Analyzing West Pharmaceutical Services Stock Using Fundamental Metrics
January 5, 2024
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It manufactures components and systems used in the delivery of injectable drugs and healthcare products. As a publicly traded company on the New York Stock Exchange, this stock can be analyzed using fundamental metrics to form an opinion about its worth and potential future performance. Fundamental metrics are an objective way of analyzing a company’s performance and health. Common fundamental metrics used to analyze West Pharmaceutical Services ($NYSE:WST) Inc. stock include price-to-earnings (P/E) ratio, earnings per share (EPS), dividend yield, market capitalization, and return on equity (ROE). The P/E ratio compares the company’s stock price to its earnings per share. A higher P/E ratio indicates that the stock market is expecting higher earnings growth in the future.
EPS measures a company’s profitability and is calculated by dividing its net income by its total number of shares outstanding. Dividend yield is a measure of how much cash a company pays investors in the form of dividends per share of stock. The higher the dividend yield, the more attractive the stock may be to investors. Market capitalization is the total value of a company’s shares outstanding, and ROE is a measure of how effectively a company is utilizing its resources to generate profits. Analyzing West Pharmaceutical Services Inc. stock through fundamental metrics can provide investors with a better understanding of the company’s financial position and give them an insight into the potential future performance of the stock.
Market Price
West Pharmaceutical Services Inc. (WEST) has been on an upward trajectory during the past few weeks, with its stock opening at $349.6 on Tuesday and closing the day at $348.7, down by 1.0% from the previous day’s closing price of $352.1. A careful analysis of West Pharmaceutical Services Inc. stock using fundamental metrics will provide a better understanding of the company’s performance and future prospects. Analyzing these fundamental metrics will provide insight into the company’s overall financial health, as well as its potential for long-term growth. In addition to its financial performance, West Pharmaceutical Services Inc. also emphasizes its commitment to sustainability and corporate social responsibility (CSR). The company has implemented innovative practices such as carbon neutrality, water stewardship, energy efficiency, and circular economy principles to reduce its environmental impact.
Moreover, it has launched programs to support the health and well-being of its employees, initiatives to address social issues, and ethical sourcing and supply chain management policies. Overall, West Pharmaceutical Services Inc.’s stock performance and fundamentals demonstrate its strong potential for future growth. Its commitment to sustainability and CSR are an added bonus that should be taken into account when considering investing in the company’s stock. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for WST. More…
| Total Revenues | Net Income | Net Margin |
| 2.93k | 559.4 | 20.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for WST. More…
| Operations | Investing | Financing |
| 768.2 | -354.7 | -279.6 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for WST. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.75k | 886.5 | 38.76 |
Key Ratios Snapshot
Some of the financial key ratios for WST are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 12.8% | 22.9% | 22.8% |
| FCF Margin | ROE | ROA |
| 14.4% | 14.9% | 11.1% |
Analysis
GoodWhale has conducted a financial analysis of WEST PHARMACEUTICAL SERVICES, and our initial assessment has classified them as ‘rhinos’, or companies that are performing moderately in terms of revenue and earnings growth. As a result, they are likely to attract a range of investors, as they have a strong balance sheet, with high dividend yields, good growth prospects and robust profitability. In terms of health, WEST PHARMACEUTICAL SERVICES has an excellent score of 10 out of 10, showing that it is capable of paying off its debts and funding future operations. 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 is a Delaware-based publicly traded company that specializes in providing solutions for the packaging, delivery and administration of injectable drugs and healthcare products. Investors can analyze West Pharmaceutical Services Inc. stock to determine its fundamental value by looking at a variety of financial metrics. These metrics include liquidity, profitability, solvency, efficiency and capital structure. Liquidity ratios measure the company’s ability to meet short-term debt obligations. Profitability ratios measure the company’s profitability and its return on investment.
Solvency ratios measure the company’s ability to cover long-term debt obligations. Efficiency ratios measure how well the company utilizes its assets to generate revenue and profits. Finally, capital structure ratios measure the company’s debt and equity structure. By analyzing these metrics, investors can determine whether West Pharmaceutical Services Inc. is undervalued or overvalued relative to its peers.
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