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Arphra AIPlain-English read on West Pharmaceutical Services, Inc.’s valuationRatios & metrics
Profitability, returns on capital, growth, and credit — all derived from the historical income statement, balance sheet, and cash flow rows in our data warehouse.
Valuation multiples
Price- and EV-based multiples plus shareholder yields. Snapshot at each fiscal year-end from key_metrics (FMP).
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Headline | |||||||||
| Market cap | — | — | — | — | — | — | — | — | — |
| Enterprise value | — | — | — | — | — | — | — | — | — |
| Multiples | |||||||||
| P / E | — | — | — | — | — | — | — | — | — |
| P / B | — | — | — | — | — | — | — | — | — |
| EV / EBITDA | — | — | — | — | — | — | — | — | — |
| EV / Sales | — | — | — | — | — | — | — | — | — |
| EV / FCF | — | — | — | — | — | — | — | — | — |
| Yields | |||||||||
| Earnings yield | — | — | — | — | — | — | — | — | — |
| Free cash flow yield | — | — | — | — | — | — | — | — | — |
| Dividend yield | — | — | — | — | — | — | — | — | — |
Profitability
Margin structure across the last 5 fiscal years
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Margins | |||||||||
| Gross margin | +41.45% | +39.47% | +38.38% | +34.65% | +35.89% | +36.85% | +36.10% | +36.34% | +35.68% |
| Operating margin | +26.80% | +26.46% | +24.09% | +20.56% | +20.09% | +21.40% | +21.73% | +21.29% | +21.16% |
| EBITDA margin | +31.08% | +28.01% | +28.60% | +25.71% | +23.54% | +26.70% | +26.54% | +25.89% | +25.24% |
| EBIT margin | +26.76% | +23.83% | +23.95% | +20.34% | +19.49% | +20.71% | +21.18% | +21.76% | +21.54% |
| Pre-tax margin | +27.17% | +24.28% | +24.25% | +20.75% | +20.02% | +21.12% | +21.41% | +22.10% | +21.60% |
| Net margin | +23.38% | +20.30% | +20.11% | +17.03% | +16.06% | +17.90% | +17.26% | +18.01% | +17.64% |
| Cost structure | |||||||||
| Cost of revenue / sales | +58.55% | +60.53% | +61.62% | +65.35% | +64.11% | +64.38% | +64.90% | +64.95% | +62.08% |
| R&D intensity | +1.87% | +2.03% | +2.32% | +2.39% | +2.42% | +2.35% | +2.35% | +2.34% | +2.36% |
| SG&A intensity | +12.78% | +10.98% | +11.98% | +11.70% | +12.79% | +12.51% | +11.91% | +12.44% | +12.12% |
| Effective tax rate | +13.94% | +16.37% | +17.09% | +17.91% | +19.76% | +19.22% | +18.75% | +18.26% | +18.06% |
Returns on capital
ROE / ROA / ROC / ROIC over the relevant capital base, plus the 3-step DuPont decomposition of ROE.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| Return on equity (ROE) | +28.34% | +21.82% | +20.60% | +18.37% | +15.54% | +18.54% | +17.16% | +17.90% | +17.97% |
| Return on assets (ROA) | +19.97% | +16.20% | +15.50% | +13.52% | +11.56% | +13.28% | +13.17% | +13.81% | +13.19% |
| Return on capital (ROC) | +28.52% | +25.43% | +22.29% | +19.90% | +17.18% | +19.74% | +19.37% | +18.94% | +19.25% |
| Return on invested capital (ROIC) | +24.87% | +19.51% | +18.60% | +16.49% | +13.74% | +16.51% | +15.38% | +16.02% | +16.05% |
| Asset turnover | +85.42% | +79.78% | +77.06% | +79.40% | +71.98% | +74.16% | +76.30% | +76.70% | +74.77% |
| DuPont · ROE decomposition | |||||||||
| Net margin | +23.38% | +20.30% | +20.11% | +17.03% | +16.06% | +17.90% | +17.26% | +18.01% | +17.64% |
| Asset turnover (× revenue / assets) | +85.42% | +79.78% | +77.06% | +79.40% | +71.98% | +74.16% | +76.30% | +76.70% | +74.77% |
| Equity multiplier (× assets / equity) | +141.89% | +134.71% | +132.92% | +135.83% | +134.45% | +139.63% | +130.31% | +129.54% | +136.25% |
Activity & efficiency
Turnover ratios and days-outstanding — how efficiently the business converts assets and working capital into sales and cash.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Turnover | |||||||||
| Asset turnover | 0.85 | 0.80 | 0.77 | 0.79 | 0.72 | 0.74 | 0.76 | 0.77 | 0.75 |
| Fixed-asset turnover | 2.51 | 2.29 | 1.95 | 1.72 | — | — | — | — | — |
| Inventory turnover | 4.38 | 4.21 | 4.18 | 5.01 | 4.44 | — | — | — | — |
| Receivables turnover | 5.79 | 5.69 | 5.76 | 5.24 | 5.35 | — | — | — | — |
| Payables turnover | 7.14 | 8.11 | 7.50 | 7.90 | 7.77 | — | — | — | — |
| Days outstanding | |||||||||
| Days sales outstanding (DSO) | 63.05 | 64.18 | 63.33 | 69.71 | 68.21 | — | — | — | — |
| Days inventory outstanding (DIO) | 83.34 | 86.68 | 87.26 | 72.79 | 82.23 | — | — | — | — |
| Days payables outstanding (DPO) | 51.14 | 45.01 | 48.66 | 46.20 | 47.00 | — | — | — | — |
| Cash conversion cycle | 95.25 | 105.85 | 101.93 | 96.30 | 103.44 | — | — | — | — |
Cash flow quality
How well reported earnings translate into operating and free cash flow, plus reinvestment intensity.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Operating CF / Net income | 0.88 | 1.24 | 1.31 | 1.33 | 1.53 | 1.36 | 1.40 | 1.33 | 1.38 |
| FCF / Net income | 0.50 | 0.75 | 0.70 | 0.56 | 0.95 | 0.72 | 0.75 | 0.70 | 0.72 |
| FCF margin | +11.68% | +15.23% | +14.05% | +9.56% | +15.26% | +12.80% | +12.95% | +12.63% | +12.70% |
| OCF margin | +20.63% | +25.09% | +26.31% | +22.59% | +24.56% | +24.37% | +24.14% | +24.04% | +24.29% |
| CapEx / Revenue | +8.95% | +9.86% | +12.27% | +13.03% | +9.30% | +11.45% | +11.73% | +11.27% | +11.70% |
| CapEx / D&A | 2.07 | 2.36 | 2.64 | 2.43 | 1.70 | — | — | — | — |
| Stock-based comp / Revenue | +1.32% | +0.82% | +0.79% | +0.65% | +0.77% | — | — | — | — |
Per-share & shareholder yield
EPS, book value, sales, cash flow and dividends per share — plus payout / retention.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| EPS · diluted | 8.67 | 7.73 | 7.88 | 6.69 | 6.80 | 8.62 | 9.57 | 10.73 | 12.26 |
| EPS · basic | 8.90 | 7.88 | 7.99 | 6.75 | 6.83 | 8.60 | 9.60 | 10.94 | 12.36 |
| Book value / share | 30.61 | 35.42 | 38.26 | 36.39 | 43.69 | 44.32 | 48.74 | 52.31 | 54.21 |
| Tangible BV / share | 28.87 | 33.76 | 36.62 | 34.81 | 42.07 | 44.32 | 48.74 | 52.31 | 54.21 |
| Sales / share | 37.10 | 38.07 | 39.19 | 39.25 | 42.28 | 45.89 | 48.46 | 51.97 | 55.23 |
| Operating CF / share | 7.65 | 9.55 | 10.31 | 8.87 | 10.38 | 11.19 | 11.70 | 12.50 | 13.41 |
| Free cash flow / share | 4.33 | 5.80 | 5.50 | 3.75 | 6.45 | 5.88 | 6.28 | 6.56 | 7.01 |
| Dividends / share | 0.67 | 0.71 | 0.76 | 0.80 | 0.84 | 0.94 | 0.98 | 1.02 | 1.07 |
| Payout ratio | +7.72% | +9.23% | +9.61% | +12.00% | +12.40% | +11.39% | +11.77% | +10.86% | +10.98% |
| Retention ratio | +92.28% | +90.77% | +90.39% | +88.00% | +87.60% | +88.61% | +88.23% | +89.14% | +89.02% |
Growth
Year-over-year change for headline P&L lines, plus through-cycle CAGR
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E | 8y CAGR |
|---|---|---|---|---|---|---|---|---|---|---|
| Top-line | ||||||||||
| Revenue · YoY | — | +1.94% | +2.27% | -1.98% | +6.26% | +8.33% | +6.09% | +6.65% | +7.60% | +4.59% |
| Gross profit · YoY | — | -2.94% | -0.54% | -11.52% | +10.09% | +11.22% | +3.91% | +7.38% | +5.63% | +2.65% |
| Profit | ||||||||||
| Operating income · YoY | — | +0.63% | -6.89% | -16.36% | +3.83% | +15.42% | +7.73% | +4.46% | +6.97% | +1.55% |
| EBITDA · YoY | — | -8.14% | +4.45% | -11.88% | -2.72% | +22.85% | +5.47% | +4.03% | +4.91% | +1.91% |
| Net income · YoY | — | -11.47% | +1.28% | -16.97% | +0.20% | +20.74% | +2.28% | +11.30% | +5.36% | +0.97% |
| Operating | ||||||||||
| EBIT · YoY | — | -9.23% | +2.81% | -16.75% | +1.84% | +15.07% | +8.51% | +9.59% | +6.52% | +1.80% |
| R&D · YoY | — | +10.80% | +16.92% | +1.02% | +7.53% | +5.49% | +6.09% | +5.82% | +8.65% | +7.70% |
| Per-share | ||||||||||
| EPS · diluted · YoY | — | -10.84% | +1.94% | -15.10% | +1.64% | +26.80% | +11.05% | +12.10% | +14.25% | +4.43% |
| EPS · basic · YoY | — | -11.46% | +1.40% | -15.52% | +1.19% | +25.86% | +11.72% | +13.96% | +12.97% | +4.19% |
Credit & leverage
Balance-sheet health + interest coverage + liquidity. Coverage ratios use period-end debt and trailing interest expense.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Leverage | |||||||||
| Total debt | $325.3M | $317.9M | $309M | $305.3M | $416.7M | $394.04M | $411.4M | $443.17M | $476.38M |
| Net debt | -$437.3M | -$576.4M | -$544.9M | -$179.3M | -$374.6M | -$378.98M | -$419.65M | -$440.36M | -$514.72M |
| Net debt / EBITDA | -0.50 | -0.71 | -0.65 | -0.24 | -0.52 | -0.43 | -0.45 | -0.45 | -0.50 |
| Debt / equity | 0.14 | 0.12 | 0.11 | 0.11 | 0.13 | 0.12 | 0.12 | 0.12 | 0.12 |
| Debt / assets | +9.82% | +8.79% | +8.07% | +8.38% | +9.76% | +8.78% | +8.89% | +9.02% | +8.79% |
| Equity / assets | +70.47% | +74.23% | +75.23% | +73.62% | +74.38% | +71.62% | +76.74% | +77.20% | +73.39% |
| Coverage | |||||||||
| EBITDA / interest expense | 103.49 | 106.33 | 95.92 | 256.48 | 1206.00 | 190.11 | 192.16 | 191.45 | 180.01 |
| Operating income / interest | 89.26 | 100.46 | 80.78 | 205.03 | 1029.00 | 152.40 | 157.36 | 157.43 | 150.92 |
| Interest expense | $8.5M | $7.6M | $8.8M | $2.9M | $600K | $4.68M | $4.88M | $5.09M | $5.68M |
| Liquidity | |||||||||
| Current ratio | 2.93 | 3.70 | 2.88 | 2.79 | 3.02 | — | — | — | — |
| Quick ratio | 2.11 | 2.70 | 2.03 | 1.88 | 2.09 | — | — | — | — |
| Cash ratio | 1.28 | 1.72 | 1.27 | 0.88 | 1.21 | — | — | — | — |
| Working capital | $1.15B | $1.4B | $1.26B | $987.7M | $1.32B | — | — | — | — |
| Working capital / revenue | +40.55% | +48.54% | +42.85% | +34.14% | +43.05% | — | — | — | — |
Methodology. ROE / ROA / ROC use period-end balance-sheet denominators (no average-of- period smoothing). ROIC = Operating Income × (1 − inferred effective tax rate) over invested capital, with the effective tax inferred from net-to-operating income when both are positive and a 25% default otherwise. Net debt / EBITDA, debt ratios, and interest-coverage ratios are calculated point-in-time at each fiscal year-end. TTM = trailing 4 quarters (income / cash flow summed, balance sheet = most-recent quarterly snapshot). Through-cycle CAGR in the Growth panel uses the geometric mean of first-to-last period growth across the window (positive values only).