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West Pharmaceutical Services Piotroski F-Score

: 7 (As of Today)
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Good Sign:

Piotroski F-Score is 7, indicating very healthy situation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

West Pharmaceutical Services has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

The historical rank and industry rank for West Pharmaceutical Services's Piotroski F-Score or its related term are showing as below:

NYSE:WST' s Piotroski F-Score Range Over the Past 10 Years
Min: 1   Med: 6   Max: 9
Current: 7

1
9

During the past 13 years, the highest Piotroski F-Score of West Pharmaceutical Services was 9. The lowest was 1. And the median was 6.


West Pharmaceutical Services Piotroski F-Score Historical Data

The historical data trend for West Pharmaceutical Services's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

West Pharmaceutical Services Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.00 7.00 6.00 6.00 6.00

West Pharmaceutical Services Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 6.00 7.00 7.00 7.00

Competitive Comparison

For the Medical Instruments & Supplies subindustry, West Pharmaceutical Services's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

West Pharmaceutical Services Piotroski F-Score Distribution

For the Medical Devices & Instruments industry and Healthcare sector, West Pharmaceutical Services's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where West Pharmaceutical Services's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Sep21) TTM:Last Year (Sep20) TTM:
Net Income was 98.4 + 151.2 + 187.3 + 175.6 = $613 Mil.
Cash Flow from Operations was 148.7 + 88.7 + 144.4 + 190.1 = $572 Mil.
Revenue was 580.2 + 670.7 + 723.6 + 706.5 = $2,681 Mil.
Gross Profit was 211.1 + 271.9 + 315.1 + 288.2 = $1,086 Mil.
Average Total Assets from the begining of this year (Sep20)
to the end of this year (Sep21) was
(2582.8 + 2793.8 + 2739.7 + 2933.5 + 3142.6) / 5 = $2838.48 Mil.
Total Assets at the begining of this year (Sep20) was $2,583 Mil.
Long-Term Debt & Capital Lease Obligation was $263 Mil.
Total Current Assets was $1,598 Mil.
Total Current Liabilities was $559 Mil.
Net Income was 63.9 + 74.3 + 91.2 + 82.3 = $312 Mil.

Revenue was 470.6 + 491.5 + 527.2 + 548 = $2,037 Mil.
Gross Profit was 153.2 + 167 + 195.1 + 194.6 = $710 Mil.
Average Total Assets from the begining of last year (Sep19)
to the end of last year (Sep20) was
(2174 + 2341.4 + 2246.5 + 2392.3 + 2582.8) / 5 = $2347.4 Mil.
Total Assets at the begining of last year (Sep19) was $2,174 Mil.
Long-Term Debt & Capital Lease Obligation was $313 Mil.
Total Current Assets was $1,238 Mil.
Total Current Liabilities was $448 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

West Pharmaceutical Services's current Net Income (TTM) was 613. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

West Pharmaceutical Services's current Cash Flow from Operations (TTM) was 572. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Sep20)
=612.5/2582.8
=0.23714573

ROA (Last Year)=Net Income/Total Assets (Sep19)
=311.7/2174
=0.14337626

West Pharmaceutical Services's return on assets of this year was 0.23714573. West Pharmaceutical Services's return on assets of last year was 0.14337626. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

West Pharmaceutical Services's current Net Income (TTM) was 613. West Pharmaceutical Services's current Cash Flow from Operations (TTM) was 572. ==> 572 <= 613 ==> CFROA <= ROA ==> Score 0.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Sep21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep20 to Sep21
=263.3/2838.48
=0.09276091

Gearing (Last Year: Sep20)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep19 to Sep20
=313.3/2347.4
=0.13346681

West Pharmaceutical Services's gearing of this year was 0.09276091. West Pharmaceutical Services's gearing of last year was 0.13346681. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Sep21)=Total Current Assets/Total Current Liabilities
=1598.3/558.6
=2.86126029

Current Ratio (Last Year: Sep20)=Total Current Assets/Total Current Liabilities
=1238.3/447.7
=2.76591468

West Pharmaceutical Services's current ratio of this year was 2.86126029. West Pharmaceutical Services's current ratio of last year was 2.76591468. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

West Pharmaceutical Services's number of shares in issue this year was 76. West Pharmaceutical Services's number of shares in issue last year was 75.8. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=1086.3/2681
=0.40518463

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=709.9/2037.3
=0.34845138

West Pharmaceutical Services's gross margin of this year was 0.40518463. West Pharmaceutical Services's gross margin of last year was 0.34845138. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Sep20)
=2681/2582.8
=1.03802075

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Sep19)
=2037.3/2174
=0.93712052

West Pharmaceutical Services's asset turnover of this year was 1.03802075. West Pharmaceutical Services's asset turnover of last year was 0.93712052. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+0+1+1+0+1+1
=7

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

West Pharmaceutical Services has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

West Pharmaceutical Services  (NYSE:WST) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


West Pharmaceutical Services Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of West Pharmaceutical Services's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


West Pharmaceutical Services Business Description

West Pharmaceutical Services logo
Industry
Traded in Other Exchanges
Address
530 Herman O. West Drive, Exton, PA, USA, 19341-0645
West Pharmaceutical Services is a Pennsylvania-based medical supplies company that operates as a key supplier to firms in the pharmaceutical, biotechnology, and generic drug industries. West develops, manufactures, and distributes elastomer-based supplies for the containment and administration of injectable drugs, including basic equipment such as syringes, stoppers, and plungers, along with somewhat more complicated devices including auto-injectors and other self-injection platforms. The company reports in two segments: proprietary products (77% of 2020 sales) and contract-manufactured products (23%). It generates 55% of its revenue from international markets and 45% from the United States.
Executives
Zenner Patrick J director C/O DENDRITE INTERNATIONAL INC. 1405/1425 ROUTE 206 SOUTH BEDMINSTER NJ 07921
Montecalvo David A officer: SVP, Glob Ops and Supply Chain 530 HERMAN O. WEST DRIVE EXTON PA 19341
Birkett Bernard officer: Sr VP, CFO & Treasurer 1600 WEST MERIT PARKWAY SOUTH JORDAN UT 84095
Green Eric Mark director, officer: President & CEO 530 HERMAN O. WEST DRIVE EXTON PA 19341
Abraham Silji officer: Chief Digital & Trans Officer 5000 TOWN CENTER U SOUTHFIELD MI 48075
Winters Chad officer: VP, CAO & Controller 530 HERMAN O. WEST DRIVE EXTON PA 19341
Feehery William F director 530 HERMAN O. WEST DRIVE EXTON PA 19341
Pucci Paolo director C/O ARQULE, INC. 1 WALL STREET, 6TH FLOOR BURLINGTON MA 01803
Johnson Paula A director 530 HERMAN O. WEST DRIVE EXTON PA 19341
Michels Douglas A director 220 EAST FIRST STREET BETHLEHEM PA 18015
Hofmann Thomas W director FIVE RADNOR CORPORATE CENTER SUITE 500 RADNOR PA 19087
Lai Goldman Myla director 3595 JOHN HOPKINS COURT SAN DIEGO CA 92121
Keller Deborah L director 530 HERMAN O. WEST DRIVE EXTON PA 19341
Buthman Mark A director P O BOX 619100 DALLAS TX 752619100
Friel Robert F director 940 WINTER STREET WALTHAM MA 02451

West Pharmaceutical Services Headlines

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