Buffett Brain · Research note
Score updated 27 Oct 2026 · analysis from 10 Oct 2026
WST· Healthcare
West Pharmaceutical Services
West Pharmaceutical Services boasts strong financial health but lacks valuation appeal with a P/E of 39.8.
Buffett fit
Partial fit
Owner
54
Durability
63
Management
59
Price
1
Score updated 27 Oct 2026 · analysis from 10 Oct 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Healthcare stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If we owned 100% of West Pharmaceutical Services, we would focus on maintaining its top-quintile of 18.6% and leveraging its strong financial health, with a net debt/EBITDA of -0.26.
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West's durability is supported by its role in the healthcare supply chain, a non-cyclical industry.
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Management has demonstrated prudent with a share count CAGR of -0.71% and a yield of 1.44%.
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Current valuation metrics such as a of 39.8 and an EV/ of 34.0 indicate the stock is priced for perfection.
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
6- 1 of 18.6% is top-quintile in the healthcare sector.
- 2 of 20.7% exceeds the sector's top-quintile cutoff of 16.2%.
- 3Net debt/EBITDA of -0.26 indicates a net cash position.
- 4Interest coverage ratio of 3328.0 shows strong ability to service debt.
Concerns
6- 1 of 39.8 suggests high expectations are priced in.
- 2EPS CAGR of -6.4% over five years indicates declining earnings.
- 3Dividend CAGR of -8.61% raises questions about shareholder returns.
- 4 of 36.2% is below the sector's top-quintile cutoff of 77.9%.
Price history
$395-8.2%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
West Pharmaceutical Services designs and manufactures containment and delivery systems for injectable drugs. The company operates in two segments: Proprietary Products and Contract-Manufactured Products, serving biologic, generic, and pharmaceutical drug companies. With a revenue of $3.07B and a net income of $493.7M, the stands at 20.7%, indicating efficient operations. The business model benefits from recurring demand in the healthcare sector.
How this analysis has moved
The call has held across 4 reviews.
Oct 11, 2026 → Oct 27, 2026
What other investors would say
The same company, judged by three other documented playbooks.
Keep researching
Similar companies in Healthcare
Questions about West Pharmaceutical Services
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