West Pharmaceutical Services Inc

Health Care
Medical/Dental Instruments
www.westpharma.com

Earnings Score
Moat Score
Safety Score
Final Score

Market Cap $15.25B
PE 31
Debt $203.00M
Cash $484.60M
EV $14.97B
FCF $276.40M

Earnings

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Sales & Net Margins

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Earnings	$492.70M
EBIT	$601.70M
ROE	18%
ROA	17%
FCF	$276.40M
Equity	$2.68B
Growth Stability	80%
PE	30.95
PEG	2.58
PB	5.68
P/FCF	55.17
P/S	5.27
Price/Cash	0.03
Debt/Equity	0.08
Debt/FCF	0.73
Net Margins	17%
Gross Margins	35%
Op. Margins	21%
Earnings CAGR	25%
Sales Growth YoY	2%
Sales Growth QoQ	0%
Sales CAGR	11%
FCF CAGR	25%
Equity CAGR	13%
Earnings Stability	0.85
Earnings Growth YoY	-5%
Earnings Growth QoQ	-4%
Earnings CAGR 5Y	12%

Sales CAGR 5Y	9%
FCF CAGR 5Y	7%
Equity CAGR 5Y	14%
Earnings CAGR 3Y	-0%
Sales CAGR 3Y	-0%
FCF CAGR 3Y	-9%
Equity CAGR 3Y	5%
Market Cap	$15.25B
Revenue	$2.89B
Dividend Yield	0%
Payout Ratio	12%
Assets	$3.64B
Total Debt	$203.00M
Cash	$484.60M
Shares Outstanding	72.3M
EV	14.97B
Earnings Score	94%
Moat Score	95%
Safety Score	95%
Final Score	95%
Working Capital	987.7M
Current Ratio	2.79
Gross Profit	$998.50M
Shares Growth 3y	-1%
Equity Growth QoQ	-3%
Equity Growth YoY	-7%

Assets & ROA

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Stockholders Equity & ROE

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West Pharmaceutical Services is a Pennsylvania-based medical supplies company that operates as a key supplier to firms in the pharmaceutical, biotechnology, and generic drug industries. West develops, manufactures, and distributes elastomer-based supplies for the containment and administration of injectable drugs, including basic equipment such as syringes, stoppers, and plungers, along with somewhat more complicated devices including auto-injectors and other self-injection platforms. The company reports in two segments: proprietary products (82% of 2021 sales) and contract-manufactured products (18%). It generates 55% of its revenue from international markets and 45% from the United States.

SEC Filings

Direct access to West Pharmaceutical Services Inc (WST) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does West Pharmaceutical Services Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of West Pharmaceutical Services Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 25%

Stability 85%

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West Pharmaceutical Services Inc Discounted Cash Flow

Fully customizable DCF calculator online for West Pharmaceutical Services Inc.

Years

Calculation mode

= $16B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$276M	$345M	$430M	$536M	$668M	$833M	$1B	$1.3B	$1.6B	$2B	$2.5B	$25B
DCF		$313M	$355M	$403M	$456M	$517M	$586M	$664M	$753M	$854M	$968M	$9.7B
Value	$16B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Net Margins	7%	10%	9%	12%	13%	16%	23%	20%	20%	17%	17%
ROA	-	12%	13%	13%	13%	15%	23%	20%	19%	17%	17%
ROE	-	13%	12%	15%	15%	19%	28%	22%	21%	18%	18%

Good Net Margins (17.03%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Debt over FCF	-	4.7	1.49	1.07	1.08	0.87	0.9	0.48	0.82	0.73	0.73
Debt over Equity	0.36	0.21	0.15	0.14	0.17	0.14	0.13	0.08	0.12	0.08	0.08
Growth Stability	-	-	-	100%	100%	100%	100%	100%	100%	80%	80%

Good Debt/FCF ratio (0.73)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Good Debt/Equity ratio (0.08)

The company is not overleveraged and has a good balance between equity and debt.

Neutral Graham’s Stability (80%)

The company has a stability in its earnings that is not too good nor too bad.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	CAGR 5Y
Revenue YoY growth	-	8%	6%	7%	7%	17%	32%	2%	2%	-2%	9%
Earnings YoY growth	-	50%	5%	37%	17%	43%	91%	-11%	1%	-17%	12%
Equity YoY growth	-	9%	15%	9%	13%	18%	26%	15%	7%	-7%	14%
FCF YoY growth	-	-39%	169%	39%	31%	24%	11%	33%	-6%	-33%	7%