WEX INC (WEX)
US96208T1043 - Common Stock
We assign a fundamental rating of 4 out of 10 to WEX. WEX was compared to 102 industry peers in the Financial Services industry. There are concerns on the financial health of WEX while its profitability can be described as average. 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.
Of the past 5 years WEX 4 years were profitable.
In the past 5 years WEX always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of WEX (1.83%) is comparable to the rest of the industry.
WEX's Return On Equity of 14.87% is fine compared to the rest of the industry. WEX outperforms 75.49% of its industry peers.
WEX has a better Return On Invested Capital (7.62%) than 78.43% 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 8.07%.
The 3 year average ROIC (6.18%) for WEX is below the current ROIC(7.62%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.83% | ||
| ROE | 14.87% | ||
| ROIC | 7.62% |
ROA(3y)1.22%
ROA(5y)0.38%
ROE(3y)8.95%
ROE(5y)3.84%
ROIC(3y)6.18%
ROIC(5y)5.26%
1.3 Margins
Looking at the Profit Margin, with a value of 10.21%, WEX is in line with its industry, outperforming 56.86% of the companies in the same industry.
In the last couple of years the Profit Margin of WEX has remained more or less at the same level.
The Operating Margin of WEX (29.06%) is better than 80.39% of its industry peers.
WEX's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 65.30%, WEX is doing good in the industry, outperforming 79.41% of the companies in the same industry.
WEX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.06% | ||
| PM (TTM) | 10.21% | ||
| GM | 65.3% |
OM growth 3Y32.08%
OM growth 5Y0.06%
PM growth 3YN/A
PM growth 5Y-1.48%
GM growth 3Y3.71%
GM growth 5Y-0.23%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WEX is destroying 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.
Compared to 1 year ago, WEX has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.72, we must say that WEX is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of WEX (0.72) is comparable to the rest of the industry.
The Debt to FCF ratio of WEX is 7.28, which is on the high side as it means it would take WEX, 7.28 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 7.28, WEX perfoms like the industry average, outperforming 55.88% of the companies in the same industry.
WEX has a Debt/Equity ratio of 1.73. This is a high value indicating a heavy dependency on external financing.
WEX has a worse Debt to Equity ratio (1.73) than 68.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.73 | ||
| Debt/FCF | 7.28 | ||
| Altman-Z | 0.72 |
ROIC/WACC0.95
WACC8.03%
2.3 Liquidity
WEX has a Current Ratio of 0.64. 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 (0.64) than 62.75% of its industry peers.
A Quick Ratio of 0.64 indicates that WEX may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.64, WEX is doing worse than 61.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
WEX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.09%.
Measured over the past years, WEX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.55% on average per year.
Looking at the last year, WEX shows a small growth in Revenue. The Revenue has grown by 5.88% in the last year.
WEX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.29% yearly.
EPS 1Y (TTM)7.09%
EPS 3Y34.7%
EPS 5Y12.55%
EPS growth Q2Q4.53%
Revenue 1Y (TTM)5.88%
Revenue growth 3Y17.77%
Revenue growth 5Y11.29%
Revenue growth Q2Q6.65%
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 13.12% on average per year.
WEX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.52% yearly.
EPS Next Y10.34%
EPS Next 2Y12.27%
EPS Next 3Y13.12%
EPS Next 5YN/A
Revenue Next Year7.45%
Revenue Next 2Y7.28%
Revenue Next 3Y7.52%
Revenue Next 5YN/A
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 13.93, WEX is valued correctly.
61.76% of the companies in the same industry are more expensive than WEX, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.31, WEX is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.16, the valuation of WEX can be described as very reasonable.
Based on the Price/Forward Earnings ratio, WEX is valued a bit cheaper than the industry average as 64.71% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 20.48. WEX is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.93 | ||
| Fwd PE | 11.16 |
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 70.59% of the companies listed in the same industry.
64.71% of the companies in the same industry are more expensive than WEX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.16 | ||
| EV/EBITDA | 11.74 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
WEX has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as WEX's earnings are expected to grow with 13.12% in the coming years.
PEG (NY)1.35
PEG (5Y)1.11
EPS Next 2Y12.27%
EPS Next 3Y13.12%
5. Dividend
5.1 Amount
No dividends for WEX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
WEX INC
NYSE:WEX (5/9/2024, 6:25:39 PM)
After market: 208.37 0 (0%)208.37
-1.63 (-0.78%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap8.73B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.93 | ||
| Fwd PE | 11.16 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.35
PEG (5Y)1.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.83% | ||
| ROE | 14.87% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 29.06% | ||
| PM (TTM) | 10.21% | ||
| GM | 65.3% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.73 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)7.09%
EPS 3Y34.7%
EPS 5Y
EPS growth Q2Q
EPS Next Y10.34%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.88%
Revenue growth 3Y17.77%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y