West Pharmaceutical Services (WST) AI Stock Analysis

• Market Cap: $17.67B
• Dividend Yield: 0.32%
• Average Volume (3M): 1.10M
• Price to Earnings (P/E): 36.0
• Beta (1Y): 0.70
• Revenue Growth: 4.90%
• EPS Growth: -0.26%
• Country: US
• Employees: 10,600
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 2.04
• Shares Outstanding: 72,021,490
• 10 Day Avg. Volume: 1,029,352
• 30 Day Avg. Volume: 1,102,835
• PEG Ratio: 34.00
• Price to Book (P/B): 6.26
• Price to Sales (P/S): 6.47
• P/FCF Ratio: 42.42
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 5.66
• Enterprise Value/Gross Profit: 15.75
• Enterprise Value/Ebitda: 22.40
• 1Y Price Target: $321.09
• Price Target Upside: 30.85% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 8
• Revenue Forecast (FY): $3.25B

• Rating: 72 Outperform
• Price Target: $278.00 ▲(13.29% Upside)
• Action: Upgraded Date: 02/18/26
• Date: Action: Upgraded 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.

Strong cash generation and rising FCF

Consistent operating cash flow that materially exceeded net income and a sharp FCF improvement underpin the company's ability to self-fund capex, pursue share repurchases, and invest in R&D. This cash resilience supports sustained execution over the next 2–6 months.

High‑value products and large multi‑year pipeline

HVP components now account for nearly half of sales and are growing well, providing durable higher-margin revenue. Combined with a sizable Annex 1 pipeline and product launches, this positions West to capture multi‑year demand from biologics and specialized injectable formats.

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.

GLP‑1 growth deceleration sensitivity

West's growth outlook is sensitive to GLP‑1 demand; a marked slowdown from 50% to assumed ~10% heightens downside risk to organic growth and utilization. Changes in GLP‑1 format mix or oral competitors could reduce addressable demand and revenue visibility.

SmartDose divestiture lowers near-term diversification

Selling SmartDose removes a noncore revenue stream (~$55M) and narrows product diversification, increasing reliance on HVP components. While strategically clarifying focus, the divestiture reduces revenue diversity and makes near-term growth more dependent on a few product lines.

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 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

Strong overall financial quality supported by low leverage and solid cash generation. Profitability remains healthy, but revenue growth has been uneven and margins/returns have normalized lower versus 2021–2023, with some year-to-year free cash flow variability.

Income Statement

Revenue has been essentially flat since 2021 (2024 dipped slightly, 2025 recovered to modest growth), but profitability remains strong. Margins are healthy (2025 gross margin ~36% and net margin ~16%), though profitability has compressed versus 2021–2023 (notably lower net and EBITDA margins in 2024–2025). Net income has been resilient (roughly stable in 2024–2025), but the margin trend points to some pricing/cost or mix headwinds that bear watching.

Balance Sheet

The balance sheet looks conservatively financed with low leverage (debt-to-equity ~0.11–0.14 across the period, ~0.13 in 2025). Equity has steadily grown (from ~$1.85B in 2020 to ~$3.18B in 2025), supporting asset growth and financial flexibility. Returns on equity are solid (mid-teens in 2025), but have come down from peak levels in 2021–2023, consistent with the recent margin/earnings normalization.

Cash Flow

Cash generation is strong: operating cash flow has been consistently healthy and exceeded net income in each year shown (about 1.15x in 2025), indicating good earnings quality. Free cash flow is meaningful and improved sharply in 2025 (up materially versus 2024), though it has been somewhat volatile year-to-year (decline in 2023 and a larger drop in 2024). Free cash flow conversion versus net income is decent but not consistently high (roughly ~42% in 2024 improving to ~62% in 2025), suggesting periodic working-capital or investment swings.

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

• Technical Analysis Sentiment: Neutral
• Last Price: 245.38
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WST, the sentiment is Neutral. The current price of 245.38 is above the 20-day moving average (MA) of 241.24, below the 50-day MA of 257.86, and below the 200-day MA of 249.26, indicating a neutral trend. The MACD of -3.10 indicates Negative momentum. The RSI at 48.01 is Neutral, neither overbought nor oversold. The STOCH value of 49.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WST.

West Pharmaceutical Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATR	74 Outperform	$9.28B	24.77	15.28%	1.50%	2.50%	25.05%
WST	72 Outperform	$17.67B	35.96	16.85%	0.32%	4.90%	-0.26%
COO	68 Neutral	$16.38B	44.59	4.59%	―	5.06%	-4.47%
RGEN	60 Neutral	$7.58B	5,240.08	0.08%	―	11.74%	―
MASI	58 Neutral	$13.01B	-16.53	-17.93%	―	-16.03%	-813.48%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
BAX	47 Neutral	$10.61B	-12.29	-13.75%	2.75%	-21.20%	-325.40%

West Pharmaceutical Services Corporate Events

West Pharmaceutical Services Posts Solid Q4 and 2025 Results

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 billion, driven by strong High‑Value Product Components demand, while free cash flow surged 69.6% to $468.9 million and the company repurchased $134.0 million of its own shares.

Performance in the Proprietary Products segment was led by a 20.3% jump in High‑Value Product Components sales, which accounted for nearly half of quarterly revenue, partially offset by a decline in High‑Value Delivery Devices tied to a prior‑year non‑recurring fee. Contract‑Manufactured Products grew modestly on demand for self‑injection devices for obesity and diabetes, and West issued 2026 guidance calling for mid‑single‑digit organic sales growth and high‑single‑ to low‑double‑digit adjusted EPS growth, underscoring confidence in continued momentum and operational execution.

The most recent analyst rating on (WST) stock is a Buy with a $295.00 price target. To see the full list of analyst forecasts on West Pharmaceutical Services stock, see the WST Stock Forecast page.