West Pharmaceutical Services (WST) AI Stock Analysis

• Market Cap: $18.95B
• Dividend Yield: 0.31%
• Average Volume (3M): 741.05K
• Price to Earnings (P/E): 39.5
• Beta (1Y): 0.79
• Revenue Growth: 2.88%
• EPS Growth: -5.50%
• Country: US
• Employees: 10,600
• Sector: Healthcare
• Sector Strength: 41
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 1.84
• Shares Outstanding: 71,907,326
• 10 Day Avg. Volume: 1,009,016
• 30 Day Avg. Volume: 741,054
• PEG Ratio: 8.43
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 55.50
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 3.25
• Enterprise Value/Gross Profit: 41.31
• Enterprise Value/Ebitda: 20.10
• 1Y Price Target: $308.75
• Price Target Upside: 17.17% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 78 Outperform
• Price Target: $318.00 ▲(20.68%Upside)

West Pharmaceutical Services displays strong financial performance and positive earnings outlook, supported by robust product growth. Technical indicators suggest strong momentum, though caution is advised due to overbought signals. The strategic appointment of a new CFO and raised guidance further enhance its outlook.

Positive Factors

Guidance and Forecast

Guidance for 2025 was raised with expectations of increased total reported revenue and organic growth.

Revenue and Earnings Growth

West Pharmaceutical Services reported revenue of $766.5 million, surpassing both internal and consensus estimates.

Negative Factors

Operating Margin and Profitability

Operating profit margin contracted to 15.3% from 17.7%, impacted by restructuring charges and a shift in product mix away from higher-margin components.

Product Margins

The recent SmartDose launch has resulted in negative gross margins, which management must address to achieve long-term revenue growth and margin targets.

West Pharmaceutical Services Business Overview & Revenue Model

Company Description

West Pharmaceutical Services, Inc. is a leading manufacturer in the pharmaceutical industry, specializing in the design and production of innovative delivery systems, components, and solutions for injectable drug administration. Founded in 1923 and headquartered in Exton, Pennsylvania, the company operates across multiple sectors, including healthcare, pharmaceuticals, and biotechnology. West Pharmaceutical Services is renowned for its high-quality components and systems that support the safe and efficient delivery of drugs and biologics.

How the Company Makes Money

West Pharmaceutical Services generates revenue primarily by manufacturing and selling proprietary and contract-manufactured components and systems used in the delivery of injectable drugs. The company's key revenue streams include sales of seals, stoppers, and delivery systems for vials, syringes, and other injectable packaging systems. West partners with a wide range of pharmaceutical and biotechnology companies to provide customized solutions that meet specific drug delivery needs. This includes long-term supply agreements, which ensure a steady revenue flow. The company's focus on innovation, quality, and regulatory compliance enhances its market position and contributes significantly to its earnings. Additionally, West Pharmaceutical Services invests in research and development to continually improve its product offerings, thereby expanding its market share and driving revenue growth.

West Pharmaceutical Services Financial Statement Overview

Summary

West Pharmaceutical Services demonstrates strong financial health with stable profitability, a solid balance sheet, and a strong cash flow position. Slight declines in revenue and profit margins are offset by efficient operations and prudent leverage management.

Income Statement

West Pharmaceutical Services exhibits stable revenue with a slight decline in recent periods. The gross profit margin remains strong, indicating efficient cost management, while net profit margins show a slight decrease. The EBIT and EBITDA margins demonstrate healthy operational efficiency despite recent fluctuations in revenue.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio, indicating prudent leverage management. Return on equity is stable, reflecting consistent profitability. The equity ratio is robust, underscoring a strong equity position relative to assets.

Cash Flow

Operating cash flow is strong, supporting the company's ability to generate cash. While free cash flow has seen some decline, the company's cash flow ratios indicate a healthy conversion of net income to cash, with sufficient free cash flow to support investments and financing activities.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.89B	2.95B	2.89B	2.83B	2.15B
Gross Profit	998.50M	1.13B	1.14B	1.18B	767.80M
EBITDA	743.80M	844.10M	808.40M	879.40M	518.60M
Net Income	492.70M	593.40M	585.90M	661.80M	346.20M
Balance Sheet
Total Assets	3.64B	3.83B	3.62B	3.31B	2.79B
Cash, Cash Equivalents and Short-Term Investments	484.60M	853.90M	894.30M	762.60M	615.50M
Total Debt	305.30M	309.00M	317.90M	325.30M	325.70M
Total Liabilities	961.10M	948.50M	931.90M	978.40M	939.30M
Stockholders Equity	2.68B	2.88B	2.68B	2.34B	1.85B
Cash Flow
Free Cash Flow	276.40M	414.50M	439.40M	330.60M	298.10M
Operating Cash Flow	653.40M	776.50M	724.00M	584.00M	472.50M
Investing Cash Flow	-378.70M	-368.70M	-288.20M	-253.10M	-179.50M
Financing Cash Flow	-622.60M	-459.60M	-293.60M	-168.10M	-137.10M

West Pharmaceutical Services Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 263.51
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WST, the sentiment is Positive. The current price of 263.51 is above the 20-day moving average (MA) of 226.47, above the 50-day MA of 220.31, and below the 200-day MA of 263.84, indicating a neutral trend. The MACD of 7.23 indicates Negative momentum. The RSI at 67.83 is Neutral, neither overbought nor oversold. The STOCH value of 80.54 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WST.

West Pharmaceutical Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WST	78 Outperform	$18.95B	39.47	17.72%	0.31%	2.88%	-5.50%
ATR	78 Outperform	$10.63B	29.43	15.15%	1.12%	0.34%	17.27%
HOLX	70 Outperform	$14.82B	28.08	11.77%	―	1.66%	21.95%
MASI	61 Neutral	$8.93B	116.65	-23.93%	―	-0.12%	-713.82%
BAX	56 Neutral	$14.99B	136.07	-8.96%	2.74%	-20.17%	-138.32%
RGEN	54 Neutral	$6.84B	―	-1.16%	―	4.88%	-196.93%
Sector *	52 Neutral	$7.63B	0.11	-62.96%	2.08%	16.16%	0.31%

West Pharmaceutical Services Corporate Events

West Pharmaceutical Services Reports Strong Q2 2025 Results

On July 24, 2025, West Pharmaceutical Services announced its second-quarter 2025 financial results, highlighting a 9.2% increase in net sales to $766.5 million and a rise in diluted EPS to $1.82. The company also raised its full-year 2025 net sales and adjusted-diluted EPS guidance, reflecting strong performance in high-value products and favorable foreign exchange rates. The Board approved a fourth-quarter dividend of $0.22 per share, to be paid on November 19, 2025.

The most recent analyst rating on (WST) stock is a Buy with a $345.00 price target. To see the full list of analyst forecasts on West Pharmaceutical Services stock, see the WST Stock Forecast page.

West Pharmaceutical Appoints New CFO Robert McMahon

On July 21, 2025, West Pharmaceutical Services announced the appointment of Robert McMahon as the new Senior Vice President & Chief Financial Officer, effective August 4, 2025. McMahon, who previously served as CFO at Agilent Technologies, brings extensive experience in finance and leadership within the healthcare industry. He will succeed Bernard Birkett, who will retire and transition to a Senior Advisor role until the end of 2025. This strategic appointment is expected to enhance West’s financial strategies and contribute to long-term shareholder value.

The most recent analyst rating on (WST) stock is a Buy with a $345.00 price target. To see the full list of analyst forecasts on West Pharmaceutical Services stock, see the WST Stock Forecast page.

West Pharmaceutical Services Hosts 2025 Shareholder Meeting

West Pharmaceutical Services held its 2025 Annual Meeting of Shareholders virtually on May 6, 2025, where shareholders voted on five proposals. The proposals included the election of directors, approval of executive compensation, amendments to the Articles of Incorporation and the 2016 Omnibus Incentive Compensation Plan, and the ratification of PricewaterhouseCoopers LLP as the accounting firm for 2025. Significant shareholder participation was noted, with 89.93% of common shares represented at the meeting.