WEX INC (WEX) Stock Fundamental Analysis
NYSE:WEX - New York Stock Exchange, Inc. - US96208T1043 - Common Stock - Currency: USD
WEX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 100 industry peers in the Financial Services industry. WEX has an excellent profitability rating, but there are concerns on its financial health. WEX has a correct valuation and a medium growth rate.
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.
Of the past 5 years WEX 4 years were profitable.
WEX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WEX has a Return On Assets (2.26%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 38.91%, WEX belongs to the top of the industry, outperforming 92.00% of the companies in the same industry.
WEX has a Return On Invested Capital of 9.85%. This is amongst the best in the industry. WEX outperforms 82.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WEX is below the industry average of 11.84%.
The 3 year average ROIC (8.63%) for WEX is below the current ROIC(9.85%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.26% | ||
| ROE | 38.91% | ||
| ROIC | 9.85% |
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
WEX has a Profit Margin (12.07%) which is in line with its industry peers.
In the last couple of years the Profit Margin of WEX has grown nicely.
Looking at the Operating Margin, with a value of 30.21%, WEX is in the better half of the industry, outperforming 73.00% of the companies in the same industry.
WEX's Operating Margin has improved in the last couple of years.
WEX has a Gross Margin of 64.17%. This is in the better half of the industry: WEX outperforms 79.00% 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 | 30.21% | ||
| PM (TTM) | 12.07% | ||
| GM | 64.17% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), WEX is creating some value.
Compared to 1 year ago, WEX has less shares outstanding
Compared to 5 years ago, WEX has less shares outstanding
The debt/assets ratio for WEX is higher compared to a year ago.
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.
With a Altman-Z score value of 0.52, WEX perfoms like the industry average, outperforming 51.00% of the companies in the same industry.
A Debt/Equity ratio of 5.06 is on the high side and indicates that WEX has dependencies on debt financing.
WEX's Debt to Equity ratio of 5.06 is on the low side compared to the rest of the industry. WEX is outperformed by 77.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.06 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.52 |
ROIC/WACC1.31
WACC7.53%
2.3 Liquidity
WEX has a Current Ratio of 0.58. This is a bad value and indicates that WEX is not financially healthy enough and could expect problems in meeting its short term obligations.
WEX has a worse Current ratio (0.58) than 63.00% of its industry peers.
WEX has a Quick Ratio of 0.58. 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 0.58, 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 | 0.58 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
WEX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.47%.
The Earnings Per Share has been growing by 10.68% on average over the past years. This is quite good.
WEX shows a small growth in Revenue. In the last year, the Revenue has grown by 0.90%.
WEX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.80% yearly.
EPS 1Y (TTM)2.47%
EPS 3Y18.73%
EPS 5Y10.68%
EPS Q2Q%1.45%
Revenue 1Y (TTM)0.9%
Revenue growth 3Y12.4%
Revenue growth 5Y8.8%
Sales Q2Q%-2.47%
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 Y-0.62%
EPS Next 2Y5.39%
EPS Next 3Y7.55%
EPS Next 5Y8.79%
Revenue Next Year-0.64%
Revenue Next 2Y2.27%
Revenue Next 3Y3.01%
Revenue Next 5Y4.21%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.44, the valuation of WEX can be described as very reasonable.
Based on the Price/Earnings ratio, WEX is valued a bit cheaper than 70.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.69. WEX is valued rather cheaply when compared to this.
WEX is valuated reasonably with a Price/Forward Earnings ratio of 8.52.
Based on the Price/Forward Earnings ratio, WEX is valued a bit cheaper than the industry average as 65.00% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.29. WEX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.44 | ||
| Fwd PE | 8.52 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WEX indicates a somewhat cheap valuation: WEX is cheaper than 70.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.92 |
4.3 Compensation for Growth
The decent profitability rating of WEX may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.88
EPS Next 2Y5.39%
EPS Next 3Y7.55%
5. Dividend
5.1 Amount
WEX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
144.66
+0.17 (+0.12%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners117.98%
Inst Owner Change-1.72%
Ins Owners0.61%
Ins Owner Change13.95%
Market Cap4.95B
Analysts68
Price Target166.42 (15.04%)
Short Float %4.68%
Short Ratio2.49
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)1
Avg EPS beat(2)-0.03%
Min EPS beat(2)-0.45%
Max EPS beat(2)0.38%
EPS beat(4)2
Avg EPS beat(4)0.35%
Min EPS beat(4)-2.49%
Max EPS beat(4)3.94%
EPS beat(8)6
Avg EPS beat(8)1.67%
EPS beat(12)10
Avg EPS beat(12)2.66%
EPS beat(16)14
Avg EPS beat(16)4.13%
Revenue beat(2)0
Avg Revenue beat(2)-0.5%
Min Revenue beat(2)-0.62%
Max Revenue beat(2)-0.37%
Revenue beat(4)0
Avg Revenue beat(4)-1.77%
Min Revenue beat(4)-4.17%
Max Revenue beat(4)-0.37%
Revenue beat(8)2
Avg Revenue beat(8)-1.08%
Revenue beat(12)6
Avg Revenue beat(12)0.49%
Revenue beat(16)10
Avg Revenue beat(16)0.84%
PT rev (1m)0.29%
PT rev (3m)-7.38%
EPS NQ rev (1m)-0.5%
EPS NQ rev (3m)-0.07%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)0.47%
Revenue NQ rev (1m)0.48%
Revenue NQ rev (3m)-0.64%
Revenue NY rev (1m)0.8%
Revenue NY rev (3m)-0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.44 | ||
| Fwd PE | 8.52 | ||
| P/S | 1.9 | ||
| P/FCF | N/A | ||
| P/OCF | 32.35 | ||
| P/B | 6.11 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.92 |
EPS(TTM)15.33
EY10.6%
EPS(NY)16.97
Fwd EY11.73%
FCF(TTM)-0.36
FCFYN/A
OCF(TTM)4.47
OCFY3.09%
SpS76.29
BVpS23.67
TBVpS-99.53
PEG (NY)N/A
PEG (5Y)0.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.26% | ||
| ROE | 38.91% | ||
| ROCE | 13.46% | ||
| ROIC | 9.85% | ||
| ROICexc | 10.99% | ||
| ROICexgc | 67.53% | ||
| OM | 30.21% | ||
| PM (TTM) | 12.07% | ||
| GM | 64.17% | ||
| FCFM | N/A |
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 Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.06 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.68 | ||
| Cap/Depr | 51.02% | ||
| Cap/Sales | 6.34% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 13.75% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | 0.52 |
F-Score5
WACC7.53%
ROIC/WACC1.31
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)2.47%
EPS 3Y18.73%
EPS 5Y10.68%
EPS Q2Q%1.45%
EPS Next Y-0.62%
EPS Next 2Y5.39%
EPS Next 3Y7.55%
EPS Next 5Y8.79%
Revenue 1Y (TTM)0.9%
Revenue growth 3Y12.4%
Revenue growth 5Y8.8%
Sales Q2Q%-2.47%
Revenue Next Year-0.64%
Revenue Next 2Y2.27%
Revenue Next 3Y3.01%
Revenue Next 5Y4.21%
EBIT growth 1Y4.89%
EBIT growth 3Y30.01%
EBIT growth 5Y12.97%
EBIT Next Year5.26%
EBIT Next 3Y4.39%
EBIT Next 5YN/A
FCF growth 1Y-101.66%
FCF growth 3Y72.27%
FCF growth 5Y-10.1%
OCF growth 1Y-82.35%
OCF growth 3Y47.37%
OCF growth 5Y-6.21%