Fundamental analysis · SEC EDGAR · TTM through 30/06/2026

Fundamental analysis of West Pharmaceutical Services Inc

WST · NYSE · Healthcare

Fundamental quality

ATTRACTIVE

78

out of 100

West Pharmaceutical Services Inc fits the profile of a quality compounder: it pairs high return on capital (ROE 18.9%) with wide margins (net margin 17%) and a business that keeps growing (8.3% a year). On fundamental quality it scores 78 out of 100, profiling it as a company with solid fundamentals. Its weakest area is its growth (revenue +8.3%/yr). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

West Pharmaceutical makes the components that seal injectable drugs: stoppers, plungers and delivery systems found in the vast majority of the world's biologic medicines. A business tiny in appearance and critical in practice: without its rubber, insulin doesn't travel.

What will shape its future

  • The rise of injectables (biologics, weight-loss drugs): every dose carries its components.
  • High-value products, where a specialized stopper is priced like pharmaceutical gold.
  • Pharma customers' inventory cycles, which distort short-term demand.

Breakdown by area

I.Growth
58

EPS growth: 10.2% · Revenue growth: 8.3%

II.Profitability
75

Net margin: 17% · ROE: 18.9% · ROIC: 19.5%

III.Financial health
89

Net debt/EBITDA: -0.27x · FCF: 13.1%

Source: SEC EDGAR · TTM through 30/06/2026

The score includes +4 for dividend strength: 33 consecutive years of increases. Keeping that streak demands growing cash generation and balance-sheet discipline.

The score combines growth, profitability and financial strength. Here its financial strength weighs in its favor, while its growth drags it down the most.

Versus its sector

Percentile against the other 57 Healthcare companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 70%
ROEbeats 63%
Growthbeats 49%
Cash generationbeats 43%
Less debtbeats 86%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

West Pharmaceutical Services Inc strengths

  • Strong free-cash-flow generation (FCF margin of 13.1%): profit turns into real cash.
  • Strong return on equity (ROE of 18.9%): it puts shareholder capital to good use.
  • High net margin (17%): the business is clearly profitable.
  • Net cash position: more cash than debt.

West Pharmaceutical Services Inc risks and weaknesses

  • No clear weaknesses in the recent fundamentals, though the system doesn't assess qualitative factors (competition, regulation, management).

West Pharmaceutical Services Inc historical evolution

YearRevenueNet incomeFree cash flowNet debt
20202,147346298-360
20212,832662331-510
20222,887586439-685
20232,950593415-647
20242,893493276-282
20253,074494469-588

Between 2020 and 2025, revenue went from $2,147M to $3,074M (+43%) and net income went from $346M to $494M (+43%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the half-year ended June 30, 2026, versus the half-year ended June 30, 2025 (SEC filings):

  • Revenue+17.3%
  • Net income+32.1%

What changed with the June 30, 2026 results

Compared with the previous close (March 31, 2026), this is what moved in its accounts:

  • Quality score7778
  • FCF margin14.2%13.1%

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

$0.86

per share, yearly

12.4% of earnings

Payout

33 straight years raising it

Growth

The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →

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Is West Pharmaceutical Services Inc cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

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Frequently asked questions

Is West Pharmaceutical Services Inc a good company to invest in?

In terms of business quality, West Pharmaceutical Services Inc scores 78 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is West Pharmaceutical Services Inc a profitable company?

Yes. West Pharmaceutical Services Inc shows a net margin of 17% and an ROE of 18.9%, a sign of a profitable business.

Does West Pharmaceutical Services Inc have a lot of debt?

No. West Pharmaceutical Services Inc has a net cash position: more cash than debt.

Is West Pharmaceutical Services Inc growing?

Its revenue has grown 8.3% annualized in recent years and its earnings per share 10.2%.

Does West Pharmaceutical Services Inc generate cash?

Yes. It converts about 13.1% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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