West Pharmaceutical Services, Inc.
- Open
- 335.96
- Day high
- 342.59
- Day low
- 335.88
- Prev close
- 337.47
- Volume
- 601K
- Mkt cap
- $24.0B
- P/E (TTM)
- 43.3
- EPS (TTM)
- $7.87
- P/B
- 8.0
- P/S
- 7.2
- Yield
- 0.13%
- Per share
- $0.44
West Pharmaceutical Services, Inc. (WST) is a Healthcare company listed on NYSE. The stock is up 40% over the past year. Drillr has 1 published research article covering WST.
West Pharmaceutical Services, Inc. (WST) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 9 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
WST earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 23, 2026 | $2.08 | $2.37 | +13.8% | $872M | +3.8% |
| Apr 23, 2026 | $1.68 | $2.13 | +26.9% | $845M | +8.5% |
| Feb 12, 2026 | $1.83 | $2.04 | +11.4% | $805M | +4.0% |
| Oct 23, 2025 | $1.68 | $1.96 | +16.5% | $804M | +2.5% |
| Jul 24, 2025 | $1.51 | $1.84 | +22.2% | $766M | +5.8% |
| Apr 24, 2025 | $1.22 | $1.45 | +18.7% | $698M | -1.9% |
| Feb 13, 2025 | $1.71 | $1.82 | +6.6% | $749M | +1.3% |
| Oct 24, 2024 | $1.51 | $1.85 | +22.6% | $747M | +5.0% |
| Jul 25, 2024 | $1.74 | $1.52 | -12.8% | $702M | -4.0% |
| Apr 25, 2024 | $1.27 | $1.56 | +22.6% | $695M | +3.2% |
| Feb 15, 2024 | $1.78 | $1.83 | +3.0% | $732M | -0.8% |
| Oct 26, 2023 | $1.86 | $2.16 | +16.2% | $747M | +0.1% |
WST insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Aug 12, 2026 | McMahon Robert W.officer: SVP & Chief Financial Officer | Option | 6,355 | — |
| Aug 12, 2026 | McMahon Robert W.officer: SVP & Chief Financial Officer | Option | 794 | — |
| Aug 12, 2026 | McMahon Robert W.officer: SVP & Chief Financial Officer | Tax | 2,764 | $351.37 |
| Aug 12, 2026 | McMahon Robert W.officer: SVP & Chief Financial Officer | Tax | 346 | $351.37 |
| Jul 1, 2026 | HAUGEN JANET BRUTSCHEAdirector | Grant | 46 | — |
| May 14, 2026 | Campbell Shane Aldenofficer: SVP, Proprietary Segment | Tax | 84 | $312.07 |
| May 14, 2026 | Campbell Shane Aldenofficer: SVP, Proprietary Segment | Option | 474 | — |
| May 14, 2026 | Campbell Shane Aldenofficer: SVP, Proprietary Segment | Tax | 135 | $312.07 |
| May 14, 2026 | Campbell Shane Aldenofficer: SVP, Proprietary Segment | Option | 296 | — |
| May 6, 2026 | Pucci Paolodirector | Grant | 791 | — |
| May 6, 2026 | HAUGEN JANET BRUTSCHEAdirector | Grant | 791 | — |
| May 6, 2026 | Keller Deborah Ldirector | Grant | 791 | — |
| May 6, 2026 | LAI GOLDMAN MYLAdirector | Grant | 791 | — |
| May 6, 2026 | Joseph Mollydirector | Grant | 791 | — |
| May 6, 2026 | Lockhart Stephen Hdirector | Grant | 791 | — |
Source: WST SEC Form 4 filings, latest Aug 12, 2026. For informational purposes only — not investment advice.
See the full WST insider & 13F page →West Pharmaceutical Services, Inc. company profile
Overview
West Pharmaceutical Services, Inc. (NYSE:WST) is a leading manufacturer of containment and delivery systems for injectable drugs and healthcare products. Founded in 1923 and headquartered in Exton, Pennsylvania, the company has evolved from a rubber stopper manufacturer into a comprehensive provider of drug packaging and delivery solutions. West serves pharmaceutical, biotechnology, and medical device companies globally, operating manufacturing facilities across the Americas, Europe, the Middle East, Africa, and Asia Pacific. The company went public in 1980 and has established itself as a critical supplier in the pharmaceutical supply chain, particularly for injectable medicines and biologics.
Business
West Pharmaceutical Services operates in the pharmaceutical packaging and drug delivery industry, providing essential components that ensure the safety, efficacy, and sterility of injectable medications. The pharmaceutical industry requires specialized packaging systems because injectable drugs must remain sterile and chemically stable from manufacturing through patient administration. The company operates through two primary business segments: 1. **Proprietary Products (approximately 85% of revenue)**: This segment manufactures elastomeric stoppers, aluminum seals, syringe components, and advanced drug containment systems. Their flagship offerings include High-Value Products (HVP), which represent about 74% of proprietary product sales. Key products include Crystal Zenith, a cyclic olefin polymer used for vials and syringes that provides superior drug compatibility compared to traditional glass, and NovaPure plungers that offer enhanced purity for sensitive biologics. The segment also provides Daikyo sealing systems and vision inspection services. 2. **Contract Manufacturing (approximately 15% of revenue)**: This segment designs and manufactures drug delivery devices including auto-injectors, pen injectors, and wearable delivery systems like the SmartDose platform. These devices enable patients to self-administer medications outside clinical settings. The segment has significant exposure to GLP-1 diabetes and obesity medications, which now account for approximately 40% of contract manufacturing revenue. The company serves three primary market segments: biologics (representing the fastest-growing area), traditional pharmaceuticals, and generic drugs. West's products are essential for containing and delivering vaccines, insulin, cancer treatments, and other critical medications that require injection.
Revenue model
West generates revenue primarily through product sales to pharmaceutical and biotechnology companies. The business model centers on manufacturing specialized components and systems that drug companies require for their injectable products. The Proprietary Products segment operates on a manufacturing model where West produces standardized and customized elastomeric components, sealing systems, and drug containment solutions. Revenue comes from direct sales of these components, with pricing typically based on volume commitments and product complexity. High-Value Products command premium pricing due to their enhanced performance characteristics and regulatory compliance benefits. The Contract Manufacturing segment operates on a contract manufacturing model, where West designs, manufactures, and assembles drug delivery devices for pharmaceutical companies. Revenue is generated through manufacturing fees, often under multi-year supply agreements. The segment also provides device development services and regulatory support. Several factors influence West's profitability margins. Positive margin drivers include the ongoing shift toward biologics (which require higher-value containment solutions), increasing adoption of self-injection devices, pricing power due to regulatory barriers and switching costs, and operational leverage from capacity utilization. The company benefits from long customer qualification cycles that create switching costs, as pharmaceutical companies must conduct extensive testing and regulatory approval processes when changing suppliers. Margin pressures come from raw material cost inflation (particularly for specialized polymers and elastomers), energy costs for manufacturing operations, labor cost increases, and competitive pricing pressure in the generics market segment. Customer inventory destocking cycles can also temporarily impact volumes and margins. Additionally, the company faces ongoing capital expenditure requirements to maintain regulatory compliance and expand capacity for growing markets like GLP-1 medications.
Competitive moat
West Pharmaceutical Services possesses a strong economic moat built primarily on regulatory barriers, switching costs, and specialized manufacturing expertise. The pharmaceutical industry's stringent regulatory environment creates significant barriers to entry, as any packaging component that contacts drugs must undergo extensive testing and regulatory approval processes that can take years and cost millions of dollars. The company's competitive advantages include high customer switching costs, as pharmaceutical companies face substantial time and expense to qualify alternative suppliers. Once a drug packaging system is approved by regulatory authorities, changing suppliers requires repeating costly clinical trials and regulatory submissions. This creates strong customer retention and recurring revenue streams. West's technical expertise and intellectual property in elastomer formulations, polymer science, and drug compatibility testing provide additional competitive protection. The company's manufacturing scale and global footprint offer cost advantages and supply chain redundancy that smaller competitors cannot match. However, the moat faces some challenges. Large pharmaceutical companies maintain significant bargaining power and may develop internal capabilities or qualify multiple suppliers to reduce dependence. Technological disruption from alternative drug delivery methods (such as oral formulations of traditionally injectable drugs) could reduce demand for injection-related products. The company's contract manufacturing business faces more direct competition from specialized device manufacturers and has lower switching costs compared to the proprietary products segment. The moat strength varies by market segment, with biologics offering the strongest competitive position due to higher technical requirements and switching costs, while the generics market provides less protection due to price sensitivity and standardized requirements.
Risks & safety
West Pharmaceutical Services demonstrates a strong margin of safety with solid financial fundamentals and manageable risk factors. **Liquidity and Solvency:** - Strong cash position of $404 million with minimal debt (debt-to-equity ratio of 0.11) - Current ratio of 2.77 indicates solid short-term liquidity - Positive free cash flow of $58 million in Q1 2025, though down from prior periods - No significant solvency concerns given strong balance sheet **Valuation Metrics:** - Trading at 45x P/E ratio, indicating premium valuation - EV/EBITDA of 26.7x suggests expensive relative to earnings - Price-to-book ratio of 6.0x reflects market premium for quality assets - Graham number of $32 suggests significant overvaluation relative to conservative metrics **Other Considerations:** - Recurring revenue model with high customer retention provides earnings stability - Exposure to defensive healthcare spending offers some recession resistance - Capital-intensive business requiring ongoing investment in manufacturing capacity - Potential tariff impacts estimated at $20-25 million annually represent manageable headwind
Recent development
Over the past few years, West has executed several strategic initiatives to capitalize on pharmaceutical industry trends. The company has significantly expanded its presence in the GLP-1 market for diabetes and obesity medications, with GLP-1 devices now representing approximately 40% of contract manufacturing revenue. This includes securing multi-year contracts with major GLP-1 manufacturers and investing in specialized manufacturing capabilities. West has prioritized biologics market expansion, where the company participates in approximately 90% of new molecular entities. The company has invested heavily in High-Value Products capacity, including Crystal Zenith polymer systems and NovaPure components that offer superior performance for sensitive biologic drugs. The company launched the AnnexOne program, which now encompasses over 340 projects helping pharmaceutical companies achieve regulatory compliance. This service-oriented initiative provides additional revenue streams while strengthening customer relationships. Manufacturing expansion has been substantial, with new facilities in Dublin, Ireland and Phoenix, Arizona coming online. The Dublin facility focuses on drug handling capabilities, while Phoenix supports SmartDose wearable device production. West has also invested in automation to improve SmartDose device margins and manufacturing efficiency. Recent organizational changes include the departure of CFO Bernard Birkett and the appointment of Shane Campbell as Senior VP of Chief Proprietary Segment Officer, reflecting the company's focus on optimizing its core proprietary products business.
WST company profile · for informational purposes only — not investment advice.
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