Is WEST PHARMACEUTICAL SERVICES INC (WST) Halal?

NYSE Healthcare United States $17.5B
✓ HALAL
Confidence: 95/100
WEST PHARMACEUTICAL SERVICES INC (WST) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 1.8% against the AAOIFI threshold of 30%, WEST PHARMACEUTICAL SERVICES INC comfortably passes the key financial ratio tests. The company operates in the Healthcare sector (Medical Instruments & Supplies), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 1.8%
/ 30%
4.5%
/ 30%
3.2%
/ 30%
0.57%
/ 5%
✓ HALAL
DJIM 1.8%
/ 33%
4.5%
/ 33%
3.2%
/ 33%
0.57%
/ 5%
✓ HALAL
MSCI 7.5%
/ 33%
18.5%
/ 33%
13.5%
/ 33%
0.57%
/ 5%
✓ HALAL
S&P 1.8%
/ 33%
4.5%
/ 33%
3.2%
/ 33%
0.57%
/ 5%
✓ HALAL
FTSE 7.5%
/ 33%
18.5%
/ 33%
13.5%
/ 50%
0.57%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
35.8
Forward: 27.5
EPS
$6.79
Dividend Yield
36.0%
Payout: 12.5%
P/B Ratio
5.5
EV/EBITDA
21.1
EV: $17.1B
Revenue
$3.1B
Growth: 7.5%
Beta
1.2
Average volatility
Current Ratio
3.0

Profitability

Gross Margin 35.9%
Operating Margin 21.6%
Net Margin 16.1%
Return on Equity (ROE) 16.9%
Return on Assets (ROA) 10.1%

Cash Flow & Balance Sheet

Operating Cash Flow$755M
Free Cash Flow$469M
Total Debt$321M
Debt-to-Equity10.3
Current Ratio3.0
Total Assets$4.3B

Price & Trading

Last Close$248.12
50-Day MA$243.93
200-Day MA$253.03
Avg Volume956K
Beta1.2
52-Week Range
$187.43
$322.34

About WEST PHARMACEUTICAL SERVICES INC (WST)

CEO
Mr. Eric M. Green
Employees
10,800
Sector
Healthcare
Industry
Medical Instruments & Supplies
Country
United States
Exchange
NYSE
Market Cap
$17.5B
Currency
USD

West Pharmaceutical Services, Inc. designs, manufactures, and sells containment and delivery systems for injectable drugs and healthcare products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates in two segments, Proprietary Products and Contract-Manufactured Products. The Proprietary Products segment offers stoppers and seals for injectable packaging systems; syringe and cartridge components, including custom solutions for the needs of injectable drug applications, as well as administration systems that enhance the safe delivery of drugs through advanced reconstitution, mixing, and transfer technologies; and films, coatings, washing, and vision inspection and sterilization processes and services to enhance the quality of packaging products. This segment also provides drug containment solutions in the form of vials, syringes, and cartridges; and self-injection devices; and a range of integrated solutions, including analytical lab services, pre-approval primary packaging support and engineering development, regulatory expertise, and after-sales technical support. This segment serves biologic, generic, and pharmaceutical drug companies. The Contract-Manufactured Products segment is involved in the design, manufacture, and automated assembly of devices used in surgical, diagnostic, ophthalmic, injectable, and other drug delivery systems, as well as consumer products. This segment primarily serves pharmaceutical, diagnostic, and medical device companies. It sells and distributes its products through its sales force and distribution network, contract sales agents, and regional distributors. West Pharmaceutical Services, Inc. was founded in 1923 and is headquartered in Exton, Pennsylvania.

Purification Calculator

As a halal stock with 0.57% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is WEST PHARMACEUTICAL SERVICES INC (WST) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), WEST PHARMACEUTICAL SERVICES INC is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is WEST PHARMACEUTICAL SERVICES INC's debt ratio?

WEST PHARMACEUTICAL SERVICES INC's debt ratio is 1.8% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 7.5%.

Does WEST PHARMACEUTICAL SERVICES INC require dividend purification?

Yes, WEST PHARMACEUTICAL SERVICES INC has an impermissible income ratio of 0.57%, which means 0.57% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are WEST PHARMACEUTICAL SERVICES INC's key financial metrics?

WEST PHARMACEUTICAL SERVICES INC has a market capitalization of $17.5B, trailing P/E ratio of 35.8, and revenue of $3.1B. The company maintains a gross margin of 35.9% and a net margin of 16.1%. Return on equity stands at 16.9%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.