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West Pharmaceutical Services, Inc. (NYSE:WST) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of WST, it is a company with great financial health as well as a an impressive track record of performance. Below, I've touched on some key aspects you should know on a high level. If you're interested in understanding beyond my broad commentary, read the full report on West Pharmaceutical Services here.
Flawless balance sheet with solid track record
WST delivered a bottom-line expansion of 64% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did WST outperformed its past performance, its growth also surpassed the Medical Equipment industry expansion, which generated a 32% earnings growth. This is what investors like to see! WST's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that WST manages its cash and cost levels well, which is a key determinant of the company’s health. WST seems to have put its debt to good use, generating operating cash levels of 1.49x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
For West Pharmaceutical Services, I've compiled three fundamental factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for WST’s future growth? Take a look at our free research report of analyst consensus for WST’s outlook.
- Valuation: What is WST worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether WST is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of WST? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.