West Pharmaceutical ServicesWST +1.30%95 Gross Margin % is 35.08% as of Mar. 2026, which is 0% below its 10-year median of 35.14. GuruFocus rates WST with a GF Score™ of 95/100 and a GF Value™ of $361.52 (Fairly Valued). The stock has 9 warning signs investors should review. Among 805 Medical Devices & Instruments companies, West Pharmaceutical Services ranks worse than 73.91% on this metric.
West Pharmaceutical Services (NYSE:WST) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
West Pharmaceutical Services had a gross margin of 35.08% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
West Pharmaceutical Services Gross Margin % Related Terms
West Pharmaceutical Services Gross Margin % Historical Data
* 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.
For the Medical Instruments & Supplies subindustry, West Pharmaceutical Services's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, West Pharmaceutical Services's Gross Margin % distribution charts can be found below:
* The bar in red indicates where West Pharmaceutical Services's Gross Margin % falls into.
* 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
West Pharmaceutical Services (WST) has a Gross Margin % of 35.08% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on West Pharmaceutical Services and its competitors. This is near median its historical median of 35.14. Over the past decade, West Pharmaceutical Services' Gross Margin % has ranged from 31.76 to 41.52. According to the industry distribution chart, West Pharmaceutical Services ranks #595 out of 805 companies in the Medical Devices & Instruments industry, placing it in the top 73.9%.
Is West Pharmaceutical Services' Gross Margin % too high?
West Pharmaceutical Services' current Gross Margin % of 35.08% is near median its 10-year median of 35.14. Over the past 10 years, this metric has ranged from a low of 31.76 to a high of 41.52. The Medical Devices & Instruments industry median Gross Margin % is 52.07. West Pharmaceutical Services' value of 35.08% is 32.6% below this industry median. Based on the distribution chart, West Pharmaceutical Services ranks #595 out of 805 companies in the Medical Devices & Instruments industry, which is below the industry midpoint. Overall, West Pharmaceutical Services has a GF Score™ of 95/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does West Pharmaceutical Services' Gross Margin % compare to RMD and MDLN?
According to the Medical Devices & Instruments industry distribution chart, West Pharmaceutical Services ranks #595 out of 805 companies for Gross Margin %. This places West Pharmaceutical Services in the lower half of its industry. The industry median Gross Margin % is 52.07. West Pharmaceutical Services' value of 35.08% is 32.6% below this benchmark. Historically, West Pharmaceutical Services' own Gross Margin % has ranged from 31.76 to 41.52 over the past decade. While the company's 10-year median is 35.14 vs. the industry median of 52.07, West Pharmaceutical Services has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Medical Devices & Instruments company?
The median Gross Margin % among Medical Devices & Instruments companies is 52.07, based on 805 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. West Pharmaceutical Services's current Gross Margin % of 35.08% is 32.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on West Pharmaceutical Services and its competitors. For the Medical Devices & Instruments industry, the median Gross Margin % is 52.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. West Pharmaceutical Services's current Gross Margin % is 35.08%, which is near median its own 10-year median of 35.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is West Pharmaceutical Services stock overvalued right now?
Based on GuruFocus' analysis, West Pharmaceutical Services (WST) is currently considered Fairly Valued. The stock's GF Value™ is $361.52, compared to a current price of $340.77 — trading 5.7% below its estimated fair value. The current Gross Margin % is 35.08%, which is near median its 10-year median of 35.14 and 32.6% below the Medical Devices & Instruments industry median of 52.07. West Pharmaceutical Services' overall GF Score™ is 95/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For West Pharmaceutical Services (WST), the current Gross Margin % is 35.08% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is West Pharmaceutical Services (WST) Overvalued in 2026?
Based on GuruFocus' analysis, West Pharmaceutical Services stock appears to be undervalued.
The current stock price of $340.77 is trading 5.7% below its estimated GF Value™ of $361.52.
GuruFocus considers West Pharmaceutical Services to be Fairly Valued.
Key valuation signals for WST:
Gross Margin %: 35.08% (near median its 10-year median of 35.14)
GF Value™: $361.52 vs. price of $340.77 (5.7% below fair value)
Industry Position: 32.6% below the Medical Devices & Instruments median (#595 of 805)
No single metric tells the full story. See the WST stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
West Pharmaceutical Services is based in Pennsylvania and is a key supplier to firms in the pharmaceutical, biotechnology, and generic drug industries. West sells elastomer-based packaging components (including stoppers, seals, and plungers), nonglass containment solutions, and auto-injectors for injectable drugs, which include large-molecule biologics, peptides such as GLP-1 receptor agonists, and small-molecule drugs. The company reports in two segments: proprietary products (about 80% of total revenue) and contract-manufactured products (about 20% of total revenue). It generates approximately 55% of its revenue from international markets and 45% from the United States.
95GF Score
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