West Pharmaceutical ServicesWST +1.30%95 ROE % is 18.01% as of Mar. 2026, which is 4% above its 10-year median of 17.28. 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 799 Medical Devices & Instruments companies, West Pharmaceutical Services ranks better than 90.36% on this metric.
The historical rank and industry rank for West Pharmaceutical Services's ROE % or its related term are showing as below:
WST'
s ROE % Range Over the Past 10 Years
Min: 12.57 Med: 17.28 Max: 31.59
Current: 18.3
During the past 13 years, West Pharmaceutical Services's highest ROE % was 31.59%. The lowest was 12.57%. And the median was 17.28%.
WST's ROE % is ranked better than 90.36% of 799
companies
in the Medical Devices & Instruments industry
Industry Median: 2.42
vs WST: 18.30
West Pharmaceutical Services (NYSE:WST) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
West Pharmaceutical Services ROE % Related Terms
West Pharmaceutical Services ROE % 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, West Pharmaceutical Services's ROE % distribution charts can be found below:
* The bar in red indicates where West Pharmaceutical Services's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
West Pharmaceutical Services (WST) has a ROE % of 18.01% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on West Pharmaceutical Services and its competitors. This is near median its historical median of 17.28. Over the past decade, West Pharmaceutical Services' ROE % has ranged from 12.57 to 31.59. According to the industry distribution chart, West Pharmaceutical Services ranks #77 out of 799 companies in the Medical Devices & Instruments industry, placing it in the top 9.6%.
Is West Pharmaceutical Services' ROE % too high?
West Pharmaceutical Services' current ROE % of 18.01% is near median its 10-year median of 17.28. Over the past 10 years, this metric has ranged from a low of 12.57 to a high of 31.59. The Medical Devices & Instruments industry median ROE % is 2.42. West Pharmaceutical Services' value of 18.01% is 644.2% above this industry median. Based on the distribution chart, West Pharmaceutical Services ranks #77 out of 799 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' ROE % compare to RMD and MDLN?
According to the Medical Devices & Instruments industry distribution chart, West Pharmaceutical Services ranks #77 out of 799 companies for ROE %. This places West Pharmaceutical Services in the top 10% of its industry — outperforming the majority of peers. The industry median ROE % is 2.42. West Pharmaceutical Services' value of 18.01% is 644.2% above this benchmark. Historically, West Pharmaceutical Services' own ROE % has ranged from 12.57 to 31.59 over the past decade. While the company's 10-year median is 17.28 vs. the industry median of 2.42, 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 ROE % for a Medical Devices & Instruments company?
The median ROE % among Medical Devices & Instruments companies is 2.42, based on 799 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. West Pharmaceutical Services's current ROE % of 18.01% is 644.2% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on West Pharmaceutical Services and its competitors. For the Medical Devices & Instruments industry, the median ROE % is 2.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. West Pharmaceutical Services's current ROE % is 18.01%, which is near median its own 10-year median of 17.28. 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 ROE % is 18.01%, which is near median its 10-year median of 17.28 and 644.2% above the Medical Devices & Instruments industry median of 2.42. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For West Pharmaceutical Services (WST), the current ROE % is 18.01% 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:
ROE %: 18.01% (near median its 10-year median of 17.28)
GF Value™: $361.52 vs. price of $340.77 (5.7% below fair value)
Industry Position: 644.2% above the Medical Devices & Instruments median (#77 of 799)
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.
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