West Pharmaceutical Services Inc.

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WST : NYSE : Health Technology
$87.45 -0.89 | -1.01%
Today's Range: 85.69 - 87.61
Avg. Daily Volume: 311900.0
02/16/18 - 4:01 PM ET

Financial Analysis


WEST PHARMACEUTICAL SVSC INC's gross profit margin for the fourth quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased.

During the same period, stockholders' equity ("net worth") has increased by 14.53% from the same quarter last year.

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Income Statement Q4 FY17 Q4 FY16
Net Sales ($mil)415.6382.3
EBITDA ($mil)84.875.7
EBIT ($mil)59.952.9
Net Income ($mil)0.039.1


Balance Sheet Q4 FY17 Q4 FY16
Cash & Equiv. ($mil)235.9203.0
Total Assets ($mil)0.01716.7
Total Debt ($mil)197.0228.6
Equity ($mil)1279.91117.5


Profitability Q4 FY17 Q4 FY16
Gross Profit Margin36.9138.24
EBITDA Margin20.419.8
Operating Margin14.4113.84
Sales Turnover0.00.88
Return on Assets0.08.36
Return on Equity11.7712.85
Debt Q4 FY17 Q4 FY16
Current Ratio0.02.66
Debt/Capital0.130.17
Interest Expense0.02.7
Interest Coverage0.019.59


Share Data Q4 FY17 Q4 FY16
Shares outstanding (mil)74.2573.1
Div / share0.140.13
EPS0.00.52
Book value / share17.2415.29
Institutional Own % n/a n/a
Avg Daily Volume332980.0392990.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 106.37 for the Health Care Equipment & Supplies industry and a significant premium compared to the S&P 500 average of 25.51. For additional comparison, its price-to-book ratio of 5.13 indicates a significant premium versus the S&P 500 average of 3.26 and a discount versus the industry average of 5.71. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. Upon assessment of these and other key valuation criteria, WEST PHARMACEUTICAL SVSC INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
WST 44.39 Peers 106.37   WST 24.91 Peers 51.45

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

WST is trading at a significant discount to its peers.

 

Discount. 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 discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
WST 26.25 Peers 26.79   WST 0.90 Peers 0.85

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 premium to its peers.

 

Average. 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 trades at a valuation on par to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
WST 5.13 Peers 5.71   WST 3.64 Peers -2.55

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

WST is trading at a discount 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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
WST 4.10 Peers 5.74   WST 5.96 Peers 16.53

Discount. 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 discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

WST significantly trails its peers on the basis of sales growth

 

 

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