West Pharmaceutical Services (WST) AI Stock Analysis

• Market Cap: $17.70B
• Dividend Yield: 0.34%
• Average Volume (3M): 762.80K
• Price to Earnings (P/E): 36.9
• Beta (1Y): 0.87
• Revenue Growth: 2.88%
• EPS Growth: -5.50%
• Country: US
• Employees: 10,600
• Sector: Healthcare
• Sector Strength: 50
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 1.84
• Shares Outstanding: 71,907,326
• 10 Day Avg. Volume: 541,333
• 30 Day Avg. Volume: 762,803
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 5.29
• Enterprise Value/Gross Profit: 15.00
• Enterprise Value/Ebitda: 20.62
• 1Y Price Target: $313.11
• Price Target Upside: 27.18% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

• Rating: 78 Outperform
• Price Target: $318.00 ▲(29.16% Upside)

West Pharmaceutical Services' overall score is driven by robust financial performance and positive earnings guidance, despite some valuation concerns. Technical indicators and earnings call sentiment suggest strong near-term prospects, but valuation and long-term resistance warrant caution.

Positive Factors

Earnings

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

Guidance

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

Leadership

The appointment of Bob McMahon as the new CFO is viewed positively due to his 34 years of industry experience and strong track record.

Negative Factors

Market Challenges

The company is currently facing several headwinds, including industry-specific challenges like tariffs and company-specific issues like the roll-off of contracts.

Product Challenges

The SmartDose device is currently dilutive to margins, and management recognizes it as a problem but is constrained by contractual obligations with a key customer.

Profit Margin

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.

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, Proprietary Products and Contract-Manufactured Products. The Proprietary Products segment offers stoppers and seals for injectable packaging systems; syringe and cartridge components, including custom solutions for the needs of injectable drug applications, as well as administration systems that enhance the safe delivery of drugs through advanced reconstitution, mixing, and transfer technologies; and films, coatings, washing, and vision inspection and sterilization processes and services to enhance the quality of packaging components. It also provides drug containment solutions, including Crystal Zenith, a cyclic olefin polymer in the form of vials, syringes, and cartridges; and self-injection devices, as well as a range of integrated solutions, including analytical lab services, pre-approval primary packaging support and engineering development, regulatory expertise, and after-sales technical support. This segment serves biologic, generic, and pharmaceutical drug companies. The Contract-Manufactured Products segment is involved in the design, manufacture, and automated assembly of devices used in surgical, diagnostic, ophthalmic, injectable, and other drug delivery systems, as well as consumer products. It serves pharmaceutical, diagnostic, and medical device companies. The company distributes its products through its sales force and distribution network, as well as contract sales agents and regional distributors. West Pharmaceutical Services, Inc. was incorporated in 1923 and is headquartered in Exton, Pennsylvania.

How the Company Makes Money

West Pharmaceutical Services generates revenue primarily through the sale of its products and services related to injectable drug delivery systems. The company's key revenue streams include the manufacture and sale of rubber stoppers, prefilled syringes, and other container closure systems, which are critical components in the pharmaceutical packaging industry. Additionally, West has established significant partnerships with leading pharmaceutical and biotech companies, providing tailored solutions that enhance drug delivery efficiency. The company also benefits from ongoing demand for its products due to the growing global focus on biologics and complex drug formulations, which require advanced delivery technologies. Furthermore, West invests in research and development to innovate and expand its product offerings, thereby driving future revenue growth.

West Pharmaceutical Services Financial Statement Overview

Summary

West Pharmaceutical Services exhibits strong financial health with solid profit margins, low leverage, and robust cash flow generation. Revenue growth is moderate, but stable EBIT and EBITDA margins indicate efficient operations.

Income Statement

West Pharmaceutical Services demonstrates a strong financial performance with solid gross and net profit margins. The TTM gross profit margin stands at 35.27%, with a net profit margin of 16.47%. Although revenue growth has been moderate with a 2.32% increase from the previous year, the company has maintained stable EBIT and EBITDA margins, reflecting efficient operations.

Balance Sheet

The balance sheet is robust with a debt-to-equity ratio of 0.10, indicating low leverage and financial stability. The company also shows a healthy equity ratio of 74.09%, suggesting strong financial backing. Return on equity is decent at 16.65%, reflecting efficient use of shareholders' funds.

Cash Flow

West Pharmaceutical Services has shown growth in free cash flow by 24.44% over the previous year, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 1.39, and the free cash flow to net income ratio is 0.71, suggesting adequate cash flow coverage of earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.96B	2.89B	2.95B	2.89B	2.83B	2.15B
Gross Profit	1.04B	998.50M	1.13B	1.14B	1.18B	767.80M
EBITDA	759.60M	743.80M	844.10M	808.40M	879.40M	518.60M
Net Income	487.70M	492.70M	593.40M	585.90M	661.80M	346.20M
Balance Sheet
Total Assets	3.95B	3.64B	3.83B	3.62B	3.31B	2.79B
Cash, Cash Equivalents and Short-Term Investments	509.70M	484.60M	853.90M	894.30M	762.60M	615.50M
Total Debt	303.30M	302.30M	309.00M	317.90M	325.30M	325.70M
Total Liabilities	1.02B	961.10M	948.50M	931.90M	978.40M	939.30M
Stockholders Equity	2.93B	2.68B	2.88B	2.68B	2.34B	1.85B
Cash Flow
Free Cash Flow	344.00M	276.40M	414.50M	439.40M	330.60M	298.10M
Operating Cash Flow	676.70M	653.40M	776.50M	724.00M	584.00M	472.50M
Investing Cash Flow	-333.40M	-378.70M	-368.70M	-288.20M	-253.10M	-179.50M
Financing Cash Flow	-295.20M	-622.60M	-459.60M	-293.60M	-168.10M	-137.10M

West Pharmaceutical Services Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 246.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 246.2 is above the 20-day moving average (MA) of 242.54, above the 50-day MA of 229.94, and below the 200-day MA of 259.93, indicating a neutral trend. The MACD of 4.34 indicates Positive momentum. The RSI at 58.00 is Neutral, neither overbought nor oversold. The STOCH value of 75.02 is Neutral, 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	$17.70B	36.88	17.72%	0.34%	2.88%	-5.50%
HOLX	75 Outperform	$15.08B	28.13	11.38%	―	1.28%	-17.73%
ATR	71 Outperform	$9.14B	23.93	15.36%	1.30%	1.51%	21.70%
RGEN	58 Neutral	$7.00B	―	-0.68%	―	8.73%	-245.82%
BAX	54 Neutral	$12.42B	136.07	-3.30%	3.31%	-27.41%	67.01%
Sector *	51 Neutral	$7.70B	-0.29	-46.01%	2.24%	23.07%	-0.65%
MASI	51 Neutral	$8.36B	116.65	-20.54%	―	-8.36%	-669.36%

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.