WESTERN UNION CO (WU) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WU - US9598021098 - Common Stock
9.72 USD
+0.12 (+1.25%)
9.75 USD
+0.03 (+0.31%)
We assign a fundamental rating of 5 out of 10 to WU. WU was compared to 98 industry peers in the Financial Services industry. WU scores excellent on profitability, but there are concerns on its financial health. WU is cheap, but on the other hand it scores bad on growth. Finally WU also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year WU was profitable.
WU had a positive operating cash flow in the past year.
In the past 5 years WU has always 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 89.80% of its industry peers.
The Return On Equity of WU (83.30%) is better than 97.96% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.47%, WU belongs to the top of the industry, outperforming 80.61% of the companies in the same industry.
WU had an Average Return On Invested Capital over the past 3 years of 9.80%. This 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.
With a decent Operating Margin value of 18.29%, WU is doing good in the industry, outperforming 64.29% of the companies in the same industry.
In the last couple of years the Operating Margin of WU has grown nicely.
With a Gross Margin value of 37.40%, WU perfoms like the industry average, outperforming 55.10% of the companies in the same 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.
WU has less shares outstanding than it did 5 years ago.
The debt/assets ratio for WU is higher compared to a year ago.
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.
WU has a debt to FCF ratio of 6.10. This is a slightly negative value and a sign of low solvency as WU would need 6.10 years to pay back of all of its debts.
The Debt to FCF ratio of WU (6.10) is better than 63.27% 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 Debt to Equity ratio of 2.10. This is in the lower half of the industry: WU underperforms 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
WACC7.73%
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's Current ratio of 0.77 is in line compared to the rest of the industry. WU outperforms 42.86% 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 42.86% 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%.
Measured over the past 5 years, WU shows a small growth in Earnings Per Share. The EPS has been growing by 0.23% on average per year.
WU shows a decrease in Revenue. In the last year, the revenue decreased by -2.46%.
WU shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.47% yearly.
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
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
Based on the Price/Earnings ratio of 5.72, the valuation of WU can be described as very cheap.
Based on the Price/Earnings ratio, WU is valued cheaper than 90.82% of the companies in the same industry.
When comparing the Price/Earnings ratio of WU to the average of the S&P500 Index (27.00), we can say WU is valued rather cheaply.
The Price/Forward Earnings ratio is 5.29, which indicates a rather cheap valuation of WU.
86.73% 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 23.70. WU is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.72 | ||
| Fwd PE | 5.29 |
4.2 Price Multiples
WU's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. WU is cheaper than 90.82% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, WU is valued cheaper than 87.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.27 | ||
| 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.
WU has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.83
PEG (5Y)24.84
EPS Next 2Y2.43%
EPS Next 3Y3.4%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 10.10%, WU is a good candidate for dividend investing.
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.
Compared to an average S&P500 Dividend Yield of 1.94, WU pays a better dividend.
| 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 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
40.76% of the earnings are spent on dividend by WU. 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 2Y2.43%
EPS Next 3Y3.4%
9.72
+0.12 (+1.25%)
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 Cap3.09B
Revenue(TTM)4.10B
Net Income(TTM)770.90M
Analysts46.92
Price Target10.28 (5.76%)
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 | 5.72 | ||
| Fwd PE | 5.29 | ||
| P/S | 0.75 | ||
| P/FCF | 7.27 | ||
| P/OCF | 5.7 | ||
| P/B | 3.34 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.01 |
EPS(TTM)1.7
EY17.49%
EPS(NY)1.84
Fwd EY18.89%
FCF(TTM)1.34
FCFY13.76%
OCF(TTM)1.71
OCFY17.55%
SpS12.9
BVpS2.91
TBVpS-4.8
PEG (NY)2.83
PEG (5Y)24.84
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
WACC7.73%
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 5.72 and the Price/Book (PB) ratio is 3.34.
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%.