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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
WST
Primary Facts
Medical Instruments & Supplies
Name:
-
Sector:
85.40M
Industry:
291.35
CEO:
Mr. Eric Green
Total Employees:
Large Cap
Our Technological Advancement Rating
Our Rating:
0.295738944
-4.818895395
West Pharmaceutical Services, Inc. (XNYS:WST) In-Depth Stock/Fundamental/Options Analysis Today
Primary Targets/Price Insights
Previous Close ($) :
WEST PHARMACEUTICAL SERVICES, INC. (XNYS:WST)
One Month Price Target:
Six Month Price Target :
$293.28
Likely Price in One Year's Time:
Ticker:
$302.91
Likely Trading Range Today Under (Normal Volatility)
$292.75
Price Upper limit ($) :
$314.47
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
P205
This week:
$279.1
This month :
$263.95
Other Primary facts
Market Cap:
74.05M
Market Cap Classification:
21.55B
Number of Shares
IPO Date:
D
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
-10.7%
$236.55
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$321.51
10.17%
$261.19
$348.12
Medium risk (<10%) entry points
Buy Call
Sell Call
$307.16
Buy Put:
Sell Put:
$234.58
$275.54
$312.85
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
Medical Instruments & Supplies
Sharpe Ratio:
WST, is amongst the top 20% highest yielding stocks in terms of daily returns
Comparison:
1.60%
2.356045406
Sharpe ratio is 235.60% higher than the industry
Average Returns/Yield of
Medical Instruments & Supplies
Daily returns:
1
Weekly returns:
0.12%
Monthly returns:
0.61%
Yearly returns:
29.30%
Comparison of returns:
0.995533654
Classification:
Average annual returns/yield (last 3 years) is 99.55% above industry average
Results of T-Test of Returns:
WST is a riskier investment compared to Nasdaq (IXIC)
Statistical test of Returns:
0.77
Volatility (measured by Standard Deviation)
Daily Volatility:
& ratio is 135.76% higher than the market/S&P 500 average
Weekly Volatility:
2.11%
Monthly Volatility:
4.71%
Yearly Volatility:
9.42%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
41.08%
-55.70%
Value at Risk Analysis (VaR)
Daily VaR:
Volatility in last five trading days has been -55.70% below long-term volatility
Weekly VaR:
-4.21%
Monthly VaR:
-9.40%
How Much Can the price of
Medical Instruments & Supplies
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
Risk of crash in next 6/12 months: Very high (>70%)
Worst case (decline):
$246.99
This translates to price declining to:
-15%
This translates to price declining to:
-65.15%
Severe Crash Probability
-18.81%
What is Value at Risk (VaR)?
Risk Fundamentals
13.72%
WST is a 32.74% riskier investment compared to the market/S&P 500 & is 13.72% riskier than Nasdaq (IXIC)
WST is a 32.74% riskier investment compared to the market/S&P 500
Beta Examination of
Medical Instruments & Supplies
1.181
Expected beta in 1 year's time:
0.552
Expected beta in 3 year's time:
0.773
Unlevered (debt free) Beta:
Beta in relation to market/S&P 500--1.18
Beta in relation to Nasdaq (XNAS):
Returns are, approximately, symmetrical
Beta in relation to all global stocks::
Beta is 19.38% above industry average
Beta Comparison & Analysis
Beta of competitors/peers::
1.07
0.350
Average Industry Beta:
Beta is 35.05% higher than peers
0.193757636
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
WACC is 18.24% above industry mean WACC
94.02%
Alpha provided | Alpha Analysis
Alpha provided:
1.093
2.797
11.496
Analysis of Cost of Capital of
Medical Instruments & Supplies
Equity cost of capital:
Alpha is 1150% higher than market/& is unsustainably high
0.132
Unlevered (without debt) cost of capital:
Equity cost of capital is 13.23% above industry mean WACC
Before-tax cost of debt:
10.19%
After-tax cost of debt:
2.57%
Overall debt rating:
2.03%
Weighted average cost of capital (WACC):
2.57%
18.24%
Key Per-Share Metrics & Analysis
Revenue per share:
Present value of the expected future dividends only: $7.16
Revenue growth rate per share of (3Y):
Price to sales ratio is 0.98% above the industry mean
27.20%
EPS:
Six Hundred Sixty-Four Million Four Hundred Sixty-One Thousand Seven Hundred Twenty Dollars
Expected Annual growth rate of EPS (3Y):
-
231.66%
Free cash flow (FCF) per share:
Price to book ratio is 28.49% above the industry mean
Growth rate in R&D investment/expenditure is 4758.56% higher than the industry
81.56368069
Debt per share
Debt repayment rate in last quarter: 0.22%
EBITDA per share
Each employee generates -18% less EBITDA than industry average revenue per employee
Valuation Analysis Today of
Medical Instruments & Supplies
P/E Ratio:
Sustainable growth rate is 94.02% above industry average
P/E Ratio of Competitors/Peers:
32.43
-0.349870115
447.510817
-0.348954285
$5.04
Share value as per dividend discount (DDM) model: $21.37
P/S (Price to Sales ratio):
$38.91
0.009797515
P/B (Price to book value ratio):
Price to sales ratio is 0.98% above the industry mean
-
-
Net income growth rate (3Y):
Annual revenue growth rate is 27.20% above the industry average
-308.06%
Dividend Analysis
Net income growth rate is -308.06% lower than the industry average net income growth rate
Dividend payout rate: 1.96%
$0.18
Previous Dividend: $0.18
Previous adjusted dividend: $0.18
Previous Dividend: $0.71
Expected next dividend best case: $0.19
Expected next dividend worst case: $0.17
Average dividend payment (long-term): $0.17
Average dividend increase/decrease (growth rate) % per period: 1.21%
Expected next dividend payment date: 08/02/2022
Expected next dividend record date: 19/07/2022
Expected next dividend declaration date: 24/05/2022
Previous dividend payment date: 05/04/2022
Previous dividend record date: 20/04/2022
Dividend History:
Previous dividend declaration date: 23/02/2022
2022-01-18--$0.18
2021-07-20--$0.17
2022-04-19--$0.18
2021-11-09--$0.18
2021-04-20--$0.17
-1.612558669
In-depth Debt & Leverage Analysis
Debt to equity ratio:
-14.47%
Net debt to equity ratio:
The remaining useful life of property plant & equipment is: 9.6 years
Debt to assets ratio:
-10.21%
Net debt to assets ratio:
11.92%
-76.56%
Ability to repay debt:
Interest coverage ratio:
Debt-to-asset ratio is -76.56% below industry average
0.52
Looking forward:
Debt growth rate:
1.1x
-100.11%
0.22%
Analysis of Key Statistics
Correlation of price movement with the market:
18.88313857
Statistical significance of correlation:
-0.24%
Average Correlation of the industry with the market:
0.585
15.87%
R Squared (percentage of price movement explained by movement of the market):
0.585
Correlation of price movement with Nasdaq (^IXIC):
0.342
Covariance of price movement with the market:
-0.052
Kurtosis
-0.063
3.100
Skewness of returns:
Returns are, approximately, normally distributed (mesokurtic)
0.125
Fundamental Analysis & Dupont Analysis of
Medical Instruments & Supplies
Gross Profit Margin Ratio:
1.19B
Operating Profit Margin Ratio:
Net profit margin is 77.47% higher than the industry
98.74%
Net Profit Margin Ratio:
1.19B
Effective Tax Rate:
0.80%
-0.601778029
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
Return on assets (ROA) is 190.04% higher than the industry
-164.53%
Financial Leverage
Asset Turnover Ratio (ROA):
Operating profit margin is 98.74% higher than the industry
190.04%
Financial Leverage:
Interest coverage ratio is 51.82% more than industry average
Current Ratio:
Return on equity (ROE) is -164.53% lower than the industry
-0.208331541
Cash Conversion Cycle (days):
$3.74
-0.384780296
Current ratio is -20.83% below industry average
Stock based compensation to net income ratio:
Equity growth rate per share is 8156.37% higher than the industry
In-depth Efficiency Analysis
Revenue generated per employee:
Cash conversion cycle is -38.48% below industry average
-0.190566538
EBITDA generated per employee:
Each employee generates -19% less revenue than industry average revenue per employee
-0.183179073
Profit generated per employee:
$12.36
-12%
Free cash flow (FCF) generated per employee:
Each employee generates -12% less net income/profit than industry average revenue per employee
-2.47435216
Assets/Capital per employee
Each employee generates -247% less free cash flow than industry average revenue per employee
-2.47435216
Research & Development (R&D) Analysis
12.58%
47.58562581
Competitors/Peer firms of
Medical Instruments & Supplies
$566.83
AMERISOURCEBERGEN CORPORATION (XNYS:ABC)
LABORATORY CORPORATION OF AMERICA HOLDINGS (XNYS:LH)
ZIMMER BIOMET HOLDINGS, INC. (XNYS:ZBH)
STERIS PUBLIC LIMITED COMPANY (XNYS:STE)
RESMED INC. (XNYS:RMD)
PERKINELMER, INC. (XNYS:PKI)
METTLER-TOLEDO INTERNATIONAL INC. (XNYS:MTD)
VEEVA SYSTEMS INC. (XNYS:VEEV)
Current Analyst Ratings
$8.97
Strong buy�13%
Buy�4%
Hold�8%
Sell�4%
Strong sell�0%
Income Statement
Period:
3/31/2022
Date:
Value
Revenue:
TTM
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
2.88B
1.69B
165%
55.20M
-
366.00M
-
-
2.11B
1.20M
8.50M
122.80M
127%
99.70M
- 4600.00K
106%
99.70M
Statement of Cash Flow
Date:
Period:
173.80M
Differed Income Tax :
29.60M
Stock Based Compensation :
-
Change in Working Capital :
5.50M
Accounts Receivables:
- 50200.00K
Other Working Capital:
-
Other Non-Cash Items:
-
Net Cash Provided by Operating Activities:
- 7500.00K
Investments in PP&E:
151.20M
Net Acquisitions:
-
Purchases of Investments:
-
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
Value
3/31/2022
2022
Q1
667.70M
-
667.70M
498.70M
416.50M
107.60M
1.69B
1.14B
108.80M
21.80M
208.10M
66.40M
57.60M
1.60B
-
3.29B
248.20M
54.00M
34.70M
-
282.60M
584.80M
277.20M
103.20M
383.70M
-
968.50M
18.80M
2.62B
- 182400.0K
Value
421.20M
- 127500.00K
2.33B
3.29B
-
331.20M
-
-
- 68300.00K
- 68300.00K
- 600.00K
-
- 165900.00K
- 13400.00K
7.20M
- 172700.00K
- 5100.00K
- 94900.00K
667.70M
762.60M
151.20M
- 65800.00K
Our Proprietary Portfolio Rating
Our Rating:
-464.0285529
Price Forecast/Expected Price in Next 5 Years of
Medical Instruments & Supplies
2023
2024
2025
2026
2027
417.6236625
$316.04
$450.77
$486.54
$525.16