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
Interest Expense0.02.7
Interest Coverage0.019.59

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


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.

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.

1 2 3 4 5
premium   discount
  Price to
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.

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.

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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