A Business at a Glance
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WEST PHARMACEUTICAL SERVICES INC
WST
$23.9B
Mkt Cap
$328.20
-7.67%
WEST PHARMACEUTICAL SERVICES INC (WST) has a current P/E ratio of 48.3, compared to its historical median P/E of 45.5. The stock is currently considered Fair based on its historical valuation range.
WEST PHARMACEUTICAL SERVICES INC (WST) has a 5-year average return on invested capital (ROIC) of 25.5%. This indicates strong capital allocation and a potential competitive advantage.
WEST PHARMACEUTICAL SERVICES INC (WST) has a market capitalization of $23.3B. It is classified as a large-cap stock.
Yes, WEST PHARMACEUTICAL SERVICES INC (WST) pays a dividend with a trailing twelve-month yield of 0.27%. The company also returns capital through share buybacks, with a buyback yield of 1.28%.
Based on historical P/E analysis, WEST PHARMACEUTICAL SERVICES INC (WST) appears fair. The current P/E of 48.3 is 6% above its historical median of 45.5. The estimated fair value CAGR (P/E method) is 14.0%.
WEST PHARMACEUTICAL SERVICES INC (WST) operates in the Surgical & Medical Instruments & Apparatus industry, within the Healthcare sector.
West Pharmaceutical Services is a leading global manufacturer of technologically advanced, integrated containment and delivery systems for injectable drugs and healthcare products, serving biologic, generic, pharmaceutical, diagnostic, and medical device companies worldwide. The company operates through two segments: Proprietary Products, which offers elastomers, primary containment components (stoppers, seals, syringes, cartridges), drug delivery devices (self-injection systems, reconstitution and transfer technologies), vials, and integrated solutions including analytical lab services and regulatory expertise; and Contract-Manufactured Products, which provides custom device design, manufacturing, and automated assembly for pharmaceutical, diagnostic, and medical device customers using technologies such as multi-component molding, ultrasonic welding, and clean room molding. The business model is characterized by long-term customer relationships with leading pharmaceutical and medical device companies, with distribution primarily through West's own sales force and distribution network, supported by specialized manufacturing capabilities across North America, South America, Europe, and Asia. The company's competitive moat derives from proprietary technologies, regulatory expertise, quality reputation, global manufacturing scale with multi-site production capability, and integrated service offerings that differentiate it from competitors such as Datwyler and Aptar in proprietary products and regional and global contract manufacturers in device assembly. International operations represent a significant portion of the business, with sales outside the U.S. accounting for 56.7% of consolidated net sales in 2025, exposing the company to currency fluctuations and multiple tax jurisdictions.
【Strong injectable market momentum】 Management expects the injectable market to continue improving throughout 2026, driven by GLP-1 adoption expanding the market rather than cannibalizing injectables, with penetration still in early stages at low single-digit levels and new injectable GLP-1 generics launching in multiple geographies. The company anticipates broad-based growth with HVP components as the primary driver, supported by non-GLP-1 biologics recovery, Annex 1 regulatory upgrade conversions, and drug handling commercialization at the Dublin facility, while maintaining pricing discipline and operational leverage. Management is confident in capacity expansion initiatives, particularly in Europe, to meet rising demand and expects margin expansion of over 100 basis points in 2026 driven by favorable product mix, operational efficiency improvements, and the SmartDose divestiture. The company is pursuing strategic capital allocation including a new $1 billion share repurchase authorization while maintaining disciplined capital expenditure guidance of $250–$275 million for 2026.
| Metric | Target | Period |
|---|---|---|
| Revenue | $3.295 billion–$3.35 billion | FY2026 |
| Organic revenue growth | 7%–9% | FY2026 |
| Adjusted EPS | $8.40–$8.75 | FY2026 |
| Capital expenditures | $250 million–$275 million | FY2026 |
| HVP components organic growth | low to mid-teens | FY2026 |
| Non-GLP-1 HVP components organic growth | low double digits | FY2026 |
| GLP-1 HVP components organic growth | mid- to high teens | FY2026 |
| Annex 1 and HVP conversion revenue growth contribution | 200 basis points | FY2026 |
Revenue (FY2026): “For the year, we now anticipate revenue to be in the range of $3.295 billion-$3.35 billion”
Organic revenue growth (FY2026): “we now anticipate full year organic revenue growth back to our long-term construct of 7%-9%”
Adjusted EPS (FY2026): “adjusted EPS increase to the range of $8.40-$8.75”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 3.2B | 3.1B | 2.9B | 2.9B | 2.9B | 2.8B |
| Net Income | 543M | 494M | 493M | 593M | 586M | 662M |
| EPS | $7.57 | $6.79 | $6.69 | $7.88 | $7.73 | $8.67 |
| Free Cash Flow | 458M | 469M | 276M | 415M | 439M | 331M |
| ROIC | 19.4% | 18.3% | 19.7% | 25.7% | 31.0% | 33.0% |
| Gross Margin | 36.3% | 35.9% | 34.5% | 38.3% | 39.4% | 41.5% |
| Debt/Equity | 0.07 | 0.10 | 0.11 | 0.11 | 0.12 | 0.14 |
| Dividends/Share | $0.87 | $0.86 | $0.82 | $0.78 | $0.74 | $0.70 |
| Operating Income | 655M | 585M | 570M | 676M | 734M | 752M |
| Operating Margin | 20.3% | 19.0% | 19.7% | 22.9% | 25.4% | 26.6% |
| ROE | 18.1% | 16.9% | 17.7% | 21.3% | 23.3% | 31.6% |
| Shares Outstanding | 71M | 73M | 74M | 75M | 76M | 76M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 1.4B | 1.4B | 1.5B | 1.6B | 1.7B | 1.8B | 2.1B | 2.8B | 2.9B | 2.9B | 2.9B | 3.1B | 3.2B |
| Gross Margin | 31.5% | 32.6% | 33.2% | 32.1% | 31.8% | 32.9% | 35.8% | 41.5% | 39.4% | 38.3% | 34.5% | 35.9% | 36.3% |
| R&D | 37M | 34M | 37M | 39M | 40M | 39M | 47M | 53M | 59M | 68M | 69M | 74M | 74M |
| SG&A | 229M | 233M | 240M | 246M | 263M | 273M | 302M | 363M | 317M | 353M | 339M | 394M | 405M |
| EBIT | 182M | 129M | 195M | 226M | 240M | 297M | 407M | 752M | 734M | 676M | 570M | 585M | 655M |
| Op. Margin | 12.8% | 9.2% | 12.9% | 14.1% | 14.0% | 16.1% | 19.0% | 26.6% | 25.4% | 22.9% | 19.7% | 19.0% | 20.3% |
| Net Income | 127M | 96M | 144M | 151M | 207M | 242M | 346M | 662M | 586M | 593M | 493M | 494M | 543M |
| Net Margin | 8.9% | 6.8% | 9.5% | 9.4% | 12.0% | 13.1% | 16.1% | 23.4% | 20.3% | 20.1% | 17.0% | 16.1% | 16.8% |
| Non-Recurring | -300K | -400K | 43M | -1.6M | 7.1M | 4.2M | -3.1M | 1.7M | 30M | 800K | 9.8M | 36M | 26M |
| Returns on Capital | |||||||||||||
| ROIC | 10.5% | 9.6% | 10.7% | 11.4% | 13.3% | 13.8% | 18.7% | 33.0% | 31.0% | 25.7% | 19.7% | 18.3% | 19.4% |
| ROE | 13.6% | 9.7% | 13.4% | 12.6% | 15.5% | 16.3% | 20.2% | 31.6% | 23.3% | 21.3% | 17.7% | 16.9% | 18.1% |
| ROA | 7.6% | 5.7% | 8.4% | 8.4% | 10.8% | 11.2% | 13.5% | 21.7% | 16.9% | 15.9% | 13.2% | 12.5% | 13.2% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 183M | 212M | 219M | 263M | 289M | 367M | 473M | 584M | 724M | 777M | 653M | 755M | 715M |
| Free Cash Flow | 71M | 81M | 49M | 133M | 184M | 241M | 298M | 331M | 439M | 415M | 276M | 469M | 458M |
| Owner Earnings | 74M | 93M | 109M | 150M | 169M | 239M | 329M | 424M | 580M | 616M | 479M | 560M | 510M |
| CapEx | 112M | 132M | 170M | 131M | 105M | 126M | 174M | 253M | 285M | 362M | 377M | 286M | 257M |
| Maint. CapEx | 90M | 90M | 91M | 97M | 104M | 103M | 109M | 122M | 121M | 137M | 155M | 171M | 177M |
| Growth CapEx | 22M | 42M | 79M | 34M | 300K | 23M | 65M | 131M | 164M | 225M | 222M | 114M | 81M |
| D&A | 90M | 90M | 91M | 97M | 104M | 103M | 109M | 122M | 121M | 137M | 155M | 171M | 177M |
| CapEx/OCF | 61.2% | 62.0% | 77.6% | 49.7% | 36.3% | 34.4% | 36.9% | 43.4% | 39.3% | 46.6% | 57.7% | 37.9% | 36.0% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 29M | 32M | 36M | 39M | 42M | 45M | 48M | 51M | 54M | 57M | 59M | 61M | 62M |
| Dividend Yield | 0.9% | 0.8% | 0.7% | 0.6% | 0.6% | 0.5% | 0.3% | 0.2% | 0.2% | 0.2% | 0.2% | 0.3% | 0.3% |
| Share Buybacks | 0 | 0 | 52M | 74M | 71M | 83M | 116M | 137M | 203M | 438M | 561M | 134M | 298M |
| Buyback Yield | N/A | N/A | 0.8% | 1.0% | 1.0% | 0.7% | 0.6% | 0.4% | 1.2% | 1.7% | 2.3% | 0.7% | 1.3% |
| Stock-Based Comp | 19M | 30M | 20M | 16M | 15M | 24M | 34M | 38M | 24M | 23M | 19M | 24M | 29M |
| Debt Repayment | 283M | 27M | 70M | 35M | 0 | 1.2M | 0 | 0 | 44M | 2.3M | 169M | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | 71M | 24M | 26M | -39M | -141M | -110M | -290M | -437M | -576M | -545M | -182M | -470M | -319M |
| Cash & Equiv. | 255M | 275M | 203M | 236M | 337M | 439M | 616M | 763M | 894M | 854M | 485M | 791M | 521M |
| Long-Term Debt | 308M | 229M | 226M | 197M | 196M | 255M | 253M | 209M | 207M | 73M | 203M | 203M | 203M |
| Debt/Equity | 0.35 | 0.29 | 0.20 | 0.15 | 0.14 | 0.21 | 0.18 | 0.14 | 0.12 | 0.11 | 0.11 | 0.10 | 0.07 |
| Interest Coverage | 11.0 | 9.1 | 24.1 | 28.9 | 28.6 | 34.9 | 49.6 | 91.7 | 92.9 | 75.1 | 35.2 | 38.7 | 38.7 |
| Equity | 957M | 1.0B | 1.1B | 1.3B | 1.4B | 1.6B | 1.9B | 2.3B | 2.7B | 2.9B | 2.7B | 3.2B | 3.0B |
| Total Assets | 1.7B | 1.7B | 1.7B | 1.9B | 2.0B | 2.3B | 2.8B | 3.3B | 3.6B | 3.8B | 3.6B | 4.3B | 4.1B |
| Total Liabilities | 713M | 671M | 599M | 583M | 583M | 768M | 939M | 978M | 932M | 949M | 961M | 1.1B | 1.1B |
| Intangibles | 42M | 38M | 23M | 22M | 20M | 30M | 31M | 23M | 18M | 15M | 11M | 7.7M | 7.0M |
| Retained Earnings | 902M | 965M | 1.1B | 1.2B | 1.4B | 1.5B | 1.8B | 2.5B | 3.0B | 3.5B | 4.0B | 4.4B | 4.5B |
| Working Capital | 407M | 359M | 401M | 464M | 611M | 717M | 870M | 1.1B | 1.4B | 1.3B | 988M | 1.3B | 1.2B |
| Current Assets | 659M | 674M | 642M | 744M | 894M | 1.1B | 1.4B | 1.7B | 1.9B | 1.9B | 1.5B | 2.0B | 1.8B |
| Current Liabilities | 253M | 314M | 241M | 280M | 284M | 342M | 503M | 594M | 519M | 672M | 550M | 655M | 674M |
| Per Share Data | |||||||||||||
| EPS | 1.75 | 1.30 | 1.91 | 1.99 | 2.74 | 3.21 | 4.57 | 8.67 | 7.73 | 7.88 | 6.69 | 6.79 | 7.57 |
| Owner EPS | 1.02 | 1.26 | 1.45 | 1.99 | 2.24 | 3.18 | 4.35 | 5.56 | 7.65 | 8.18 | 6.51 | 7.70 | 7.19 |
| Book Value | 13.18 | 13.92 | 14.86 | 16.90 | 18.49 | 20.89 | 24.48 | 30.60 | 35.42 | 38.26 | 36.42 | 43.68 | 42.18 |
| Cash Flow/Share | 2.52 | 2.89 | 2.92 | 3.48 | 3.82 | 4.88 | 6.24 | 7.65 | 9.55 | 10.31 | 8.87 | 10.38 | 10.15 |
| Dividends/Share | 0.41 | 0.46 | 0.50 | 0.54 | 0.58 | 0.62 | 0.66 | 0.70 | 0.74 | 0.78 | 0.82 | 0.86 | 0.87 |
| Shares Out. | 72.6M | 73.5M | 75.2M | 75.7M | 75.5M | 75.3M | 75.8M | 76.3M | 75.8M | 75.3M | 73.6M | 72.7M | 70.9M |
| Valuation | |||||||||||||
| P/E Ratio | 29.3 | 45.9 | 42.9 | 48.4 | 34.4 | 46.2 | 59.9 | 53.0 | 29.7 | 44.7 | 49.6 | 40.4 | 43.3 |
| P/FCF | 52.5 | 54.3 | 125.3 | 55.1 | 38.7 | 46.4 | 69.6 | 106.1 | 39.5 | 64.1 | 88.4 | 42.5 | 50.8 |
| EV/EBIT | 19.5 | 32.1 | 30.7 | 31.1 | 27.6 | 35.6 | 48.6 | 44.9 | 21.5 | 37.1 | 41.5 | 31.7 | 35.0 |
| Price/Book | 3.9 | 4.3 | 5.5 | 5.7 | 5.1 | 7.1 | 11.2 | 15.0 | 6.5 | 9.2 | 9.1 | 6.3 | 7.8 |
| Price/Sales | 2.2 | 2.9 | 3.5 | 4.2 | 4.4 | 5.1 | 7.8 | 9.7 | 8.2 | 8.8 | 8.5 | 5.9 | 7.2 |
| FCF Yield | 1.9% | 1.8% | 0.8% | 1.8% | 2.6% | 2.2% | 1.4% | 0.9% | 2.5% | 1.6% | 1.1% | 2.4% | 2.0% |
| Market Cap | 3.7B | 4.4B | 6.2B | 7.3B | 7.1B | 11.2B | 20.7B | 35.1B | 17.4B | 26.6B | 24.4B | 19.9B | 23.3B |
| Avg. Price | 43.20 | 54.41 | 70.07 | 88.30 | 99.19 | 123.92 | 220.15 | 361.29 | 314.05 | 343.75 | 333.92 | 251.10 | 328.20 |
| Year-End Price | 51.35 | 59.62 | 81.98 | 96.36 | 94.18 | 148.35 | 273.87 | 459.65 | 229.20 | 352.62 | 331.84 | 274.05 | 328.20 |
WEST PHARMACEUTICAL SERVICES INC passes 5 of 9 quality checks, suggesting mixed fundamentals.
WEST PHARMACEUTICAL SERVICES INC trades at 48.3x trailing earnings, compared to its 15-year median P/E of 45.5x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 50.4x vs a median of 50.7x. The company's 5-year average ROIC is 25.5% with a gross margin of 37.9%. Total shareholder yield (dividends + buybacks) is 1.5%. At current prices, the estimated annualized return to fair value is +9.9%.
WEST PHARMACEUTICAL SERVICES INC (WST) reported annual revenue of $3.1 billion in its most recent fiscal year, based on SEC EDGAR filings.
WEST PHARMACEUTICAL SERVICES INC (WST) has a net profit margin of 16.1%. This is a healthy margin.
WEST PHARMACEUTICAL SERVICES INC (WST) generated $469 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
WEST PHARMACEUTICAL SERVICES INC (WST) has a debt-to-equity ratio of 0.10. This indicates a conservatively financed balance sheet.
WEST PHARMACEUTICAL SERVICES INC (WST) reported earnings per share (EPS) of $6.79 in its most recent fiscal year.
WEST PHARMACEUTICAL SERVICES INC (WST) has a return on equity (ROE) of 16.9%. This indicates the company generates strong returns for shareholders.
WEST PHARMACEUTICAL SERVICES INC (WST) has a 5-year average gross margin of 37.9%. This indicates decent pricing power.
The Ledger Terminal provides 18 years of financial data for WEST PHARMACEUTICAL SERVICES INC (WST), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
WEST PHARMACEUTICAL SERVICES INC (WST) has a book value per share of $43.68, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects the injectable market to continue improving throughout 2026, driven by GLP-1 adoption expanding the market rather than cannibalizing injectables, with penetration still in early stages at low single-digit levels and new injectable GLP-1 generics launching in multiple geographies. The company anticipates broad-based growth with HVP components as the primary driver, supported by non-GLP-1 biologics recovery, Annex 1 regulatory upgrade conversions, and drug handling commercialization at the Dublin facility, while maintaining pricing discipline and operational leverage. Management is confident in capacity expansion initiatives, particularly in Europe, to meet rising demand and expects margin expansion of over 100 basis points in 2026 driven by favorable product mix, operational efficiency improvements, and the SmartDose divestiture. The company is pursuing strategic capital allocation including a new $1 billion share repurchase authorization while maintaining disciplined capital expenditure guidance of $250–$275 million for 2026.
Based on recent SEC filings and earnings calls, WEST PHARMACEUTICAL SERVICES INC (WST) has provided the following forward guidance: Revenue: $3.295 billion–$3.35 billion (FY2026); Organic revenue growth: 7%–9% (FY2026); Adjusted EPS: $8.40–$8.75 (FY2026); Capital expenditures: $250 million–$275 million (FY2026); HVP components organic growth: low to mid-teens (FY2026), plus 3 additional metrics.
Capital expenditures (FY2026): “We remain on track with our expectations of $250 million-$275 million for the year”
HVP components organic growth (FY2026): “We now anticipate this business to grow low to mid-teens organically for the year”
Non-GLP-1 HVP components organic growth (FY2026): “Non-GLP-1 HVP components are expected to grow low double digits”
GLP-1 HVP components organic growth (FY2026): “GLP-1 HVP components is expected to be in the mid- to high teens”
Annex 1 and HVP conversion revenue growth contribution (FY2026): “Annex 1 is anticipated to be a multi-year tailwind to our business with an expected revenue growth contribution of 200 basis points in 2026 from Annex 1 and HVP conversion”