WEX INC (WEX) Stock Fundamental Analysis
USA - NYSE:WEX - US96208T1043 - Common Stock
159.09 USD
+1.7 (+1.08%)
159.09 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to WEX. WEX was compared to 99 industry peers in the Financial Services industry. While WEX has a great profitability rating, there are quite some concerns on its financial health. WEX is not valued too expensively and it also shows a decent 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.
In the past 5 years WEX always reported a positive cash flow from operatings.
1.2 Ratios
WEX has a Return On Assets (2.09%) which is comparable to the rest of the industry.
With an excellent Return On Equity value of 31.31%, WEX belongs to the best of the industry, outperforming 91.92% of the companies in the same industry.
The Return On Invested Capital of WEX (9.58%) is better than 82.83% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WEX is in line with the industry average of 7.66%.
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
With a Profit Margin value of 11.79%, WEX perfoms like the industry average, outperforming 54.55% 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 (29.86%) than 72.73% of its industry peers.
In the last couple of years the Operating Margin of WEX has grown nicely.
The Gross Margin of WEX (63.74%) is better than 75.76% of its industry peers.
WEX's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), WEX is creating some value.
WEX has less shares outstanding than it did 1 year ago.
WEX has less shares outstanding than it did 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 0.49, we must say that WEX is in the distress zone and has some risk of bankruptcy.
WEX has a Altman-Z score of 0.49. This is comparable to the rest of the industry: WEX outperforms 50.51% of its industry peers.
WEX has a debt to FCF ratio of 20.21. This is a negative value and a sign of low solvency as WEX would need 20.21 years to pay back of all of its debts.
With a Debt to FCF ratio value of 20.21, WEX perfoms like the industry average, outperforming 49.49% of the companies in the same industry.
WEX has a Debt/Equity ratio of 3.99. This is a high value indicating a heavy dependency on external financing.
WEX has a Debt to Equity ratio of 3.99. This is in the lower half of the industry: WEX underperforms 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.99 | ||
| Debt/FCF | 20.21 | ||
| Altman-Z | 0.49 |
ROIC/WACC1.28
WACC7.51%
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: 61.62% of the companies in the same industry are doing better.
A Quick Ratio of 0.57 indicates that WEX may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.57, WEX is doing worse than 61.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.98% 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.
WEX shows a decrease in Revenue. In the last year, the revenue decreased by -1.62%.
Measured over the past years, WEX shows a quite strong growth in Revenue. The Revenue has been growing by 8.80% on average per year.
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.
WEX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.21% yearly.
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 3Y3.79%
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
The Price/Earnings ratio is 10.34, which indicates a very decent valuation of WEX.
WEX's Price/Earnings ratio is a bit cheaper when compared to the industry. WEX is cheaper than 67.68% of the companies in the same industry.
WEX is valuated cheaply when we compare the Price/Earnings ratio to 27.91, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 8.98 indicates a reasonable valuation of WEX.
Based on the Price/Forward Earnings ratio, WEX is valued a bit cheaper than the industry average as 60.61% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of WEX to the average of the S&P500 Index (23.30), we can say WEX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.34 | ||
| Fwd PE | 8.98 |
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 76.77% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WEX is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.24 | ||
| EV/EBITDA | 9.11 |
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.
The decent profitability rating of WEX may justify a higher PE ratio.
PEG (NY)3
PEG (5Y)0.97
EPS Next 2Y7.68%
EPS Next 3Y7.66%
5. Dividend
5.1 Amount
No dividends for WEX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
159.09
+1.7 (+1.08%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners113.29%
Inst Owner Change0%
Ins Owners0.61%
Ins Owner Change2.04%
Market Cap5.45B
Analysts68.89
Price Target185.24 (16.44%)
Short Float %4.44%
Short Ratio3.63
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)0.16%
PT rev (3m)11.31%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.74%
EPS NY rev (1m)0%
EPS NY rev (3m)4.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.85%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.34 | ||
| Fwd PE | 8.98 | ||
| P/S | 2.1 | ||
| P/FCF | 20.24 | ||
| P/OCF | 12.83 | ||
| P/B | 5.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.11 |
EPS(TTM)15.38
EY9.67%
EPS(NY)17.72
Fwd EY11.14%
FCF(TTM)7.86
FCFY4.94%
OCF(TTM)12.4
OCFY7.79%
SpS75.84
BVpS28.57
TBVpS-93.87
PEG (NY)3
PEG (5Y)0.97
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 | 0.49 |
F-Score5
WACC7.51%
ROIC/WACC1.28
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 3Y3.79%
Revenue Next 5Y4.21%
EBIT growth 1Y0.47%
EBIT growth 3Y30.01%
EBIT growth 5Y12.97%
EBIT Next Year6.88%
EBIT Next 3Y7.02%
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%