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West Pharmaceutical Services
(NYSE:WST)
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Rating:78Outperform
Price Target:
$409.00
▲(24.62% Upside)
Action:Reiterated
Date:07/23/26
WST scores well on high-quality financials (strong margins and an under-levered balance sheet) and a very constructive earnings update (beat and raised guidance with margin expansion). Technicals are supportive with an established uptrend. The primary constraint on the score is valuation, with a high P/E and minimal dividend yield.
Positive Factors
Sustained high profitability and margin expansion
West’s consistently strong gross and operating margins reflect pricing power and a favorable shift toward higher‑value HVP Components and delivery devices. Durable margin expansion supports reinvestment capacity, underwriting of R&D and capex, and resilience to cyclical volume swings over the next 2–6 months.
Negative Factors
Modest overall revenue growth normalization
While 2026 shows pockets of strong organic growth, multi‑year top‑line growth has normalized from earlier peaks. Slower aggregate revenue expansion constrains leverage benefits on fixed costs and limits upside from operating‑leverage versus periods of stronger secular growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained high profitability and margin expansion
West’s consistently strong gross and operating margins reflect pricing power and a favorable shift toward higher‑value HVP Components and delivery devices. Durable margin expansion supports reinvestment capacity, underwriting of R&D and capex, and resilience to cyclical volume swings over the next 2–6 months.
Read all positive factors
West Pharmaceutical Services Key Performance Indicators (KPIs)
Any
Net Sales by Segment
Shows how much revenue each part of the business contributes, revealing which products or markets are driving growth and where the company may be dependent on a few segments or customers. Useful for spotting concentration risk and understanding whether West’s revenue mix is shifting toward higher-growth areas like advanced delivery systems or stable component sales.
Shows how much revenue each part of the business contributes, revealing which products or markets are driving growth and where the company may be dependent on a few segments or customers. Useful for spotting concentration risk and understanding whether West’s revenue mix is shifting toward higher-growth areas like advanced delivery systems or stable component sales.
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The Fly
The FlyWest Pharmaceutical Services (WST) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$24.00B
Dividend Yield0.26%
Average Volume (3M)811.59K
Price to Earnings (P/E)43.3
Beta (1Y)0.76
Revenue Growth12.42%
EPS Growth17.07%
CountryUS
Employees10,800
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)7.87
Shares Outstanding70,375,760
10 Day Avg. Volume864,114
30 Day Avg. Volume811,594
Financial Highlights & Ratios
PEG Ratio33.99
Price to Book (P/B)6.26
Price to Sales (P/S)6.47
P/FCF Ratio42.42
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$403.78Price Target Upside23.03% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)8.94
Revenue Forecast (FY)$3.37B
West Pharmaceutical Services Business Overview & Revenue Model
Company Description
West Pharmaceutical Services, Inc. (WST) specializes in the development, manufacturing, and global distribution of essential containment and delivery solutions for injectable pharmaceuticals and other healthcare products. The company's operations ...
How the Company Makes Money
West primarily makes money by selling proprietary packaging and delivery components used by drug manufacturers to store and administer injectable medicines. A key revenue stream is the sale of elastomer components (e.g., stoppers, seals, and syrin...
West Pharmaceutical Services Earnings Call Summary
Earnings Call Date:Jul 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call was broadly positive: the company reported a clear top‑ and bottom‑line beat, raised full‑year guidance, and demonstrated margin expansion driven by a favorable mix toward high‑value HVP Components, Biologics and Delivery Devices. Management highlighted operational resilience after a cyber incident, strong growth in Asia Pacific, and continued capital returns. Near‑term headwinds include the cyber incident's effect on West Vantage (pushing revenue into later quarters), operating cash‑flow timing pressure, inflationary costs and FX exposure, and the comparability impact from the SmartDose 3.5 divestiture. Overall, the upside from high‑value product mix, margin gains and raised guidance meaningfully outweigh the discrete and manageable lowlights.Positive Updates
Top‑Line Beat and Strong Organic Growth
Q2 revenue of $872 million, up 13.8% reported and ~12.7% organic year‑over‑year; price contributed ~4 percentage points to growth.
Negative Updates
Cyber Incident Impact on West Vantage
Cyber attack depressed West Vantage results in Q2 (segment grew only ~0.8%–1% organic); management estimates a mid‑single‑digit negative impact to growth in the quarter and expects revenue to shift into the back half of the year.
Read all updates
Q2-2026 Updates
Positive
Negative
Top‑Line Beat and Strong Organic Growth
Q2 revenue of $872 million, up 13.8% reported and ~12.7% organic year‑over‑year; price contributed ~4 percentage points to growth.
Read all positive updates
Company Guidance
Management raised full‑year 2026 guidance to revenue of $3.345–3.380 billion (reported growth 8.8%–10%, organic growth 10%–11%), adjusted EPS of $8.85–$9.05 (up ~21%–24% YoY), and expects over 200 basis points of operating margin expansion versus 2025; assumptions include ~$8 million net interest income, a full‑year tax rate slightly below 19%, about 71.5 million diluted shares, and $250–275 million of capex. Quarterly guidance for Q3 is $820–835 million revenue (reported +1.9%–3.8%, organic +7%–8.9% with a ~110 bps FX headwind) and adjusted EPS $2.14–2.24 (+9%–14% YoY). The company excludes SmartDose 3.5mL ($55 million in H2 2025) from organic growth, expects the total HVP Components business (both GLP‑1 and non‑GLP‑1) to grow in the high teens for the year, anticipates continued strong HVP Delivery Devices performance, and left Standard Products and West Vantage broadly consistent with prior expectations.West Pharmaceutical Services Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
88
Very Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.33B | 3.07B | 2.89B | 2.95B | 2.89B | 2.83B |
| Gross Profit | 1.22B | 1.10B | 1.00B | 1.13B | 1.14B | 1.17B |
| EBITDA | 824.20M | 723.60M | 743.80M | 844.10M | 808.10M | 879.70M |
| Net Income | 564.90M | 493.70M | 492.70M | 593.40M | 585.90M | 661.80M |
Balance Sheet | ||||||
| Total Assets | 4.08B | 4.27B | 3.64B | 3.83B | 3.62B | 3.31B |
| Cash, Cash Equivalents and Short-Term Investments | 435.80M | 791.30M | 484.60M | 853.90M | 894.30M | 762.60M |
| Total Debt | 312.10M | 416.70M | 305.30M | 309.00M | 317.90M | 325.30M |
| Total Liabilities | 1.09B | 1.09B | 961.10M | 948.50M | 931.90M | 978.40M |
| Stockholders Equity | 2.99B | 3.18B | 2.68B | 2.88B | 2.68B | 2.34B |
Cash Flow | ||||||
| Free Cash Flow | 436.90M | 468.90M | 276.40M | 414.50M | 439.40M | 330.60M |
| Operating Cash Flow | 662.20M | 754.80M | 653.40M | 776.50M | 724.00M | 584.00M |
| Investing Cash Flow | -225.30M | -285.90M | -378.70M | -368.70M | -288.20M | -253.10M |
| Financing Cash Flow | -496.70M | -185.10M | -622.60M | -459.60M | -293.60M | -168.10M |
West Pharmaceutical Services Risk Analysis
West Pharmaceutical Services disclosed 34 risk factors in its most recent earnings report. West Pharmaceutical Services reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
West Pharmaceutical Services Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $24.00B | 43.32 | 18.51% | 0.27% | 12.42% | 17.07% | |
69 Neutral | $8.55B | 23.92 | 13.52% | 1.43% | 8.93% | -5.14% | |
69 Neutral | $7.96B | 190.55 | 1.98% | ― | 16.49% | ― | |
57 Neutral | $14.10B | 61.29 | 2.84% | ― | 6.09% | -42.65% | |
54 Neutral | $13.52B | -12.83 | -16.60% | 0.89% | 5.36% | -632.85% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
WST
West Pharmaceutical Services
347.94
109.82
46.12%
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136.77
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-0.98%
BAX
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24.09%
COO
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74.23
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RGEN
Repligen
147.06
31.18
26.91%
West Pharmaceutical Services Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
West Pharmaceutical Raises 2026 Guidance After Strong Quarter
Positive
Jul 23, 2026
West Pharmaceutical Services reported strong second-quarter 2026 results on July 23, 2026, with net sales rising 13.8% to $872.3 million and organic growth of 12.7%, driven largely by its High-Value Product Components and Delivery Devices business...
Business Operations and Strategy
West Pharmaceutical renews Daikyo technology and distribution pact
Positive
Jul 15, 2026
Effective July 14, 2026, West Pharmaceutical Services, Inc. and Daikyo Seiko, Ltd. entered into an amended and restated technology exchange and cross-license agreement, along with two updated distributorship agreements, largely mirroring similar a...
Business Operations and StrategyExecutive/Board Changes
West Pharmaceutical Names Michel Lagarde Next CEO
Positive
Jun 1, 2026
West Pharmaceutical Services announced on June 1, 2026 that its board has appointed Michel Lagarde, a veteran healthcare and life sciences executive from Thermo Fisher Scientific and Patheon, as president and CEO and as a director effective August...
Executive/Board ChangesShareholder Meetings
West Pharmaceutical Shareholders Back Board, Pay and Auditor
Positive
May 5, 2026
West Pharmaceutical Services, Inc. held its 2026 Annual Meeting of Shareholders virtually on May 4, 2026, with 91.83% of outstanding common shares represented. Shareholders elected eleven directors to serve until the 2027 Annual Meeting, reaffirmi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.