
- ABBV
- 39.59%
- MRK
- 35.22%
- NVS
- 34.27%
- AZN
- 29.57%
- JNJ
- 25.74%
- WST
- 25.37%
Profitability Metrics
| Metric | Current stock: WST | Industry group median |
|---|---|---|
| ROE (TTM) | 21.23% | -26.66% |
| ROA (TTM) | 11.89% | -12.50% |
| Net Margin (TTM) | 18.81% | 0.00% |
| Operating Margin (TTM) | 25.37% | 0.00% |
| Gross Margin (TTM) | 37.59% | 37.87% |
Growth
Revenue Growth
West Pharmaceutical Services (WST) grew revenue 6.25%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.
EPS Growth
West Pharmaceutical Services (WST) grew earnings per share 1.49%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.
Growth Metrics
| Metric | Current stock: WST | Industry group median |
|---|---|---|
| Revenue Growth (YoY) | 6.25% | 11.45% |
| Revenue Growth (3Y CAGR) | 2.12% | 9.94% |
| EPS Growth (YoY) | 1.49% | 4.28% |
| EPS Growth (3Y CAGR) | -4.23% | 4.17% |
Financial Strength
Current Ratio (MRQ)
West Pharmaceutical Services (WST) has current ratio of 2.82, 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
2.82
Group distribution
- Max
- 25.13
- Q3
- 12.13
- Median
- 5.52
- WST
- 2.82
- Q1
- 2.47
- Min
- 0.10
Largest peers
- WST
- 2.82
- LLY
- 1.39
- MRK
- 1.35
- JNJ
- 1.02
- AZN
- 1.01
- NVS
- 0.88
- ABBV
- 0.87
Debt / Equity (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
- 1.42
- Q3
- 0.65
- Median
- 0.15
- WST
- 0.11
- Q1
- 0.02
- Min
- 0.00
Largest peers
- NVS
- 1.29
- LLY
- 1.23
- MRK
- 1.20
- AZN
- 0.66
- JNJ
- 0.55
- WST
- 0.11
- ABBV
- --
Financial Strength Metrics
| Metric | Current stock: WST | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 2.82 | 5.52 |
| Debt / Equity (MRQ) | 0.11 | 0.15 |
| Net Debt / EBITDA | -0.16 | 1.08 |
Dividends
Dividend Yield (TTM)
West Pharmaceutical Services (WST) has dividend yield of 0.22%, 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
0.22%
Group distribution
- WST
- 0.22%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- NVS
- 2.88%
- ABBV
- 2.40%
- MRK
- 2.29%
- JNJ
- 1.94%
- AZN
- 1.73%
- LLY
- 0.49%
- WST
- 0.22%
Dividend Payout Ratio (TTM)
West Pharmaceutical Services (WST) has payout ratio of 9.88%, 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
9.88%
Group distribution
- WST
- 9.88%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- MRK
- 343.43%
- ABBV
- 117.35%
- NVS
- 90.46%
- JNJ
- 80.12%
- AZN
- 45.38%
- LLY
- 21.71%
- WST
- 9.88%
Dividend Metrics
| Metric | Current stock: WST | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 0.22% | 0.00% |
| Dividend Payout Ratio (TTM) | 9.88% | 0.00% |
Valuation
P/E Ratio (TTM)
West Pharmaceutical Services (WST) trades at P/E ratio of 44.87, 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
44.87
Group distribution
- Max
- 85.34
- WST
- 44.87
- Q3
- 43.46
- Median
- 26.69
- Q1
- 13.30
- Min
- 0.07
Largest peers
- MRK
- 148.21
- ABBV
- 50.05
- WST
- 44.87
- LLY
- 43.95
- JNJ
- 41.92
- NVS
- 31.02
- AZN
- 26.37
P/S Ratio (TTM)
West Pharmaceutical Services (WST) trades at 8.20 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
8.20
Group distribution
- Max
- 58.18
- Q3
- 25.77
- WST
- 8.20
- Median
- 7.30
- Q1
- 3.01
- Min
- 0.01
Largest peers
- LLY
- 13.95
- WST
- 8.20
- ABBV
- 7.80
- JNJ
- 6.69
- MRK
- 5.37
- NVS
- 5.35
- AZN
- 4.63
P/B Ratio (MRQ)
West Pharmaceutical Services (WST) trades at 9.40 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
9.40
Group distribution
- Max
- 13.53
- WST
- 9.40
- Q3
- 6.54
- Median
- 3.25
- Q1
- 1.69
- Min
- -5.59
Largest peers
- LLY
- 29.96
- WST
- 9.40
- NVS
- 8.25
- JNJ
- 8.16
- MRK
- 8.06
- AZN
- 5.59
- ABBV
- -112.34
Valuation Metrics
| Metric | Current stock: WST | Industry group median |
|---|---|---|
| P/E Ratio (TTM) | 44.87 | 26.69 |
| P/S Ratio (TTM) | 8.20 | 7.30 |
| P/B Ratio (MRQ) | 9.40 | 3.25 |
| Free Cash Flow Yield (TTM) | 1.24% | -1.66% |