West Pharmaceutical Services Inc.
Find Ratings ReportsWEST 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. 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 managed to increase its liquidity from the same period a year ago, despite already having strong liquidity to begin with. This would indicate improved cash flow.
During the same period, stockholders' equity ("net worth") has increased by 14.53% 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 | Q4 FY17 | Q4 FY16 |
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Net Sales ($mil) | 415.6 | 382.3 |
EBITDA ($mil) | 84.8 | 75.7 |
EBIT ($mil) | 59.9 | 52.9 |
Net Income ($mil) | 0.0 | 39.1 |
Balance Sheet | Q4 FY17 | Q4 FY16 |
---|---|---|
Cash & Equiv. ($mil) | 235.9 | 203.0 |
Total Assets ($mil) | 1862.8 | 1716.7 |
Total Debt ($mil) | 197.0 | 228.6 |
Equity ($mil) | 1279.9 | 1117.5 |
Profitability | Q4 FY17 | Q4 FY16 |
---|---|---|
Gross Profit Margin | 36.91 | 38.24 |
EBITDA Margin | 20.4 | 19.8 |
Operating Margin | 14.41 | 13.84 |
Sales Turnover | 0.86 | 0.88 |
Return on Assets | 8.08 | 8.36 |
Return on Equity | 11.77 | 12.85 |
Debt | Q4 FY17 | Q4 FY16 |
---|---|---|
Current Ratio | 2.66 | 2.66 |
Debt/Capital | 0.13 | 0.17 |
Interest Expense | 2.3 | 2.7 |
Interest Coverage | 26.04 | 19.59 |
Share Data | Q4 FY17 | Q4 FY16 |
---|---|---|
Shares outstanding (mil) | 73.9 | 73.1 |
Div / share | 0.14 | 0.13 |
EPS | 0.0 | 0.52 |
Book value / share | 17.32 | 15.29 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 423372.0 | 328169.0 |
BUY. The current P/E ratio indicates a significant discount compared to an average of 113.63 for the Health Care Equipment & Supplies industry and a significant premium compared to the S&P 500 average of 24.51. For additional comparison, its price-to-book ratio of 5.30 indicates a significant premium versus the S&P 500 average of 3.18 and a discount versus the industry average of 5.89. 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 |
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Price/Cash Flow |
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WST 46.11 | Peers 113.63 | WST 25.75 | Peers 47.46 | |||||||||||||||||||||
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. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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WST 27.60 | Peers 39.23 | WST 1.07 | Peers 1.03 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. WST is trading at a discount 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. |
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Price/Book |
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Earnings Growth |
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WST 5.30 | Peers 5.89 | WST 3.64 | Peers 4.58 | |||||||||||||||||||||
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. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, WST is expected to trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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WST 4.24 | Peers 5.92 | WST 5.96 | Peers 14.75 | |||||||||||||||||||||
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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