West Pharmaceutical Services Inc

Find Ratings Reports
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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



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
Debt/Capital0.170.23
Interest Expense3.04.0
Interest Coverage17.9311.3


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)73.1872.09
Div / share0.120.11
EPS0.50.02
Book value / share15.6113.81
Institutional Own % n/a n/a
Avg Daily Volume430122.0423677.0

Valuation


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.


Price/Earnings
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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
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.

 
Price/Book
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.

 
Price/Sales
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

 

 

Latest Stock Upgrades/Downgrades