West Pharmaceutical ServicesWST +1.20%95 Operating Margin % is 21.43% as of Mar. 2026, which is 7% above its 10-year median of 19.97. 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 816 Medical Devices & Instruments companies, West Pharmaceutical Services ranks better than 89.09% on this metric.
West Pharmaceutical Services Inc operating margin has been in a 5-year decline. The average rate of decline per year is -1.8%.
The historical rank and industry rank for West Pharmaceutical Services's Operating Margin % or its related term are showing as below:
WST'
s Operating Margin % Range Over the Past 10 Years
Min: 14.1 Med: 19.97 Max: 26.85
Current: 21.41
WST's Operating Margin % is ranked better than 89.09% of 816
companies
in the Medical Devices & Instruments industry
Industry Median: 3.465
vs WST: 21.41
West Pharmaceutical Services (NYSE:WST) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
West Pharmaceutical Services Operating Margin % Related Terms
West Pharmaceutical Services Operating 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.
West Pharmaceutical Services Operating Margin % Chart
WST vs RMD, MDLN, SOLV: Operating Margin % Comparison
For the Medical Instruments & Supplies subindustry, West Pharmaceutical Services's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, West Pharmaceutical Services's Operating Margin % distribution charts can be found below:
* The bar in red indicates where West Pharmaceutical Services's Operating Margin % falls into.
West Pharmaceutical Services Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
* 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.
West Pharmaceutical Services (WST) has a Operating Margin % of 21.43% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on West Pharmaceutical Services and its competitors. This is near median its historical median of 19.97. Over the past decade, West Pharmaceutical Services' Operating Margin % has ranged from 14.10 to 26.85. According to the industry distribution chart, West Pharmaceutical Services ranks #89 out of 816 companies in the Medical Devices & Instruments industry, placing it in the top 10.9%.
Is West Pharmaceutical Services' Operating Margin % too high?
West Pharmaceutical Services' current Operating Margin % of 21.43% is near median its 10-year median of 19.97. Over the past 10 years, this metric has ranged from a low of 14.10 to a high of 26.85. The Medical Devices & Instruments industry median Operating Margin % is 3.47. West Pharmaceutical Services' value of 21.43% is 518.5% above this industry median. Based on the distribution chart, West Pharmaceutical Services ranks #89 out of 816 companies in the Medical Devices & Instruments industry, which is in the top quartile — a strong position relative to peers. 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' Operating Margin % compare to RMD and MDLN?
According to the Medical Devices & Instruments industry distribution chart, West Pharmaceutical Services ranks #89 out of 816 companies for Operating Margin %. This places West Pharmaceutical Services in the top 11% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.47. West Pharmaceutical Services' value of 21.43% is 518.5% above this benchmark. Historically, West Pharmaceutical Services' own Operating Margin % has ranged from 14.10 to 26.85 over the past decade. While the company's 10-year median is 19.97 vs. the industry median of 3.47, West Pharmaceutical Services has consistently been above 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 Operating Margin % for a Medical Devices & Instruments company?
The median Operating Margin % among Medical Devices & Instruments companies is 3.47, based on 816 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. West Pharmaceutical Services's current Operating Margin % of 21.43% is 518.5% above 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on West Pharmaceutical Services and its competitors. For the Medical Devices & Instruments industry, the median Operating Margin % is 3.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. West Pharmaceutical Services's current Operating Margin % is 21.43%, which is near median its own 10-year median of 19.97. 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 $340.41 — trading 5.8% below its estimated fair value. The current Operating Margin % is 21.43%, which is near median its 10-year median of 19.97 and 518.5% above the Medical Devices & Instruments industry median of 3.47. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For West Pharmaceutical Services (WST), the current Operating Margin % is 21.43% 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 $340.41 is trading 5.8% below its estimated GF Value™ of $361.52.
GuruFocus considers West Pharmaceutical Services to be Fairly Valued.
Key valuation signals for WST:
Operating Margin %: 21.43% (near median its 10-year median of 19.97)
GF Value™: $361.52 vs. price of $340.41 (5.8% below fair value)
Industry Position: 518.5% above the Medical Devices & Instruments median (#89 of 816)
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
Get the complete analysis for WST
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
WST has been successfully added to your 
