WESTERN UNION CO (WU) Stock Fundamental Analysis
NYSE:WU - New York Stock Exchange, Inc. - US9598021098 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to WU. WU was compared to 99 industry peers in the Financial Services industry. WU has an excellent profitability rating, but there are some minor concerns on its financial health. WU is cheap, but on the other hand it scores bad on growth. WU also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
WU had positive earnings in the past year.
In the past year WU had a positive cash flow from operations.
WU had positive earnings in each of the past 5 years.
Each year in the past 5 years WU had a positive operating cash flow.
1.2 Ratios
WU's Return On Assets of 10.97% is amongst the best of the industry. WU outperforms 91.92% of its industry peers.
WU has a Return On Equity of 97.40%. This is amongst the best in the industry. WU outperforms 98.99% of its industry peers.
WU has a better Return On Invested Capital (8.06%) than 76.77% of its industry peers.
WU had an Average Return On Invested Capital over the past 3 years of 9.80%. This is below the industry average of 11.83%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.97% | ||
| ROE | 97.4% | ||
| ROIC | 8.06% |
ROA(3y)9.84%
ROA(5y)9.3%
ROE(3y)139.23%
ROE(5y)208.46%
ROIC(3y)9.8%
ROIC(5y)10.63%
1.3 Margins
WU's Profit Margin of 22.08% is fine compared to the rest of the industry. WU outperforms 78.79% of its industry peers.
WU's Profit Margin has improved in the last couple of years.
WU has a better Operating Margin (17.82%) than 62.63% of its industry peers.
WU's Operating Margin has improved in the last couple of years.
WU has a Gross Margin (37.62%) which is in line with its industry peers.
In the last couple of years the Gross Margin of WU has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.82% | ||
| PM (TTM) | 22.08% | ||
| GM | 37.62% |
OM growth 3Y-6.29%
OM growth 5Y3.95%
PM growth 3Y11.78%
PM growth 5Y2.1%
GM growth 3Y-3.75%
GM growth 5Y-1.35%
2. Health
2.1 Basic Checks
WU has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for WU has been reduced compared to 1 year ago.
Compared to 5 years ago, WU has less shares outstanding
Compared to 1 year ago, WU has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.06, we must say that WU is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.06, WU is in the better half of the industry, outperforming 62.63% of the companies in the same industry.
WU has a debt to FCF ratio of 7.94. This is a slightly negative value and a sign of low solvency as WU would need 7.94 years to pay back of all of its debts.
WU has a Debt to FCF ratio (7.94) which is comparable to the rest of the industry.
WU has a Debt/Equity ratio of 2.97. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.97, WU is doing worse than 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.97 | ||
| Debt/FCF | 7.94 | ||
| Altman-Z | 1.06 |
ROIC/WACC1.07
WACC7.54%
2.3 Liquidity
WU has a Current Ratio of 1.29. This is a normal value and indicates that WU is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.29, WU perfoms like the industry average, outperforming 59.60% of the companies in the same industry.
WU has a Quick Ratio of 1.29. This is a normal value and indicates that WU is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.29, WU is in the better half of the industry, outperforming 61.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
The earnings per share for WU have decreased by -2.84% in the last year.
The Earnings Per Share has been growing slightly by 0.23% on average over the past years.
WU shows a decrease in Revenue. In the last year, the revenue decreased by -5.15%.
WU shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.47% yearly.
EPS 1Y (TTM)-2.84%
EPS 3Y-7.2%
EPS 5Y0.23%
EPS Q2Q%-8.89%
Revenue 1Y (TTM)-5.15%
Revenue growth 3Y-6.02%
Revenue growth 5Y-4.47%
Sales Q2Q%-6.24%
3.2 Future
The Earnings Per Share is expected to grow by 1.94% on average over the next years.
Based on estimates for the next years, WU will show a small growth in Revenue. The Revenue will grow by 1.31% on average per year.
EPS Next Y4.54%
EPS Next 2Y4.25%
EPS Next 3Y4.92%
EPS Next 5Y1.94%
Revenue Next Year-1.05%
Revenue Next 2Y0.31%
Revenue Next 3Y0.78%
Revenue Next 5Y1.31%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 4.95, the valuation of WU can be described as very cheap.
Based on the Price/Earnings ratio, WU is valued cheaper than 90.91% of the companies in the same industry.
WU is valuated cheaply when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 4.45, the valuation of WU can be described as very cheap.
Based on the Price/Forward Earnings ratio, WU is valued cheaply inside the industry as 88.89% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.19. WU is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.95 | ||
| Fwd PE | 4.45 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WU indicates a rather cheap valuation: WU is cheaper than 93.94% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WU indicates a somewhat cheap valuation: WU is cheaper than 78.79% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.96 | ||
| EV/EBITDA | 4.32 |
4.3 Compensation for Growth
WU's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
WU has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.09
PEG (5Y)21.52
EPS Next 2Y4.25%
EPS Next 3Y4.92%
5. Dividend
5.1 Amount
WU has a Yearly Dividend Yield of 10.30%, which is a nice return.
In the last 3 months the price of WU has falen by -20.68%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
WU's Dividend Yield is rather good when compared to the industry average which is at 4.73. WU pays more dividend than 95.96% of the companies in the same industry.
WU's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.3% |
5.2 History
The dividend of WU has a limited annual growth rate of 3.31%.
WU has paid a dividend for at least 10 years, which is a reliable track record.
WU has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.31%
Div Incr Years0
Div Non Decr Years18
5.3 Sustainability
WU pays out 35.33% of its income as dividend. This is a sustainable payout ratio.
The dividend of WU is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP35.33%
EPS Next 2Y4.25%
EPS Next 3Y4.92%
NYSE:WU (6/20/2025, 12:55:40 PM)
8.47
+0.03 (+0.36%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners99.17%
Inst Owner Change0.4%
Ins Owners0.33%
Ins Owner Change7.23%
Market Cap2.80B
Analysts46.15
Price Target11.18 (32%)
Short Float %8.66%
Short Ratio3.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.3% |
Yearly Dividend0.93
Dividend Growth(5Y)3.31%
DP35.33%
Div Incr Years0
Div Non Decr Years18
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.22%
Min EPS beat(2)-6.98%
Max EPS beat(2)-1.46%
EPS beat(4)1
Avg EPS beat(4)-2.71%
Min EPS beat(4)-6.98%
Max EPS beat(4)2.03%
EPS beat(8)4
Avg EPS beat(8)3.62%
EPS beat(12)6
Avg EPS beat(12)4.95%
EPS beat(16)9
Avg EPS beat(16)6.07%
Revenue beat(2)1
Avg Revenue beat(2)-1.87%
Min Revenue beat(2)-3.95%
Max Revenue beat(2)0.21%
Revenue beat(4)1
Avg Revenue beat(4)-2.09%
Min Revenue beat(4)-3.95%
Max Revenue beat(4)0.21%
Revenue beat(8)4
Avg Revenue beat(8)0.4%
Revenue beat(12)5
Avg Revenue beat(12)-0.23%
Revenue beat(16)5
Avg Revenue beat(16)-0.91%
PT rev (1m)-0.13%
PT rev (3m)-7.47%
EPS NQ rev (1m)-0.15%
EPS NQ rev (3m)-2.31%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.46%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.95 | ||
| Fwd PE | 4.45 | ||
| P/S | 0.68 | ||
| P/FCF | 7.96 | ||
| P/OCF | 6.08 | ||
| P/B | 2.98 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.32 |
EPS(TTM)1.71
EY20.19%
EPS(NY)1.9
Fwd EY22.45%
FCF(TTM)1.06
FCFY12.56%
OCF(TTM)1.39
OCFY16.45%
SpS12.54
BVpS2.84
TBVpS-4.3
PEG (NY)1.09
PEG (5Y)21.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.97% | ||
| ROE | 97.4% | ||
| ROCE | 10.06% | ||
| ROIC | 8.06% | ||
| ROICexc | 9.68% | ||
| ROICexgc | N/A | ||
| OM | 17.82% | ||
| PM (TTM) | 22.08% | ||
| GM | 37.62% | ||
| FCFM | 8.48% |
ROA(3y)9.84%
ROA(5y)9.3%
ROE(3y)139.23%
ROE(5y)208.46%
ROIC(3y)9.8%
ROIC(5y)10.63%
ROICexc(3y)12.09%
ROICexc(5y)13.01%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)12.02%
ROCE(5y)13.02%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-11.63%
ROICexc growth 5Y-2.69%
OM growth 3Y-6.29%
OM growth 5Y3.95%
PM growth 3Y11.78%
PM growth 5Y2.1%
GM growth 3Y-3.75%
GM growth 5Y-1.35%
F-Score5
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.97 | ||
| Debt/FCF | 7.94 | ||
| Debt/EBITDA | 3.06 | ||
| Cap/Depr | 62.44% | ||
| Cap/Sales | 2.63% | ||
| Interest Coverage | 6.34 | ||
| Cash Conversion | 50.44% | ||
| Profit Quality | 38.43% | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z | 1.06 |
F-Score5
WACC7.54%
ROIC/WACC1.07
Cap/Depr(3y)67.05%
Cap/Depr(5y)58.3%
Cap/Sales(3y)2.81%
Cap/Sales(5y)2.47%
Profit Quality(3y)62.33%
Profit Quality(5y)81.9%
High Growth Momentum
Growth
EPS 1Y (TTM)-2.84%
EPS 3Y-7.2%
EPS 5Y0.23%
EPS Q2Q%-8.89%
EPS Next Y4.54%
EPS Next 2Y4.25%
EPS Next 3Y4.92%
EPS Next 5Y1.94%
Revenue 1Y (TTM)-5.15%
Revenue growth 3Y-6.02%
Revenue growth 5Y-4.47%
Sales Q2Q%-6.24%
Revenue Next Year-1.05%
Revenue Next 2Y0.31%
Revenue Next 3Y0.78%
Revenue Next 5Y1.31%
EBIT growth 1Y-9.82%
EBIT growth 3Y-11.93%
EBIT growth 5Y-0.7%
EBIT Next Year25%
EBIT Next 3Y9.37%
EBIT Next 5Y3.92%
FCF growth 1Y-7.25%
FCF growth 3Y-32.58%
FCF growth 5Y-19.17%
OCF growth 1Y-11.25%
OCF growth 3Y-27.02%
OCF growth 5Y-14.98%