West Pharmaceutical Services, Inc. (WST)
NYSE:WST
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West Pharmaceutical Services
(NYSE:WST)
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Rating:78Outperform
Price Target:
$353.00
▲(28.96% Upside)
Action:ReiteratedDate:04/24/26
The score is driven primarily by strong financial quality (low leverage, resilient profitability) and a very positive earnings update (raised 2026 guidance, strong Q1 execution and margins, buyback). Offsetting factors include a premium valuation (P/E ~32.5 with a very low dividend yield) and technicals that look extended with overbought signals despite strong momentum.
Positive Factors
Conservative balance sheet and low leverage
Very low leverage and a large equity base provide durable financial flexibility to fund capex, site builds, and acquisitions, while supporting share repurchases and absorbing timing-driven working capital swings. This reduces refinancing risk and underpins long-term strategic optionality.
Negative Factors
Margins below prior peak levels
Sustained margin compression versus 2021–2023 peaks suggests structural pressure from mix shifts, ramp costs and input inflation. If higher-cost ramps and commodity pressures persist, margin recovery may be constrained, limiting long‑term operating leverage and free cash flow expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet and low leverage
Very low leverage and a large equity base provide durable financial flexibility to fund capex, site builds, and acquisitions, while supporting share repurchases and absorbing timing-driven working capital swings. This reduces refinancing risk and underpins long-term strategic optionality.
Read all positive factors
West Pharmaceutical Services (WST) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$21.24B
Dividend Yield0.32%
Average Volume (3M)821.55K
Price to Earnings (P/E)32.5
Beta (1Y)0.75
Revenue Growth11.24%
EPS Growth17.11%
CountryUS
Employees10,600
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)7.52
Shares Outstanding70,647,600
10 Day Avg. Volume721,690
30 Day Avg. Volume821,546
Financial Highlights & Ratios
PEG Ratio34.00
Price to Book (P/B)6.26
Price to Sales (P/S)6.47
P/FCF Ratio42.42
Enterprise Value/Market Cap0.99
Enterprise Value/Revenue6.53
Enterprise Value/Gross Profit18.03
Enterprise Value/Ebitda26.33
Forecast
1Y Price Target
$328.89Price Target Upside20.15% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
EPS Forecast (FY)8.53
Revenue Forecast (FY)$3.31B
West Pharmaceutical Services Business Overview & Revenue Model
Company Description
West Pharmaceutical Services, Inc. designs, manufactures, and sells containment and delivery systems for injectable drugs and healthcare products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates in two segments, ...
How the Company Makes Money
West primarily makes money by selling products and services that enable pharmaceutical and biotech customers to package, store, and administer injectable drugs. A major revenue stream comes from high-volume manufacturing and sale of proprietary el...
West Pharmaceutical Services Earnings Call Summary
Earnings Call Date:Apr 23, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call reported broad-based, above-expectation Q1 results with strong revenue growth, substantial margin expansion and raised full-year guidance. Key growth engines—HVP components (including GLP-1s), biologics/NovaPure, Annex 1 conversions, and delivery devices—showed robust performance and underpin optimism. Near-term headwinds include a ~$40M CGM contract roll-off in H2, AR-driven cash flow timing effects, ramp-related margin variability and some commodity cost pressure, but management has mitigation plans and a strong balance sheet (including a new $1B buyback). Overall, positive operational execution and upgraded guidance outweigh the manageable challenges.Positive Updates
Strong Revenue and EPS Beat
Q1 revenue of $845 million, up 21% reported and ~15.3% organic year-over-year; Q1 adjusted EPS $2.13, up 47% YOY and ~45% above prior guidance midpoint.
Negative Updates
CGM Contract Roll-Off and Second-Half Headwind
A CGM contract exits in the back half of 2026, representing about a $40M headwind in H2, contributing to a more first-half weighted revenue profile for the year.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Revenue and EPS Beat
Q1 revenue of $845 million, up 21% reported and ~15.3% organic year-over-year; Q1 adjusted EPS $2.13, up 47% YOY and ~45% above prior guidance midpoint.
Read all positive updates
Company Guidance
Management raised full‑year 2026 guidance and provided detailed modeling assumptions: revenue is now expected to be $3.295–3.35 billion (organic growth 7%–9%; reported growth ~7.2%–9.0%), with adjusted diluted EPS of $8.40–$8.75 (up ~15%–20% year‑over‑year); HVP components are expected to grow low‑to‑mid teens organically and account for about 7 percentage points of company growth at the midpoint (GLP‑1 mid‑to‑high‑teens; non‑GLP‑1 low double‑digits contributing just over 5 points), Annex 1/HVP conversion is expected to add ~200 basis points in 2026, and the company assumes ~$7 million net interest income, a 19% full‑year tax rate, roughly 71.5 million diluted shares outstanding, and $250–$275 million of capital expenditures for the year; second‑quarter guidance is $830–$850 million revenue (reported +8.3%–10.9%; organic +7.0%–9.6%) and $2.05–$2.12 adjusted EPS (+11.4%–15.2% YoY). Management also noted SmartDose is expected to close midyear (SmartDose drove $55M in H2’25), the board authorized a $1 billion repurchase program (Q1 repurchases: 1.2M shares for $298M), Q1 ended with $521M cash, and commodity/oil pressures are expected to be a net single‑digit‑million headwind after mitigation.West Pharmaceutical Services Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.22B | 3.07B | 2.89B | 2.95B | 2.89B | 2.83B |
| Gross Profit | 1.17B | 1.10B | 1.00B | 1.13B | 1.14B | 1.17B |
| EBITDA | 799.00M | 723.60M | 743.80M | 844.10M | 808.10M | 879.70M |
| Net Income | 542.70M | 493.70M | 492.70M | 593.40M | 585.90M | 661.80M |
Balance Sheet | ||||||
| Total Assets | 4.11B | 4.27B | 3.64B | 3.83B | 3.62B | 3.31B |
| Cash, Cash Equivalents and Short-Term Investments | 521.40M | 791.30M | 484.60M | 853.90M | 894.30M | 762.60M |
| Total Debt | 316.20M | 416.70M | 305.30M | 309.00M | 317.90M | 325.30M |
| Total Liabilities | 1.12B | 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 | 458.00M | 468.90M | 276.40M | 414.50M | 439.40M | 330.60M |
| Operating Cash Flow | 715.30M | 754.80M | 653.40M | 776.50M | 724.00M | 584.00M |
| Investing Cash Flow | -257.30M | -285.90M | -378.70M | -368.70M | -288.20M | -253.10M |
| Financing Cash Flow | -346.80M | -185.10M | -622.60M | -459.60M | -293.60M | -168.10M |
West Pharmaceutical Services Technical Analysis
Positive
273.73
Price Trends
248.37
Positive
257.05
Positive
255.51
Positive
Market Momentum
6.50
Negative
68.80
Neutral
87.68
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 273.73 is above the 20-day moving average (MA) of 255.03, above the 50-day MA of 248.37, and above the 200-day MA of 255.51, indicating a bullish trend. The MACD of 6.50 indicates Negative momentum. The RSI at 68.80 is Neutral, neither overbought nor oversold. The STOCH value of 87.68 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WST.
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 | $21.24B | 32.50 | 17.87% | 0.32% | 11.24% | 17.11% | |
64 Neutral | $12.17B | 30.60 | 4.83% | ― | 5.69% | -2.65% | |
61 Neutral | $9.35B | -45.07 | -17.21% | ― | -27.10% | 51.33% | |
60 Neutral | $6.61B | 188.46 | 2.37% | ― | 16.36% | ― | |
55 Neutral | $7.59B | 27.77 | 14.68% | 1.50% | 8.95% | 6.13% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
47 Neutral | $8.88B | -144.20 | -13.78% | 2.75% | -4.79% | -78.01% |
* Healthcare Sector Average
WST
West Pharmaceutical Services
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42.99%
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West Pharmaceutical Services Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
West Pharmaceutical Raises 2026 Outlook After Strong Quarter
Positive
Apr 23, 2026
On April 23, 2026, West Pharmaceutical Services reported a strong start to 2026, with first-quarter net sales rising 21.0% year over year to $844.9 million and organic growth of 15.3%, while diluted EPS jumped 56.1% to $1.92 and adjusted-diluted E...
Business Operations and StrategyStock BuybackFinancial Disclosures
West Pharmaceutical Services Posts Solid Q4 and 2025 Results
Positive
Feb 12, 2026
West Pharmaceutical Services reported fourth‑quarter 2025 net sales of $805.0 million, up 7.5% year on year, with organic growth of 3.3% and adjusted diluted EPS rising 12.1% to $2.04. Full‑year 2025 net sales grew 6.3% to $3.074 billi...
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.