West Pharmaceutical Services Inc WST

Morningstar Rating
$364.98 −0.03 (0.01%)
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Company Report

West Pharmaceutical's Long-Term Growth Intact

West Pharmaceutical Services is the global market leader in primary packaging and delivery components for injectable therapeutics. Primary packaging has direct contact with the drug product and must be manufactured to ensure stability, purity, and sterility of the drug product in accordance with strict regulatory standards. Because of the mission-critical nature of these components, it is important for customers to trust the quality of manufacturing and design. Key product lines include elastomer components such as stoppers, seals, and plungers, Daikyo Crystal Zenith vials made out of polymer instead of glass, and auto-injectors. Injectables include not only older modalities like small-molecule drugs, insulin, and vaccines but also biologics and GLP-1 obesity drugs.

Price vs Fair Value

WST is trading at a LOCK|FcP!%R premium.
Price
$365.01
Fair Value
KVM
Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

West’s top-line growth is likely to be buoyed by secular trends in injectable drugs, especially increasing use of biologic drugs.

Bears

Many of West’s products and services could be insourced by customers, and a reversal of higher outsourcing could occur if customers decide they want more control over the supply chain.

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Trading Information

Previous Close Price
$365.01
Day Range
$363.26–368.85
52-Week Range
$223.83–386.00
Bid/Ask
$364.69 / $388.00
Shares Outstanding
70.38M
Market Cap
$25.69B
Volume/Avg
473,013 / 644,766

Key Statistics

Price/Earnings (Normalized)
42.94
Price/Sales
7.93
Dividend Yield (Trailing)
0.24%
Dividend Yield (Forward)
0.24%
Dividend Payment Schedule
Feb, May, Aug, Nov
Total Yield
2.02%

Company Profile

West Pharmaceutical Services is based in Pennsylvania and is a key supplier to firms in the pharmaceutical, biotechnology, and generic drug industries. West sells elastomer-based packaging components (including stoppers, seals, and plungers), nonglass containment solutions, and auto-injectors for injectable drugs, which include large-molecule biologics, peptides such as GLP-1 receptor agonists, and small-molecule drugs. The company reports in two segments: proprietary products (about 80% of total revenue) and contract-manufactured products (about 20% of total revenue). It generates approximately 55% of its revenue from international markets and 45% from the United States.
Sector
Healthcare
Industry
Medical Instruments & Supplies
Stock Style Box
Mid Growth
Total Number of Employees
10,800

Competitors

Valuation

Metric
WST
BDX
PODD
Price/Earnings (Normalized)
42.9413.7022.28
Price/Book Value
8.591.996.38
Price/Sales
7.932.513.06
Price/Cash Flow
34.3713.4415.15
Price/Earnings
WST
BDX
PODD

Financial Strength

Metric
WST
BDX
PODD
Quick Ratio
1.790.361.51
Current Ratio
2.820.942.48
Interest Coverage
150.983.539.04
Quick Ratio
WST
BDX
PODD

Profitability

Metric
WST
BDX
PODD
Return on Assets (Normalized)
14.96%4.97%13.00%
Return on Equity (Normalized)
20.28%10.63%29.07%
Return on Invested Capital (Normalized)
18.06%7.26%17.78%
Return on Assets
WST
BDX
PODD

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