WEX INC (WEX) Stock Fundamental Analysis
NYSE:WEX - US96208T1043 - Common Stock
172.87 USD
+3.26 (+1.92%)
172.87 USD
0 (0%)
WEX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 100 industry peers in the Financial Services industry. While WEX has a great profitability rating, there are quite some concerns on its financial health. WEX has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
WEX had positive earnings in the past year.
In the past year WEX had a positive cash flow from operations.
WEX had positive earnings in 4 of the past 5 years.
Each year in the past 5 years WEX had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.09%, WEX is in line with its industry, outperforming 59.00% of the companies in the same industry.
WEX has a better Return On Equity (31.31%) than 91.00% of its industry peers.
With an excellent Return On Invested Capital value of 9.58%, WEX belongs to the best of the industry, outperforming 82.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for WEX is in line with the industry average of 7.90%.
The 3 year average ROIC (8.63%) for WEX is below the current ROIC(9.58%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.09% | ||
| ROE | 31.31% | ||
| ROIC | 9.58% |
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
With a Profit Margin value of 11.79%, WEX perfoms like the industry average, outperforming 57.00% of the companies in the same industry.
In the last couple of years the Profit Margin of WEX has grown nicely.
WEX has a Operating Margin of 29.86%. This is in the better half of the industry: WEX outperforms 74.00% of its industry peers.
In the last couple of years the Operating Margin of WEX has grown nicely.
WEX has a better Gross Margin (63.74%) than 76.00% of its industry peers.
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 | 29.86% | ||
| PM (TTM) | 11.79% | ||
| GM | 63.74% |
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.
Compared to 1 year ago, WEX has less shares outstanding
WEX has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, WEX has a worse debt to assets ratio.
2.2 Solvency
WEX has an Altman-Z score of 0.51. This is a bad value and indicates that WEX is not financially healthy and even has some risk of bankruptcy.
WEX's Altman-Z score of 0.51 is in line compared to the rest of the industry. WEX outperforms 52.00% of its industry peers.
The Debt to FCF ratio of WEX is 20.21, which is on the high side as it means it would take WEX, 20.21 years of fcf income to pay off all of its debts.
WEX's Debt to FCF ratio of 20.21 is in line compared to the rest of the industry. WEX outperforms 46.00% of its industry peers.
WEX has a Debt/Equity ratio of 3.99. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 3.99, WEX is not doing good in the industry: 76.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.99 | ||
| Debt/FCF | 20.21 | ||
| Altman-Z | 0.51 |
ROIC/WACC1.14
WACC8.42%
2.3 Liquidity
WEX has a Current Ratio of 0.57. This is a bad value and indicates that WEX is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.57, WEX is not doing good in the industry: 63.00% of the companies in the same industry are doing better.
WEX has a Quick Ratio of 0.57. This is a bad value and indicates that WEX is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.57, WEX is not doing good in the industry: 62.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
WEX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.98%.
The Earnings Per Share has been growing by 10.68% on average over the past years. This is quite good.
The Revenue has decreased by -1.62% 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)0.98%
EPS 3Y18.73%
EPS 5Y10.68%
EPS Q2Q%1.28%
Revenue 1Y (TTM)-1.62%
Revenue growth 3Y12.4%
Revenue growth 5Y8.8%
Sales Q2Q%-2.06%
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.
The Revenue is expected to grow by 4.21% on average over the next years.
EPS Next Y-0.44%
EPS Next 2Y5.45%
EPS Next 3Y7.55%
EPS Next 5Y8.79%
Revenue Next Year-0.08%
Revenue Next 2Y2.57%
Revenue Next 3Y3.38%
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
With a Price/Earnings ratio of 11.24, the valuation of WEX can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of WEX indicates a somewhat cheap valuation: WEX is cheaper than 64.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of WEX to the average of the S&P500 Index (27.24), we can say WEX is valued rather cheaply.
The Price/Forward Earnings ratio is 10.17, which indicates a very decent valuation of WEX.
WEX's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 35.82. WEX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.24 | ||
| Fwd PE | 10.17 |
4.2 Price Multiples
70.00% 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 in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.99 | ||
| EV/EBITDA | 9.49 |
4.3 Compensation for Growth
The decent profitability rating of WEX may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.05
EPS Next 2Y5.45%
EPS Next 3Y7.55%
5. Dividend
5.1 Amount
No dividends for WEX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
172.87
+3.26 (+1.92%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners117.75%
Inst Owner Change-3.89%
Ins Owners0.62%
Ins Owner Change14.09%
Market Cap5.92B
Analysts68.42
Price Target184.95 (6.99%)
Short Float %4.21%
Short Ratio2.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.12%
Min EPS beat(2)0.38%
Max EPS beat(2)5.86%
EPS beat(4)2
Avg EPS beat(4)0.82%
Min EPS beat(4)-2.49%
Max EPS beat(4)5.86%
EPS beat(8)6
Avg EPS beat(8)2.09%
EPS beat(12)10
Avg EPS beat(12)2.42%
EPS beat(16)14
Avg EPS beat(16)3.43%
Revenue beat(2)0
Avg Revenue beat(2)-0.28%
Min Revenue beat(2)-0.37%
Max Revenue beat(2)-0.18%
Revenue beat(4)0
Avg Revenue beat(4)-1.34%
Min Revenue beat(4)-4.17%
Max Revenue beat(4)-0.18%
Revenue beat(8)2
Avg Revenue beat(8)-0.98%
Revenue beat(12)5
Avg Revenue beat(12)0.14%
Revenue beat(16)9
Avg Revenue beat(16)0.56%
PT rev (1m)10.44%
PT rev (3m)10.76%
EPS NQ rev (1m)6.27%
EPS NQ rev (3m)3.99%
EPS NY rev (1m)0%
EPS NY rev (3m)0.16%
Revenue NQ rev (1m)1.85%
Revenue NQ rev (3m)0.14%
Revenue NY rev (1m)0.57%
Revenue NY rev (3m)1.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.24 | ||
| Fwd PE | 10.17 | ||
| P/S | 2.28 | ||
| P/FCF | 21.99 | ||
| P/OCF | 13.95 | ||
| P/B | 6.05 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.49 |
EPS(TTM)15.38
EY8.9%
EPS(NY)16.99
Fwd EY9.83%
FCF(TTM)7.86
FCFY4.55%
OCF(TTM)12.4
OCFY7.17%
SpS75.84
BVpS28.57
TBVpS-93.87
PEG (NY)N/A
PEG (5Y)1.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.09% | ||
| ROE | 31.31% | ||
| ROCE | 13.09% | ||
| ROIC | 9.58% | ||
| ROICexc | 11.02% | ||
| ROICexgc | 73.25% | ||
| OM | 29.86% | ||
| PM (TTM) | 11.79% | ||
| GM | 63.74% | ||
| FCFM | 10.36% |
ROA(3y)2%
ROA(5y)0.6%
ROE(3y)15.88%
ROE(5y)6.97%
ROIC(3y)8.63%
ROIC(5y)6.48%
ROICexc(3y)9.95%
ROICexc(5y)7.43%
ROICexgc(3y)59.51%
ROICexgc(5y)44.03%
ROCE(3y)11.79%
ROCE(5y)8.85%
ROICexcg growth 3Y50.84%
ROICexcg growth 5Y0.15%
ROICexc growth 3Y36.06%
ROICexc growth 5Y10.13%
OM growth 3Y15.67%
OM growth 5Y3.83%
PM growth 3Y1067.47%
PM growth 5Y15.45%
GM growth 3Y1.01%
GM growth 5Y0.1%
F-Score5
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.99 | ||
| Debt/FCF | 20.21 | ||
| Debt/EBITDA | 3.54 | ||
| Cap/Depr | 47.26% | ||
| Cap/Sales | 5.98% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 38.45% | ||
| Profit Quality | 87.89% | ||
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 0.51 |
F-Score5
WACC8.42%
ROIC/WACC1.14
Cap/Depr(3y)48.37%
Cap/Depr(5y)41.48%
Cap/Sales(3y)5.52%
Cap/Sales(5y)5.27%
Profit Quality(3y)223.62%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)0.98%
EPS 3Y18.73%
EPS 5Y10.68%
EPS Q2Q%1.28%
EPS Next Y-0.44%
EPS Next 2Y5.45%
EPS Next 3Y7.55%
EPS Next 5Y8.79%
Revenue 1Y (TTM)-1.62%
Revenue growth 3Y12.4%
Revenue growth 5Y8.8%
Sales Q2Q%-2.06%
Revenue Next Year-0.08%
Revenue Next 2Y2.57%
Revenue Next 3Y3.38%
Revenue Next 5Y4.21%
EBIT growth 1Y0.47%
EBIT growth 3Y30.01%
EBIT growth 5Y12.97%
EBIT Next Year5.93%
EBIT Next 3Y6.63%
EBIT Next 5YN/A
FCF growth 1Y-65.53%
FCF growth 3Y72.27%
FCF growth 5Y-10.1%
OCF growth 1Y-53.69%
OCF growth 3Y47.37%
OCF growth 5Y-6.21%