WEX INC (WEX) Stock Fundamental Analysis
USA - NYSE:WEX - US96208T1043 - Common Stock
171.96 USD
+0.27 (+0.16%)
171.96 USD
0 (0%)
WEX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 101 industry peers in the Financial Services industry. While WEX belongs to the best of the industry regarding profitability, 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.
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
WEX's Return On Assets of 2.09% is in line compared to the rest of the industry. WEX outperforms 57.43% of its industry peers.
WEX's Return On Equity of 31.31% is amongst the best of the industry. WEX outperforms 92.08% of its industry peers.
WEX has a Return On Invested Capital of 9.58%. This is amongst the best in the industry. WEX outperforms 83.17% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WEX is in line with the industry average of 7.64%.
The last Return On Invested Capital (9.58%) for WEX is above the 3 year average (8.63%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 11.79%, WEX is in line with its industry, outperforming 55.45% of the companies in the same industry.
In the last couple of years the Profit Margin of WEX has grown nicely.
WEX has a better Operating Margin (29.86%) than 73.27% of its industry peers.
WEX's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 63.74%, WEX is doing good in the industry, outperforming 76.24% 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 | 29.86% | ||
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WEX is still creating some value.
WEX has less shares outstanding than it did 1 year ago.
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
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.
Looking at the Altman-Z score, with a value of 0.51, WEX is in line with its industry, outperforming 51.49% of the companies in the same industry.
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.
The Debt to FCF ratio of WEX (20.21) is comparable to the rest of the industry.
WEX has a Debt/Equity ratio of 3.99. This is a high value indicating a heavy dependency on external financing.
WEX's Debt to Equity ratio of 3.99 is on the low side compared to the rest of the industry. WEX is outperformed by 78.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.99 | ||
| Debt/FCF | 20.21 | ||
| Altman-Z | 0.51 |
ROIC/WACC1.15
WACC8.3%
2.3 Liquidity
A Current Ratio of 0.57 indicates that WEX may have some problems paying its short term obligations.
WEX has a worse Current ratio (0.57) than 62.38% of its industry peers.
A Quick Ratio of 0.57 indicates that WEX may have some problems paying its short term obligations.
WEX has a Quick ratio of 0.57. This is in the lower half of the industry: WEX underperforms 62.38% of its industry peers.
| 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%.
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.
WEX shows a decrease in Revenue. In the last year, the revenue decreased by -1.62%.
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)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 Y3.45%
EPS Next 2Y7.68%
EPS Next 3Y7.66%
EPS Next 5Y8.79%
Revenue Next Year0.11%
Revenue Next 2Y2.66%
Revenue Next 3Y3.81%
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 11.18 indicates a reasonable valuation of WEX.
WEX's Price/Earnings ratio is a bit cheaper when compared to the industry. WEX is cheaper than 67.33% of the companies in the same industry.
When comparing the Price/Earnings ratio of WEX to the average of the S&P500 Index (27.20), we can say WEX is valued rather cheaply.
The Price/Forward Earnings ratio is 9.71, which indicates a very decent 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 60.40% of the companies listed in the same industry.
WEX is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.71, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.18 | ||
| Fwd PE | 9.71 |
4.2 Price Multiples
WEX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WEX is cheaper than 75.25% of the companies in the same industry.
WEX's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.88 | ||
| EV/EBITDA | 9.55 |
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)3.24
PEG (5Y)1.05
EPS Next 2Y7.68%
EPS Next 3Y7.66%
5. Dividend
5.1 Amount
WEX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
171.96
+0.27 (+0.16%)
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 Cap5.89B
Analysts68.89
Price Target184.95 (7.55%)
Short Float %4.28%
Short Ratio3.58
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)0.63%
PT rev (3m)11.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.74%
EPS NY rev (1m)3.91%
EPS NY rev (3m)4.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.85%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)1.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.18 | ||
| Fwd PE | 9.71 | ||
| P/S | 2.27 | ||
| P/FCF | 21.88 | ||
| P/OCF | 13.87 | ||
| P/B | 6.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.55 |
EPS(TTM)15.38
EY8.94%
EPS(NY)17.72
Fwd EY10.3%
FCF(TTM)7.86
FCFY4.57%
OCF(TTM)12.4
OCFY7.21%
SpS75.84
BVpS28.57
TBVpS-93.87
PEG (NY)3.24
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
WACC8.3%
ROIC/WACC1.15
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 Y3.45%
EPS Next 2Y7.68%
EPS Next 3Y7.66%
EPS Next 5Y8.79%
Revenue 1Y (TTM)-1.62%
Revenue growth 3Y12.4%
Revenue growth 5Y8.8%
Sales Q2Q%-2.06%
Revenue Next Year0.11%
Revenue Next 2Y2.66%
Revenue Next 3Y3.81%
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%