WSTNEUTRAL

Gross Margin

35.1%

Updated 558h ago

Sector Performance

31th percentile

WST

35.1%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

With a gross margin of 35.1%, West Pharmaceutical Services (WST) keeps about 35 cents of every dollar in revenue after subtracting the direct costs to manufacture its products.

That figure sits below the sector median of 43.8%, placing WST in the 32nd percentile among its peers — meaning roughly two-thirds of competitors have higher gross margins. Trend data is not available: both the year-over-year and quarter-over-quarter changes are listed as N/A, and no historical pattern for the last eight quarters exists to assess direction. Without a trend, the current below-median level by itself suggests WST may have less pricing power or higher input costs than many of its sector peers, creating a moderate risk of margin compression. The missing trend data also means there is no evidence that management is improving or deteriorating this key profitability metric. This metric supports the overall NEUTRAL verdict: the below-median gross margin introduces a cautionary element, but the lack of trend information prevents a stronger bearish or bullish tilt.

Frequently Asked Questions

What does the Gross Margin tell investors about WST?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

Who are WST's closest peers by Gross Margin?

The closest peers by Gross Margin include: EXPD (14.0%), JBHT (12.6%), DVN (12.1%), F (11.9%), GM (11.5%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.