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West Pharmaceutical Services Operating Margin %

: 25.93% (As of Sep. 2021)
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Operating Margin % is calculated as Operating Income divided by its Revenue. West Pharmaceutical Services's Operating Income for the three months ended in Sep. 2021 was $183 Mil. West Pharmaceutical Services's Revenue for the three months ended in Sep. 2021 was $707 Mil. Therefore, West Pharmaceutical Services's Operating Margin % for the quarter that ended in Sep. 2021 was 25.93%.

Good Sign:

West Pharmaceutical Services Inc operating margin is expanding. Margin expansion is usually a good sign.

The historical rank and industry rank for West Pharmaceutical Services's Operating Margin % or its related term are showing as below:

NYSE:WST' s Operating Margin % Range Over the Past 10 Years
Min: 9.99   Med: 13.41   Max: 25.86
Current: 25.86

9.99
25.86

NYSE:WST's Operating Margin % is ranked higher than
87% of the 748 Companies
in the Medical Devices & Instruments industry.

( Industry Median: 2.68 vs. NYSE:WST: 25.86 )

West Pharmaceutical Services's 5-Year Average Operating Margin % Growth Rate was 7.10% per year.

West Pharmaceutical Services's Operating Income for the three months ended in Sep. 2021 was $183 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2021 was $693 Mil.


West Pharmaceutical Services Operating Margin % Historical Data

The historical data trend for West Pharmaceutical Services's Operating Margin % 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
Operating Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 14.91 14.25 14.10 16.24 19.51

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
Operating Margin % 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 19.32 21.01 26.76 28.83 25.93

Competitive 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 % Distribution

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.

West Pharmaceutical Services's Operating Margin % for the fiscal year that ended in Dec. 2020 is calculated as

Operating Margin %=Operating Income (A: Dec. 2020 ) / Revenue (A: Dec. 2020 )
=418.9 / 2146.9
=19.51 %

West Pharmaceutical Services's Operating Margin % for the quarter that ended in Sep. 2021 is calculated as

Operating Margin %=Operating Income (Q: Sep. 2021 ) / Revenue (Q: Sep. 2021 )
=183.2 / 706.5
=25.93 %

* 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  (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 Nokia’s 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

Thank you for viewing the detailed overview of West Pharmaceutical Services's Operating Margin % 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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