West Pharmaceutical Services, Inc. cash flow to debt ratio of 181.14% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.

West Pharmaceutical Services, Inc.'s free cash flow has increased 69.65% from $276.40M last year to $468.90M, signaling increasing performance

West Pharmaceutical Services, Inc.'s debt to equity ratio is 0.10, which means that the company's assets are healthy financed, signaling financial stability.

West Pharmaceutical Services, Inc.'s debt has decreased relative to shareholder equity from 0.11 last year to 0.10 today, signaling strengthened financials

West Pharmaceutical Services, Inc. has a net cash position, so leverage is healthy.

West Pharmaceutical Services, Inc. earns at least as much interest as it pays. Interest obligations are fully covered.

West Pharmaceutical Services, Inc.'s profit margin has decreased (0.30%) in the last year from 17.03% to 16.98%, signaling decreasing performance

West Pharmaceutical Services, Inc.'s short-term assets of $1.98B exceed its short-term liabilities of $654.90M

West Pharmaceutical Services, Inc.'s return on assets of 13.86% is higher than the 5.00% threshold, indicating efficient asset utilization

West Pharmaceutical Services, Inc.'s return on equity of 18.51%, is higher than 15.00%, indicating good performance

West Pharmaceutical Services, Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

West Pharmaceutical Services, Inc. had positive net income in 5 out of 5 years, indicating stable and consistent earnings

West Pharmaceutical Services, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

West Pharmaceutical Services, Inc. has a free cash flow yield of 1.89%, which is below the 2.00% threshold, indicating limited cash return relative to market value

West Pharmaceutical Services, Inc.'s yearly earnings has increased 0.20% since last year from $492.70M to $493.70M, signaling increasing performance

West Pharmaceutical Services, Inc.'s yearly revenue has increased 6.27% since last year from $2.89B to $3.07B, signaling increasing performance

ROIC 15.77% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.

West Pharmaceutical Services, Inc.'s 3-year revenue CAGR of 2.13% is positive, indicating growing revenue over the past 3 years

West Pharmaceutical Services, Inc. had revenue growth in 4 out of 5 years, indicating consistent revenue performance

West Pharmaceutical Services, Inc. had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

West Pharmaceutical Services, Inc. is overvalued relative to its fair value price of 118.38 based on Discounted Cash Flow model

West Pharmaceutical Services, Inc. has an earnings yield of 2.27%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

West Pharmaceutical Services, Inc. is overvalued relative to its fair value price of 75.54 based on EBITDA multiple model

West Pharmaceutical Services, Inc. has an EV/EBITDA ratio of 33.73x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings

West Pharmaceutical Services, Inc. is overvalued relative to its fair value price of 197.21 based on Earnings Fair Value model

West Pharmaceutical Services, Inc. has a PEG-ratio over 1 which is considered overvalued

West Pharmaceutical Services, Inc. has a price-to-book ratio of 8.34x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value

West Pharmaceutical Services, Inc. has a price-to-sales ratio of 7.49x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue