WESTERN UNION CO (WU) Stock Fundamental Analysis
NYSE:WU - US9598021098 - Common Stock
8.67 USD
+0.16 (+1.88%)
8.62 USD
-0.05 (-0.58%)
Taking everything into account, WU scores 6 out of 10 in our fundamental rating. WU was compared to 102 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 valued quite cheap, but it does not seem to be growing. WU also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year WU was profitable.
In the past year WU had a positive cash flow from operations.
Each year in the past 5 years WU has been profitable.
In the past 5 years WU always reported a positive cash flow from operatings.
1.2 Ratios
WU has a Return On Assets of 11.22%. This is amongst the best in the industry. WU outperforms 93.14% of its industry peers.
WU has a better Return On Equity (101.41%) than 99.02% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.13%, WU is in the better half of the industry, outperforming 77.45% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for WU is above the industry average of 7.59%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.22% | ||
| ROE | 101.41% | ||
| ROIC | 8.13% |
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
The Profit Margin of WU (21.84%) is better than 77.45% of its industry peers.
WU's Profit Margin has improved in the last couple of years.
The Operating Margin of WU (17.81%) is better than 63.73% of its industry peers.
In the last couple of years the Operating Margin of WU has grown nicely.
WU has a Gross Margin of 37.41%. This is comparable to the rest of the industry: WU outperforms 51.96% of 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 | 17.81% | ||
| PM (TTM) | 21.84% | ||
| GM | 37.41% |
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.
The number of shares outstanding for WU has been reduced compared to 5 years ago.
The debt/assets ratio for WU is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.10, we must say that WU is in the distress zone and has some risk of bankruptcy.
WU has a better Altman-Z score (1.10) than 61.76% of its industry peers.
The Debt to FCF ratio of WU is 7.14, which is on the high side as it means it would take WU, 7.14 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.14, WU is in line with its industry, outperforming 57.84% of the companies in the same industry.
WU has a Debt/Equity ratio of 3.11. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of WU (3.11) is worse than 75.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.11 | ||
| Debt/FCF | 7.14 | ||
| Altman-Z | 1.1 |
ROIC/WACC1.09
WACC7.43%
2.3 Liquidity
A Current Ratio of 1.47 indicates that WU should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.47, WU is doing good in the industry, outperforming 66.67% of the companies in the same industry.
WU has a Quick Ratio of 1.47. This is a normal value and indicates that WU is financially healthy and should not expect problems in meeting its short term obligations.
WU's Quick ratio of 1.47 is fine compared to the rest of the industry. WU outperforms 67.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
WU shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by 0.00%.
WU shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.23% yearly.
WU shows a decrease in Revenue. In the last year, the revenue decreased by -3.79%.
WU shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.47% yearly.
EPS 1Y (TTM)0%
EPS 3Y-7.2%
EPS 5Y0.23%
EPS Q2Q%-4.55%
Revenue 1Y (TTM)-3.79%
Revenue growth 3Y-6.02%
Revenue growth 5Y-4.47%
Sales Q2Q%-3.78%
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 Y0.58%
EPS Next 2Y2.21%
EPS Next 3Y3.68%
EPS Next 5Y1.94%
Revenue Next Year-1.91%
Revenue Next 2Y-0.57%
Revenue Next 3Y-0.08%
Revenue Next 5Y1.31%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 5.13, the valuation of WU can be described as very cheap.
WU's Price/Earnings ratio is rather cheap when compared to the industry. WU is cheaper than 93.14% of the companies in the same industry.
WU's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.13.
With a Price/Forward Earnings ratio of 4.74, the valuation of WU can be described as very cheap.
91.18% 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 22.76. WU is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.13 | ||
| Fwd PE | 4.74 |
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 94.12% of the companies listed in the same industry.
84.31% of the companies in the same industry are more expensive than WU, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.27 | ||
| EV/EBITDA | 4.75 |
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)8.86
PEG (5Y)22.29
EPS Next 2Y2.21%
EPS Next 3Y3.68%
5. Dividend
5.1 Amount
WU has a Yearly Dividend Yield of 11.87%, which is a nice return.
Compared to an average industry Dividend Yield of 4.24, WU pays a better dividend. On top of this WU pays more dividend than 99.02% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, WU pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.87% |
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 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 35.52% of its income as dividend. This is a sustainable payout ratio.
WU's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP35.52%
EPS Next 2Y2.21%
EPS Next 3Y3.68%
8.67
+0.16 (+1.88%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners101.92%
Inst Owner Change-4.61%
Ins Owners0.4%
Ins Owner Change2.94%
Market Cap2.80B
Analysts46.67
Price Target9.99 (15.22%)
Short Float %9.49%
Short Ratio3.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.87% |
Yearly Dividend0.93
Dividend Growth(5Y)3.31%
DP35.52%
Div Incr Years0
Div Non Decr Years18
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.61%
Min EPS beat(2)-7.76%
Max EPS beat(2)-1.46%
EPS beat(4)1
Avg EPS beat(4)-3.54%
Min EPS beat(4)-7.76%
Max EPS beat(4)2.03%
EPS beat(8)3
Avg EPS beat(8)-0.77%
EPS beat(12)5
Avg EPS beat(12)2.53%
EPS beat(16)9
Avg EPS beat(16)5.74%
Revenue beat(2)0
Avg Revenue beat(2)-4.25%
Min Revenue beat(2)-4.55%
Max Revenue beat(2)-3.95%
Revenue beat(4)1
Avg Revenue beat(4)-2.64%
Min Revenue beat(4)-4.55%
Max Revenue beat(4)0.21%
Revenue beat(8)3
Avg Revenue beat(8)-1.25%
Revenue beat(12)5
Avg Revenue beat(12)-0.39%
Revenue beat(16)5
Avg Revenue beat(16)-1.18%
PT rev (1m)-10.75%
PT rev (3m)-10.79%
EPS NQ rev (1m)-0.75%
EPS NQ rev (3m)-4.96%
EPS NY rev (1m)-3.53%
EPS NY rev (3m)-3.79%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-1.12%
Revenue NY rev (1m)-0.92%
Revenue NY rev (3m)-0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.13 | ||
| Fwd PE | 4.74 | ||
| P/S | 0.68 | ||
| P/FCF | 7.27 | ||
| P/OCF | 5.67 | ||
| P/B | 3.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.75 |
EPS(TTM)1.69
EY19.49%
EPS(NY)1.83
Fwd EY21.09%
FCF(TTM)1.19
FCFY13.76%
OCF(TTM)1.53
OCFY17.64%
SpS12.71
BVpS2.74
TBVpS-4.75
PEG (NY)8.86
PEG (5Y)22.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.22% | ||
| ROE | 101.41% | ||
| ROCE | 10.03% | ||
| ROIC | 8.13% | ||
| ROICexc | 9.4% | ||
| ROICexgc | N/A | ||
| OM | 17.81% | ||
| PM (TTM) | 21.84% | ||
| GM | 37.41% | ||
| FCFM | 9.39% |
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 Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.11 | ||
| Debt/FCF | 7.14 | ||
| Debt/EBITDA | 3.06 | ||
| Cap/Depr | 64.51% | ||
| Cap/Sales | 2.65% | ||
| Interest Coverage | 5.8 | ||
| Cash Conversion | 54.91% | ||
| Profit Quality | 43% | ||
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.47 | ||
| Altman-Z | 1.1 |
F-Score5
WACC7.43%
ROIC/WACC1.09
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)0%
EPS 3Y-7.2%
EPS 5Y0.23%
EPS Q2Q%-4.55%
EPS Next Y0.58%
EPS Next 2Y2.21%
EPS Next 3Y3.68%
EPS Next 5Y1.94%
Revenue 1Y (TTM)-3.79%
Revenue growth 3Y-6.02%
Revenue growth 5Y-4.47%
Sales Q2Q%-3.78%
Revenue Next Year-1.91%
Revenue Next 2Y-0.57%
Revenue Next 3Y-0.08%
Revenue Next 5Y1.31%
EBIT growth 1Y-5.83%
EBIT growth 3Y-11.93%
EBIT growth 5Y-0.7%
EBIT Next Year25.87%
EBIT Next 3Y9.03%
EBIT Next 5Y3.92%
FCF growth 1Y-4.46%
FCF growth 3Y-32.58%
FCF growth 5Y-19.17%
OCF growth 1Y-8.31%
OCF growth 3Y-27.02%
OCF growth 5Y-14.98%