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WEX

NYSE:WEX
Snowflake Description

High growth potential with imperfect balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
WEX
NYSE
$9B
Market Cap
  1. Home
  2. US
  3. Software
Company description

WEX Inc. provides corporate card payment solutions in North and South America, the Asia Pacific, and Europe. The last earnings update was 35 days ago. More info.


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WEX Share Price and Events
7 Day Returns
2.2%
NYSE:WEX
0.8%
US IT
1.5%
US Market
1 Year Returns
7.7%
NYSE:WEX
19.9%
US IT
1%
US Market
WEX Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
WEX (WEX) 2.2% 1.6% 11.8% 7.7% 124.2% 91.9%
US IT 0.8% 5.2% 9.4% 19.9% 89.7% 109.3%
US Market 1.5% 1% 1.4% 1% 37.6% 38.1%
1 Year Return vs Industry and Market
  • WEX underperformed the IT industry which returned 19.9% over the past year.
  • WEX outperformed the Market in United States of America which returned 1% over the past year.
Price Volatility
WEX
Industry
5yr Volatility vs Market
Related Companies

WEX Value

 Is WEX undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of WEX to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for WEX.

NYSE:WEX Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 16 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.9%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:WEX
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
IT Unlevered Beta Simply Wall St/ S&P Global 1.01
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.012 (1 + (1- 21%) (35.21%))
1.197
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.197 * 5.96%)
9.86%

Discounted Cash Flow Calculation for NYSE:WEX using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for WEX is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:WEX DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.86%)
2019 685.75 Analyst x2 624.19
2020 594.37 Analyst x2 492.44
2021 265.60 Analyst x1 200.30
2022 255.96 Est @ -3.63% 175.70
2023 251.56 Est @ -1.72% 157.18
2024 250.59 Est @ -0.39% 142.52
2025 251.97 Est @ 0.55% 130.43
2026 255.00 Est @ 1.2% 120.15
2027 259.24 Est @ 1.66% 111.18
2028 264.37 Est @ 1.98% 103.21
Present value of next 10 years cash flows $2,257.31
NYSE:WEX DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $264.37 × (1 + 2.73%) ÷ (9.86% – 2.73%)
$3,807.66
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $3,807.66 ÷ (1 + 9.86%)10
$1,486.46
NYSE:WEX Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $2,257.31 + $1,486.46
$3,743.76
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $3,743.76 / 43.25
$86.56
NYSE:WEX Discount to Share Price
Calculation Result
Value per share (USD) From above. $86.56
Current discount Discount to share price of $202.67
= -1 x ($202.67 - $86.56) / $86.56
-134.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of WEX is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for WEX's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are WEX's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:WEX PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $3.07
NYSE:WEX Share Price ** NYSE (2019-06-14) in USD $202.67
United States of America IT Industry PE Ratio Median Figure of 77 Publicly-Listed IT Companies 34.89x
United States of America Market PE Ratio Median Figure of 3,092 Publicly-Listed Companies 17.72x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of WEX.

NYSE:WEX PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:WEX Share Price ÷ EPS (both in USD)

= 202.67 ÷ 3.07

66.1x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • WEX is overvalued based on earnings compared to the US IT industry average.
  • WEX is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does WEX's expected growth come at a high price?
Raw Data
NYSE:WEX PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 66.1x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts
29.7%per year
United States of America IT Industry PEG Ratio Median Figure of 66 Publicly-Listed IT Companies 2.44x
United States of America Market PEG Ratio Median Figure of 2,124 Publicly-Listed Companies 1.52x

*Line of best fit is calculated by linear regression .

NYSE:WEX PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 66.1x ÷ 29.7%

2.22x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • WEX is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on WEX's assets?
Raw Data
NYSE:WEX PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $41.78
NYSE:WEX Share Price * NYSE (2019-06-14) in USD $202.67
United States of America IT Industry PB Ratio Median Figure of 128 Publicly-Listed IT Companies 4.18x
United States of America Market PB Ratio Median Figure of 5,242 Publicly-Listed Companies 1.8x
NYSE:WEX PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:WEX Share Price ÷ Book Value per Share (both in USD)

= 202.67 ÷ 41.78

4.85x

* Primary Listing of WEX.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • WEX is overvalued based on assets compared to the US IT industry average.
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Value checks
We assess WEX's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. WEX has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

WEX Future Performance

 How is WEX expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
29.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is WEX expected to grow at an attractive rate?
  • WEX's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • WEX's earnings growth is expected to exceed the United States of America market average.
  • WEX's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:WEX Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:WEX Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts 29.7%
NYSE:WEX Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 16 Analysts 10.2%
United States of America IT Industry Earnings Growth Rate Market Cap Weighted Average 16.9%
United States of America IT Industry Revenue Growth Rate Market Cap Weighted Average 10.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.8%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:WEX Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:WEX Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 2,092 374 6
2020-12-31 1,928 566 325 16
2019-12-31 1,738 728 237 16
NYSE:WEX Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 1,520 383 132
2018-12-31 1,493 400 168
2018-09-30 1,437 366 228
2018-06-30 1,378 152 205
2018-03-31 1,311 284 183
2017-12-31 1,249 135 160
2017-09-30 1,210 -115 86
2017-06-30 1,174 -186 71
2017-03-31 1,104 -298 67
2016-12-31 1,012 -141 23
2016-09-30 940 117 76
2016-06-30 879 335 89

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • WEX's earnings are expected to grow significantly at over 20% yearly.
  • WEX's revenue is expected to grow by 10.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:WEX Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below

All data from WEX Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:WEX Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 8.50 8.78 8.22 2.00
2020-12-31 7.40 7.70 6.74 7.00
2019-12-31 5.44 5.71 4.70 6.00
NYSE:WEX Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 3.07
2018-12-31 3.90
2018-09-30 5.29
2018-06-30 4.76
2018-03-31 4.25
2017-12-31 3.72
2017-09-30 2.00
2017-06-30 1.67
2017-03-31 1.60
2016-12-31 0.58
2016-09-30 1.92
2016-06-30 2.29

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • WEX is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess WEX's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
WEX has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

WEX Past Performance

  How has WEX performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare WEX's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • WEX's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • WEX's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • WEX's 1-year earnings growth is negative, it can't be compared to the US IT industry average.
Earnings and Revenue History
WEX's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from WEX Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:WEX Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 1,520.49 132.46 454.96
2018-12-31 1,492.64 168.30 438.28
2018-09-30 1,436.93 228.19 408.79
2018-06-30 1,378.24 204.84 395.50
2018-03-31 1,311.25 182.63 369.40
2017-12-31 1,248.58 160.06 339.85
2017-09-30 1,210.08 85.75 275.11
2017-06-30 1,173.84 71.48 189.26
2017-03-31 1,103.89 66.95 115.29
2016-12-31 1,012.49 23.50 281.68
2016-09-30 940.26 76.25 70.02
2016-06-30 878.56 88.72 67.99
2016-03-31 858.28 102.65 66.91
2015-12-31 854.64 101.90 31.91
2015-09-30 853.86 128.90 60.24
2015-06-30 849.94 171.17 60.36
2015-03-31 837.86 188.01 59.09
2014-12-31 817.65 202.21 58.46
2014-09-30 788.07 188.79 52.96
2014-06-30 757.46 158.18 51.42
2014-03-31 734.16 157.06 51.85
2013-12-31 717.46 149.21 51.29
2013-09-30 704.18 143.79 45.63
2013-06-30 673.62 114.25 44.84
2013-03-31 648.40 102.38 43.86
2012-12-31 623.15 96.92 42.87
2012-09-30 593.99 100.66 34.41
2012-06-30 584.90 134.46 34.14

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • WEX has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • WEX used its assets less efficiently than the US IT industry average last year based on Return on Assets.
  • WEX has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess WEX's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
WEX has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

WEX Health

 How is WEX's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up WEX's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • WEX is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • WEX's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of WEX's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from WEX Company Filings, last reported 2 months ago.

NYSE:WEX Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 1,916.88 3,086.17 387.27
2018-12-31 1,795.92 2,350.44 541.50
2018-09-30 1,849.26 2,379.74 533.36
2018-06-30 1,792.00 2,504.65 310.78
2018-03-31 1,770.19 2,432.99 373.17
2017-12-31 1,630.10 2,430.34 503.52
2017-09-30 1,632.95 2,440.76 263.18
2017-06-30 1,579.64 2,389.69 231.21
2017-03-31 1,549.22 2,391.73 218.47
2016-12-31 1,505.75 2,204.90 203.84
2016-09-30 1,518.21 2,289.61 537.15
2016-06-30 1,136.75 1,258.28 317.85
2016-03-31 1,131.32 1,191.57 515.32
2015-12-31 1,095.68 1,191.78 279.99
2015-09-30 1,066.92 1,237.86 533.63
2015-06-30 1,102.95 1,312.09 184.33
2015-03-31 1,063.87 1,267.03 511.02
2014-12-31 1,094.31 1,354.54 290.69
2014-09-30 1,073.75 1,138.49 576.71
2014-06-30 1,008.67 707.61 319.02
2014-03-31 956.24 692.41 354.77
2013-12-31 922.03 692.28 365.83
2013-09-30 901.63 695.51 391.17
2013-06-30 847.20 701.02 299.56
2013-03-31 848.80 707.65 349.72
2012-12-31 839.59 669.40 200.58
2012-09-30 806.15 309.00 435.30
2012-06-30 756.94 320.70 208.00
  • WEX's level of debt (156.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (72.4% vs 156.2% today).
  • Debt is not well covered by operating cash flow (12.8%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.8x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess WEX's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. WEX has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

WEX Dividends

 What is WEX's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from WEX dividends. Estimated to be 0% next year.
If you bought $2,000 of WEX shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate WEX's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate WEX's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:WEX Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
United States of America IT Industry Average Dividend Yield Market Cap Weighted Average of 34 Stocks 1.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:WEX Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.00 3.00
2020-12-31 0.00 4.00
2019-12-31 0.00 4.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as WEX has not reported any payouts.
  • Unable to verify if WEX's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of WEX's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as WEX has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of WEX's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess WEX's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can WEX afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. WEX has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

WEX Management

 What is the CEO of WEX's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Melissa Smith
COMPENSATION $5,630,717
AGE 49
TENURE AS CEO 5.4 years
CEO Bio

Ms. Melissa D. Smith has been the Chief Executive Officer of WEX Inc. (alternatively Wright Express Corp) since January 1, 2014 and has been its President since May 1, 2013. Ms. Smith served as the President of the Americas at WEX from January 2012 to April 2013. She served as the President of North America at WEX Inc. She served as the Chief Financial Officer of WEX Inc., from September 2001 to April 6, 2011 and its Executive Vice President of Finance and Operations from November 2007 to April 1, 2011. She served as Principal Accounting Officer of WEX Inc., until April 1, 2011. She has over a decade of experience in finance, auditing and accounting positions. She served as Senior Vice President of Finance of WEX Inc., from September 2001 to November 2007 and its Manager. Ms. Smith served as the Vice President and Controller of WEX Inc., from April 1999 to August 2001 and its Manager of Planning and Analysis from November 1998 to March 1999. She served as a Senior Analyst of WEX Inc., from May 1997 to November 1998. She held various positions as a Senior Auditor and Manager in the Portland, Maine office of Ernst & Young LLP from August 1991 to April 1997, which was acquired by Baker, Newman, & Noyes LLC. She has been a Director of WEX Inc. since January 1, 2014. Ms. Smith is a Member of the American Institute of Certified Public Accountants. Ms. smilth holds a bachelor’s degree in business administration from the University of Maine.

CEO Compensation
  • Melissa's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Melissa's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the WEX management team in years:

3.1
Average Tenure
50
Average Age
  • The tenure for the WEX management team is about average.
Management Team

Michael Dubyak

TITLE
Chairman of the Board
COMPENSATION
$325K
AGE
67

Melissa Smith

TITLE
CEO, President & Director
COMPENSATION
$6M
AGE
49
TENURE
5.4 yrs

Roberto Simon

TITLE
Chief Financial Officer
COMPENSATION
$2M
AGE
44
TENURE
3.3 yrs

Melanie Tinto

TITLE
Chief Human Resources Officer
COMPENSATION
$2M
AGE
46
TENURE
1.4 yrs

Jeff Young

TITLE
President of Health
COMPENSATION
$1M
AGE
52
TENURE
2.9 yrs

Scott Phillips

TITLE
President of Global Fleet
COMPENSATION
$2M
AGE
48
TENURE
2.9 yrs

David Cooper

TITLE
Chief Technology Officer
AGE
51
TENURE
2.5 yrs

Steve Elder

TITLE
Senior Vice President of Global Investor Relations
COMPENSATION
$650K
AGE
49

Hilary Rapkin

TITLE
Chief Legal Officer
COMPENSATION
$855K
AGE
51
TENURE
21.2 yrs

Nicola Morris

TITLE
Chief Corporate Development Officer
COMPENSATION
$2M
AGE
52
TENURE
5.3 yrs
Board of Directors Tenure

Average tenure and age of the WEX board of directors in years:

8.3
Average Tenure
61
Average Age
  • The tenure for the WEX board of directors is about average.
Board of Directors

Melissa Smith

TITLE
CEO, President & Director
COMPENSATION
$6M
AGE
49
TENURE
5.4 yrs

Row Moriarty

TITLE
Vice Chairman & Lead Director
COMPENSATION
$260K
AGE
71
TENURE
11.1 yrs

Michael Dubyak

TITLE
Chairman of the Board
COMPENSATION
$325K
AGE
67
TENURE
11.1 yrs

Jack VanWoerkom

TITLE
Director
COMPENSATION
$232K
AGE
64
TENURE
14.4 yrs

Reggie Sommer

TITLE
Director
COMPENSATION
$245K
AGE
60
TENURE
14.4 yrs

Shikhar Ghosh

TITLE
Director
COMPENSATION
$235K
AGE
60
TENURE
14.4 yrs

Jim Neary

TITLE
Director
COMPENSATION
$229K
AGE
53
TENURE
2.9 yrs

Jeb Bachman

TITLE
Director
COMPENSATION
$227K
AGE
62
TENURE
2.8 yrs

Susan Sobbott

TITLE
Independent Director
COMPENSATION
$8K
AGE
53
TENURE
0.5 yrs

Don Callahan

TITLE
Director
AGE
62
TENURE
0.1 yrs
Who owns this company?
Recent Insider Trading
  • WEX insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
24. May 19 Sell Jack VanWoerkom Individual 23. May 19 23. May 19 -1,864 $198.31 $-369,650
22. May 19 Sell Scott Phillips Individual 21. May 19 21. May 19 -8,298 $205.02 $-1,701,090
22. May 19 Sell Rowland Moriarty Individual 21. May 19 21. May 19 -2,664 $205.33 $-546,999
22. May 19 Sell Melissa Goodwin Individual 21. May 19 21. May 19 -5,000 $205.00 $-1,025,000
22. May 19 Sell Michael Dubyak Individual 22. May 19 22. May 19 -1,048 $204.31 $-214,117
16. May 19 Sell Rowland Moriarty Individual 15. May 19 16. May 19 -2,500 $202.16 $-505,323
16. May 19 Sell Michael Dubyak Individual 15. May 19 15. May 19 -7,916 $200.32 $-1,584,613
16. May 19 Sell Hilary Rapkin Individual 16. May 19 16. May 19 -1,096 $203.27 $-222,784
13. May 19 Sell Michael Dubyak Individual 09. May 19 09. May 19 -15,000 $200.00 $-3,000,000
10. May 19 Sell Roberto Simon Individual 08. May 19 08. May 19 -9,921 $202.00 $-2,004,042
09. May 19 Sell Hilary Rapkin Individual 07. May 19 07. May 19 -1,404 $205.00 $-287,820
09. Aug 18 Sell Jack VanWoerkom Individual 08. Aug 18 08. Aug 18 -4,376 $187.52 $-820,588
09. Aug 18 Sell Kenneth Janosick Individual 07. Aug 18 07. Aug 18 -10,550 $189.82 $-2,002,590
09. Aug 18 Sell Melissa Goodwin Individual 08. Aug 18 08. Aug 18 -5,000 $190.00 $-950,000
08. Aug 18 Sell Roberto Simon Individual 06. Aug 18 06. Aug 18 -4,137 $189.05 $-782,095
07. Aug 18 Sell Regina Sommer Individual 06. Aug 18 06. Aug 18 -1,099 $188.47 $-207,128
07. Aug 18 Sell Hilary Rapkin Individual 06. Aug 18 06. Aug 18 -3,723 $188.57 $-702,033
X
Management checks
We assess WEX's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. WEX has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

WEX News

Simply Wall St News

How Do Analysts See WEX Inc. (NYSE:WEX) Performing In The Next 12 Months?

Help shape the future of investing tools and receive a $20 prize! … (NYSE:WEX) released its earnings in September 2018, … with earnings expected to grow by 7.9% in the upcoming year

Simply Wall St -

What Does WEX Inc.'s (NYSE:WEX) P/E Ratio Tell You?

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … We'll look at WEX Inc.'s (NYSE:WEX) P/E ratio and reflect on what it tells us about the company's share price. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Is WEX Inc. (NYSE:WEX) A Financially Sound Company?

Participate in a short research study and receive a 6-month subscription to the award winning Simply Wall St research tool (valued at $60)! … Today we will look at WEX’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. … Don’t forget that this is a general and concentrated examination of WEX’s financial health, so you should conduct further analysis.

Simply Wall St -

Does WEX Inc.'s (NYSE:WEX) Stock Price Account For Its Growth?

(NYSE:WEX) is considered a high-growth stock, but its last closing price of $161.82 left some investors wondering if this high future earnings potential can be rationalized by its current price tag. … Want to help shape the future of investing tools and platforms. … WEX is poised for extremely high earnings growth in the near future

Simply Wall St -

Read This Before Buying WEX Inc. (NYSE:WEX) Shares

We often see insiders buying up shares in companies that perform well over the long term. … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'. … It is certainly not great to see that insiders have sold shares in the company

Simply Wall St -

Why You Should Care About WEX Inc.’s (NYSE:WEX) Low Return On Capital

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Return On Capital Employed (ROCE): What is it? … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

Our Take On WEX Inc's (NYSE:WEX) CEO Salary

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Melissa Smith's Compensation Compare With Similar Sized Companies. … At the time of writing our data says that WEX Inc has a market cap of US$6.6b, and is paying total annual CEO compensation of US$11m.

Simply Wall St -

Is It Too Late To Consider Buying WEX Inc (NYSE:WEX)?

received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to $200.76 at one point, and dropping to the lows of $150.56. … A question to answer is whether WEX's current trading price of $151.39 reflective of the actual value of the? … Let’s take a look at WEX’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

Should We Be Cautious About WEX Inc's (NYSE:WEX) ROE Of 12%?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … How Do I Calculate Return On Equity … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Estimating The Fair Value Of WEX Inc (NYSE:WEX)

by taking the foreast future cash flows of the company and discounting them back to today's value. … Discounted Cash Flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

WEX Company Info

Description

WEX Inc. provides corporate card payment solutions in North and South America, the Asia Pacific, and Europe. It operates through three segments: Fleet Solutions, Travel and Corporate Solutions, and Health and Employee Benefit Solutions. The Fleet Solutions segment offers fleet vehicle payment processing services. Its services include customer, account activation, and account retention services; authorization and billing inquiries, and account maintenance services; premium fleet services; credit and collections services; and merchant services, as well as offers ClearView analytics platform, a Web-based data analytics platform that offers insights to fleet managers and SmartHub mobile application for business managers to access their account information. This segment markets its products directly to commercial and government vehicle fleet customers with small, medium, and large fleets, as well as with over-the-road and long haul fleets; and indirectly through co-branded and private label relationships. The Travel and Corporate Solutions segment provides payment processing solutions for corporate payment and transaction monitoring needs. Its products include virtual cards that are used for transactions where no card is presented and that require pre-authorization; and prepaid and gift card products that enables secure payment and financial management solutions with single card options, access to open or closed loop redemption, load limits, and with various expirations. This segment markets its products directly to commercial and government organizations. The Health and Employee Benefit Solutions segment offers healthcare payment products and software-as-a-service consumer directed platforms for healthcare market, as well as payroll related and employee benefit products in Brazil. The company was formerly known as Wright Express Corporation and changed its name to WEX Inc. in October 2012. WEX Inc. was founded in 1983 and is headquartered in Portland, Maine.

Details
Name: WEX Inc.
WEX
Exchange: NYSE
Founded: 1983
$8,765,461,691
43,249,922
Website: http://www.wexinc.com
Address: WEX Inc.
1 Hancock Street,
Portland,
Maine, 04101,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE WEX Common Stock New York Stock Exchange US USD 16. Feb 2005
DB WL9 Common Stock Deutsche Boerse AG DE EUR 16. Feb 2005
Number of employees
Current staff
Staff numbers
3,700
WEX employees.
Industry
Data Processing and Outsourced Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/14 23:59
End of day share price update: 2019/06/14 00:00
Last estimates confirmation: 2019/06/07
Last earnings filing: 2019/05/10
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.