WESTERN UNION CO (WU) Stock Fundamental Analysis
USA - NYSE:WU - US9598021098 - Common Stock
8.38 USD
+0.21 (+2.57%)
Overall WU gets a fundamental rating of 5 out of 10. We evaluated WU against 99 industry peers in the Financial Services industry. WU scores excellent on profitability, but there are concerns on its financial health. WU is valued quite cheap, but it does not seem to be growing. 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.
Each year in the past 5 years WU has been profitable.
WU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 9.90%, WU belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
Looking at the Return On Equity, with a value of 83.30%, WU belongs to the top of the industry, outperforming 98.99% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 9.47%, WU belongs to the top of the industry, outperforming 80.81% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for WU is in line with the industry average of 8.14%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.9% | ||
| ROE | 83.3% | ||
| ROIC | 9.47% |
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
With a decent Profit Margin value of 18.80%, WU is doing good in the industry, outperforming 77.78% of the companies in the same industry.
WU's Profit Margin has improved in the last couple of years.
The Operating Margin of WU (18.29%) is better than 63.64% of its industry peers.
In the last couple of years the Operating Margin of WU has grown nicely.
The Gross Margin of WU (37.40%) is comparable to the rest of the industry.
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 | 18.29% | ||
| PM (TTM) | 18.8% | ||
| GM | 37.4% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WU is still creating some value.
WU has less shares outstanding than it did 1 year ago.
The number of shares outstanding for WU has been reduced compared to 5 years ago.
Compared to 1 year ago, WU has a worse debt to assets ratio.
2.2 Solvency
WU has an Altman-Z score of 1.03. This is a bad value and indicates that WU is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of WU (1.03) is better than 60.61% of its industry peers.
The Debt to FCF ratio of WU is 6.10, which is on the high side as it means it would take WU, 6.10 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of WU (6.10) is better than 65.66% of its industry peers.
A Debt/Equity ratio of 2.10 is on the high side and indicates that WU has dependencies on debt financing.
WU has a worse Debt to Equity ratio (2.10) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.1 | ||
| Debt/FCF | 6.1 | ||
| Altman-Z | 1.03 |
ROIC/WACC1.55
WACC6.1%
2.3 Liquidity
A Current Ratio of 0.77 indicates that WU may have some problems paying its short term obligations.
WU has a Current ratio of 0.77. This is comparable to the rest of the industry: WU outperforms 44.44% of its industry peers.
WU has a Quick Ratio of 0.77. This is a bad value and indicates that WU is not financially healthy enough and could expect problems in meeting its short term obligations.
WU has a Quick ratio (0.77) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
The earnings per share for WU have decreased by -1.16% in the last year.
WU shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.23% yearly.
Looking at the last year, WU shows a decrease in Revenue. The Revenue has decreased by -2.46% in the last year.
The Revenue has been decreasing by -4.47% on average over the past years.
EPS 1Y (TTM)-1.16%
EPS 3Y-7.2%
EPS 5Y0.23%
EPS Q2Q%2.17%
Revenue 1Y (TTM)-2.46%
Revenue growth 3Y-6.02%
Revenue growth 5Y-4.47%
Sales Q2Q%-0.33%
3.2 Future
Based on estimates for the next years, WU will show a small growth in Earnings Per Share. The EPS will grow by 1.16% on average per year.
WU is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.03% yearly.
EPS Next Y1.56%
EPS Next 2Y2.17%
EPS Next 3Y3.19%
EPS Next 5Y1.16%
Revenue Next Year-2.07%
Revenue Next 2Y-0.75%
Revenue Next 3Y-0.29%
Revenue Next 5Y1.03%
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 4.93, the valuation of WU can be described as very cheap.
Based on the Price/Earnings ratio, WU is valued cheaper than 93.94% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.07, WU is valued rather cheaply.
With a Price/Forward Earnings ratio of 4.59, the valuation of WU can be described as very cheap.
89.90% of the companies in the same industry are more expensive than WU, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 34.08. WU is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.93 | ||
| Fwd PE | 4.59 |
4.2 Price Multiples
WU's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. WU is cheaper than 91.92% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WU indicates a rather cheap valuation: WU is cheaper than 85.86% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.37 | ||
| EV/EBITDA | 4.56 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WU does not grow enough to justify the current Price/Earnings ratio.
WU has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.15
PEG (5Y)21.42
EPS Next 2Y2.17%
EPS Next 3Y3.19%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.91%, WU is a good candidate for dividend investing.
WU's Dividend Yield is rather good when compared to the industry average which is at 4.68. 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 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.91% |
5.2 History
The dividend of WU has a limited annual growth rate of 3.31%.
WU has been paying a dividend for at least 10 years, so it has a reliable track record.
WU has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.31%
Div Incr Years0
Div Non Decr Years18
5.3 Sustainability
WU pays out 40.76% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of WU is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP40.76%
EPS Next 2Y2.17%
EPS Next 3Y3.19%
NYSE:WU (11/21/2025, 11:52:56 AM)
8.38
+0.21 (+2.57%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners95.03%
Inst Owner Change4.08%
Ins Owners0.45%
Ins Owner Change4.52%
Market Cap2.71B
Revenue(TTM)4.10B
Net Income(TTM)770.90M
Analysts46.92
Price Target9.95 (18.74%)
Short Float %14.02%
Short Ratio4.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.91% |
Yearly Dividend0.93
Dividend Growth(5Y)3.31%
DP40.76%
Div Incr Years0
Div Non Decr Years18
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.88%
Min EPS beat(2)-7.76%
Max EPS beat(2)6%
EPS beat(4)1
Avg EPS beat(4)-2.55%
Min EPS beat(4)-7.76%
Max EPS beat(4)6%
EPS beat(8)3
Avg EPS beat(8)-1.01%
EPS beat(12)6
Avg EPS beat(12)3.33%
EPS beat(16)9
Avg EPS beat(16)5.72%
Revenue beat(2)0
Avg Revenue beat(2)-3.34%
Min Revenue beat(2)-4.55%
Max Revenue beat(2)-2.12%
Revenue beat(4)1
Avg Revenue beat(4)-2.6%
Min Revenue beat(4)-4.55%
Max Revenue beat(4)0.21%
Revenue beat(8)2
Avg Revenue beat(8)-1.78%
Revenue beat(12)5
Avg Revenue beat(12)-0.31%
Revenue beat(16)5
Avg Revenue beat(16)-1%
PT rev (1m)-0.33%
PT rev (3m)1.21%
EPS NQ rev (1m)-1.99%
EPS NQ rev (3m)-2.19%
EPS NY rev (1m)1.18%
EPS NY rev (3m)-2.59%
Revenue NQ rev (1m)-0.46%
Revenue NQ rev (3m)-0.64%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)-1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.93 | ||
| Fwd PE | 4.59 | ||
| P/S | 0.66 | ||
| P/FCF | 6.37 | ||
| P/OCF | 4.99 | ||
| P/B | 2.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.56 |
EPS(TTM)1.7
EY20.29%
EPS(NY)1.83
Fwd EY21.8%
FCF(TTM)1.32
FCFY15.71%
OCF(TTM)1.68
OCFY20.04%
SpS12.7
BVpS2.87
TBVpS-4.72
PEG (NY)3.15
PEG (5Y)21.42
Graham Number10.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.9% | ||
| ROE | 83.3% | ||
| ROCE | 11.45% | ||
| ROIC | 9.47% | ||
| ROICexc | 11.04% | ||
| ROICexgc | N/A | ||
| OM | 18.29% | ||
| PM (TTM) | 18.8% | ||
| GM | 37.4% | ||
| FCFM | 10.37% |
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%
ROICexgc growth 3YN/A
ROICexgc 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 Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.1 | ||
| Debt/FCF | 6.1 | ||
| Debt/EBITDA | 2.12 | ||
| Cap/Depr | 70.26% | ||
| Cap/Sales | 2.86% | ||
| Interest Coverage | 5.89 | ||
| Cash Conversion | 59.14% | ||
| Profit Quality | 55.14% | ||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 1.03 |
F-Score5
WACC6.1%
ROIC/WACC1.55
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)-1.16%
EPS 3Y-7.2%
EPS 5Y0.23%
EPS Q2Q%2.17%
EPS Next Y1.56%
EPS Next 2Y2.17%
EPS Next 3Y3.19%
EPS Next 5Y1.16%
Revenue 1Y (TTM)-2.46%
Revenue growth 3Y-6.02%
Revenue growth 5Y-4.47%
Sales Q2Q%-0.33%
Revenue Next Year-2.07%
Revenue Next 2Y-0.75%
Revenue Next 3Y-0.29%
Revenue Next 5Y1.03%
EBIT growth 1Y0.23%
EBIT growth 3Y-11.93%
EBIT growth 5Y-0.7%
EBIT Next Year25.12%
EBIT Next 3Y8.04%
EBIT Next 5Y3.35%
FCF growth 1Y-5.05%
FCF growth 3Y-32.58%
FCF growth 5Y-19.17%
OCF growth 1Y-6.14%
OCF growth 3Y-27.02%
OCF growth 5Y-14.98%
WESTERN UNION CO / WU FAQ
Can you provide the ChartMill fundamental rating for WESTERN UNION CO?
ChartMill assigns a fundamental rating of 5 / 10 to WU.
What is the valuation status for WU stock?
ChartMill assigns a valuation rating of 8 / 10 to WESTERN UNION CO (WU). This can be considered as Undervalued.
Can you provide the profitability details for WESTERN UNION CO?
WESTERN UNION CO (WU) has a profitability rating of 7 / 10.
Can you provide the financial health for WU stock?
The financial health rating of WESTERN UNION CO (WU) is 3 / 10.
Is the dividend of WESTERN UNION CO sustainable?
The dividend rating of WESTERN UNION CO (WU) is 8 / 10 and the dividend payout ratio is 40.76%.