WESTERN UNION CO (WU)
US9598021098 - Common Stock
WU gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 102 industry peers in the Financial Services industry. WU has an excellent profitability rating, but there are concerns on its financial health. WU has a bad growth rate and is valued cheaply. WU also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
WU had positive earnings in the past year.
WU had a positive operating cash flow in the past year.
In the past 5 years WU has always been profitable.
WU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WU's Return On Assets of 7.66% is amongst the best of the industry. WU outperforms 85.29% of its industry peers.
The Return On Equity of WU (155.04%) is better than 99.02% of its industry peers.
WU's Return On Invested Capital of 10.99% is amongst the best of the industry. WU outperforms 85.29% of its industry peers.
WU had an Average Return On Invested Capital over the past 3 years of 11.67%. This is above the industry average of 8.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.66% | ||
| ROE | 155.04% | ||
| ROIC | 10.99% |
ROA(3y)9.16%
ROA(5y)9.48%
ROE(3y)182.63%
ROE(5y)N/A
ROIC(3y)11.67%
ROIC(5y)11.26%
1.3 Margins
WU has a Profit Margin of 14.12%. This is in the better half of the industry: WU outperforms 66.67% of its industry peers.
WU's Profit Margin has been stable in the last couple of years.
WU has a better Operating Margin (18.74%) than 64.71% of its industry peers.
WU's Operating Margin has improved in the last couple of years.
WU has a Gross Margin of 38.74%. This is comparable to the rest of the industry: WU outperforms 57.84% of its industry peers.
WU's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.74% | ||
| PM (TTM) | 14.12% | ||
| GM | 38.74% |
OM growth 3Y-3.33%
OM growth 5Y1.59%
PM growth 3Y-2.27%
PM growth 5Y-1.17%
GM growth 3Y-2.42%
GM growth 5Y-0.82%
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.
WU has less shares outstanding than it did 5 years ago.
The debt/assets ratio for WU has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.02, we must say that WU is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of WU (1.02) is better than 62.75% of its industry peers.
The Debt to FCF ratio of WU is 4.08, which is a neutral value as it means it would take WU, 4.08 years of fcf income to pay off all of its debts.
WU's Debt to FCF ratio of 4.08 is fine compared to the rest of the industry. WU outperforms 65.69% of its industry peers.
A Debt/Equity ratio of 5.13 is on the high side and indicates that WU has dependencies on debt financing.
WU has a worse Debt to Equity ratio (5.13) than 86.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.13 | ||
| Debt/FCF | 4.08 | ||
| Altman-Z | 1.02 |
ROIC/WACC1.47
WACC7.5%
2.3 Liquidity
WU has a Current Ratio of 0.56. 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 Current ratio of 0.56. This is in the lower half of the industry: WU underperforms 63.73% of its industry peers.
A Quick Ratio of 0.56 indicates that WU may have some problems paying its short term obligations.
WU has a Quick ratio of 0.56. This is in the lower half of the industry: WU underperforms 62.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
WU shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.76%.
The Earnings Per Share has been decreasing by -1.95% on average over the past years.
WU shows a small growth in Revenue. In the last year, the Revenue has grown by 0.29%.
The Revenue has been decreasing by -4.86% on average over the past years.
EPS 1Y (TTM)4.76%
EPS 3Y-2.37%
EPS 5Y-1.95%
EPS growth Q2Q4.65%
Revenue 1Y (TTM)0.29%
Revenue growth 3Y-3.41%
Revenue growth 5Y-4.86%
Revenue growth Q2Q1.18%
3.2 Future
The Earnings Per Share is expected to grow by 2.49% 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 0.41% on average per year.
EPS Next Y0.64%
EPS Next 2Y2.65%
EPS Next 3Y3.32%
EPS Next 5Y2.49%
Revenue Next Year-4.29%
Revenue Next 2Y-1.66%
Revenue Next 3Y-0.85%
Revenue Next 5Y0.41%
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 accelerating.
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 7.55, the valuation of WU can be described as very cheap.
Based on the Price/Earnings ratio, WU is valued cheaply inside the industry as 89.22% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.05. WU is valued rather cheaply when compared to this.
WU is valuated cheaply with a Price/Forward Earnings ratio of 7.25.
Based on the Price/Forward Earnings ratio, WU is valued cheaper than 87.25% of the companies in the same industry.
WU is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.30, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.55 | ||
| Fwd PE | 7.25 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WU is valued cheaply inside the industry as 93.14% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, WU is valued cheaper than 84.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.23 | ||
| EV/EBITDA | 5.54 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of WU may justify a higher PE ratio.
PEG (NY)11.89
PEG (5Y)N/A
EPS Next 2Y2.65%
EPS Next 3Y3.32%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.23%, WU is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.54, WU pays a better dividend. On top of this WU pays more dividend than 98.04% of the companies listed 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 | 7.23% |
5.2 History
The dividend of WU has a limited annual growth rate of 4.89%.
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)4.89%
Div Incr Years0
Div Non Decr Years17
5.3 Sustainability
55.34% of the earnings are spent on dividend by WU. This is a bit on the high side, but may be sustainable.
WU's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP55.34%
EPS Next 2Y2.65%
EPS Next 3Y3.32%
WESTERN UNION CO
NYSE:WU (5/9/2024, 3:23:56 PM)
After market: 13.2285 -0.06 (-0.46%)13.29
-0.08 (-0.6%)
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 Cap4.50B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.23% |
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)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 | 7.55 | ||
| Fwd PE | 7.25 | ||
| 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)11.89
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.66% | ||
| ROE | 155.04% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.74% | ||
| PM (TTM) | 14.12% | ||
| GM | 38.74% | ||
| 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 Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.13 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.56 | ||
| 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)4.76%
EPS 3Y-2.37%
EPS 5Y
EPS growth Q2Q
EPS Next Y0.64%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.29%
Revenue growth 3Y-3.41%
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