West Pharmaceutical Services Inc.
Find Ratings ReportsWEST PHARMACEUTICAL SVSC INC's gross profit margin for the fourth quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its subsector this quarter as compared to the same quarter a year ago. WEST PHARMACEUTICAL SVSC INC is extremely liquid. Currently, the Quick Ratio is 2.03 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 7.30% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
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Income Statement | Q4 FY23 | Q4 FY22 |
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Net Sales ($mil) | 732.0 | 708.7 |
EBITDA ($mil) | 205.6 | 191.6 |
EBIT ($mil) | 169.7 | 160.5 |
Net Income ($mil) | 137.0 | 103.0 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 853.9 | 894.3 |
Total Assets ($mil) | 3829.5 | 3616.8 |
Total Debt ($mil) | 309.0 | 317.9 |
Equity ($mil) | 2881.0 | 2684.9 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 42.9 | 41.37 |
EBITDA Margin | 28.08 | 27.03 |
Operating Margin | 23.18 | 22.65 |
Sales Turnover | 0.77 | 0.8 |
Return on Assets | 15.49 | 16.19 |
Return on Equity | 20.6 | 21.82 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 2.88 | 3.7 |
Debt/Capital | 0.1 | 0.11 |
Interest Expense | 3.1 | 3.2 |
Interest Coverage | 54.74 | 50.16 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 73.5 | 74.1 |
Div / share | 0.2 | 0.19 |
EPS | 1.83 | 1.36 |
Book value / share | 39.2 | 36.23 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 550171.0 | 402954.0 |
BUY. WEST PHARMACEUTICAL SVSC INC's P/E ratio indicates a significant premium compared to an average of 33.18 for the Plastics and Rubber Products Manufacturing subsector and a significant premium compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 10.19 indicates a significant premium versus the S&P 500 average of 4.68 and a significant premium versus the subsector average of 6.88. The price-to-sales ratio is well above both the S&P 500 average and the subsector average, indicating a premium. Upon assessment of these and other key valuation criteria, WEST PHARMACEUTICAL SVSC INC proves to trade at a premium to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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WST 50.68 | Peers 33.18 | WST 37.80 | Peers 20.50 | |||||||||||||||||||||
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. WST is trading at a significant premium to its peers. |
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. WST is trading at a significant premium to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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WST 44.38 | Peers 26.18 | WST NM | Peers 3.49 | |||||||||||||||||||||
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. WST is trading at a significant premium to its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. WST's negative PEG ratio makes this valuation measure meaningless. |
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Price/Book |
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Earnings Growth |
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WST 10.19 | Peers 6.88 | WST 2.07 | Peers -22.96 | |||||||||||||||||||||
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. WST is trading at a significant premium to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. WST is expected to have an earnings growth rate that significantly exceeds its peers. |
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Price/Sales |
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Sales Growth |
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WST 9.95 | Peers 4.73 | WST 2.17 | Peers -2.12 | |||||||||||||||||||||
Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. WST is trading at a significant premium to its subsector. |
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share. WST has a sales growth rate that significantly exceeds its peers. |
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