WEST PHARMACEUTICAL SERVICES FRANCE S.A : revenue, balance sheet and financial ratios

In 2024, WEST PHARMACEUTICAL SERVICES FRANCE S.A achieves revenue of 308.1 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +9.9%. Slight decline of -7% vs 2023. After deducting consumption (166.5 M€), gross margin stands at 141.6 M€, i.e. a rate of 46%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 66.3 M€, representing 21.5% of revenue. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 14.9 M€, i.e. 4.8% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 9%. This very low level reflects a solid financial structure, offering significant room for future investments or acquisitions. Financial autonomy (= Equity / Total assets x 100) reaches 42%. This high autonomy means the company finances most of its assets through equity, a sign of strength. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 0.2 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 7.9% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. Satisfactory level allowing partial financing of growth.

The liquidity ratio (= Current assets / Current liabilities) stands at 124.90. Concretely, the company has €2 of liquid assets for every €1 of short-term debt: no cash risk within 12 months. The interest coverage ratio (= EBIT / Interest expenses) is 2.1x. Financial charges are adequately covered by operations.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 44 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 63 days. Favorable situation: supplier credit is longer than customer credit by 19 days. Inventory turnover is 24 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 24 days of revenue, i.e. 20.5 M€ to permanently finance.

Based on 80 transactions of similar company sales (all years), the value of WEST PHARMACEUTICAL SERVICES FRANCE S.A is estimated at 66 196 639 € (range 27 389 487€ - 138 223 505€). With an EBITDA of 66 316 092€, the sector multiple of 1.3x is applied. The price/revenue ratio is 0.21x (conservative valuation). This multiples method compares the actual sale price of similar companies to their financial indicators (Revenue, EBITDA, Net Income). It provides a market-based indicative estimate.
Medium reliability: estimate to be confirmed with in-depth analysis.