West Pharmaceutical Services Inc

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WST : NYSE : Health Care
$84.13 | %
Today's Range: 83.3 - 84.2
Avg. Daily Volume: 338300.0
02/24/17 - 4:02 PM ET

Financial Analysis


WEST PHARMACEUTICAL SVSC INC's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not.

During the same period, stockholders' equity ("net worth") has increased by 9.14% from the same quarter last year.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)382.3359.7
EBITDA ($mil)75.770.5
EBIT ($mil)52.947.2
Net Income ($mil)39.133.4


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)203.0274.6
Total Assets ($mil)0.01695.1
Total Debt ($mil)228.6298.2
Equity ($mil)1117.51023.9


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin38.2439.73
EBITDA Margin19.819.59
Operating Margin13.8413.12
Sales Turnover0.00.83
Return on Assets0.05.63
Return on Equity12.859.33
Debt Q4 FY16 Q4 FY15
Current Ratio0.02.14
Debt/Capital0.170.23
Interest Expense0.03.4
Interest Coverage0.013.88


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)73.1872.3
Div / share0.130.12
EPS0.520.45
Book value / share15.2714.16
Institutional Own % n/a n/a
Avg Daily Volume327492.0421391.0

Valuation


BUY. WEST PHARMACEUTICAL SVSC INC's P/E ratio indicates a discount compared to an average of 51.74 for the Health Care Equipment & Supplies industry and a significant premium compared to the S&P 500 average of 26.39. Conducting a second comparison, its price-to-book ratio of 5.44 indicates a significant premium versus the S&P 500 average of 2.94 and a premium versus the industry average of 4.84. 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
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
WST 43.30 Peers 51.74   WST 27.73 Peers 23.83

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 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 28.18 Peers 23.80   WST 0.46 Peers 0.68

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 significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
WST 5.44 Peers 4.84   WST 47.69 Peers 96.99

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

WST is trading at a premium 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 4.03 Peers 5.84   WST 7.80 Peers 17.18

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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