WEX INC (WEX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WEX - US96208T1043 - Common Stock
160.16 USD
-1.69 (-1.04%)
Taking everything into account, WEX scores 4 out of 10 in our fundamental rating. WEX was compared to 97 industry peers in the Financial Services industry. WEX has an excellent profitability rating, but there are concerns on its financial health. WEX is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year WEX was profitable.
- WEX had a positive operating cash flow in the past year.
- WEX had positive earnings in 4 of the past 5 years.
- In the past 5 years WEX always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 1.97%, WEX is in the better half of the industry, outperforming 60.82% of the companies in the same industry.
- WEX has a Return On Equity of 25.38%. This is amongst the best in the industry. WEX outperforms 90.72% of its industry peers.
- The Return On Invested Capital of WEX (7.87%) is better than 75.26% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for WEX is in line with the industry average of 8.44%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.97% | ||
| ROE | 25.38% | ||
| ROIC | 7.87% |
ROA(3y)2%
ROA(5y)0.6%
ROE(3y)15.88%
ROE(5y)6.97%
ROIC(3y)8.63%
ROIC(5y)6.48%
1.3 Margins
- Looking at the Profit Margin, with a value of 10.81%, WEX is in line with its industry, outperforming 52.58% of the companies in the same industry.
- WEX's Profit Margin has improved in the last couple of years.
- WEX's Operating Margin of 29.09% is fine compared to the rest of the industry. WEX outperforms 76.29% of its industry peers.
- WEX's Operating Margin has improved in the last couple of years.
- With a decent Gross Margin value of 63.19%, WEX is doing good in the industry, outperforming 75.26% of the companies in the same industry.
- In the last couple of years the Gross Margin of WEX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.09% | ||
| PM (TTM) | 10.81% | ||
| GM | 63.19% |
OM growth 3Y15.67%
OM growth 5Y3.83%
PM growth 3Y1067.47%
PM growth 5Y15.45%
GM growth 3Y1.01%
GM growth 5Y0.1%
2. Health
2.1 Basic Checks
- WEX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for WEX has been reduced compared to 1 year ago.
- Compared to 5 years ago, WEX has less shares outstanding
- Compared to 1 year ago, WEX has a worse debt to assets ratio.
2.2 Solvency
- WEX has an Altman-Z score of 0.52. This is a bad value and indicates that WEX is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.52, WEX is in line with its industry, outperforming 53.61% of the companies in the same industry.
- The Debt to FCF ratio of WEX is 7.82, which is on the high side as it means it would take WEX, 7.82 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of WEX (7.82) is comparable to the rest of the industry.
- WEX has a Debt/Equity ratio of 4.44. This is a high value indicating a heavy dependency on external financing.
- WEX has a worse Debt to Equity ratio (4.44) than 79.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.44 | ||
| Debt/FCF | 7.82 | ||
| Altman-Z | 0.52 |
ROIC/WACC0.93
WACC8.51%
2.3 Liquidity
- A Current Ratio of 0.57 indicates that WEX may have some problems paying its short term obligations.
- WEX has a Current ratio (0.57) which is comparable to the rest of the industry.
- A Quick Ratio of 0.57 indicates that WEX may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.57, WEX is in line with its industry, outperforming 40.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 0.58% over the past year.
- Measured over the past years, WEX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.68% on average per year.
- The Revenue has decreased by -1.15% in the past year.
- The Revenue has been growing by 8.80% on average over the past years. This is quite good.
EPS 1Y (TTM)0.58%
EPS 3Y18.73%
EPS 5Y10.68%
EPS Q2Q%5.52%
Revenue 1Y (TTM)-1.15%
Revenue growth 3Y12.4%
Revenue growth 5Y8.8%
Sales Q2Q%3.95%
3.2 Future
- Based on estimates for the next years, WEX will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.79% on average per year.
- Based on estimates for the next years, WEX will show a small growth in Revenue. The Revenue will grow by 4.21% on average per year.
EPS Next Y5.29%
EPS Next 2Y8.01%
EPS Next 3Y8.09%
EPS Next 5Y8.79%
Revenue Next Year0.83%
Revenue Next 2Y2.46%
Revenue Next 3Y3.45%
Revenue Next 5Y4.21%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 10.25 indicates a reasonable valuation of WEX.
- Based on the Price/Earnings ratio, WEX is valued a bit cheaper than the industry average as 61.86% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.30. WEX is valued rather cheaply when compared to this.
- A Price/Forward Earnings ratio of 8.99 indicates a reasonable valuation of WEX.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of WEX indicates a somewhat cheap valuation: WEX is cheaper than 62.89% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.32, WEX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.25 | ||
| Fwd PE | 8.99 |
4.2 Price Multiples
- 76.29% of the companies in the same industry are more expensive than WEX, based on the Enterprise Value to EBITDA ratio.
- WEX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WEX is cheaper than 79.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.55 | ||
| EV/EBITDA | 7.78 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WEX does not grow enough to justify the current Price/Earnings ratio.
- WEX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.94
PEG (5Y)0.96
EPS Next 2Y8.01%
EPS Next 3Y8.09%
5. Dividend
5.1 Amount
- WEX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
WEX INC / WEX FAQ
What is the fundamental rating for WEX stock?
ChartMill assigns a fundamental rating of 4 / 10 to WEX.
What is the valuation status for WEX stock?
ChartMill assigns a valuation rating of 6 / 10 to WEX INC (WEX). This can be considered as Fairly Valued.
How profitable is WEX INC (WEX) stock?
WEX INC (WEX) has a profitability rating of 7 / 10.
What are the PE and PB ratios of WEX INC (WEX) stock?
The Price/Earnings (PE) ratio for WEX INC (WEX) is 10.25 and the Price/Book (PB) ratio is 4.91.
Can you provide the expected EPS growth for WEX stock?
The Earnings per Share (EPS) of WEX INC (WEX) is expected to grow by 5.29% in the next year.