West Pharmaceutical Services (WST)
Health Care · $25.7B market cap · SEC CIK 0000105770
fundamentals score out of 100
Next reports on Oct 21, 2026, before the open, with analysts expecting $2.21 in earnings per share.
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 12.4% year over year.
- Return on equity of 19%.
- Current assets cover the near-term bills 2.8 times over.
- Within 4% of its 52-week high: the trend is up.
The case against
- Pricey at 45.5× earnings, against a long-run market average nearer 20×.
- Free-cash-flow yield of 1.8% 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. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 25 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 61 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 66 |
| Momentumhow the price has behaved lately | 83 |
| Stabilityhow violently it moves, what it owes and what it pays you | 54 |
- Each factor except momentum is half fixed thresholds, half rank among the 59 Health Care companies.
Key numbers
| Price / earnings | 45.5× |
|---|---|
| Price / book | 8.48× |
| Price / sales | 7.7× |
| Revenue growth (YoY) | +12.4% |
| EPS growth (YoY) | +17.2% |
| Gross margin | 37% |
| Operating margin | 20% |
| Net margin | 17% |
| Return on equity | 19% |
| Debt / equity | 0.07× |
| Current ratio | 2.82 |
| Dividend yield | 0.33% |
| Beta | 1.16 |
| 52-week range | $223.83 – $386.00 |
| Position in that range | 91% of the way up |
| 3-month return | +10.3% |
| 1-year return | +42.0% |
Five years of financials, as filed
Pulled from West Pharmaceutical Services's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $3.1B | $2.9B | $2.9B | $2.9B | $2.8B |
| Gross profit | $1.1B | $999M | $1.1B | $1.1B | $1.2B |
| Operating income | $585M | $570M | $676M | $734M | $752M |
| Net income | $494M | $493M | $593M | $586M | $662M |
| Operating cash flow | $755M | $653M | $777M | $724M | $584M |
| Capital expenditure | $286M | $377M | $362M | $285M | $253M |
| Total assets | $4.3B | $3.6B | $3.8B | $3.6B | $3.3B |
| Total liabilities | $1.1B | $961M | $949M | $932M | $978M |
| Shareholder equity | $3.2B | $2.7B | $2.9B | $2.7B | $2.3B |
| Cash | $791M | $485M | $854M | $894M | $763M |
| Long-term debt | $203M | $203M | $72.8M | $207M | $209M |
| Free cash flow | $469M | $276M | $415M | $439M | $331M |
| Gross margin | 35.9% | 34.5% | 38.3% | 39.4% | 41.5% |
| Operating margin | 19.0% | 19.7% | 22.9% | 25.4% | 26.6% |
| Net margin | 16.1% | 17.0% | 20.1% | 20.3% | 23.4% |
| Diluted shares | 72.7M | 73.7M | 75.3M | 75.8M | 76.3M |
Share count is down 4.7% over 4 years. Buybacks have been shrinking the pie.
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
- Research and Development Activities
- Training, Compliance and Talent Development
- Corporate Sustainability Commitment
- Investors - Financial - Annual Reports & Proxy
- 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