West Pharmaceutical Services, Inc. (WST)
NYSE:WST
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West Pharmaceutical Services
(NYSE:WST)
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Rating:72Outperform
Price Target:
$278.00
▲(6.94% Upside)
Action:UpgradedDate:02/18/26
The score is driven mainly by strong financial quality (low leverage, solid cash generation) and a supportive earnings outlook with margin expansion and EPS growth guidance. These positives are tempered by a high valuation (P/E ~36.9 with a low dividend yield) and mixed technical signals with negative MACD and price below key mid-term moving averages.
Positive Factors
Conservative balance sheet
West's low leverage and steadily growing equity provide durable financial flexibility to fund capacity builds, M&A, or buybacks without stressing liquidity. A conservative capital structure reduces refinancing risk and supports multiyear investment in production and technology.
Negative Factors
Capacity constraints and ramp risk
Persistent supply constraints mean the company may lose near‑term sales or incur premium costs while ramping facilities and labor. Execution risk on tech transfers and staffing can delay revenue capture and pressure margins for several quarters as capacity scales to meet HVP demand.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
West's low leverage and steadily growing equity provide durable financial flexibility to fund capacity builds, M&A, or buybacks without stressing liquidity. A conservative capital structure reduces refinancing risk and supports multiyear investment in production and technology.
Read all positive factors
West Pharmaceutical Services (WST) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$18.48B
Dividend Yield0.32%
Average Volume (3M)833.13K
Price to Earnings (P/E)40.3
Beta (1Y)0.69
Revenue Growth4.90%
EPS Growth-0.26%
CountryUS
Employees10,600
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)2.04
Shares Outstanding72,021,490
10 Day Avg. Volume681,658
30 Day Avg. Volume833,128
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/Revenue5.94
Enterprise Value/Gross Profit16.54
Enterprise Value/Ebitda23.52
Forecast
1Y Price Target
$311.19Price Target Upside19.71% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
EPS Forecast (FY)8.02
Revenue Forecast (FY)$3.25B
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 Pharmaceutical Services generates revenue primarily through the sale of its products and services to pharmaceutical and biotechnology companies. Key revenue streams include the sale of injectable drug delivery components, such as stoppers, sy...
West Pharmaceutical Services Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive picture: strong cash flow generation, record annual sales above $3 billion, outsized growth in high value product components (HVP), margin and EPS expansion, and constructive initial guidance for 2026. Management acknowledged some near-term execution and market headwinds — including capacity constraints, a Q4 delivery device decline driven by a prior-year incentive, a temporary production disruption at a Contract Manufacturing site, the SmartDose divestiture, and an anticipated slowdown in GLP-1 growth versus 2025's pace. However, the positives (robust FCF improvement, strong HVP performance, gross margin expansion, clear pipeline from Annex 1 and GLP-1s, product launches and commercial progress, and constructive 2026 guidance) materially outweigh the listed lowlights.Positive Updates
Record Annual Sales and Organic Growth
Full-year 2025 net sales surpassed $3,000,000,000 with year-over-year organic growth of over 4%.
Negative Updates
HVP Delivery Devices Year-Over-Year Decline
HVP delivery devices revenue was $110,000,000 in Q4 and declined 18.1% organically year-over-year (impacted by a $25,000,000 nonrecurring incentive fee in prior-year quarter).
Read all updates
Q4-2025 Updates
Positive
Negative
Record Annual Sales and Organic Growth
Full-year 2025 net sales surpassed $3,000,000,000 with year-over-year organic growth of over 4%.
Read all positive updates
Company Guidance
Management guided FY2026 revenue of $3,215M–$3,275M (reported growth 4.6%–6.5%; organic growth 5%–7% after FX and the SmartDose adjustment), with HVP components expected to grow high‑single to low‑double digits and to contribute just over five points of company growth at the midpoint (non‑GLP‑1 HVPs driving roughly 4 of those 5 points and GLP‑1s assumed to grow ~10% to supply ~1 point at the midpoint, with flat GLP‑1s representing the low end); HVP delivery devices are expected to grow mid‑single digits, Standard Products to be roughly flat, and Contract Manufacturing to be flat (including ~$20M of drug‑handling revenue ramping in 2026). They forecast adjusted EPS of $7.85–$8.20 (double‑digit growth at the midpoint), expect adjusted operating margins to expand by over 100 basis points with margins rising through the year, and gave Q1 guidance of $770M–$790M revenue (reported +10%–13%, organic +5%–7%) and Q1 adjusted EPS of $1.65–$1.70 (+13%–16% YoY). Management also assumed closing the SmartDose divestiture midyear (2025 SmartDose sales $55M), ~ $10M net interest income, a 20.25% tax rate, 72.7M diluted shares, and CapEx of $250M–$275M (targeting ~6%–8% of sales).West Pharmaceutical Services Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
86
Very Positive
Cash Flow
83
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.07B | 2.89B | 2.95B | 2.89B | 2.83B |
| Gross Profit | 1.10B | 1.00B | 1.13B | 1.14B | 1.17B |
| EBITDA | 723.60M | 743.80M | 844.10M | 808.10M | 879.70M |
| Net Income | 493.70M | 492.70M | 593.40M | 585.90M | 661.80M |
Balance Sheet | |||||
| Total Assets | 4.27B | 3.64B | 3.83B | 3.62B | 3.31B |
| Cash, Cash Equivalents and Short-Term Investments | 791.30M | 484.60M | 853.90M | 894.30M | 762.60M |
| Total Debt | 416.70M | 305.30M | 309.00M | 317.90M | 325.30M |
| Total Liabilities | 1.09B | 961.10M | 948.50M | 931.90M | 978.40M |
| Stockholders Equity | 3.18B | 2.68B | 2.88B | 2.68B | 2.34B |
Cash Flow | |||||
| Free Cash Flow | 468.90M | 276.40M | 414.50M | 439.40M | 330.60M |
| Operating Cash Flow | 754.80M | 653.40M | 776.50M | 724.00M | 584.00M |
| Investing Cash Flow | -285.90M | -378.70M | -368.70M | -288.20M | -253.10M |
| Financing Cash Flow | -185.10M | -622.60M | -459.60M | -293.60M | -168.10M |
West Pharmaceutical Services Technical Analysis
Positive
259.96
Price Trends
245.00
Positive
256.65
Negative
254.31
Positive
Market Momentum
4.05
Negative
57.08
Neutral
75.95
Neutral
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 259.96 is above the 20-day moving average (MA) of 247.86, above the 50-day MA of 245.00, and above the 200-day MA of 254.31, indicating a bullish trend. The MACD of 4.05 indicates Negative momentum. The RSI at 57.08 is Neutral, neither overbought nor oversold. The STOCH value of 75.95 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $18.48B | 40.29 | 16.68% | 0.32% | 4.90% | -0.26% | |
65 Neutral | $8.47B | 20.41 | 14.68% | 1.50% | 2.50% | 25.05% | |
64 Neutral | $13.89B | 30.60 | 4.83% | ― | 5.06% | -4.47% | |
64 Neutral | $9.31B | -45.07 | -17.21% | ― | -16.03% | -813.48% | |
60 Neutral | $6.77B | 188.46 | 2.37% | ― | 11.74% | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
46 Neutral | $8.85B | -10.24 | -13.78% | 2.75% | -21.20% | -325.40% |
* Healthcare Sector Average
WST
West Pharmaceutical Services
259.96
48.04
22.67%
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West Pharmaceutical Services Corporate Events
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.