WESTERN UNION CO (WU) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WU - US9598021098 - Common Stock
8.42 USD
+0.25 (+3.06%)
8.42 USD
0 (0%)
Taking everything into account, WU scores 5 out of 10 in our fundamental rating. WU was compared to 99 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.
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 9.90%. This is amongst the best in the industry. WU outperforms 90.91% of its industry peers.
With an excellent Return On Equity value of 83.30%, WU belongs to the best of the industry, outperforming 98.99% of the companies in the same industry.
WU has a better Return On Invested Capital (9.47%) than 80.81% 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 8.14%.
| 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
The Profit Margin of WU (18.80%) is better than 73.74% of its industry peers.
WU's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 18.29%, WU is in the better half of the industry, outperforming 61.62% of the companies in the same industry.
WU's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 37.40%, WU is in line with its industry, outperforming 53.54% of the companies in the same industry.
WU's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), WU is creating some value.
Compared to 1 year ago, WU has less shares outstanding
WU has less shares outstanding than it did 5 years ago.
WU has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.03, we must say that WU is in the distress zone and has some risk of bankruptcy.
WU has a Altman-Z score of 1.03. This is comparable to the rest of the industry: WU outperforms 59.60% 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.
Looking at the Debt to FCF ratio, with a value of 6.10, WU is in the better half of the industry, outperforming 65.66% of the companies in the same industry.
A Debt/Equity ratio of 2.10 is on the high side and indicates that WU has dependencies on debt financing.
WU's Debt to Equity ratio of 2.10 is on the low side compared to the rest of the industry. WU is outperformed by 67.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.1 | ||
| Debt/FCF | 6.1 | ||
| Altman-Z | 1.03 |
ROIC/WACC1.55
WACC6.11%
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.
WU has a Current ratio of 0.77. This is comparable to the rest of the industry: WU outperforms 43.43% 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.
Looking at the Quick ratio, with a value of 0.77, WU is in line with its industry, outperforming 43.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
WU shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.16%.
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 -2.46%.
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
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.
Based on estimates for the next years, WU will show a small growth in Revenue. The Revenue will grow by 1.03% on average per year.
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 4.95, 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.
WU's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.45.
Based on the Price/Forward Earnings ratio of 4.61, 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.
WU is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.95 | ||
| Fwd PE | 4.61 |
4.2 Price Multiples
WU's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. WU is cheaper than 93.94% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, WU is valued cheaper than 87.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.3 | ||
| EV/EBITDA | 4.6 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
WU has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.17
PEG (5Y)21.52
EPS Next 2Y2.17%
EPS Next 3Y3.19%
5. Dividend
5.1 Amount
WU has a Yearly Dividend Yield of 9.91%, which is a nice return.
Compared to an average industry Dividend Yield of 4.63, WU pays a better dividend. On top of this WU pays more dividend than 95.96% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, WU pays a better dividend.
| 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 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
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 2Y2.17%
EPS Next 3Y3.19%
8.42
+0.25 (+3.06%)
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 Cap2.68B
Revenue(TTM)4.10B
Net Income(TTM)770.90M
Analysts46.92
Price Target10.28 (22.09%)
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)2.92%
PT rev (3m)4.51%
EPS NQ rev (1m)-1.37%
EPS NQ rev (3m)-1.05%
EPS NY rev (1m)1.14%
EPS NY rev (3m)-2.59%
Revenue NQ rev (1m)-0.28%
Revenue NQ rev (3m)-0.28%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.95 | ||
| Fwd PE | 4.61 | ||
| P/S | 0.65 | ||
| P/FCF | 6.3 | ||
| P/OCF | 4.93 | ||
| P/B | 2.89 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.6 |
EPS(TTM)1.7
EY20.19%
EPS(NY)1.83
Fwd EY21.7%
FCF(TTM)1.34
FCFY15.88%
OCF(TTM)1.71
OCFY20.26%
SpS12.9
BVpS2.91
TBVpS-4.8
PEG (NY)3.17
PEG (5Y)21.52
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 | 1.03 |
F-Score5
WACC6.11%
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%.