Interested In West Pharmaceutical Services, Inc. (NYSE:WST)? Here's What Its Recent Performance Looks Like
Assessing West Pharmaceutical Services, Inc.'s (NYSE:WST) past track record of performance is a useful exercise for investors. It allows us to understand whether the company has met or exceed expectations, which is a great indicator for future performance. Below, I assess WST's latest performance announced on 31 December 2019 and evaluate these figures to its historical trend and industry movements.
See our latest analysis for West Pharmaceutical Services
How Well Did WST Perform?
WST's trailing twelve-month earnings (from 31 December 2019) of US$242m has jumped 17% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 16%, indicating the rate at which WST is growing has accelerated. How has it been able to do this? Let's take a look at if it is solely due to an industry uplift, or if West Pharmaceutical Services has experienced some company-specific growth.
In terms of returns from investment, West Pharmaceutical Services has fallen short of achieving a 20% return on equity (ROE), recording 15% instead. However, its return on assets (ROA) of 11% exceeds the US Medical Equipment industry of 6.8%, indicating West Pharmaceutical Services has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for West Pharmaceutical Services’s debt level, has declined over the past 3 years from 16% to 15%.
What does this mean?
Though West Pharmaceutical Services's past data is helpful, it is only one aspect of my investment thesis. Companies that have performed well in the past, such as West Pharmaceutical Services gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I recommend you continue to research West Pharmaceutical Services to get a more holistic view of the stock by looking at:
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.
Financial Health: Are WST’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 31 December 2019. This may not be consistent with full year annual report figures.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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.
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