WESTERN UNION CO (WU) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WU - US9598021098 - Common Stock
9.745 USD
+0.14 (+1.51%)
Taking everything into account, WU scores 5 out of 10 in our fundamental rating. WU was compared to 98 industry peers in the Financial Services industry. While WU has a great profitability rating, there are quite some 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
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.
WU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of WU (9.90%) is better than 89.80% of its industry peers.
With an excellent Return On Equity value of 83.30%, WU belongs to the best of the industry, outperforming 97.96% of the companies in the same industry.
The Return On Invested Capital of WU (9.47%) is better than 80.61% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WU is in line with the industry average of 8.44%.
| 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
WU has a better Profit Margin (18.80%) than 72.45% of its industry peers.
WU's Profit Margin has improved in the last couple of years.
WU has a Operating Margin of 18.29%. This is in the better half of the industry: WU outperforms 64.29% of its industry peers.
WU's Operating Margin has improved in the last couple of years.
WU has a Gross Margin of 37.40%. This is comparable to the rest of the industry: WU outperforms 55.10% 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 | 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.
Compared to 1 year ago, WU has less shares outstanding
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 1.06. 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 (1.06) is better than 62.24% 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.
With a decent Debt to FCF ratio value of 6.10, WU is doing good in the industry, outperforming 63.27% of the companies in the same industry.
WU has a Debt/Equity ratio of 2.10. This is a high value indicating a heavy dependency on external financing.
WU has a worse Debt to Equity ratio (2.10) than 67.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.1 | ||
| Debt/FCF | 6.1 | ||
| Altman-Z | 1.06 |
ROIC/WACC1.22
WACC7.75%
2.3 Liquidity
WU has a Current 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.
Looking at the Current ratio, with a value of 0.77, WU is in line with its industry, outperforming 42.86% of the companies in the same industry.
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 of 0.77. This is comparable to the rest of the industry: WU outperforms 42.86% of 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.
The Earnings Per Share has been growing slightly by 0.23% on average over the past years.
The Revenue has decreased by -2.46% in the past year.
Measured over the past years, WU shows a decrease in Revenue. The Revenue has been decreasing by -4.47% on average per year.
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
The Earnings Per Share is expected to grow by 1.16% on average over the next years.
The Revenue is expected to grow by 1.03% on average over the next years.
EPS Next Y2.02%
EPS Next 2Y2.43%
EPS Next 3Y3.4%
EPS Next 5Y1.16%
Revenue Next Year-2.02%
Revenue Next 2Y-0.65%
Revenue Next 3Y-0.16%
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.
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 5.73, 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 90.82% of the companies in the same industry.
WU is valuated cheaply when we compare the Price/Earnings ratio to 26.92, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 5.31, which indicates a rather cheap valuation of WU.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WU indicates a rather cheap valuation: WU is cheaper than 86.73% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.57. WU is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.73 | ||
| Fwd PE | 5.31 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WU is valued cheaply inside the industry as 90.82% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, WU is valued cheaply inside the industry as 87.76% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.29 | ||
| EV/EBITDA | 5.01 |
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.
The decent profitability rating of WU may justify a higher PE ratio.
PEG (NY)2.84
PEG (5Y)24.91
EPS Next 2Y2.43%
EPS Next 3Y3.4%
5. Dividend
5.1 Amount
WU has a Yearly Dividend Yield of 10.10%, which is a nice return.
WU's Dividend Yield is rather good when compared to the industry average which is at 2.35. WU pays more dividend than 95.92% of the companies in the same industry.
WU's Dividend Yield is rather good when compared to the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.1% |
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
40.76% 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.
DP40.76%
EPS Next 2Y2.43%
EPS Next 3Y3.4%
NYSE:WU (1/8/2026, 10:47:08 AM)
9.745
+0.14 (+1.51%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners104.11%
Inst Owner Change0%
Ins Owners0.46%
Ins Owner Change3.05%
Market Cap3.10B
Revenue(TTM)4.10B
Net Income(TTM)770.90M
Analysts46.92
Price Target10.28 (5.49%)
Short Float %13.99%
Short Ratio4.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.1% |
Yearly Dividend0.93
Dividend Growth(5Y)3.31%
DP40.76%
Div Incr Years0
Div Non Decr Years18
Ex-DateN/A
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%
PT rev (3m)2.92%
EPS NQ rev (1m)-0.15%
EPS NQ rev (3m)-1.36%
EPS NY rev (1m)0%
EPS NY rev (3m)1.63%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-0.28%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.73 | ||
| Fwd PE | 5.31 | ||
| P/S | 0.76 | ||
| P/FCF | 7.29 | ||
| P/OCF | 5.71 | ||
| P/B | 3.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.01 |
EPS(TTM)1.7
EY17.44%
EPS(NY)1.84
Fwd EY18.84%
FCF(TTM)1.34
FCFY13.72%
OCF(TTM)1.71
OCFY17.51%
SpS12.9
BVpS2.91
TBVpS-4.8
PEG (NY)2.84
PEG (5Y)24.91
Graham Number10.55
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 | 1.06 |
F-Score5
WACC7.75%
ROIC/WACC1.22
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 Y2.02%
EPS Next 2Y2.43%
EPS Next 3Y3.4%
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-2.02%
Revenue Next 2Y-0.65%
Revenue Next 3Y-0.16%
Revenue Next 5Y1.03%
EBIT growth 1Y0.23%
EBIT growth 3Y-11.93%
EBIT growth 5Y-0.7%
EBIT Next Year23.43%
EBIT Next 3Y7.9%
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.
Can you provide the valuation status for WESTERN UNION CO?
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.
What are the PE and PB ratios of WESTERN UNION CO (WU) stock?
The Price/Earnings (PE) ratio for WESTERN UNION CO (WU) is 5.73 and the Price/Book (PB) ratio is 3.35.
How sustainable is the dividend of WESTERN UNION CO (WU) stock?
The dividend rating of WESTERN UNION CO (WU) is 8 / 10 and the dividend payout ratio is 40.76%.