West Pharmaceutical Services Inc
Find Ratings Reports
-1.3 |
-1.5%
WEST PHARMACEUTICAL SVSC INC's gross profit margin for the second quarter of its fiscal year 2017 has decreased 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 1.62 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 11.98% 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 | Q2 FY17 | Q2 FY16 |
|---|---|---|
| Net Sales ($mil) | 397.6 | 388.0 |
| EBITDA ($mil) | 77.9 | 84.7 |
| EBIT ($mil) | 54.4 | 62.0 |
| Net Income ($mil) | 38.8 | 44.8 |
| Balance Sheet | Q2 FY17 | Q2 FY16 |
|---|---|---|
| Cash & Equiv. ($mil) | 226.6 | 202.7 |
| Total Assets ($mil) | 1843.0 | 1705.1 |
| Total Debt ($mil) | 229.5 | 231.4 |
| Equity ($mil) | 1242.4 | 1109.4 |
| Profitability | Q2 FY17 | Q2 FY16 |
|---|---|---|
| Gross Profit Margin | 37.35 | 40.21 |
| EBITDA Margin | 19.59 | 21.82 |
| Operating Margin | 13.68 | 15.98 |
| Sales Turnover | 0.84 | 0.85 |
| Return on Assets | 9.57 | 5.97 |
| Return on Equity | 14.19 | 9.17 |
| Debt | Q2 FY17 | Q2 FY16 |
|---|---|---|
| Current Ratio | 2.48 | 2.75 |
| Debt/Capital | 0.16 | 0.17 |
| Interest Expense | 2.8 | 2.8 |
| Interest Coverage | 19.43 | 22.14 |
| Share Data | Q2 FY17 | Q2 FY16 |
|---|---|---|
| Shares outstanding (mil) | 74.0 | 73.22 |
| Div / share | 0.13 | 0.12 |
| EPS | 0.51 | 0.6 |
| Book value / share | 16.79 | 15.15 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 334948.0 | 377032.0 |
BUY. The current P/E ratio indicates a significant discount compared to an average of 47.77 for the Health Care Equipment & Supplies industry and a significant premium compared to the S&P 500 average of 24.23. Conducting a second comparison, its price-to-book ratio of 5.08 indicates a significant premium versus the S&P 500 average of 3.02 and a premium versus the industry average of 4.79. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. The valuation analysis reveals that, WEST PHARMACEUTICAL SVSC INC seems to be trading at a discount to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| WST 36.46 | Peers 47.77 | WST 25.45 | Peers 37.41 | |||||||||||||||||||||
|
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. |
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 |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| WST 29.17 | Peers 32.84 | WST 0.89 | Peers 1.00 | |||||||||||||||||||||
|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations. WST is trading at a valuation on par with 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. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| WST 5.08 | Peers 4.79 | WST 70.80 | Peers 34.43 | |||||||||||||||||||||
|
Average. 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 valuation on par with 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. |
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| Price/Sales |
|
Sales Growth |
|
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| WST 4.09 | Peers 5.07 | WST 6.18 | Peers 11.44 | |||||||||||||||||||||
|
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 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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