Performance, Earnings and Valuation Analysis: West Pharmaceutical Services Inc. (WST)

West Pharmaceutical Services Inc. (NYSE:WST) stock is down -0.70% to close at $210.09 on Wednesday, 05/20/20. WST stock is lower by -$1.48 from the previous closing price of $211.57 on volume of 1083518 shares. In the meantime, WST was trading in the Healthcare sector, the stock is trading -5.35% low as compared to its 52-week high price and 85.85% high as compared to its 52-week low price. Of example, both the price and the high and low measurements of 52 weeks will give you a clear image for determining the price track. The firm has a Weighted Alpha of 87.8. A positive weighted alpha shows that over the past year the stock has risen. A negative means that over the same period the stock is down.

What do the Analysts Think?

Over the last 12 months, West Pharmaceutical Services Inc. (WST) stock has gained by 77.25 percent, and Wall Street analysts’ average rating is a Overweight. WST stock has an average target price of $188.00 in addition to the average rating from Wall Street analysts. This suggests investors foresee the inventory in the next 12 months to loss -15.59%.

Estimates of future earnings are probably the most important feedback when attempting to evaluate a company. Analysts can then use cash flow analysis to approximate fair value for a company by placing estimates on a company’s earnings for certain periods. In case of West Pharmaceutical Services Inc. (WST), the Consensus Average Estimate of EPS for fiscal year 12/2020 according to 4 analysts is at $3.56 per share. The high EPS estimate is $3.65 per share and the low estimate is $3.35 per share. The Average estimate indicates the 9.88% growth as compared to the prior year estimated EPS of $3.24 per share.

EPS Growth and Stock Performance

West Pharmaceutical Services Inc. also currently has an EPS Growth of 18.20 percent for current year, showing analysts have bullish about their potential for near-term earnings. EPS is expected to reach 8.90 percent over the next five years, while EPS growth was 12.90 percent over the past five years, along with sales growth of 5.30 percent over the past five years. Next year’s EPS growth is estimated at 11.63%.

The performance of the stocks typically measures, how much a stock gain or lose its value during different time spans. West Pharmaceutical Services Inc. (NYSE:WST) has achieved around 27.17% in the last 30 days and around 22.38% over the last three months. The stock exposed return of +288.05% over the period of last 5 years and recorded return of 3.05% over a week. In the last 6 months, the stock has been observed at 40.88% return.

Tracking the Profitability and Valuation Ratios

Tracking productivity test, the company profit margin at 13.80% and the operating margin at 16.60%. The organization reported a 33.20 percent Gross Margin. The profit margin ratio, also referred to as the revenue ratio or gross profit ratio, is a productivity equation that dealings the amount of net income gained with each dollar in revenues produced by contrasting the company’s net income and net sales. The higher ratio means the more profit and vice versa.

As of the last trading session the stock has achieved a market cap of $15.53B. Market capitalization is the cumulative dollar value of all of a company’s outstanding shares and is used to quantify businesses and consider their overall market value. The P/E ratio of West Pharmaceutical Services Inc. (NYSE:WST) is noted at 60.83. Price-to-earnings ratio is a common measure of the current share price of a business relative to its per-share profits (ttm). Forward P/E is standup at 52.11. Forward price-to-earnings ratio calculated utilizing projected earnings for the next financial year’s P/E estimate. The stock has attained Price-to-sales ratio of 8.22 replicates the cost to be found on sales by the market. The firm maintained Price-to-book ratio of 10.42, which is used to equate the market value of a stock with its book value.

How Insiders are Trading the Stock?

Abraham Silji, Chief Digital & Trans Officer of West Pharmaceutical Services Inc. (WST) sold 1,000 shares of firm against total value of $204,500 at the rate of $204.50 on May 11. Abraham Silji, Chief Digital & Trans Officer of West Pharmaceutical Services Inc. (WST) sold 1,000 shares of firm against total value of $200,000 at the rate of $200.00 on May 08. MILLER GEORGE LLOYD, Sr. VP, GC & Corp. Sec. of West Pharmaceutical Services Inc. sold 1,805 shares of firm against total value of $341,837 at the rate of $189.38 on May 01. Mostly, the investors and traders are looking for stocks with the high ownership of company’s management because they think that when the company’s management is the major shareholder of a firm, the management will run the business for itself and they will never act those activities which are against their interests and they will always try to create shareholder value in the long-term. Currently, 0.60% of West Pharmaceutical Services Inc.‘s shares possessed by insiders, while 94.70% shares possessed by financial institutions.