Business Description
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 components. It also provides drug containment solutions, including Crystal Zenith, a cyclic olefin polymer in the form of vials, syringes, and cartridges; and self-injection devices, as well as 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. It serves pharmaceutical, diagnostic, and medical device companies. The company distributes its products through its sales force and distribution network, as well as contract sales agents and regional distributors. West Pharmaceutical Services, Inc. was incorporated in 1923 and is headquartered in Exton, Pennsylvania.
Business History
Generated: Jun 7, 2026 5:11pmPrice Overview
Last updated: Jun 7, 2026 5:09pm (19d ago)Price History (1 Year)
Revenue & Net Income Trend
| Period | Revenue | Net Income | Net Margin | YoY/QoQ |
|---|
Key Metrics
EPS (Diluted): 6.83
Total Equity: $3.18B
Shares: 72,700,000
Total Debt: $321.10M
Cash: $791.30M
EBITDA: $723.60M
Total Debt: $321.10M
Cash: $791.30M
Revenue: $3.07B
Revenue: $3.07B
Revenue: $3.07B
Total Equity: $3.18B
Tax Rate: 19.8%
Equity: $3.18B
Total Debt: $321.10M
Cash: $791.30M
Current Liabilities: $654.90M
Long-Term Debt: $298.40M
Total Debt: $321.10M
Total Equity: $3.18B
Shares: 72,700,000
Shares: 72,700,000
CapEx: -$285.90M
Shares: 72,700,000
Stock Price: $314.50
Net Income: $493.70M
Industry Benchmarks
Deep Analysis
Pre-flight intelligence scans the company first, then routes to the right analytical methods.
Income Statement (Annual)
Last updated: Jun 7, 2026 5:15pm (19d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $2.8B | $2.9B | $3.0B | $2.9B | $3.1B |
| Cost of Revenue | $1.7B | $1.7B | $1.8B | $1.9B | $2.0B |
| Gross Profit | $1.2B | $1.1B | $1.1B | $1.0B | $1.1B |
| Operating Expenses | $414.7M | $375.4M | $421.8M | $407.6M | $485.9M |
| Operating Income | $758.7M | $763.5M | $710.9M | $594.6M | $617.4M |
| Net Income | $661.8M | $585.9M | $593.4M | $492.7M | $493.7M |
| EBITDA | $879.7M | $808.1M | $844.1M | $743.8M | $723.6M |
| EPS | $8.90 | $7.88 | $7.99 | $6.75 | $6.83 |
| EPS (Diluted) | — | — | — | — | — |
Balance Sheet (Annual)
Last updated: Jun 7, 2026 5:11pm (19d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Cash & Equivalents | $762.6M | $894.3M | $853.9M | $484.6M | $791.3M |
| Total Current Assets | $1.7B | $1.9B | $1.9B | $1.5B | $2.0B |
| Total Assets | $3.3B | $3.6B | $3.8B | $3.6B | $4.3B |
| Current Liabilities | $594.1M | $519.0M | $671.8M | $550.4M | $654.9M |
| Long-Term Debt | $208.8M | $206.7M | $72.8M | $202.6M | $298.4M |
| Total Liabilities | $978.4M | $931.9M | $948.5M | $961.1M | $1.1B |
| Total Equity | $2.3B | $2.7B | $2.9B | $2.7B | $3.2B |
| Retained Earnings | $2.5B | $3.0B | $3.5B | $4.0B | $4.4B |
Cash Flow (Annual)
Last updated: Jun 7, 2026 5:15pm (19d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Operating Cash Flow | $584.0M | $724.0M | $776.5M | $653.4M | $754.8M |
| Capital Expenditure | -$253.4M | -$284.6M | -$362.0M | -$377.0M | -$285.9M |
| Free Cash Flow | $330.6M | $439.4M | $414.5M | $276.4M | $468.9M |
| Acquisitions (net) | -$2.2M | $0 | $0 | $0 | $0 |
| Debt Repayment | — | — | — | — | — |
| Dividends Paid | — | — | — | — | — |
| Stock Buybacks | -$151.9M | -$222.2M | -$451.2M | -$566.6M | -$134.0M |
| Net Change in Cash | $147.1M | $131.7M | -$40.4M | -$369.3M | $306.7M |
Analyst Estimates (Annual)
Last updated: Jun 7, 2026 5:09pm (19d ago)| Metric | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|
| Revenue |
$3.5B $3.5B – $3.6B
|
$3.8B $3.8B – $3.8B
|
$4.1B $4.0B – $4.1B
|
$4.1B $4.0B – $4.2B
|
| EBITDA |
$967.3M $948.1M – $986.4M
|
$1.0B $1.0B – $1.0B
|
$1.1B $1.1B – $1.1B
|
$1.1B $1.1B – $1.1B
|
| Net Income |
$685.6M $675.9M – $713.2M
|
$754.9M $737.4M – $842.1M
|
$891.6M $869.9M – $915.5M
|
$904.1M $882.1M – $928.4M
|
| EPS | — | — | — | — |
Growth Trends (YoY %)
Last updated: Jun 7, 2026 5:15pm (19d ago)| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue Growth | +1.9% | +2.3% | -2.0% | +6.3% |
| Gross Profit Growth | -2.9% | -0.5% | -11.5% | +10.1% |
| Operating Income Growth | +0.6% | -6.9% | -16.4% | +3.8% |
| Net Income Growth | -11.5% | +1.3% | -17.0% | +0.2% |
| EBITDA Growth | -8.1% | +4.5% | -11.9% | -2.7% |
Insider Trading (Recent)
Last updated: Jun 7, 2026 5:15pm (19d ago)All SEC Form 4 codes
- P Purchase
- Open-market or private purchase of shares.
- S Sale
- Open-market or private sale of shares.
- A Award / grant
- Grant or award of securities (RSUs, options, etc.) under Rule 16b-3.
- D Return to issuer
- Securities disposed back to the company under Rule 16b-3.
- F In-kind (tax)
- Shares withheld or delivered to pay the option-exercise price or tax — not an open-market sale.
- I Discretionary
- Discretionary transaction under an employee plan — Rule 16b-3(f).
- M Option exercise
- Exercise or conversion of a derivative (option/RSU) into shares — exempt.
- C Conversion
- Conversion of a derivative security into the underlying shares.
- E Short expiration
- Expiration of a short derivative position.
- H Long expiration
- Expiration or cancellation of a long derivative position with value received.
- O OTM exercise
- Exercise of an out-of-the-money derivative.
- X ITM exercise
- Exercise of an in-the-money or at-the-money derivative.
- G Gift
- Bona fide gift of securities.
- L Small acquisition
- Small acquisition under Rule 16a-6.
- W Inheritance
- Acquisition or disposition by will or the laws of descent.
- Z Voting trust
- Deposit into or withdrawal from a voting trust.
- J Other
- Other acquisition or disposition (explained in a Form 4 footnote).
- K Equity swap
- Transaction in an equity swap or similar instrument.
- U Tender / buyout
- Disposition via tender of shares in a change-of-control transaction.
Compensation-plan codes (A, D, F, M) are routine and rarely directional. Open-market P (buy) and S (sale) carry the most signal.
| Date | Insider | Type | Shares | Price | Value |
|---|---|---|---|---|---|
| 2026-05-12 | Campbell Shane Alden | M-Exempt | 473.59 | $0.00 | $0 |
| 2026-05-12 | Campbell Shane Alden | M-Exempt | 296.00 | $0.00 | $0 |
| 2026-05-12 | Campbell Shane Alden | M-Exempt | 473.59 | $0.00 | $0 |
| 2026-05-12 | Campbell Shane Alden | F-InKind | 134.93 | $312.07 | $42,107 |
| 2026-05-12 | Campbell Shane Alden | M-Exempt | 296.00 | $0.00 | $0 |
| 2026-05-12 | Campbell Shane Alden | F-InKind | 84.33 | $312.07 | $26,317 |
| 2026-05-04 | Pucci Paolo | A-Award | 791.00 | $0.00 | $0 |
| 2026-05-04 | Michels Douglas A | A-Award | 791.00 | $0.00 | $0 |
| 2026-05-04 | Lockhart Stephen H | A-Award | 791.00 | $0.00 | $0 |
| 2026-05-04 | LAI GOLDMAN MYLA | A-Award | 791.00 | $0.00 | $0 |
| 2026-05-04 | Keller Deborah L | A-Award | 791.00 | $0.00 | $0 |
| 2026-05-04 | Joseph Molly | A-Award | 791.00 | $0.00 | $0 |
| 2026-05-04 | HAUGEN JANET BRUTSCHEA | A-Award | 791.00 | $0.00 | $0 |
| 2026-05-04 | FRIEL ROBERT F | A-Award | 791.00 | $0.00 | $0 |
| 2026-05-04 | Feehery William F | A-Award | 791.00 | $0.00 | $0 |
| 2026-05-04 | BUTHMAN MARK A | A-Award | 791.00 | $0.00 | $0 |
| 2026-04-27 | Favorite Annette F | M-Exempt | 2,817.00 | $83.47 | $235,135 |
| 2026-04-27 | Favorite Annette F | S-Sale | 2,817.00 | $305.20 | $859,753 |
| 2026-04-27 | Favorite Annette F | M-Exempt | 2,817.00 | $83.47 | $235,135 |
| 2026-04-27 | Winters Chad | M-Exempt | 896.00 | $173.22 | $155,205 |
Dividend History (Last 20)
Last updated: Jun 7, 2026 5:09pm (19d ago)| Date | Dividend | Declaration | Record | Payment |
|---|---|---|---|---|
| 2026-04-29 | $0.22 | 2026-02-16 | 2026-04-29 | 2026-05-06 |
| 2026-01-28 | $0.22 | 2025-12-09 | 2026-01-28 | 2026-02-04 |
| 2025-11-12 | $0.22 | 2025-07-23 | 2025-11-12 | 2025-11-19 |
| 2025-07-30 | $0.21 | 2025-04-24 | 2025-07-30 | 2025-08-06 |
| 2025-04-30 | $0.21 | 2025-02-20 | 2025-04-30 | 2025-05-07 |
| 2025-02-07 | $0.21 | 2025-01-28 | 2025-02-07 | 2025-02-11 |
| 2024-11-13 | $0.21 | 2024-10-24 | 2024-11-13 | 2024-11-20 |
| 2024-07-31 | $0.20 | 2024-04-25 | 2024-07-31 | 2024-08-07 |
| 2024-04-23 | $0.20 | 2024-02-20 | 2024-04-24 | 2024-05-01 |
| 2024-01-30 | $0.20 | 2023-12-06 | 2024-01-31 | 2024-02-07 |
| 2023-11-07 | $0.20 | 2023-10-26 | 2023-11-08 | 2023-11-15 |
| 2023-07-25 | $0.19 | 2023-04-27 | 2023-07-26 | 2023-08-02 |
| 2023-04-25 | $0.19 | 2023-03-03 | 2023-04-26 | 2023-05-03 |
| 2023-01-24 | $0.19 | 2022-12-13 | 2023-01-25 | 2023-02-01 |
| 2022-11-08 | $0.19 | 2022-10-27 | 2022-11-09 | 2022-11-16 |
| 2022-07-19 | $0.18 | 2022-04-28 | 2022-07-20 | 2022-08-03 |
| 2022-04-19 | $0.18 | 2022-02-23 | 2022-04-20 | 2022-05-04 |
| 2022-01-18 | $0.18 | 2022-01-05 | 2022-01-19 | 2022-02-02 |
| 2021-11-09 | $0.18 | 2021-10-28 | 2021-11-10 | 2021-11-17 |
| 2021-07-20 | $0.17 | 2021-05-05 | 2021-07-21 | 2021-08-04 |
Narrative Economics
market-narrative step).
Delvantic AI Findings
Looking at the raw quarterly trajectory first: revenue went $702M → $698M → $766M → $804M → $805M → $845M across the last six quarters, which is genuine reacceleration, not the "decelerating" tag the revenue confidence signal gave it. The Q1 2026 print of $844.9M annualizes near $3.4B, up from $3.07B in 2025 — that's ~10% growth, not the 2.1% three-year CAGR the momentum module is anchoring on. Net margins have stabilized in the 16-17% band for five straight quarters after the Q1 2025 dip to 12.9%. So the "margin compression" narrative is real versus 2021-2023 (when net margins ran 20-23% and op margins hit 27%), but the bleeding has stopped. Operating income of $617M on $3.07B in 2025 = 20.1% op margin, down from 26.9% in 2021 — that's roughly 700bps of structural give-back, which is the actual question, not whether GLP-1s exist.
The synthesis verdict pegs fair value at ~$83 versus $314, implying a 74% overvaluation. I think that DCF is too punitive and the narrative layer is too cute. At ~$22B EV on roughly $470M FCF (2025) you get a 2.1% FCF yield — rich, but West's FCF is artificially depressed by $286M of capex (capex/revenue ~9.3%, well above the historical 5-6%), which is exactly the capacity buildout the bulls point to. Normalize capex to 6% of revenue and FCF runs closer to $650-700M, giving a ~3% yield. Still not cheap, but the 41x P/E and 27.5x EV/EBITDA are paying for a credible re-acceleration that the quarterly tape is actually delivering. Calling this $83 fair value requires believing margins permanently sit at 2024 trough levels AND growth stays at 2%. The Q1 2026 print contradicts both legs.
That said, I'm not a bull at $314. The contrarian case the models underweight: West's customer concentration in GLP-1 high-value products (HVP) means a single Lilly/Novo destocking event — which has happened before in 2024 and caused the Q1 2025 margin crater — can blow up a quarter. Insider activity is option exercises and small awards, no open-market buying, which is mildly telling at this multiple. Balance sheet data is incomplete (no debt or equity figure shown), which is a real gap for a company supposedly building capacity. ROIC of 15.2% TTM is fine but down from the high-20s historically — the capex is not yet earning its keep. And the "platform-monopoly" narrative archetype is overstated: West has a duopoly with Aptar/Datwyler in elastomer components, not a monopoly, and gene therapy/biologics share gains assume execution West hasn't consistently delivered on the last two years.
I dissent partially from the synthesis. The $83 fair value is wrong — it's anchoring on trailing trough fundamentals and ignoring the visible Q4'25/Q1'26 inflection. But the $314 price is also wrong — it's paying full freight for a margin recovery to 25%+ op margins that hasn't materialized and may never, given competitive pressure from Aptar and customer in-sourcing pressure from mega-cap pharma. Reasonable fair value with normalized FCF of ~$650M, a 25x multiple (premium for quality/moat but not perfection), and modest dilution gets you to $16-17B equity value, or roughly $230-240/share. That's 25-30% downside from here, not 75%. The trade isn't "short at $314 because DCF says $83" — it's "wait for the next destocking scare to buy in the $230s, because the underlying franchise is real but the multiple needs to compress to a level where GLP-1 surprises become upside rather than table stakes."
GPT Critique
Upon reviewing the raw data for West Pharmaceutical Services, several key observations stand out. The quarterly revenue growth from $702M to $844.9M over six quarters indicates a genuine reacceleration, contradicting any notion of deceleration. This is further supported by the Q1 2026 print annualizing at approximately $3.4B, representing roughly a 10% growth from the previous year. Margins have stabilized in the 16-17% range after a dip in early 2025, suggesting the company has managed to stem the decline seen in earlier years. However, the historical comparison reveals a significant margin erosion from the 20-23% net margins seen in 2021-2023. The company's capex of $286M, which is higher than historical norms, suggests an aggressive capacity build-out that may not yet be yielding anticipated returns.
I agree with Opus's assertion that the DCF-derived fair value of $83 is overly bearish. The raw data supports a narrative of reacceleration and stabilization rather than outright decline, making such a low valuation unrealistic. Additionally, normalizing capex could indeed elevate the FCF yield closer to 3%, supporting a valuation above $83. However, I diverge from Opus's fair value range of $230-240. While I concur that the market price of $314 is overly optimistic, given the current operational margin pressures and competitive landscape, I believe a fair value might be slightly lower, closer to $210-220. This accounts for the ongoing risks from potential destocking events and the need for the capex to start generating tangible returns.
Opus is astute in highlighting the risks associated with the company's customer concentration, particularly in the GLP-1 segment. The potential for destocking events to disrupt quarterly performance is a significant risk factor. The absence of insider open-market buying at this valuation level is indeed a mild negative signal, suggesting limited confidence in the current price's sustainability. Moreover, the incomplete balance sheet data is a notable gap that casts some doubt on the full picture of the company's financial health. I also agree with Opus that the narrative of a "platform-monopoly" is overstated, given the competitive pressures from Aptar and others.
A careful skeptic would argue that both Opus and my analyses might overlook the broader macroeconomic headwinds that could impact the healthcare sector, including potential regulatory changes or shifts in global demand patterns. They might also suggest that both analyses are overly focused on recent quarterly data without sufficient emphasis on longer-term strategic risks, such as technological disruption or significant shifts in pharmaceutical manufacturing practices.