WST Intrinsic Stock Value – WEST PHARMACEUTICAL SERVICES Reports Decrease in Revenue and Net Income for Fourth Quarter of FY2022

Earnings report

WST Intrinsic Stock Value – WEST PHARMACEUTICAL SERVICES ($NYSE:WST) recently reported their financial results for the fourth quarter of FY2022, ending December 31, 2022. Total revenue for the quarter was USD 103.0 million, a sharp decrease of 30.3% from that of the same quarter in the previous year. Moreover, net income was reported at USD 708.7 million, further exemplifying a 3.0% year-over-year decrease.

Evidently, WEST PHARMACEUTICAL SERVICES did not perform as well in the fourth quarter of FY2022 compared to previous years. Possibilities could include waning consumer confidence, heightened competition, or a shift in consumer demographics, among other factors. Whatever the case may be, WEST PHARMACEUTICAL SERVICES is hoping to rebound and recover their lost revenue in the upcoming financial year.

Stock Price

On Thursday, WEST PHARMACEUTICAL SERVICES reported a decrease in revenue and net income for the fourth quarter of the Fiscal Year of 2022. Despite this decrease, the stock opened at $312.6 and closed at $319.8, soaring by 14.5% from their last closing price of $279.2. This jump in stock prices is believed to be largely due to the fact that the company’s guidance for their next quarter is expected to be much higher than the last quarter. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for WST. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for WST. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for WST. More…

Key Ratios Snapshot

Some of the financial key ratios for WST are shown below. More…

Analysis – WST Intrinsic Stock Value

GoodWhale recently completed an in-depth analysis of WEST PHARMACEUTICAL SERVICES and its wellbeing. Our proprietary Valuation Line determined a fair value of approximately $347.8 per share for WEST PHARMACEUTICAL SERVICES stock. We are pleased to note that the current market price of WEST PHARMACEUTICAL SERVICES stands at $319.8, a price that is undervalued by 8.0%. This presents investors with an attractive opportunity to purchase WEST PHARMACEUTICAL SERVICES shares below their fair market value. More…

Peers

The company operates in North America, Europe, Asia, and South America. Seikagaku Corp, Shenyang Xingqi Pharmaceutical Co Ltd, and Shenzhen Salubris Pharmaceuticals Co Ltd are all competitors of West Pharmaceutical Services Inc.

– Seikagaku Corp ($TSE:4548)

Seikagaku Corp is a Japanese company that specializes in the research and development of pharmaceuticals. The company has a market cap of 53.35B as of 2022 and a return on equity of 2.38%. Seikagaku Corp’s products include treatments for osteoarthritis, inflammatory diseases, and cancer.

– Shenyang Xingqi Pharmaceutical Co Ltd ($SZSE:300573)

Shenyang Xingqi Pharmaceutical Co Ltd is a pharmaceutical company with a market cap of 10.63B as of 2022. The company has a return on equity of 12.24%. The company’s main products are traditional Chinese medicines and western medicines. The company also has a research and development center which is responsible for the development of new products and the improvement of existing products. The company has a strong marketing network and a good reputation in the industry.

– Shenzhen Salubris Pharmaceuticals Co Ltd ($SZSE:002294)

Shenzhen Salubris Pharmaceuticals Co Ltd is a Chinese pharmaceutical company with a market cap of 37.86B as of 2022. The company’s ROE is 6.05%. Shenzhen Salubris Pharmaceuticals Co Ltd is engaged in the research, development, manufacture and sale of pharmaceutical products. The company’s products include drugs for the treatment of cardiovascular and cerebrovascular diseases, cancer, infections, digestive diseases and other diseases.

Summary

West Pharmaceutical Services reported total revenue of USD 103 million for the most recent quarter, a 30.3% year-over-year decrease. Net income decreased 3.0% to USD 708.7 million year-over-year. Despite the sales decline, the company’s stock price moved up the same day, suggesting a positive outlook from investors. Analysts are watching to see if West Pharmaceutical Services is able to continue generating income as sales have decreased.

The company’s management must work to bring in more customers and increase efficiency in order to make up for the loss in revenue. Investors may find opportunity in the stock if West Pharmaceutical Services can successfully adjust its operations and increase profitability.