West Pharmaceutical Services Inc

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WST : NYSE : Health Care
$92.72 up 8.7 | 10.0%
Today's Range: 88.0 - 93.78
Avg. Daily Volume: 352900.0
04/27/17 - 3:59 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. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. WEST PHARMACEUTICAL SVSC INC has strong liquidity. Currently, the Quick Ratio is 1.67 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 9.14% 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 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)1716.71695.1
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 Turnover0.880.83
Return on Assets8.365.63
Return on Equity12.859.33
Debt Q4 FY16 Q4 FY15
Current Ratio2.662.14
Interest Expense2.73.4
Interest Coverage19.5913.88

Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)73.172.3
Div / share0.130.12
Book value / share15.2914.16
Institutional Own % n/a n/a
Avg Daily Volume349244.0372501.0


BUY. WEST PHARMACEUTICAL SVSC INC's P/E ratio indicates a discount compared to an average of 44.36 for the Health Care Equipment & Supplies industry and a significant premium compared to the S&P 500 average of 24.92. Conducting a second comparison, its price-to-book ratio of 5.36 indicates a significant premium versus the S&P 500 average of 2.99 and a premium versus the industry average of 4.93. 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.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
WST 42.64 Peers 44.36   WST 27.28 Peers 26.92

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.


Average. 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 valuation on par to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
WST 27.85 Peers 32.13   WST 1.37 Peers 1.15

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.


Premium. 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 premium to its peers.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
WST 5.36 Peers 4.93   WST 47.69 Peers 99.98

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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
WST 3.97 Peers 4.94   WST 7.80 Peers 14.96

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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