West Pharmaceutical Services, Inc. [NYSE:WST]: Analyst Rating and Earnings
Stock market traders frequently keep their eyes on what Wall Street experts as it relates to a potential investment. For West Pharmaceutical Services, Inc. [WST], the most recent analyst consensus recommendation available since its latest financial results for the quarter ending in December. On average, stock market experts give WST an Outperform rating. Its stock price has been found in the range of 150.75 to 241.33. This is compared to its latest closing price of $103.86.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for West Pharmaceutical Services, Inc. [WST] is sitting at 2.33. This is compared to 1 month ago, when its average rating was 2.33.
For the quarter ending in Sep-18 West Pharmaceutical Services, Inc. [WST] generated $0.43 billion in sales. That’s 0.77% higher than the average estimate of $0.43 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep your eyes peeled for the soon-to-be-published financial results of this company, which are expected to be made public on Thu 21 Feb (In 38 Days).
Fundamental Analysis of West Pharmaceutical Services, Inc. [WST]
Now let’s turn to look at profitability: with a current Operating Margin for West Pharmaceutical Services, Inc. [WST] sitting at +14.36 and its Gross Margin at +32.20, this company’s Net Margin is now 9.10%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 16.28, and its Return on Invested Capital has reached 15.60%. Its Return on Equity is 12.57, and its Return on Assets is 8.42. These metrics show a mixed bag, which means that this investment’s attractiveness can be quickly increased or decreased in the short term, depending on future updates WST financial performance.
Turning to investigate this organization’s capital structure, West Pharmaceutical Services, Inc. [WST] has generated a Total Debt to Total Equity ratio of 15.39. Similarly, its Total Debt to Total Capital is 13.34, while its Total Debt to Total Assets stands at 10.58. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 15.39, and its Long-Term Debt to Total Capital is 13.34. This company has a healthy balance between its debt and its current holdings, suggesting it is a reliable investment due to its ability to leverage debt in an efficient way.
What about valuation? This company’s Enterprise Value to EBITDA is 22.17 and its Total Debt to EBITDA Value is 0.60. The Enterprise Value to Sales for this firm is now 4.23, and its Total Debt to Enterprise Value stands at 0.03. West Pharmaceutical Services, Inc. [WST] has a Price to Book Ratio of 5.70, a Price to Cash Flow Ratio of 28.41 and P/E Ratio of 50.42. These metrics suggest that this publicly-traded organization will not likely result in investment gains.
Shifting the focus to workforce efficiency, West Pharmaceutical Services, Inc. [WST] earns $213,387 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 7.05 and its Total Asset Turnover is 0.89. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.89 and its Current Ratio is 2.66. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Let’s now turn our attention to trading performance: West Pharmaceutical Services, Inc. [WST] has 74.10M shares outstanding, amounting to a total market cap of $7.69B. Its stock price has been found in the range of 82.74 to 125.09. At its current price, it has moved by -17.00% from its 52-week high, and it has moved 25.49% from its 52-week low.
This stock’s Beta value is currently 1.22, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 54.88. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is West Pharmaceutical Services, Inc. [WST] a Reliable Buy?
Shares of West Pharmaceutical Services, Inc. [WST], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.