Upside case
Bull case
$575+84.0%
WST would need investors to value it at roughly 67x earnings — about 30x more generous than today's 36x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewBuyUpdated May 1, 2026
West Pharmaceutical Services, Inc. (WST) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Buy
Covering
14
analysts
10 bullish · 1 bearish · 14 covering WST
Strong Buy
0
Buy
10
Hold
3
Sell
1
Strong Sell
0
Consensus Target
$316
+1.0% vs today
Scenario Range
$230 – $575
Model bear to bull value window
Coverage
14
Published analyst ratings
Valuation Context
36.3x
Forward P/E · Market cap $22.5B
WST price targets
Three scenarios for where WST stock could go
Current
~$313
Confidence
63 / 100
Updated
May 1, 2026
Where we are now
Current · $313
Bear
$230
Base
$408
Bull
$575
Market caseClosest to today
Base case
$408+30.4%
At 47x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$230-26.5%
If investor confidence fades or macro conditions deteriorate, a 10x multiple contraction could push WST down roughly 27% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
West Pharmaceutical Services, Inc.
WST · NYSEHealthcareMedical - Instruments & SuppliesDecember year-end
West Pharmaceutical Services is a specialized manufacturer of high-quality containment and delivery systems for injectable drugs and biologics. It generates revenue primarily from proprietary packaging components like vial stoppers and syringe systems (~70% of sales) and contract manufacturing services (~30%). The company's moat lies in its deep expertise in drug compatibility, regulatory compliance, and long-standing relationships with pharmaceutical companies that rely on its critical components for sensitive injectable therapies.
Market Cap
$22.5B
Revenue TTM
$3.2B
Net Income TTM
$543M
Net Margin
16.9%
WST Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
92%Exceptional
12 quarters tracked
Revenue Beat Rate
58%Exceptional
vs consensus estimates
Avg EPS Surprise
+13.7%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 4 of 4Q3 2025
EPS
$1.84/$1.51
Revenue
$766M/$726M
Q4 2025
EPS
$1.96/$1.68
Revenue
$804M/$786M
Q1 2026
EPS
$2.04/$1.83
Revenue
$805M/$795M
Q2 2026
EPS
$2.13/$1.68
Revenue
$845M/$780M
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q3 2025 | $1.84/$1.51 | +21.9% | $766M/$726M | +5.5% |
| Q4 2025 | $1.96/$1.68 | +16.7% | $804M/$786M | +2.4% |
| Q1 2026 | $2.04/$1.83 | +11.5% | $805M/$795M | +1.3% |
| Q2 2026 | $2.13/$1.68 | +26.8% | $845M/$780M | +8.3% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$3.4B
+4.7% YoY
FY2
$3.6B
+5.6% YoY
EPS Outlook
FY1
$8.24
+9.9% YoY
FY2
$8.87
+7.6% YoY
Trailing FCF (TTM)$458M
FCF Margin: 14.2%
Next Earnings
—
Expected EPS
—
Expected Revenue
—
WST beat EPS estimates in 4 of 4 tracked quarters. A perfect track record raises the bar for the upcoming report.
WST Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $3.1B
Product Mix
Latest annual revenue by segment or product family
Proprietary Products
81.1%
+6.8% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
UNITED STATES
43.3%
+8.0% YoY
Tap, hover, or focus a slice to inspect segment detail.
Proprietary Products is the largest disclosed segment at 81.1% of FY 2025 revenue, up 6.8% YoY.
UNITED STATES is the largest reported region at 43.3%, up 8.0% YoY.
WST Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Overvalued
Fair value est. $220 — implies -26.8% from today's price.
Premium to Fair Value
26.8%
above fair value
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
WST
46.0x
vs
S&P 500
25.2x
+82% premium
vs Healthcare Trailing P/E
WST
46.0x
vs
Healthcare
22.1x
+108% premium
vs WST 5Y Avg P/E
Today
46.0x
vs
5Y Average
43.7x
+5% premium
Forward PE
36.3x
S&P 500
19.1x
+90%
Healthcare
19.0x
+90%
5Y Avg
—
—
Trailing PE
46.0x
S&P 500
25.2x
+82%
Healthcare
22.1x
+108%
5Y Avg
43.7x
+5%
PEG Ratio
5.56x
S&P 500
1.75x
+218%
Healthcare
1.52x
+265%
5Y Avg
—
—
EV/EBITDA
29.9x
S&P 500
15.3x
+96%
Healthcare
14.1x
+111%
5Y Avg
29.7x
+0%
Price/FCF
48.0x
S&P 500
21.3x
+125%
Healthcare
18.7x
+158%
5Y Avg
68.6x
-30%
Price/Sales
7.3x
S&P 500
3.1x
+134%
Healthcare
2.8x
+157%
5Y Avg
8.5x
-14%
Dividend Yield
0.27%
S&P 500
1.88%
-86%
Healthcare
1.40%
-81%
5Y Avg
0.24%
+11%
| Metric | WST | S&P 500 | Healthcare | 5Y Avg WST |
|---|---|---|---|---|
| Forward PE | 36.3x | 19.1x+90% | 19.0x+90% | — |
| Trailing PE | 46.0x | 25.2x+82% | 22.1x+108% | 43.7x |
| PEG Ratio | 5.56x | 1.75x+218% | 1.52x+265% | — |
| EV/EBITDA | 29.9x | 15.3x+96% | 14.1x+111% | 29.7x |
| Price/FCF | 48.0x | 21.3x+125% | 18.7x+158% | 68.6x-30% |
| Price/Sales | 7.3x | 3.1x+134% | 2.8x+157% | 8.5x-14% |
| Dividend Yield | 0.27% | 1.88% | 1.40% | 0.24% |
WST trades above S&P 500 benchmarks on 6 of 6 measured multiples — commands a broad premium across most valuation dimensions.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolWST Financial Health
Verdict
Strong
WST generates $458M in free cash flow at a 14.2% margin — 17.5% ROIC signals a durable competitive advantage.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$3.2B
Revenue Growth
TTM vs prior year
+11.2%
Gross Margin
Gross profit as a share of revenue
36.2%
Operating Margin
Operating income divided by revenue
20.7%
Net Margin
Net income divided by revenue
16.9%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$7.50
Free Cash Flow (TTM)
Cash generation after capex
$458M
FCF Margin
FCF as share of revenue — the primary cash quality signal
14.2%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
17.5%
ROA
Return on assets, trailing twelve months
13.2%
Cash & Equivalents
Liquid assets on the balance sheet
$791M
Net Cash
Cash exceeds total debt — no net leverage
$375M
Debt Serviceability
Net debt as a multiple of annual free cash flow
Net cash ✓
ROE
Return on equity, trailing twelve months
17.9%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
0.9%
Dividend
0.3%
Buyback
0.6%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$134M
Dividend / Share
Annualized trailing dividend per share
$0.84
Payout Ratio
Share of earnings distributed as dividends
12.4%
Shares Outstanding
Declining as buybacks retire shares
72M
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt).
Open full ratios pageWST Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated April 29, 2026
High Risk
Revenue Decline Risk
WST is expected to face significant revenue headwinds from the conclusion of a major contract manufacturing agreement in mid-2026. This could result in a substantial revenue decline in the latter half of that year, compounded by execution risks related to new equipment installation and production ramp-up.
High Risk
Customer Concentration
West Pharmaceutical Services relies heavily on a small group of customers for a large portion of its revenue. The loss of a key account or a significant reduction in orders could severely impact financial performance, exposing the company to adverse contract terms and operational disruptions.
Medium
Supplier Dependency
The company's supply chain stability is at risk due to reliance on third-party suppliers for critical materials, some of which are single-source providers. Disruptions from geopolitical factors or natural disasters could hinder production and negatively affect revenue.
Medium
Legal Proceedings
West Pharmaceutical Services is currently involved in a securities class action lawsuit, which poses risks of potential legal costs and reputational damage. The outcome of this litigation could have a material impact on the company's financial standing.
Medium
Valuation Concerns
Some analyses suggest that WST stock may be overvalued, indicated by a Value Score of D. This could deter value investors and lead to downward pressure on the stock price.
Lower
Pricing Headwinds and Tariffs
WST faces pricing pressures and tariff risks that could impact profit margins. These factors may lead to increased costs and reduced competitiveness in the market.
Lower
Market and Economic Headwinds
Broader market or economic headwinds could adversely affect WST's performance. Economic downturns or unfavorable market conditions may lead to reduced demand for the company's products.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why WST Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated April 29, 2026
Market Leadership and Moat
West Pharmaceutical Services is a long-standing market leader with a dominant share in injectable drug packaging and delivery systems. Its deep customer entrenchment and long qualification cycles for its products create a strong competitive moat.
Growth from Biologics and GLP-1
The surge in demand for biologics and GLP-1 drugs, such as Ozempic, Wegovy, and Mounjaro, is a significant tailwind for WST. GLP-1s already represent a notable portion of sales and are expected to drive further growth.
High-Value Products Demand
Increased demand for high-value components and contract work in drug handling are anticipated to support profitability and margin expansion. This trend is expected to enhance the company's financial performance.
Regulatory Tailwinds for Specialized Products
Regulatory initiatives like Annex 1 are creating demand for specialized products, which West Pharmaceutical is well-positioned to supply. This regulatory support is expected to further bolster the company's growth.
Financial Resilience and Shareholder Returns
West Pharmaceutical has a strong balance sheet and generates solid cash flows, which has enabled the initiation of a stock buyback program. This indicates management's belief that the stock is undervalued and supports shareholder returns.
Positive Earnings Performance
Recent earnings reports have shown strong performance, with EPS beating expectations and full-year guidance being raised. This positive trend in earnings reinforces the bullish outlook for the company.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
WST Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$312.55
52W Range Position
92%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$202.79
+54.1% from the low
52-Week High
$322.34
-3.0% from the high
1 Month
+21.69%
3 Month
+25.55%
YTD
+13.1%
1 Year
+52.2%
3Y CAGR
-5.2%
5Y CAGR
-1.0%
10Y CAGR
+16.1%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
WST vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
36.3x
vs 12.4x median
+193% above peer median
Revenue Growth
+4.7%
vs +4.4% median
+6% above peer median
Net Margin
16.9%
vs 3.1% median
+452% above peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
WST WST West Pharmaceutical Services, Inc. | $22.5B | 36.3x | +4.7% | 16.9% | Buy | +1.0% |
ATR ATR AptarGroup, Inc. | $7.9B | 22.0x | +4.4% | 10.0% | Buy | +38.4% |
GTL GTLS Chart Industries, Inc. | $9.9B | 16.4x | +16.7% | 0.9% | Buy | -6.7% |
AVT AVTR Avantor, Inc. | $5.8B | 10.7x | -2.3% | -8.4% | Hold | +12.7% |
AMC AMCR Amcor plc | $18.6B | 10.2x | +9.3% | 3.1% | Buy | +24.3% |
SEE SEE Sealed Air Corporation | $6.2B | 12.4x | -0.3% | 9.4% | Buy | +3.2% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
WST Dividend and Capital Return
WST returns capital mainly through $134M/year in buybacks (0.6% buyback yield), with a modest 0.27% dividend — combining for 0.9% total shareholder yield. The dividend has grown for 33 consecutive years.
Dividend SustainableFCF Well Covered
Total Shareholder Yield
0.9%
Dividend + buyback return per year
Buyback Yield
0.6%
Dividend Yield
0.27%
Payout Ratio
12.4%
How WST Splits Its Return
Div 0.27%
Buyback 0.6%
Dividend 0.27%Buybacks 0.6%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$0.84
Growth Streak
Consecutive years of dividend increases
33Y
3Y Div CAGR
5.2%
5Y Div CAGR
5.5%
Ex-Dividend Date
—
Payment Cadence
Quarterly
4 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$134M
Estimated Shares Retired
428.7K
Approx. Share Reduction
0.6%
Shares Outstanding
Current diluted share count from the screening snapshot
72M
At 0.6%/year, buybacks mechanically lift EPS even with flat earnings — each remaining share represents a slightly larger piece of the company.
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $0.44 | — | — | — |
| 2025 | $0.85 | +4.9% | 0.7% | 1.0% |
| 2024 | $0.81 | +5.2% | 2.3% | 2.6% |
| 2023 | $0.77 | +5.5% | 1.7% | 1.9% |
| 2022 | $0.73 | +5.8% | 1.2% | 1.5% |
FAQ
7 questionsWST Investor Questions
Common questions answered from live analyst data and company financials.
01Is West Pharmaceutical Services, Inc. (WST) stock a buy or sell in 2026?
West Pharmaceutical Services, Inc. (WST) is rated Buy by Wall Street analysts as of 2026. Of 14 analysts covering the stock, 10 rate it Buy or Strong Buy, 3 rate it Hold, and 1 rate it Sell or Strong Sell. The consensus 12-month price target is $316, implying +1.0% from the current price of $313. The bear case scenario is $230 and the bull case is $575.
02What is the WST stock price target for 2026?
The Wall Street consensus price target for WST is $316 based on 14 analyst estimates. The high-end target is $340 (+8.8% from today), and the low-end target is $295 (-5.6%). The base case model target is $408.
03Is West Pharmaceutical Services, Inc. (WST) stock overvalued in 2026?
WST trades at 36.3x times forward earnings. The stock trades at a notable premium to the broad market, which is typical for businesses with strong free cash flow and above-average growth expectations. Based on current multiples versus the peer group, the relative model signals overvalued. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for West Pharmaceutical Services, Inc. (WST) stock in 2026?
The primary risks for WST in 2026 are: (1) Revenue Decline Risk — WST is expected to face significant revenue headwinds from the conclusion of a major contract manufacturing agreement in mid-2026. (2) Customer Concentration — West Pharmaceutical Services relies heavily on a small group of customers for a large portion of its revenue. (3) Supplier Dependency — The company's supply chain stability is at risk due to reliance on third-party suppliers for critical materials, some of which are single-source providers. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is West Pharmaceutical Services, Inc.'s revenue and earnings forecast?
Analyst consensus estimates WST will report consensus revenue of $3.4B (+4.7% year-over-year) and EPS of $8.24 (+9.9% year-over-year) for the upcoming fiscal year. The following year, analysts project $3.6B in revenue.
06When does West Pharmaceutical Services, Inc. (WST) report its next earnings?
A confirmed upcoming earnings date for WST is not yet available. Check the Earnings section above for the most recent quarterly report dates and forward estimates.
07How much free cash flow does West Pharmaceutical Services, Inc. generate?
West Pharmaceutical Services, Inc. (WST) generated $458M in free cash flow over the trailing twelve months — a free cash flow margin of 14.2%. WST returns capital to shareholders through dividends (0.3% yield) and share repurchases ($134M TTM).