West Pharmaceutical Services Inc

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WST : NYSE : Health Care
$84.21 | %
Today's Range: 83.75 - 84.98
Avg. Daily Volume: 436400.0
12/09/16 - 4:02 PM ET

Financial Analysis

WEST PHARMACEUTICAL SVSC INC's gross profit margin for the third quarter of its fiscal year 2016 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 industry this quarter as compared to the same quarter a year ago. WEST PHARMACEUTICAL SVSC INC has strong liquidity. Currently, the Quick Ratio is 1.75 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 14.76% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)376.7344.5
EBITDA ($mil)76.767.6
EBIT ($mil)53.845.2
Net Income ($mil)37.61.5

Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)205.9256.8
Total Assets ($mil)1735.31666.5
Total Debt ($mil)231.2302.5
Equity ($mil)1142.3995.3

Profitability Q3 FY16 Q3 FY15
Gross Profit Margin38.2337.94
EBITDA Margin20.3619.62
Operating Margin14.2813.12
Sales Turnover0.860.83
Return on Assets7.945.61
Return on Equity12.079.4
Debt Q3 FY16 Q3 FY15
Current Ratio2.782.27
Interest Expense3.04.0
Interest Coverage17.9311.3

Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)73.1872.09
Div / share0.120.11
Book value / share15.6113.81
Institutional Own % n/a n/a
Avg Daily Volume430122.0423677.0


BUY. The current P/E ratio indicates a significant discount compared to an average of 56.77 for the Health Care Equipment & Supplies industry and a significant premium compared to the S&P 500 average of 25.45. To use another comparison, its price-to-book ratio of 5.34 indicates a significant premium versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 7.32. 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.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
WST 45.08 Peers 56.77   WST 28.25 Peers 22.21

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

WST is trading at a discount 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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
WST 32.57 Peers 22.66   WST 0.65 Peers 0.86

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.


Discount. 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 discount to its peers.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
WST 5.34 Peers 7.32   WST 44.53 Peers 87.49

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 significant discount to its peers.


Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, WST is expected to significantly trail its peers on the basis of its earnings growth rate.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
WST 4.11 Peers 6.51   WST 6.95 Peers 17.25

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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