West Pharmaceutical Services, Inc. (WST) AI Stock Analysis

West Pharmaceutical Services, Inc. specializes in designing, manufacturing, and distributing advanced containment and delivery systems for injectable drugs and healthcare products across global markets. The company operates through two segments: Proprietary Products and Contract-Manufactured Products. Proprietary Products provides stoppers, seals, syringe and cartridge components, administration systems, Crystal Zenith cyclic olefin polymer containment, films, coatings, sterilization services, and self-injection devices. This segment also delivers analytical lab services and engineering support to biologic, generic, and pharmaceutical companies. Contract-Manufactured Products designs and manufactures devices for surgical, diagnostic, ophthalmic, and drug delivery applications, as well as consumer products.

West delivered revenue of $3.07B in FY2025, representing an increase of 6.3% following a 2.0% decline in FY2024 to $2.89B. Net income reached $493.7M in FY2025 with an operating margin of 20.1% and a gross margin of 35.9%, compared to net income of $492.7M and an operating margin of 20.6% in FY2024. Across the five fiscal years from FY2020 to FY2025, revenue expanded at a compound annual growth rate of 7.4%. In the latest quarter ended June 30, 2026, quarterly revenue grew 13.8% year-over-year, while quarterly earnings increased 18.1% year-over-year. Operating cash flow totaled $754.8M in FY2025, supporting free cash flow of $468.9M.

As of June 30, 2026, West held $435.8M in cash and short-term investments against total debt of $312.1M, yielding net cash of $123.7M. The company reported a current ratio of 2.82 and a debt-to-equity ratio of 0.10, backed by $2.99B in shareholders' equity and $4.08B in total assets. During FY2025, capital expenditures consumed $285.9M. West deployed capital to return value to shareholders, spending $134.0M on share buybacks and $61.2M on dividends paid, while reducing its five-year share count by 6.7%.

West trades at a trailing price-to-earnings multiple of 49.4x and a forward price-to-earnings multiple of 37.0x, both above the median of its S&P 500 Healthcare peers of 27.2x and 16.5x, respectively. Its enterprise value-to-EBITDA ratio of 25.6x also exceeds the peer group median of 15.0x, alongside a price-to-sales ratio of 8.1x compared to the peer median of 3.4x. Over the past year, the stock appreciated 44.2%, outperforming the S&P 500 index return of 16.8%. Over a five-year period, however, the stock declined 3.9%, trailing the S&P 500 return of 83.0%.

West pays a quarterly dividend with an annualized forward payout of $0.88 per share, representing a dividend yield of 0.23%. The company holds a conservative dividend payout ratio of 10.3% and has paid dividends for 42 consecutive years. Over the past five years, dividend growth annualized at 5.5%. Its last ex-dividend date was July 29, 2026.

Wall Street coverage includes 12 Strong Buy, 4 Buy, and 1 Hold recommendations, with zero Sell or Strong Sell ratings. The mean price target of $412.88 suggests an upside of 7.5% from the last close of $384.02. Consensus expectations project FY2026 earnings per share of $8.96 on revenue of $3.38B, followed by FY2027 estimates of $10.00 in earnings per share on revenue of $3.59B across 17 analysts. The company beat earnings estimates in all 4 of the last 4 quarters and is scheduled to report next on October 29, 2026.

This page is an AI-written research summary of West Pharmaceutical Services, Inc. (WST). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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