WESTERN UNION CO (WU) Fundamental Analysis & Valuation
NYSE:WU • US9598021098
9.83 USD
+0.1 (+1.03%)
At close: Mar 11, 2026
9.83 USD
0 (0%)
After Hours: 3/11/2026, 4:52:42 PM
This WU fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
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. WU has a medium profitability rating, but doesn't score so well on its financial health evaluation. WU has a bad growth rate and is valued cheaply. Finally WU also has an excellent dividend rating.
1. WU Profitability Analysis
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.
- In the past 5 years WU always reported a positive cash flow from operatings.
1.2 Ratios
- WU has a Return On Assets of 6.02%. This is in the better half of the industry: WU outperforms 79.59% of its industry peers.
- WU has a Return On Equity of 52.16%. This is amongst the best in the industry. WU outperforms 95.92% of its industry peers.
- WU has a Return On Invested Capital of 8.91%. This is amongst the best in the industry. WU outperforms 80.61% of its industry peers.
- WU had an Average Return On Invested Capital over the past 3 years of 8.94%. This is in line with the industry average of 8.33%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.02% | ||
| ROE | 52.16% | ||
| ROIC | 8.91% |
ROA(3y)8.27%
ROA(5y)8.93%
ROE(3y)93.09%
ROE(5y)139.29%
ROIC(3y)8.94%
ROIC(5y)9.9%
1.3 Margins
- WU has a Profit Margin of 12.33%. This is comparable to the rest of the industry: WU outperforms 58.16% of its industry peers.
- WU's Profit Margin has declined in the last couple of years.
- WU has a better Operating Margin (18.70%) than 67.35% of its industry peers.
- In the last couple of years the Operating Margin of WU has declined.
- WU has a Gross Margin of 37.03%. This is comparable to the rest of the industry: WU outperforms 54.08% of its industry peers.
- WU's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.7% | ||
| PM (TTM) | 12.33% | ||
| GM | 37.03% |
OM growth 3Y-1.85%
OM growth 5Y-2.08%
PM growth 3Y-15.37%
PM growth 5Y-4.34%
GM growth 3Y-3.58%
GM growth 5Y-2.31%
2. WU Health Analysis
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.
- Compared to 1 year ago, WU has less shares outstanding
- WU has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, WU has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.94, we must say that WU is in the distress zone and has some risk of bankruptcy.
- WU has a Altman-Z score (0.94) which is comparable to the rest of the industry.
- WU has a debt to FCF ratio of 6.85. This is a slightly negative value and a sign of low solvency as WU would need 6.85 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 6.85, WU is in line with its industry, outperforming 52.04% of the companies in the same industry.
- A Debt/Equity ratio of 1.92 is on the high side and indicates that WU has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 1.92, WU is doing worse than 65.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.92 | ||
| Debt/FCF | 6.85 | ||
| Altman-Z | 0.94 |
ROIC/WACC1.15
WACC7.74%
2.3 Liquidity
- A Current Ratio of 0.65 indicates that WU may have some problems paying its short term obligations.
- The Current ratio of WU (0.65) is comparable to the rest of the industry.
- A Quick Ratio of 0.65 indicates that WU may have some problems paying its short term obligations.
- WU has a Quick ratio of 0.65. This is comparable to the rest of the industry: WU outperforms 41.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.65 |
3. WU Growth Analysis
3.1 Past
- WU shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by 0.00%.
- The Earnings Per Share has been decreasing by -1.32% on average over the past years.
- Looking at the last year, WU shows a decrease in Revenue. The Revenue has decreased by -3.78% in the last year.
- The Revenue has been decreasing by -3.48% on average over the past years.
EPS 1Y (TTM)0%
EPS 3Y-0.19%
EPS 5Y-1.32%
EPS Q2Q%12.5%
Revenue 1Y (TTM)-3.78%
Revenue growth 3Y-3.27%
Revenue growth 5Y-3.48%
Sales Q2Q%-4.71%
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 2.79% on average per year.
- The Revenue is expected to grow by 3.45% on average over the next years.
EPS Next Y6.19%
EPS Next 2Y6.52%
EPS Next 3Y7.57%
EPS Next 5Y2.79%
Revenue Next Year4.32%
Revenue Next 2Y4.51%
Revenue Next 3Y4.1%
Revenue Next 5Y3.45%
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. WU Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 5.62, which indicates a rather cheap valuation of WU.
- 89.80% of the companies in the same industry are more expensive than WU, based on the Price/Earnings ratio.
- WU's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.25.
- Based on the Price/Forward Earnings ratio of 5.29, the valuation of WU can be described as very cheap.
- 85.71% of the companies in the same industry are more expensive than WU, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.39, WU is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.62 | ||
| 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 93.88% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of WU indicates a rather cheap valuation: WU is cheaper than 83.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.33 | ||
| EV/EBITDA | 4.66 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of WU may justify a higher PE ratio.
PEG (NY)0.91
PEG (5Y)N/A
EPS Next 2Y6.52%
EPS Next 3Y7.57%
5. WU Dividend Analysis
5.1 Amount
- WU has a Yearly Dividend Yield of 9.70%, which is a nice return.
- Compared to an average industry Dividend Yield of 2.34, WU pays a better dividend. On top of this WU pays more dividend than 97.96% 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 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.7% |
5.2 History
- The dividend of WU has a limited annual growth rate of 1.14%.
- 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)1.14%
Div Incr Years0
Div Non Decr Years18
5.3 Sustainability
- WU pays out 61.85% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of WU is growing, but earnings are growing more, so the dividend growth is sustainable.
DP61.85%
EPS Next 2Y6.52%
EPS Next 3Y7.57%
WU Fundamentals: All Metrics, Ratios and Statistics
9.83
+0.1 (+1.03%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)02-20 2026-02-20/bmo
Earnings (Next)04-21 2026-04-21/amc
Inst Owners107.14%
Inst Owner Change4.48%
Ins Owners0.53%
Ins Owner Change19.5%
Market Cap3.08B
Revenue(TTM)4.05B
Net Income(TTM)499.60M
Analysts46.67
Price Target10.31 (4.88%)
Short Float %15.83%
Short Ratio5.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.7% |
Yearly Dividend0.95
Dividend Growth(5Y)1.14%
DP61.85%
Div Incr Years0
Div Non Decr Years18
Ex-Date03-17 2026-03-17 (0.235)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.44%
Min EPS beat(2)0.87%
Max EPS beat(2)6%
EPS beat(4)2
Avg EPS beat(4)-0.59%
Min EPS beat(4)-7.76%
Max EPS beat(4)6%
EPS beat(8)4
Avg EPS beat(8)-0.59%
EPS beat(12)7
Avg EPS beat(12)4.28%
EPS beat(16)9
Avg EPS beat(16)4.55%
Revenue beat(2)0
Avg Revenue beat(2)-4.2%
Min Revenue beat(2)-6.28%
Max Revenue beat(2)-2.12%
Revenue beat(4)0
Avg Revenue beat(4)-4.22%
Min Revenue beat(4)-6.28%
Max Revenue beat(4)-2.12%
Revenue beat(8)2
Avg Revenue beat(8)-2.55%
Revenue beat(12)5
Avg Revenue beat(12)-0.74%
Revenue beat(16)5
Avg Revenue beat(16)-1.2%
PT rev (1m)-0.99%
PT rev (3m)0.35%
EPS NQ rev (1m)-2.61%
EPS NQ rev (3m)-3.08%
EPS NY rev (1m)1.18%
EPS NY rev (3m)1.21%
Revenue NQ rev (1m)-1.67%
Revenue NQ rev (3m)-1.86%
Revenue NY rev (1m)3.51%
Revenue NY rev (3m)3.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.62 | ||
| Fwd PE | 5.29 | ||
| P/S | 0.76 | ||
| P/FCF | 7.33 | ||
| P/OCF | 5.67 | ||
| P/B | 3.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.66 |
EPS(TTM)1.75
EY17.8%
EPS(NY)1.86
Fwd EY18.9%
FCF(TTM)1.34
FCFY13.64%
OCF(TTM)1.73
OCFY17.65%
SpS12.92
BVpS3.06
TBVpS-4.78
PEG (NY)0.91
PEG (5Y)N/A
Graham Number10.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.02% | ||
| ROE | 52.16% | ||
| ROCE | 11.84% | ||
| ROIC | 8.91% | ||
| ROICexc | 10.89% | ||
| ROICexgc | N/A | ||
| OM | 18.7% | ||
| PM (TTM) | 12.33% | ||
| GM | 37.03% | ||
| FCFM | 10.37% |
ROA(3y)8.27%
ROA(5y)8.93%
ROE(3y)93.09%
ROE(5y)139.29%
ROIC(3y)8.94%
ROIC(5y)9.9%
ROICexc(3y)11.02%
ROICexc(5y)12.12%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)11.66%
ROCE(5y)12.86%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y-3.92%
ROICexc growth 5Y-2.09%
OM growth 3Y-1.85%
OM growth 5Y-2.08%
PM growth 3Y-15.37%
PM growth 5Y-4.34%
GM growth 3Y-3.58%
GM growth 5Y-2.31%
F-Score5
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.92 | ||
| Debt/FCF | 6.85 | ||
| Debt/EBITDA | 2 | ||
| Cap/Depr | 74.67% | ||
| Cap/Sales | 3.05% | ||
| Interest Coverage | 5.13 | ||
| Cash Conversion | 58.92% | ||
| Profit Quality | 84.11% | ||
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 0.94 |
F-Score5
WACC7.74%
ROIC/WACC1.15
Cap/Depr(3y)67.22%
Cap/Depr(5y)65.45%
Cap/Sales(3y)2.81%
Cap/Sales(5y)2.72%
Profit Quality(3y)74.06%
Profit Quality(5y)77.5%
High Growth Momentum
Growth
EPS 1Y (TTM)0%
EPS 3Y-0.19%
EPS 5Y-1.32%
EPS Q2Q%12.5%
EPS Next Y6.19%
EPS Next 2Y6.52%
EPS Next 3Y7.57%
EPS Next 5Y2.79%
Revenue 1Y (TTM)-3.78%
Revenue growth 3Y-3.27%
Revenue growth 5Y-3.48%
Sales Q2Q%-4.71%
Revenue Next Year4.32%
Revenue Next 2Y4.51%
Revenue Next 3Y4.1%
Revenue Next 5Y3.45%
EBIT growth 1Y-1.29%
EBIT growth 3Y-5.06%
EBIT growth 5Y-5.49%
EBIT Next Year27.23%
EBIT Next 3Y11.04%
EBIT Next 5Y4.09%
FCF growth 1Y46.16%
FCF growth 3Y-1.92%
FCF growth 5Y-11.86%
OCF growth 1Y33.82%
OCF growth 3Y-2.22%
OCF growth 5Y-9.13%
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 9 / 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 6 / 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 5.62 and the Price/Book (PB) ratio is 3.22.
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 61.85%.