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West Pharmaceutical Services, Inc.
S&P 500
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$24.8B
Market Cap
40.5
P/E
3.06
PEG
19.7%
ROCE
16.9%
ROE
0.10
D/E
20.8%
OPM
-5.3%
% from 52W High
76
α RS
🔍 WST is showing a high-conviction setup because it matches 14 of 39 tracked screener presets, RS Rating is 76, and an ECS of 52.9 last quarter. Net: Broad signal stack, not a recommendation. ? Conviction RS Rating ECS
Sources
Conviction 14/39 · RS Rating 76 · ECS 52.9
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🌏 Global Investor Returns
Currency-adjusted total returns for WST including FX impact
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
📊 Sector Averages
About

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.

Key Ratios Snapshot
📈 Growth Pattern
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⭐ Superinvestors Holding WST
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Manager Shares Value % of Fund Period
Andreas Halvorsen Viking Global Investors 416.9K $104.5M 0.29% Mar 2026
Jim Simons Renaissance Technologies LLC 209.7K $52.5M 0.08% Mar 2026
Steve Cohen Point72 Asset Management 159.4K $39.9M 0.05% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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Good quarter Investor Presentation One-Pager? Q2 2026
Revenue
$872.3M
+13.8% reported / +12.7% organic
Adjusted Operating Margin
22.6%
+230 bps YoY
Gross Margin
37.7%
+200 bps YoY
Adjusted Diluted EPS
$2.37
+28.8% YoY
What Went Right
  • HVP components grew 18.4% organically to $424.1M and now represent 49% of total revenue; non-GLP-1 HVP grew high teens and drove most of the beat.
  • Adjusted EPS of $2.37 beat the guidance midpoint by $0.28, with adjusted operating margin expanding 230bps to 22.6%.
  • Organic growth accelerated to 12.7%, leading management to raise full-year revenue and EPS guidance.
What to Watch
  • The cyber incident hurt West Vantage, which grew only 0.8% organically; mid-single-digit growth was deferred into H2.
  • Oil and commodity cost inflation is pressuring margins; management is offsetting it through pricing and productivity.
  • Q3 organic growth steps down to 7.0%-8.9% due to SmartDose 3.5 divestiture, FX headwinds, and the CGM contract exit.
Management Guidance
  • Q3 2026 revenue guided to $820M-$835M, or +7.0%-8.9% organic.
  • Q3 2026 adjusted EPS guided to $2.14-$2.24, up 9%-14% YoY.
  • FY26 revenue raised to $3.345B-$3.380B, or +10%-11% organic.
  • FY26 adjusted EPS raised to $8.85-$9.05, up 21%-24% YoY.
  • FY26 capex unchanged at $250M-$275M; operating margin expansion expected above 200bps.
Investor Lens
The investment thesis is stronger after this quarter: non-GLP-1 HVP growth was the biggest upside driver, Annex 1 projects continue to build, and GLP-1 HVP remains a double-digit grower even after several quarters of strength. Management raised organic growth guidance to 10%-11% while absorbing FX headwinds and SmartDose divestiture, signalling durable momentum. The mix shift toward higher-value components is the key margin tailwind, and the ~800 Annex 1 projects support a multi-year runway.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Q2 delivers 12.7% organic growth and EPS beat by $0.28, guiding FY26 higher
Revenue
Net sales were $872.3M, up 13.8% reported and 12.7% organic. Proprietary Products grew 15.5% organic, with HVP Components up 18.4% to $424.1M and HVP Delivery Devices up 29.2% organic. West Vantage grew just 0.8% organic due to the cyber incident.
Profitability
Adjusted diluted EPS was $2.37, up 28.8% and $0.28 above the midpoint of guidance; GAAP EPS was $2.15, up 18.1%. Adjusted operating margin expanded 230bps to 22.6%, helped by gross margin expansion and operating leverage.
Margins
Gross margin was 37.7%, up 200bps YoY, driven by price contribution of 4 points and positive HVP mix. Adjusted operating margin rose 230bps to 22.6%, with SG&A and R&D leveraged across a higher revenue base. Inflationary pressure from oil and commodities is being partly offset by pricing.
Balance Sheet
Q2 operating cash flow was $124M, down YoY on accounts receivable timing from the cyber recovery; capex was $43M, down from $75M. FY26 capex guidance remains $250M-$275M. The company repurchased $157M of shares and paid $16M in dividends in Q2.
Key Risks
Management flagged ongoing oil/commodity inflation as a margin headwind. The cyber incident delayed West Vantage revenue into the second half, and West Vantage is expected to decline in Q3 with the CGM contract exiting. Q3 also faces a 110bps FX headwind and the SmartDose 3.5 divestiture impact.
Outlook
Q3 revenue is guided to $820M-$835M and adjusted EPS to $2.14-$2.24. Full-year revenue is raised to $3.345B-$3.380B and adjusted EPS to $8.85-$9.05, with >200bps operating margin expansion expected.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-07-23
Q2 2026 saw double-digit revenue and EPS growth, driven by strong HVP components and biologics demand, with robust performance across all geographies. Full-year guidance was raised, reflecting high teens growth in HVP components and continued margin expansion.
Q1 2026 Q1 2026 2026-04-23
Q1 2026 delivered 21% revenue growth and 47% higher adjusted EPS, driven by strong HVP component and biologics demand. Full-year guidance was raised for both revenue and EPS, with operational excellence and global regulatory trends supporting continued momentum.
Q4 2025 Q4 2025 2026-02-12
Delivered record 2025 results with over $3B in net sales, 8% adjusted EPS growth, and 70% higher free cash flow. 2026 guidance calls for 5%-7% organic revenue growth, double-digit EPS growth, and margin expansion, led by strong HVP component demand and ongoing capacity investments.
Q3 2025 Q3 2025 2025-10-23
Q3 2025 results exceeded expectations with 5% organic revenue growth and 6% higher adjusted EPS. Full-year guidance was raised, driven by strong HVP component growth, GLP-1 demand, and margin expansion. Market dynamics remain fluid, but long-term growth drivers are intact.
Q2 2025 Q2 2025 2025-07-24
Q2 2025 saw strong sales and margin growth, led by HPP components, GLP-1, and Annex 1 upgrades. Full-year guidance for revenue and EPS was raised, with robust demand in biologics and GLP-1 expected to drive continued growth. Tariff and labor risks are being actively managed.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Information Sources:
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