Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
West Pharmaceutical Services's 10-Year RORE % for the quarter that ended in Mar. 2026 was 10.74%.
WST's 10-Year RORE % is ranked better than 69% of 429
companies
in the Medical Devices & Instruments industry
Industry Median: 0.6
vs WST: 10.74
West Pharmaceutical Services (NYSE:WST) 10-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 10-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
West Pharmaceutical Services 10-Year RORE % Related Terms
West Pharmaceutical Services 10-Year RORE % 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 10-Year RORE %, along with its competitors' market caps and 10-Year RORE % 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 10-Year RORE % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, West Pharmaceutical Services's 10-Year RORE % distribution charts can be found below:
* The bar in red indicates where West Pharmaceutical Services's 10-Year RORE % 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 10-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 10-year before.
West Pharmaceutical Services (WST) has a 10-Year RORE % of 10.74 as of Mar. 2026. 10-Year RORE % shows how much a company earns by reinvesting its retained earnings in 10-year. View historical data on West Pharmaceutical Services and its competitors. According to the industry distribution chart, West Pharmaceutical Services ranks #133 out of 429 companies in the Medical Devices & Instruments industry, placing it in the top 31%.
Is West Pharmaceutical Services' 10-Year RORE % too high?
West Pharmaceutical Services' current 10-Year RORE % is 10.74. The Medical Devices & Instruments industry median 10-Year RORE % is 0.60. West Pharmaceutical Services' value of 10.74 is 1690% above this industry median. Based on the distribution chart, West Pharmaceutical Services ranks #133 out of 429 companies in the Medical Devices & Instruments industry, which is above 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' 10-Year RORE % compare to RMD and MDLN?
According to the Medical Devices & Instruments industry distribution chart, West Pharmaceutical Services ranks #133 out of 429 companies for 10-Year RORE %. This puts West Pharmaceutical Services in the upper half of its industry. The industry median 10-Year RORE % is 0.60. West Pharmaceutical Services' value of 10.74 is 1690% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 10-Year RORE % for a Medical Devices & Instruments company?
The median 10-Year RORE % among Medical Devices & Instruments companies is 0.60, based on 429 companies in the industry. Companies in the top quartile (top 25%) have a 10-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 10-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. West Pharmaceutical Services's current 10-Year RORE % of 10.74 is 1690% 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 10-Year RORE % mean?
A high 10-Year RORE % can signal that a stock is expensive relative to its fundamentals. 10-Year RORE % shows how much a company earns by reinvesting its retained earnings in 10-year. View historical data on West Pharmaceutical Services and its competitors. For the Medical Devices & Instruments industry, the median 10-Year RORE % is 0.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. West Pharmaceutical Services's current 10-Year RORE % is 10.74. 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 $362.00, compared to a current price of $365.74 — trading 1% above its estimated fair value. The current 10-Year RORE % is 10.74 and 1690% above the Medical Devices & Instruments industry median of 0.60. 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 10-Year RORE % calculated?
10-Year RORE % is calculated from a company's financial statements. For West Pharmaceutical Services (WST), the current 10-Year RORE % is 10.74 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 $365.74 is trading 1% above its estimated GF Value™ of $362.00.
GuruFocus considers West Pharmaceutical Services to be Fairly Valued.
Key valuation signals for WST:
10-Year RORE %: 10.74
GF Value™: $362.00 vs. price of $365.74 (1% above fair value)
Industry Position: 1690% above the Medical Devices & Instruments median (#133 of 429)
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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