West Pharmaceutical ServicesWST +1.67%95 Return-on-Tangible-Equity is 18.72% as of Mar. 2026, which is 3% above its 10-year median of 18.19. GuruFocus rates WST with a GF Score™ of 95/100 and a GF Value™ of $361.86 (Fairly Valued). The stock has 9 warning signs investors should review. Among 758 Medical Devices & Instruments companies, West Pharmaceutical Services ranks better than 82.45% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. West Pharmaceutical Services's annualized net income for the quarter that ended in Mar. 2026 was $555 Mil. West Pharmaceutical Services's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $2,966 Mil. Therefore, West Pharmaceutical Services's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 18.72%.
The historical rank and industry rank for West Pharmaceutical Services's Return-on-Tangible-Equity or its related term are showing as below:
WST'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 14.07 Med: 18.19 Max: 33.8
Current: 19.06
During the past 13 years, West Pharmaceutical Services's highest Return-on-Tangible-Equity was 33.80%. The lowest was 14.07%. And the median was 18.19%.
WST's Return-on-Tangible-Equity is ranked better than 82.45% of 758
companies
in the Medical Devices & Instruments industry
Industry Median: 4.08
vs WST: 19.06
West Pharmaceutical Services (NYSE:WST) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
West Pharmaceutical Services Return-on-Tangible-Equity Related Terms
West Pharmaceutical Services Return-on-Tangible-Equity 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 Return-on-Tangible-Equity Chart
WST vs RMD, MDLN, COO: Return-on-Tangible-Equity Comparison
For the Medical Instruments & Supplies subindustry, West Pharmaceutical Services's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, West Pharmaceutical Services's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where West Pharmaceutical Services's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 18.72% mean?
West Pharmaceutical Services (WST) has a Return-on-Tangible-Equity of 18.72% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on West Pharmaceutical Services and its competitors. This is near median its historical median of 18.19. Over the past decade, West Pharmaceutical Services' Return-on-Tangible-Equity has ranged from 14.07 to 33.80. According to the industry distribution chart, West Pharmaceutical Services ranks #133 out of 758 companies in the Medical Devices & Instruments industry, placing it in the top 17.5%.
Is West Pharmaceutical Services' Return-on-Tangible-Equity too high?
West Pharmaceutical Services' current Return-on-Tangible-Equity of 18.72% is near median its 10-year median of 18.19. Over the past 10 years, this metric has ranged from a low of 14.07 to a high of 33.80. The Medical Devices & Instruments industry median Return-on-Tangible-Equity is 4.08. West Pharmaceutical Services' value of 18.72% is 358.8% above this industry median. Based on the distribution chart, West Pharmaceutical Services ranks #133 out of 758 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' Return-on-Tangible-Equity compare to RMD and MDLN?
According to the Medical Devices & Instruments industry distribution chart, West Pharmaceutical Services ranks #133 out of 758 companies for Return-on-Tangible-Equity. This places West Pharmaceutical Services in the top 18% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 4.08. West Pharmaceutical Services' value of 18.72% is 358.8% above this benchmark. Historically, West Pharmaceutical Services' own Return-on-Tangible-Equity has ranged from 14.07 to 33.80 over the past decade. While the company's 10-year median is 18.19 vs. the industry median of 4.08, 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 Return-on-Tangible-Equity for a Medical Devices & Instruments company?
The median Return-on-Tangible-Equity among Medical Devices & Instruments companies is 4.08, based on 758 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. West Pharmaceutical Services's current Return-on-Tangible-Equity of 18.72% is 358.8% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on West Pharmaceutical Services and its competitors. For the Medical Devices & Instruments industry, the median Return-on-Tangible-Equity is 4.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. West Pharmaceutical Services's current Return-on-Tangible-Equity is 18.72%, which is near median its own 10-year median of 18.19. 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 $361.86, compared to a current price of $365.00 — trading 0.9% above its estimated fair value. The current Return-on-Tangible-Equity is 18.72%, which is near median its 10-year median of 18.19 and 358.8% above the Medical Devices & Instruments industry median of 4.08. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For West Pharmaceutical Services (WST), the current Return-on-Tangible-Equity is 18.72% 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 overvalued.
The current stock price of $365.00 is trading 0.9% above its estimated GF Value™ of $361.86.
GuruFocus considers West Pharmaceutical Services to be Fairly Valued.
Key valuation signals for WST:
Return-on-Tangible-Equity: 18.72% (near median its 10-year median of 18.19)
GF Value™: $361.86 vs. price of $365.00 (0.9% above fair value)
Industry Position: 358.8% above the Medical Devices & Instruments median (#133 of 758)
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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