West Pharmaceutical Services Inc

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WST : NYSE : Health Care
$96.42 | %
Today's Range: 96.06 - 96.9
Avg. Daily Volume: 336900.0
06/23/17 - 4:03 PM ET

Financial Analysis


WEST PHARMACEUTICAL SVSC INC's gross profit margin for the first quarter of its fiscal year 2017 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 1.54 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 8.80% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)387.7362.1
EBITDA ($mil)85.578.1
EBIT ($mil)62.255.8
Net Income ($mil)60.922.1


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)169.4178.1
Total Assets ($mil)1733.51668.2
Total Debt ($mil)228.6232.0
Equity ($mil)1168.61074.0


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin40.640.21
EBITDA Margin22.0521.56
Operating Margin16.0415.41
Sales Turnover0.890.85
Return on Assets10.525.08
Return on Equity15.67.89
Debt Q1 FY17 Q1 FY16
Current Ratio2.542.62
Debt/Capital0.160.18
Interest Expense2.73.2
Interest Coverage23.0417.44


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)73.673.08
Div / share0.130.12
EPS0.810.3
Book value / share15.8814.7
Institutional Own % n/a n/a
Avg Daily Volume354739.0336194.0

Valuation


BUY. WEST PHARMACEUTICAL SVSC INC's P/E ratio indicates a discount compared to an average of 43.59 for the Health Care Equipment & Supplies industry and a significant premium compared to the S&P 500 average of 25.73. Conducting a second comparison, its price-to-book ratio of 6.06 indicates a significant premium versus the S&P 500 average of 3.08 and a premium versus the industry average of 4.97. The current price-to-sales ratio is well above the S&P 500 average, but 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 39.60 Peers 43.59   WST 29.69 Peers 27.54

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
WST 32.08 Peers 24.69   WST 0.91 Peers 0.97

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.

 

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 6.06 Peers 4.97   WST 111.30 Peers 116.03

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.

 

Average. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

WST is expected to keep pace with its peers on the basis of earnings growth.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
WST 4.62 Peers 5.06   WST 7.62 Peers 14.46

Average. 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 valuation on par with 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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