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West Pharmaceutical Services Inc (WST)

Overvalued
HealthcareMedical Instruments & SuppliesUnited States

Fundamental

66

Price

$370.76

Market Cap

$26.44B

Part 1 · What the company is worth

Overview

West Pharmaceutical Services, Inc. designs, manufactures, and sells containment and delivery systems for injectable drugs and healthcare products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates in two segments, Proprietary Products and Contract-Manufactured Products. The Proprietary Products segment offers stoppers and seals for injectable packaging systems; syringe and cartridge components, including custom solutions for the needs of injectable drug applications, as well as administration systems that enhance the safe delivery of drugs through advanced reconstitution, mixing, and transfer technologies; and films, coatings, washing, and vision inspection and sterilization processes and services to enhance the quality of packaging products. This segment also provides drug containment solutions in the form of vials, syringes, and cartridges; and self-injection devices; and a range of integrated solutions, including analytical lab services, pre-approval primary packaging support and engineering development, regulatory expertise, and after-sales technical support. This segment serves biologic, generic, and pharmaceutical drug companies. The Contract-Manufactured Products segment is involved in the design, manufacture, and automated assembly of devices used in surgical, diagnostic, ophthalmic, injectable, and other drug delivery systems, as well as consumer products. This segment primarily serves pharmaceutical, diagnostic, and medical device companies. It sells and distributes its products through its sales force and distribution network, contract sales agents, and regional distributors. West Pharmaceutical Services, Inc. was founded in 1923 and is headquartered in Exton, Pennsylvania.

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Direct competitors

Who this company fights with for the same customers

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No competitor list for this company yet.

Balance Sheet & Liquidity

Revenue

$3.33B

Trailing 12 months (through 6/30/2026)

Net Income

$565M

Trailing 12 months (through 6/30/2026)

Free Cash Flow

$469M

Total Equity

$3.18B

Total Liabilities

$1.09B

Current Ratio

2.82

Interest Coverage

151.20

Debt/EBITDA

0.42

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Historical statement

Margins over time

Debt over time

How heavy the debt is

Growth grid

Growth — Revenue

Fair Value Estimation

General caseOvervalued

Fair Value

$258.38

Current Price

$370.76

Margin of Safety

-43.5%

Fair Value Range

$167.95 - $348.82

Spread across the valuation methods used, not a statistically calibrated confidence interval.

Estimation Methods

Analyst price target:$407.56
Discounted cash flow (DCF):$111.64
Earnings multiple (P/E):$298.06
Graham growth formula:$171.74
Earnings power value (EPV):$69.50
Justified P/B:$93.50
Dividend discount (Gordon):$12.89
P/FFO, funds from operations:$151.21
Mid-cycle earnings:$125.31
Revenue multiple:$183.83
Analyst Consensus:Strong Buy (21B / 2H / 0S)
Last Earnings Surprise:+12.77%

Valuation Metrics

P/E Ratio

47.47

ROE

15.5%

P/B Ratio

8.73

P/FCF

59.72

Gross Margin

36.8%

ROIC

15.6%

Profitability Radar

Value Creation (Economic Moat)

ROIC

15.6%

WACC

10.7%

ROIC − WACC

+4.9 pp

ROIC exceeds the cost of capital — the company is creating value for shareholders.

Fundamental Analysis Criteria

Passed (21)

  • EPS shows upward trend
  • EPS CAGR 6.05%
  • Price CAGR 15.10%
  • ROIC 15.6%
  • Gross Margin 36.8%
  • Debt/Equity ratio
  • Operating Margin 20.5%
  • Positive Free Cash Flow
  • Current Ratio
  • Interest Coverage
  • Debt/EBITDA
  • Return on Tangible Assets
  • Low reliance on intangibles
  • ROE 18.5%
  • Revenue Growth 5Y 7.4%
  • Analyst Consensus 91% Buy
  • Earnings Surprise avg 16.0%
  • Earnings Quality (OCF/NI) 1.17
  • Share Dilution -1.3%
  • Net Margin Trend 17.0% vs 16.5%
  • Piotroski F-Score 7/9

Failed (6)

  • P/FCF 59.72
  • P/B Ratio 8.73
  • CapEx intensity
  • Price below Graham Number
  • DCF valuation (Overvalued)
  • PEG Ratio 5.59

Unavailable (1)

  • Dividend Payout NaN%

Piotroski F-Score

7/9

Strong financial health

score
criteria

Earnings Quality

1.17

High quality: earnings backed by cash

Share Dilution

-1.3%

Buying back shares. Shareholder friendly

Institutional Holdings

Governance

Executive Team

NameTitleAge
Mr. Robert W. McMahon C.M.A.Senior VP & CFO56
Ms. Annette F. FavoriteChief HR Officer & Senior VP60
Mr. Shane A. CampbellSVP & Chief Proprietary Segment Officer45
Mr. Michel LagardePresident, CEO & Director50
Mr. Chad R. WintersVP of Finance & Chief Accounting Officer46
Dr. Devesh MathurSenior VP & CTO-
Mr. John P. Sweeney C.F.A.Vice President of Investor Relations-
Mr. Norman D. Finch Jr.Senior VP, General Counsel & Corporate Secretary60
Ms. Michele PolinskyVice President of Global Communications-
Mr. Rudy J. PoussotSenior Vice President of Strategy & Corporate Development55

Audit Risk

10

Board Risk

9

Compensation Risk

5

Shareholder Rights Risk

4

Part 2 · The price and when to enter

This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.

Documents

  • Annual Report (10-K)

    A yearly overview of the business, its financial results, and the risks it faces.

    Filed on 2026-02-17

    View document
  • Quarterly Report (10-Q)

    A snapshot of financial performance for the most recent three-month period.

    Filed on 2026-07-23

    View document
  • Current Report (8-K)

    An announcement of a major event, such as a leadership change or big news.

    Filed on 2026-07-23

    View document

via SEC EDGAR

Income History

via SEC EDGAR

Latest News

Recent headlines for WST, sourced from Markets Gazette.

  • 4/23/2026POSITIVE
    West Pharmaceutical Lifts Annual Guidance After Strong GLP-1 Driven Growth In Q1

    West Pharmaceutical Services Inc. reported Q1 results that surpassed analyst expectations, driven by robust demand for GLP-1 drug delivery components. The company has consequently raised its full-year 2026 financial guidance, signaling strong confidence in continued growth. Furthermore, West Pharmaceutical announced a new $1 billion share repurchase program, indicating a commitment to returning capital to shareholders. This combination of exceeding current performance, improving future outlook, and enhancing shareholder value makes the stock an attractive prospect for investors.

via Markets Gazette