West Pharmaceutical Services, Inc. (WST)

Slow Grower

FairStock Score: 48/100 — MIXED

Key Financials

Current Price$407.88
Market Cap$28.4B
P/E Ratio52.09
ROE19.09%
Dividend Yield0.24%
SectorHealthcare

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I see a financially sturdy healthcare supplier. At the 2026-10-26 close of $394.73, FairStock calculates a P/E of 50.41, P/B of 9.29, EV/EBITDA of 31.24, and FCF yield of only 1.6%. The balance sheet is conservative, with D/E of 0.11, while FairStock’s Piotroski score is 8/9 and Altman Z-score is 17.55. Returns are good: ROE 19.09%, ROCE 11.38%. The latest filed figures show momentum: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $872.3M, net income $154.0M, and diluted EPS $2.15, versus $766.5M, $131.8M, and $1.82 in fiscal Q2 2025. But the longer record is uneven. FY2025 revenue was $3.1B with net income of $493.7M; FY2024 was $2.9B and $492.7M; FY2023 was $2.9B and $593.4M. FairStock’s computed Lynch category is SLOW GROWER, based on profit and revenue growth of 7.4% a year over five years. I cannot verify a wide moat from these figures alone, though the healthcare components business may have some customer stickiness. The main issue is price. FairStock’s Graham Number is $86.50, leaving a margin of safety of -353.35% against the close, and the PEG ratio is 2.97. That is a demanding valuation for a slow-growing profile. Quality is visible; a Graham-style bargain is not.

In plain English: West Pharmaceutical makes packaging and delivery parts for injectable medicines, such as stoppers, seals, and syringe components. The business looks financially strong, with low debt and healthy profits, and sales and earnings grew in the latest quarter. But compared with those profits and cash flow, the stock price looks expensive.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer