West Pharmaceutical Services (WST)

Health Care · $28.8B market cap · SEC CIK 0000105770

Next reports on Feb 10, 2027, after the close, with analysts expecting $2.31 in earnings per share.

52-week range $223.83 to $438.27. 6% below its 52-week high and 84% above its low.

The case for WST

• Generated $469M of free cash flow in FY2025, 15% of revenue.
• Holds more cash ($791M) than long-term debt ($203M).
• Revenue growing 12.6% year over year.
• Earnings per share up 32.1%.
• Return on equity of 21%.
• Current assets cover the near-term bills 2.8 times over.

The case against

• Expensive for its growth: 45.0× earnings, where 9% a year of growth would justify about 23×.
• Free-cash-flow yield of 1.6% is lower than 91% of Health Care companies.

What the score is made of

Each factor is half a curve over reported figures and half a rank among the other Health Care companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.

• Each factor except momentum is half fixed thresholds, half rank among the 59 Health Care companies.

The financials

The financials, five years deep

Pulled from West Pharmaceutical Services's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.

What West Pharmaceutical Services says it does

We are a leading global manufacturer in the design and production of technologically advanced, high-quality, integrated containment and delivery systems for injectable drugs and healthcare products. Our products include a variety of primary proprietary packaging, containment solutions, reconstitution and transfer systems, and drug delivery systems, as well as contract manufacturing, analytical lab services and integrated solutions. Our customers include leading biologic, generic, pharmaceutical, diagnostic, and medical device companies in the world. Our top priority is delivering quality products that meet the exact product specifications and quality standards customers require and expect. This focus on quality includes a commitment to excellence in manufacturing, scientific and technical expertise and management, which enables us to partner with our customers in order to deliver safe, effective drug products to patients quickly and…

Risk factors WST lists in its 10-K

• Global economic conditions, including inflation and supply chain disruptions, could adversely affect our operations
• Unauthorized access to our or our customers’ information and systems could negatively impact our business
• We are a global company with significant revenues and earnings generated internationally, which exposes us to the impact of foreign currency fluctuations and tariffs, as well as political and economic risks
• We are exposed to credit risk on accounts receivable and certain prepayments made in the normal course of business. This risk is heightened during periods when economic conditions worsen
• Unstable market and economic conditions and adverse developments with respect to financial institutions and associated liquidity risk may have serious adverse consequences on our business and financial condition
• If we are unable to provide comparative value advantages, timely fulfill customer orders, or resist pricing pressure, we will have to reduce our prices, which may reduce our profit margins
• Consolidation in the pharmaceutical and healthcare industries could adversely affect our future revenues and operating income
• The medical technology industry is very competitive and customer requests and/or new products in the marketplace could cause a reduction in demand
• Disruption in our manufacturing facilities could have a material adverse effect on our ability to make and sell products and have a negative impact on our reputation, performance or financial condition
• Our international sales and operations are subject to risks and uncertainties that vary by country and which could have a material adverse effect on our business and/or results of operations
• Disruptions in the supply of key raw materials could adversely impact our operations
• If we are not timely or successful in new-product innovation or the development and commercialization of proprietary multi-component systems, our future revenues and operating income could be adversely affected
• We may not succeed in completing divestitures, acquisitions or other strategic transactions, all of which could have an adverse effect on our business and results of operations
• Product defects could adversely affect the results of our operations
• A loss of or inability to attract key personnel or highly skilled employees could disrupt our operations
• The concentration of our customer base could adversely affect our financial condition and operating results
• We may be unable to increase capacity or efficiency at our own manufacturing facilities, which could adversely affect our business, financial condition, and results of operations
• No assurance can be given that we will continue to pay or declare dividends
• We are subject to regulation by governments around the world, and if these regulations are not complied with, existing and future operations may be curtailed, and we could be subject to liability
• Changes in the regulation of drug products and devices may increase competitive pressure and adversely affect our business
• If we are not successful in protecting our intellectual property rights, our ability to compete may be affected
• Significant developments in U.S. tax policies could have a material adverse effect on our business and/or results of operations
• Changing climate, global climate change regulations and greenhouse gas effects may adversely affect our operations and financial performance
• Failure to comply with anti-bribery, anti-corruption and anti-money laundering laws could subject us to penalties and other adverse consequences
• Our operations must comply with environmental statutes and regulations, and any failure to comply could result in extensive costs which would harm our business
• Changes in reimbursement practices of third-party payers or other cost containment measures, including changes to applicable laws and regulations, could affect the demand for our products and the prices at which they are sold
• Our share price has been volatile and may fluctuate, and accordingly, the value of an investment in our common stock may also fluctuate

Filings

Other Health Care companies