West Pharmaceutical Services Inc

Find Ratings Reports
WST : NYSE : Health Care
$80.04 up 1.60 | 2.10%
Today's Range: 77.01 - 80.61
Avg. Daily Volume: 461,800
07/28/16 - 3:59 PM ET

Financial Analysis


WEST PHARMACEUTICAL SVSC INC's gross profit margin for the first quarter of its fiscal year 2016 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 1.61 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has increased by 14.12% 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 Q1 FY16 Q1 FY15
Net Sales ($mil)362.1335.9
EBITDA ($mil)78.169.0
EBIT ($mil)55.847.0
Net Income ($mil)22.132.9


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)178.1207.1
Total Assets ($mil)1668.21596.0
Total Debt ($mil)232.0330.7
Equity ($mil)1074.0941.1


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin40.2139.21
EBITDA Margin21.5620.54
Operating Margin15.4113.99
Sales Turnover0.850.88
Return on Assets5.088.32
Return on Equity7.8914.12
Debt Q1 FY16 Q1 FY15
Current Ratio2.622.11
Debt/Capital0.180.26
Interest Expense3.24.4
Interest Coverage17.4410.68


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)73.0871.9
Div / share0.120.11
EPS0.30.45
Book value / share14.713.09
Institutional Own % n/a n/a
Avg Daily Volume464088.0361670.0

Valuation


BUY. This stock's P/E ratio indicates a premium compared to an average of 62.82 for the Health Care Equipment & Supplies industry and a significant premium compared to the S&P 500 average of 25.05. Conducting a second comparison, its price-to-book ratio of 5.27 indicates a significant premium versus the S&P 500 average of 2.81 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. After reviewing these and other key valuation criteria, WEST PHARMACEUTICAL SVSC INC proves to trade at a premium 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 67.31 Peers 62.82   WST 25.76 Peers 33.31

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

WST is trading at a valuation on par with 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 discount 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 29.43 Peers 29.14   WST 0.97 Peers 1.03

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
WST 5.27 Peers 4.84   WST -37.16 Peers 159.18

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.

 

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 3.97 Peers 4.71   WST 1.09 Peers 20.16

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

 

 

Latest Stock Upgrades/Downgrades