West Pharmaceutical Services Inc. (WST) exhibits 35.9% gross margins and 17.9% return on invested capital within Health Care (Medical/Dental Instruments), balanced against a 34.7x enterprise multiple and 7.2% implied options volatility.
Sustained 35.9% gross profitability converts into 19.0% operating margin and 17.9% ROIC, outpacing sector cost of capital.
ROIC: 17.9% // GM: 35.9%YoY revenue trajectory of +6.3% paired with 1.60% free cash flow yield supports self-funded R&D and capital return.
REV YOY: +6.3% // FCF YLD: 1.60%Altman Z-Score of 19.06 and Piotroski F-Score of 9/9 indicate low near-term refinancing stress.
ALTMAN Z: 19.06 // F-SCORE: 9/9Trading at 59.4x trailing P/E (55.2x Fwd P/E) leaves valuation vulnerable if real 10Y TIPS yields spike.
P/E: 59.4x // EV/EBITDA: 34.7xOptions market prices a ±7.2% implied move with a 0.66 put/call ratio around $408.00 max pain.
IMPL MOVE: ±7.2% // P/C: 0.66Elevated industry capital intensity and customer concentration in Medical/Dental Instruments require continuous execution to defend 16.1% net margins.
NET MARGIN: 16.1% // D/E: 0.06x| FILER | SIDE | $ VALUE |
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| INSPECT FULL OWNERSHIP LEDGER IN OWN <GO> | ||
| STRIKE / EXP | TYPE | PREMIUM |
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| INSPECT GEX & CHAIN IN OPT <GO> | ||
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