West Pharmaceutical Services, Inc.WST
NYSE•Healthcare•Medical Instruments & Supplies
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 products. This segment also provides drug containment solutions in the form of vials, syringes, and cartridges; and self-injection devices; and 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. This segment primarily serves pharmaceutical, diagnostic, and medical device companies. It sells and distributes its products through its sales force and distribution network, contract sales agents, and regional distributors. West Pharmaceutical Services, Inc. was founded in 1923 and is headquartered in Exton, Pennsylvania.
as of March 2026
Are revenues and earnings expanding?
$3.22B in TTM revenue grew 11.2% YoY, reaching $844.90M last quarter. TTM EBITDA of $831.60M on operating income of $177.10M shows growth is flowing through. Net income of $542.70M TTM confirms the company is converting revenue into profit. Revenue is growing at a healthy pace — a signal to hold.
Is revenue turning into profit effectively?
Op. margin of 21.0% is up 5.6% YoY — cost efficiency is improving. Net margin at 16.4% and gross margin of 35.1%. ROE of 18.1% shows the company generates solid returns on shareholder equity.
Is the stock cheap or expensive?
At 42.9x P/E, the stock trades at a premium — the market expects above-average growth. P/S of 7.2x and P/B of 7.8x provide additional context. Assess whether the current multiple is justified by the company's growth and profitability trajectory.
Is the company financially stable?
With $4.11B in assets and $202.80M in long-term debt, the D/E of 0.1 shows a conservative capital structure — the company has a strong financial cushion to weather downturns.
Is the business self-funding?
FCF of $47.20M on $89.90M in operating cash flow. The FCF / Net Income ratio of 0.1x indicates partial cash conversion — earnings quality needs attention. Cash reserves of $521.40M provide financial flexibility. Share count is stable — no dilution or buyback activity.
Competitive analysis based on 62 quarters of fundamental data
Operating margins are expanding at ~19.7%, suggesting durable pricing power and cost discipline.
Consistently high ROE averaging 17.6% suggests a durable competitive advantage and efficient capital allocation.
Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.
TTM revenue has grown consistently (6 of 7 quarters up), with ~12.0% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 62 quarters
Margins are stable or improving at ~20.3% — no sign of cost or pricing stress.
FCF/Net Income has dropped below 0.7x in 4 quarters — monitor for earnings quality deterioration.
D/E ratio is 0.1 — conservative capital structure with low financial risk.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Share count is stable — no significant dilution or buyback activity.