West Pharmaceutical Services (WST) AI Stock Analysis

• Market Cap: $20.16B
• Dividend Yield: 0.3%
• Average Volume (3M): 664.83K
• Price to Earnings (P/E): 41.5
• Beta (1Y): 0.78
• Revenue Growth: 4.90%
• EPS Growth: -0.26%
• Country: US
• Employees: 10,600
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 1.96
• Shares Outstanding: 71,943,410
• 10 Day Avg. Volume: 559,910
• 30 Day Avg. Volume: 664,828
• PEG Ratio: -3.13
• Price to Book (P/B): 8.91
• Price to Sales (P/S): 8.27
• P/FCF Ratio: 86.51
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 6.20
• Enterprise Value/Gross Profit: 17.43
• Enterprise Value/Ebitda: 24.25
• 1Y Price Target: $343.10
• Price Target Upside: 22.44% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 7.1
• Revenue Forecast (FY): $3.06B

• Rating: 74 Outperform
• Price Target: $314.00 ▲(12.05% Upside)

West Pharmaceutical Services shows strong financial performance and a positive earnings call outlook, which are the primary drivers of the stock score. Technical analysis supports a stable upward trend, while valuation metrics suggest potential overvaluation. The overall score reflects a cautiously optimistic view, with financial health and growth prospects being the most significant factors.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and stability.

Product Segment Expansion

The growth in GLP-1 elastomers highlights successful product diversification, enhancing the company's competitive edge in the pharmaceutical sector.

Increased Guidance

Raising guidance reflects management's confidence in sustained growth and operational efficiency, bolstering investor confidence and future prospects.

Negative Factors

HVP Delivery Device Revenue Decline

A decline in HVP Delivery Device revenues suggests potential challenges in product demand or market competition, impacting future segment performance.

CGM Contract Conclusion

The conclusion of the CGM contract poses a significant revenue headwind, requiring strategic adjustments to mitigate potential financial impacts.

SmartDose Profitability Challenges

Ongoing cost challenges in SmartDose highlight operational inefficiencies that could hinder profitability improvements and require strategic focus.

West Pharmaceutical Services Business Overview & Revenue Model

Company Description

West Pharmaceutical Services, Inc. (WST) is a global leader in the design and manufacturing of innovative solutions for injectable drug delivery. Operating primarily in the healthcare sector, the company specializes in providing a wide range of products, including component systems for drug delivery, such as rubber stoppers, seals, and prefillable syringes, as well as contract manufacturing services. West serves pharmaceutical and biotechnology companies, helping them ensure the safety and efficacy of their injectable medications through high-quality packaging and delivery systems.

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, syringes, and other packaging solutions, as well as contract manufacturing services for customized drug delivery systems. The company benefits from long-term partnerships with major pharmaceutical firms, which often involve multi-year supply agreements. Additionally, West's focus on innovation and development of new products tailored to industry needs helps to drive growth and expand its market presence. The increasing demand for injectable medications, particularly in biologics and specialty pharmaceuticals, further contributes to its earnings, as does the company's strategic investments in technology and capacity expansion.

West Pharmaceutical Services Financial Statement Overview

Summary

West Pharmaceutical Services demonstrates solid financial health with strong revenue growth, profitability, and a stable balance sheet. While the company faces some margin pressures, its low leverage and effective cash flow management position it well for future growth.

Income Statement

West Pharmaceutical Services shows a strong income statement with consistent revenue growth, evidenced by a 1.94% increase in TTM revenue. The company maintains healthy profit margins, with a gross profit margin of 35.61% and a net profit margin of 16.29% in the TTM period. However, there is a slight decline in EBIT and EBITDA margins compared to previous years, indicating potential cost pressures.

Balance Sheet

The balance sheet is robust, with a low debt-to-equity ratio of 0.10, indicating conservative leverage. The return on equity is strong at 17.33%, reflecting efficient use of equity capital. The equity ratio stands at a healthy level, showcasing financial stability and a strong asset base.

Cash Flow

Cash flow analysis reveals a positive trend with a 10.20% growth in free cash flow in the TTM period. The operating cash flow to net income ratio is slightly above 1, indicating good cash conversion. However, the free cash flow to net income ratio is moderate at 0.55, suggesting room for improvement in cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.02B	2.89B	2.95B	2.89B	2.83B	2.15B
Gross Profit	1.07B	1.00B	1.13B	1.14B	1.17B	767.90M
EBITDA	772.10M	743.80M	844.10M	808.10M	879.70M	518.90M
Net Income	491.70M	492.70M	593.40M	585.90M	661.80M	346.20M
Balance Sheet
Total Assets	4.11B	3.64B	3.83B	3.62B	3.31B	2.79B
Cash, Cash Equivalents and Short-Term Investments	628.50M	484.60M	853.90M	894.30M	762.60M	615.50M
Total Debt	303.00M	305.30M	309.00M	317.90M	325.30M	325.70M
Total Liabilities	1.05B	961.10M	948.50M	931.90M	978.40M	939.30M
Stockholders Equity	3.05B	2.68B	2.88B	2.68B	2.34B	1.85B
Cash Flow
Free Cash Flow	379.10M	276.40M	414.50M	439.40M	330.60M	298.10M
Operating Cash Flow	693.80M	653.40M	776.50M	724.00M	584.00M	472.50M
Investing Cash Flow	-314.60M	-378.70M	-368.70M	-288.20M	-253.10M	-179.50M
Financing Cash Flow	-242.30M	-622.60M	-459.60M	-293.60M	-168.10M	-137.10M

West Pharmaceutical Services Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 280.23
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 280.23 is above the 20-day moving average (MA) of 271.86, above the 50-day MA of 273.23, and above the 200-day MA of 238.73, indicating a bullish trend. The MACD of 2.02 indicates Negative momentum. The RSI at 55.56 is Neutral, neither overbought nor oversold. The STOCH value of 84.48 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
COO	75 Outperform	$16.18B	43.44	4.59%	―	5.06%	-4.47%
WST	74 Outperform	$20.16B	41.51	16.94%	0.30%	4.90%	-0.26%
RGEN	68 Neutral	$9.29B	6,419.46	0.08%	―	11.74%	―
ATR	60 Neutral	$8.00B	19.54	15.80%	1.50%	2.50%	25.05%
MASI	54 Neutral	$8.12B	―	-17.93%	―	-16.03%	-813.48%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
BAX	47 Neutral	$9.53B	―	-4.70%	2.80%	-21.20%	-325.40%

West Pharmaceutical Services Corporate Events

West Pharmaceutical Services Reports Strong Q3 2025 Results

West Pharmaceutical Services reported solid financial results for the third quarter of 2025, with a 7.7% increase in net sales to $804.6 million and a rise in diluted EPS to $1.92. The company achieved double-digit growth in its High-Value Product Components and increased its full-year 2025 revenue and EPS guidance, reflecting strong performance across its segments and an improving demand environment.

West Pharmaceutical Announces Departure of Senior VP

On September 11, 2025, West Pharmaceutical Services announced the departure of Kimberly Banks MacKay, their Senior Vice President, General Counsel, and Corporate Secretary. The company has arranged for a transition period ending by December 31, 2025, to ensure a smooth handover of responsibilities, and expressed gratitude for Ms. MacKay’s contributions.