# West Pharmaceutical Services (WST.US)

Canonical: https://gigainvestors.com/s/WST

Analysis as of: 2026-10-16T07:33:12.904Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $383.02 per share; close as of 2026-10-15.

Estimated value: low $103.68 per share, central $145.86 per share, high $170.42 per share. Buy at or below the central value $145.86 per share. Valuation as of 2026-10-16T07:33:12.904Z; scenarios are not confidence intervals.

Expected annual return: 5.7% at the stated quote. About 5.7% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.21×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.14×

- FY2018: 0.15×

- FY2019: 0.16×

- FY2020: 0.20×

- FY2021: 0.27×

- FY2022: 0.26×

- FY2023: 0.24×

- FY2024: 0.21×

- FY2025: 0.20×

- LTM to Jun 2026: 0.21×

### moat: pass

- ROIC, median of available years: 19.4%

- ROIC, second-lowest year: 13.5%

- Typical minus recent gross margin: -0.7 pp

- Typical gross margin (annual median): 35.2%

- Recent gross margin (lower of latest and 3-year median): 35.9%

- Years with nonpositive capital: 0

- Capital spending / revenue: 9.1%

- ROIC including acquisitions, ten-year median: 16.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 13.5%

- FY2017: 9.2%

- FY2018: 18.5%

- FY2019: 17.6%

- FY2020: 23.8%

- FY2021: 36.5%

- FY2022: 31.9%

- FY2023: 26.5%

- FY2024: 20.4%

- FY2025: 18.4%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: 0.80×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $2.2B

- Net income, five-year total: $2.8B

- Return on incremental invested capital: 25.1%

- Working capital / revenue, annual change: 0.6 pp

- Working capital / revenue, change between three-year averages: 4.0 pp

- Working capital / revenue, final three-year average: 24.2%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 0.76×

- FY2023: 0.67×

- FY2024: 0.55×

- FY2025: 0.95×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 13.5% vs 20.4%

- Per-share earnings: 1.91 to 6.79 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.2%

- Ordinary dilution, 5-year annual growth: -0.8%

- Market cap gain: $14B

- Cumulative retained earnings: $3.3B

- Diluted shares, 10-year annual growth: -0.2%

- Diluted shares, 5-year annual growth: -0.8%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 17.1%

- Per-share value change: $4.88

- Per-share value, starting three-year median: $1.91

- Per-share value, ending three-year median: $6.79

- Buybacks concentrated in cheaper years (correlation): 0.36

- Average buyback yield: 1.1%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: $19M

- Cumulative net income, 10 years: $3.9B

- ROIC, first three-year median: 13.5%

- ROIC, last three-year median: 20.4%

Chart: Earnings per share; fiscal year observations.

- FY2016: $1.91

- FY2017: $1.99

- FY2018: $2.74

- FY2019: $3.21

- FY2020: $4.57

- FY2021: $8.67

- FY2022: $7.73

- FY2023: $7.88

- FY2024: $6.69

- FY2025: $6.79

### accounting: pass

- restructuring or one-time charges in at least three of five years

- Sloan accruals: -6.1%

- Receivables to sales index (DSRI): 0.98×

- Restructuring years, last five: 5

- Stock compensation / operating cash flow: 3.2%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.53×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.04×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -4.4%

- FY2017: -6.0%

- FY2018: -4.1%

- FY2019: -5.4%

- FY2020: -4.5%

- FY2021: 2.3%

- FY2022: -3.8%

- FY2023: -4.8%

- FY2024: -4.4%

- FY2025: -6.1%

## Holders

- [Bill Gates](https://gigainvestors.com/GFT): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Mark Hillman](https://gigainvestors.com/HCM): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 19.2% a year for ten years · sales +8.2%

Story as of 2026-10-16T09:59:53.262Z; price observation 2026-10-15.

Price needs cash profits to grow 19.2% a year for ten years

- 2025-05-12: WST Q1 Earnings Call: Revenue Guidance Raised, Margins Impacted by Product Mix and Tariffs ([finance.yahoo.com](https://finance.yahoo.com/news/wst-q1-earnings-call-revenue-091541267.html))

- 2025-06-26: WST Stock Builds on GLP-1 Growth, Annex 1 and Margins in Focus ([finance.yahoo.com](https://finance.yahoo.com/news/wst-stock-builds-glp-1-124600354.html))

- 2025-07-24: West Pharma Lifts Outlook On Surging GLP-1 Demand, Stock Soars ([finance.yahoo.com](https://finance.yahoo.com/news/west-pharma-lifts-outlook-surging-143852862.html))

- 2025-10-24: WST Q3 Deep Dive: GLP-1 Demand, Annex 1 Upgrades, and Margin Expansion Shape Outlook ([finance.yahoo.com](https://finance.yahoo.com/news/wst-q3-deep-dive-glp-053309354.html))

- 2026-02-12: West Pharma forecasts 2026 profit above estimates on strong demand for drug components ([finance.yahoo.com](https://finance.yahoo.com/news/west-pharma-forecasts-2026-profit-120201797.html))

- 2026-10-08: West Pharmaceutical Services (WST) Stock Could Be 17% Overvalued As Cash Flow Falls Short ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/west-pharmaceutical-services-wst-stock-001644339.html))

### Sales · FY2025–2026

sales +8.2%; source https://www.sec.gov/Archives/edgar/data/105770/000010577026000010/wst-20251231.htm; observed 2026-02-17.

- FY2017: $1.6B 

- FY2018: $1.7B 

- FY2019: $1.8B 

- FY2020: $2.1B 

- FY2021: $2.8B 

- FY2022: $2.9B 

- FY2023: $3.0B 

- FY2024: $2.9B 

- FY2025: $3.1B 

- FY2026: $3.3B 

### Gross margin · FY2025

gross margin 35.9%; source https://www.sec.gov/Archives/edgar/data/105770/000010577026000010/wst-20251231.htm; observed 2026-02-17.

- FY2016: 33.2% 

- FY2017: 32.1% 

- FY2018: 31.8% 

- FY2019: 33.0% 

- FY2020: 35.8% 

- FY2021: 41.5% 

- FY2022: 39.5% 

- FY2023: 38.4% 

- FY2024: 34.6% 

- FY2025: 35.9% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in medical instruments & supplies; annual sales are USD 3.1 billion.

- Source: https://www.sec.gov/Archives/edgar/data/105770/000010577026000010/wst-20251231.htm (filed 2026-02-17); FY2025: revenue 3073700000; grossProfit 1103300000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); WST.US: 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.

### Why customers stay

Margins ranged from 34.6% to 38.4% during 2023–25; it earns 19.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2023: grossProfit / revenue = 38.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2024: grossProfit / revenue = 34.6%.

- Source: https://www.sec.gov/Archives/edgar/data/105770/000010577026000010/wst-20251231.htm (filed 2026-02-17); FY2025: grossProfit / revenue = 35.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); 10-year return on capital observations [[2016,0.13498094178956005],[2017,0.09174631559474625],[2018,0.1847513316798574],[2019,0.17622213850773885],[2020,0.238337956452205],[2021,0.3651358006663827],[2022,0.31905967039245475],[2023,0.2645987753370252],[2024,0.2036307880685579],[2025,0.1840553534975168]]; median 0.19419105987420765. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 19.5% of cash earnings on expansion; earns 25.1% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2016: growth capex 56305451.368270695; upkeep 113894548.6317293; owner earnings 120405451.3682707. Growth capex / owner earnings = 0.46763207752160246.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2017: growth capex 34100000; upkeep 96700000; owner earnings 150700000. Growth capex / owner earnings = 0.22627737226277372.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2018: growth capex 300000; upkeep 104400000; owner earnings 206900000. Growth capex / owner earnings = 0.0014499758337361043.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2019: growth capex 23000000; upkeep 103400000; owner earnings 241700000. Growth capex / owner earnings = 0.09515928837401738.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2020: growth capex 65300000; upkeep 109100000; owner earnings 346200000. Growth capex / owner earnings = 0.18861929520508378.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2021: growth capex 131100000; upkeep 122300000; owner earnings 661800000. Growth capex / owner earnings = 0.19809610154125112.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2022: growth capex 24973363.71168998; upkeep 259626636.28831002; owner earnings 446873363.71168995. Growth capex / owner earnings = 0.05588465489252585.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2023: growth capex 30341954.946303606; upkeep 331658045.0536964; owner earnings 399041954.9463036. Growth capex / owner earnings = 0.07603700455604102.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2024: growth capex 0; upkeep 377000000; owner earnings 271100000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/105770/000010577026000010/wst-20251231.htm (filed 2026-02-17); FY2025: growth capex 91614992.80134034; upkeep 194285007.19865966; owner earnings 470814992.80134034. Growth capex / owner earnings = 0.19458809554095305.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); Incremental return on capital 0.2505801231765914, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); Dividend observations: [[2016,35800000],[2017,39100000],[2018,42100000],[2019,45100000],[2020,48100000],[2021,51100000],[2022,54100000],[2023,57000000],[2024,59100000],[2025,61200000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/105770/000010577026000010/wst-20251231.htm (filed 2026-02-17); FY2025: cash repurchases 134000000 USD.

### Are managers owners

Insiders own 0.7% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); WST.US SharesStats.PercentInsiders = 0.656 percentage points; cache date 2026-10-16.

### What could break it

"Disruptions in the supply of key raw materials could adversely impact our operations." (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/105770/000010577026000010/wst-20251231.htm (filed 2026-02-17); Disruptions in the supply of key raw materials could adversely impact our operations.

### What the price says

The price assumes cash profits grow 19.2% yearly over ten years; actual growth was 24.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); Ten-year compound average after fade. Initial solved rate 0.2654830734562449. Price 383.02; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.7303523035230353 → FY2025 6.476134701531504. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $76.03 per share

- 2016-11: $81.15 per share

- 2016-12: $84.83 per share

- 2017-01: $84.63 per share

- 2017-02: $82.47 per share

- 2017-03: $81.61 per share

- 2017-04: $92.03 per share

- 2017-05: $97.02 per share

- 2017-06: $94.52 per share

- 2017-07: $88.70 per share

- 2017-08: $87.04 per share

- 2017-09: $96.26 per share

- 2017-10: $101.40 per share

- 2017-11: $99.93 per share

- 2017-12: $98.67 per share

- 2018-01: $100.20 per share

- 2018-02: $87.22 per share

- 2018-03: $88.29 per share

- 2018-04: $88.21 per share

- 2018-05: $93.00 per share

- 2018-06: $99.29 per share

- 2018-07: $109.65 per share

- 2018-08: $117.05 per share

- 2018-09: $123.47 per share

- 2018-10: $105.92 per share

- 2018-11: $109.56 per share

- 2018-12: $98.03 per share

- 2019-01: $108.27 per share

- 2019-02: $104.75 per share

- 2019-03: $110.20 per share

- 2019-04: $123.79 per share

- 2019-05: $114.60 per share

- 2019-06: $125.15 per share

- 2019-07: $137.27 per share

- 2019-08: $145.46 per share

- 2019-09: $141.82 per share

- 2019-10: $143.84 per share

- 2019-11: $147.03 per share

- 2019-12: $150.33 per share

- 2020-01: $155.95 per share

- 2020-02: $150.56 per share

- 2020-03: $152.25 per share

- 2020-04: $189.26 per share

- 2020-05: $216.04 per share

- 2020-06: $227.17 per share

- 2020-07: $268.87 per share

- 2020-08: $283.96 per share

- 2020-09: $274.90 per share

- 2020-10: $272.07 per share

- 2020-11: $275.16 per share

- 2020-12: $283.31 per share

- 2021-01: $299.49 per share

- 2021-02: $280.65 per share

- 2021-03: $281.78 per share

- 2021-04: $328.52 per share

- 2021-05: $347.51 per share

- 2021-06: $359.10 per share

- 2021-07: $411.73 per share

- 2021-08: $451.62 per share

- 2021-09: $424.54 per share

- 2021-10: $429.88 per share

- 2021-11: $442.66 per share

- 2021-12: $469.01 per share

- 2022-01: $393.22 per share

- 2022-02: $387.08 per share

- 2022-03: $410.71 per share

- 2022-04: $315.06 per share

- 2022-05: $310.38 per share

- 2022-06: $302.37 per share

- 2022-07: $343.56 per share

- 2022-08: $296.69 per share

- 2022-09: $246.08 per share

- 2022-10: $230.10 per share

- 2022-11: $234.66 per share

- 2022-12: $235.35 per share

- 2023-01: $265.60 per share

- 2023-02: $317.03 per share

- 2023-03: $346.47 per share

- 2023-04: $361.24 per share

- 2023-05: $334.63 per share

- 2023-06: $382.47 per share

- 2023-07: $368.04 per share

- 2023-08: $406.90 per share

- 2023-09: $375.21 per share

- 2023-10: $318.29 per share

- 2023-11: $350.76 per share

- 2023-12: $352.12 per share

- 2024-01: $373.03 per share

- 2024-02: $358.36 per share

- 2024-03: $395.71 per share

- 2024-04: $357.48 per share

- 2024-05: $331.41 per share

- 2024-06: $329.39 per share

- 2024-07: $306.17 per share

- 2024-08: $313.63 per share

- 2024-09: $300.16 per share

- 2024-10: $307.93 per share

- 2024-11: $325.68 per share

- 2024-12: $327.56 per share

- 2025-01: $341.55 per share

- 2025-02: $232.34 per share

- 2025-03: $223.88 per share

- 2025-04: $211.29 per share

- 2025-05: $210.85 per share

- 2025-06: $218.80 per share

- 2025-07: $239.26 per share

- 2025-08: $246.95 per share

- 2025-09: $262.33 per share

- 2025-10: $282.07 per share

- 2025-11: $277.25 per share

- 2025-12: $275.14 per share

- 2026-01: $231.12 per share

- 2026-02: $254.34 per share

- 2026-03: $250.64 per share

- 2026-04: $297.59 per share

- 2026-05: $322.81 per share

- 2026-06: $359.00 per share

- 2026-07: $340.96 per share

- 2026-08: $341.11 per share

- 2026-09: $370.76 per share

- 2026-10: $383.02 per share

## Annual estimated value (USD per share)

- FY2016: low $19.35 per share, central $24.16 per share, high $27.85 per share

- FY2017: low $23.18 per share, central $28.81 per share, high $33.20 per share

- FY2018: low $29.16 per share, central $36.52 per share, high $42.01 per share

- FY2019: low $34.40 per share, central $43.75 per share, high $50.30 per share

- FY2020: low $52.00 per share, central $68.34 per share, high $78.81 per share

- FY2021: low $75.38 per share, central $103.71 per share, high $120.21 per share

- FY2022: low $91.02 per share, central $125.05 per share, high $144.96 per share

- FY2023: low $91.63 per share, central $124.29 per share, high $144.04 per share

- FY2024: low $86.58 per share, central $118.55 per share, high $138.11 per share

- FY2025: low $98.08 per share, central $135.81 per share, high $157.78 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:38:58.427Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/105770/000010577026000010/wst-20251231.htm); period 2025-12-31, filed 2026-02-17.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.