West Pharmaceutical Services (WST) AI Stock Analysis

• Market Cap: $21.40B
• Dividend Yield: 0.28%
• Average Volume (3M): 697.99K
• Price to Earnings (P/E): 44.1
• Beta (1Y): 0.87
• 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: 71,907,326
• 10 Day Avg. Volume: 802,460
• 30 Day Avg. Volume: 697,990
• 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: 0.87
• Enterprise Value/Revenue: 6.20
• Enterprise Value/Gross Profit: 17.43
• Enterprise Value/Ebitda: 24.31
• 1Y Price Target: $346.38
• Price Target Upside: 16.44% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 76 Outperform
• Price Target: $336.00 ▲(12.95% Upside)

West Pharmaceutical Services' overall score is driven by strong financial performance and bullish technical indicators. The increased guidance and growth in key segments from the earnings call further support a positive outlook. However, the high valuation and potential future challenges slightly temper the overall score.

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 (WST) is a global leader in the design and manufacturing of innovative solutions for injectable drug delivery. The company operates primarily in the pharmaceutical and biotechnology sectors, providing a comprehensive range of products including drug delivery systems, containment solutions, and related services. West's offerings encompass a variety of components such as stoppers, syringes, and vial systems, which are essential for the safe and effective administration of injectable medications. With a focus on enhancing patient safety and improving drug efficacy, West serves a diverse clientele that includes major pharmaceutical companies and biopharmaceutical firms worldwide.

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 demonstrates strong financial performance with solid profit margins and low leverage. The company maintains stable EBIT and EBITDA margins, reflecting efficient operations, despite moderate revenue growth.

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	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	770.00M	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: 297.47
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 297.47 is above the 20-day moving average (MA) of 271.38, above the 50-day MA of 259.21, and above the 200-day MA of 244.35, indicating a bullish trend. The MACD of 8.80 indicates Negative momentum. The RSI at 69.65 is Neutral, neither overbought nor oversold. The STOCH value of 70.22 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
COO	77 Outperform	$14.82B	36.19	5.01%	―	6.35%	12.94%
WST	76 Outperform	$21.40B	44.06	16.94%	0.28%	4.90%	-0.26%
ATR	72 Outperform	$8.62B	22.56	15.36%	1.42%	1.51%	21.70%
RGEN	61 Neutral	$9.36B	―	-0.68%	―	8.73%	-245.82%
MASI	56 Neutral	$8.03B	―	-20.54%	―	-8.36%	-669.36%
BAX	54 Neutral	$11.82B	―	-3.30%	2.95%	-27.41%	67.01%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

West Pharmaceutical Services Corporate Events

West Pharmaceutical Services Reports Strong Q3 2025 Results

West Pharmaceutical Services, Inc. is a prominent provider of high-quality injectable solutions and services, catering to both established and emerging drug developers, with a significant presence in the pharmaceutical industry through its innovative products and global reach.

West Pharmaceutical Services’ Earnings Call: Optimistic Growth Amid Challenges

West Pharmaceutical Services, Inc. recently held its earnings call, revealing a cautiously optimistic outlook driven by strong financial performance and growth in key segments. The company reported significant gains in its GLP-1 and Annex 1 projects, while also noting challenges in the HVP Delivery Device segment and potential revenue headwinds from the conclusion of the CGM contract. Overall, the positive developments slightly outweighed the negatives, suggesting a promising future for the company.

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.

The most recent analyst rating on (WST) stock is a Buy with a $318.00 price target. To see the full list of analyst forecasts on West Pharmaceutical Services stock, see the WST Stock Forecast page.

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.

The most recent analyst rating on (WST) stock is a Buy with a $318.00 price target. To see the full list of analyst forecasts on West Pharmaceutical Services stock, see the WST Stock Forecast page.