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 101 industry peers in the Financial Services industry. WEX has an excellent profitability rating, but there are concerns on its financial health. WEX has a decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years WEX had a positive operating cash flow.
1.2 Ratios
WEX has a Return On Assets (2.32%) which is comparable to the rest of the industry.
WEX's Return On Equity of 20.80% is amongst the best of the industry. WEX outperforms 84.16% of its industry peers.
WEX's Return On Invested Capital of 10.09% is amongst the best of the industry. WEX outperforms 82.18% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WEX is below the industry average of 11.81%.
The 3 year average ROIC (8.63%) for WEX is below the current ROIC(10.09%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.32% | ||
| ROE | 20.8% | ||
| ROIC | 10.09% |
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 11.78%, WEX perfoms like the industry average, outperforming 54.46% of the companies in the same industry.
WEX's Profit Margin has improved in the last couple of years.
WEX has a better Operating Margin (30.27%) than 72.28% of its industry peers.
In the last couple of years the Operating Margin of WEX has grown nicely.
WEX's Gross Margin of 64.47% is fine compared to the rest of the industry. WEX outperforms 79.21% of its industry peers.
WEX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.27% | ||
| PM (TTM) | 11.78% | ||
| GM | 64.47% |
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
The number of shares outstanding for WEX has been reduced compared to 5 years ago.
The debt/assets ratio for WEX is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.50, we must say that WEX is in the distress zone and has some risk of bankruptcy.
WEX has a Altman-Z score of 0.50. This is comparable to the rest of the industry: WEX outperforms 51.49% of its industry peers.
The Debt to FCF ratio of WEX is 13.30, which is on the high side as it means it would take WEX, 13.30 years of fcf income to pay off all of its debts.
WEX has a Debt to FCF ratio (13.30) which is comparable to the rest of the industry.
A Debt/Equity ratio of 2.07 is on the high side and indicates that WEX has dependencies on debt financing.
WEX has a Debt to Equity ratio of 2.07. This is in the lower half of the industry: WEX underperforms 65.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.07 | ||
| Debt/FCF | 13.3 | ||
| Altman-Z | 0.5 |
ROIC/WACC1.05
WACC9.62%
2.3 Liquidity
A Current Ratio of 0.52 indicates that WEX may have some problems paying its short term obligations.
With a Current ratio value of 0.52, WEX is not doing good in the industry: 62.38% of the companies in the same industry are doing better.
WEX has a Quick Ratio of 0.52. 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's Quick ratio of 0.52 is on the low side compared to the rest of the industry. WEX is outperformed by 62.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.47% 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.
Looking at the last year, WEX shows a small growth in Revenue. The Revenue has grown by 3.14% in the last year.
The Revenue has been growing by 8.80% on average over the past years. This is quite good.
EPS 1Y (TTM)2.47%
EPS 3Y18.73%
EPS 5Y10.68%
EPS Q2Q%1.45%
Revenue 1Y (TTM)3.14%
Revenue growth 3Y12.4%
Revenue growth 5Y8.8%
Sales Q2Q%-2.47%
3.2 Future
The Earnings Per Share is expected to grow by 7.19% on average over the next years.
WEX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.40% yearly.
EPS Next Y-0.51%
EPS Next 2Y5.49%
EPS Next 3Y7.32%
EPS Next 5Y7.19%
Revenue Next Year-0.08%
Revenue Next 2Y2.62%
Revenue Next 3Y3.73%
Revenue Next 5Y4.4%
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 decreasing.
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
WEX is valuated reasonably with a Price/Earnings ratio of 8.28.
WEX's Price/Earnings ratio is a bit cheaper when compared to the industry. WEX is cheaper than 75.25% of the companies in the same industry.
When comparing the Price/Earnings ratio of WEX to the average of the S&P500 Index (24.21), we can say WEX is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.46, the valuation of WEX can be described as very cheap.
72.28% of the companies in the same industry are more expensive than WEX, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.44, WEX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.28 | ||
| Fwd PE | 7.46 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WEX is valued cheaper than 81.19% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, WEX is valued a bit cheaper than the industry average as 71.29% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.21 | ||
| EV/EBITDA | 7.27 |
4.3 Compensation for Growth
WEX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.78
EPS Next 2Y5.49%
EPS Next 3Y7.32%
5. Dividend
5.1 Amount
WEX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
126.91
+0.19 (+0.15%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners100.89%
Inst Owner Change-4.6%
Ins Owners0.41%
Ins Owner Change12.48%
Market Cap4.35B
Analysts68
Price Target165.94 (30.75%)
Short Float %6.87%
Short Ratio2.06
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)0
Avg EPS beat(2)-1.47%
Min EPS beat(2)-2.49%
Max EPS beat(2)-0.45%
EPS beat(4)2
Avg EPS beat(4)0.51%
Min EPS beat(4)-2.49%
Max EPS beat(4)3.94%
EPS beat(8)6
Avg EPS beat(8)1.93%
EPS beat(12)10
Avg EPS beat(12)3.13%
EPS beat(16)14
Avg EPS beat(16)4.52%
Revenue beat(2)0
Avg Revenue beat(2)-2.4%
Min Revenue beat(2)-4.17%
Max Revenue beat(2)-0.62%
Revenue beat(4)0
Avg Revenue beat(4)-2%
Min Revenue beat(4)-4.17%
Max Revenue beat(4)-0.62%
Revenue beat(8)3
Avg Revenue beat(8)-1%
Revenue beat(12)7
Avg Revenue beat(12)0.61%
Revenue beat(16)10
Avg Revenue beat(16)0.77%
PT rev (1m)-3.8%
PT rev (3m)-16.69%
EPS NQ rev (1m)2.26%
EPS NQ rev (3m)-10.37%
EPS NY rev (1m)0.49%
EPS NY rev (3m)-10.87%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)-5.11%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-3.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.28 | ||
| Fwd PE | 7.46 | ||
| P/S | 1.65 | ||
| P/FCF | 13.21 | ||
| P/OCF | 9.03 | ||
| P/B | 2.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.27 |
EPS(TTM)15.33
EY12.08%
EPS(NY)17
Fwd EY13.4%
FCF(TTM)9.61
FCFY7.57%
OCF(TTM)14.06
OCFY11.08%
SpS76.76
BVpS43.48
TBVpS-80.45
PEG (NY)N/A
PEG (5Y)0.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.32% | ||
| ROE | 20.8% | ||
| ROCE | 13.79% | ||
| ROIC | 10.09% | ||
| ROICexc | 11.25% | ||
| ROICexgc | 71.66% | ||
| OM | 30.27% | ||
| PM (TTM) | 11.78% | ||
| GM | 64.47% | ||
| FCFM | 12.52% |
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-Score6
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.07 | ||
| Debt/FCF | 13.3 | ||
| Debt/EBITDA | 2.76 | ||
| Cap/Depr | 47.43% | ||
| Cap/Sales | 5.8% | ||
| Interest Coverage | 2.42 | ||
| Cash Conversion | 43.1% | ||
| Profit Quality | 106.27% | ||
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 0.5 |
F-Score6
WACC9.62%
ROIC/WACC1.05
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-0.51%
EPS Next 2Y5.49%
EPS Next 3Y7.32%
EPS Next 5Y7.19%
Revenue 1Y (TTM)3.14%
Revenue growth 3Y12.4%
Revenue growth 5Y8.8%
Sales Q2Q%-2.47%
Revenue Next Year-0.08%
Revenue Next 2Y2.62%
Revenue Next 3Y3.73%
Revenue Next 5Y4.4%
EBIT growth 1Y8.79%
EBIT growth 3Y30.01%
EBIT growth 5Y12.97%
EBIT Next Year6.41%
EBIT Next 3Y5.55%
EBIT Next 5YN/A
FCF growth 1Y-56.7%
FCF growth 3Y72.27%
FCF growth 5Y-10.1%
OCF growth 1Y-46.98%
OCF growth 3Y47.37%
OCF growth 5Y-6.21%