The Western Union Company provides money movement and payment services worldwide.
Western Union Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$20.23|
|52 Week High||US$19.07|
|52 Week Low||US$26.61|
|1 Month Change||-6.56%|
|3 Month Change||-11.70%|
|1 Year Change||-6.21%|
|3 Year Change||6.14%|
|5 Year Change||-2.83%|
|Change since IPO||10.55%|
Recent News & Updates
|WU||US IT||US Market|
Return vs Industry: WU underperformed the US IT industry which returned 27.9% over the past year.
Return vs Market: WU underperformed the US Market which returned 35.3% over the past year.
Stable Share Price: WU is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: WU's weekly volatility (3%) has been stable over the past year.
About the Company
The Western Union Company provides money movement and payment services worldwide. It operates in two segments, Consumer-to-Consumer and Business Solutions. The Consumer-to-Consumer segment facilitates money transfers between two consumers, primarily through a network of third-party agents and sub-agents.
Western Union Fundamentals Summary
|WU fundamental statistics|
Is WU overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|WU income statement (TTM)|
|Cost of Revenue||US$2.94b|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
|Earnings per share (EPS)||1.99|
|Net Profit Margin||16.10%|
How did WU perform over the long term?See historical performance and comparison
4.6%Current Dividend Yield
Is Western Union undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: WU ($20.23) is trading below our estimate of fair value ($30.1)
Significantly Below Fair Value: WU is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: WU is good value based on its PE Ratio (10.1x) compared to the US IT industry average (34.9x).
PE vs Market: WU is good value based on its PE Ratio (10.1x) compared to the US market (17.9x).
Price to Earnings Growth Ratio
PEG Ratio: WU is poor value based on its PEG Ratio (3x)
Price to Book Ratio
PB vs Industry: WU is overvalued based on its PB Ratio (28.7x) compared to the US IT industry average (5.2x).
How is Western Union forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WU's forecast earnings growth (3.4% per year) is above the savings rate (2%).
Earnings vs Market: WU's earnings (3.4% per year) are forecast to grow slower than the US market (15% per year).
High Growth Earnings: WU's earnings are forecast to grow, but not significantly.
Revenue vs Market: WU's revenue (1.7% per year) is forecast to grow slower than the US market (9.8% per year).
High Growth Revenue: WU's revenue (1.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: WU's Return on Equity is forecast to be very high in 3 years time (252.9%).
How has Western Union performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WU has high quality earnings.
Growing Profit Margin: WU's current net profit margins (16.1%) are higher than last year (12.4%).
Past Earnings Growth Analysis
Earnings Trend: WU's earnings have grown significantly by 22.3% per year over the past 5 years.
Accelerating Growth: WU's earnings growth over the past year (33%) exceeds its 5-year average (22.3% per year).
Earnings vs Industry: WU earnings growth over the past year (33%) exceeded the IT industry 28%.
Return on Equity
High ROE: Whilst WU's Return on Equity (282.92%) is outstanding, this metric is skewed due to their high level of debt.
How is Western Union's financial position?
Financial Position Analysis
Short Term Liabilities: WU's short term assets ($1.5B) do not cover its short term liabilities ($5.2B).
Long Term Liabilities: WU's short term assets ($1.5B) do not cover its long term liabilities ($3.5B).
Debt to Equity History and Analysis
Debt Level: WU's debt to equity ratio (1046.7%) is considered high.
Reducing Debt: WU's debt to equity ratio has increased from 245.5% to 1046.7% over the past 5 years.
Debt Coverage: WU's debt is well covered by operating cash flow (29.3%).
Interest Coverage: WU's interest payments on its debt are well covered by EBIT (9.3x coverage).
What is Western Union current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: WU's dividend (4.65%) is higher than the bottom 25% of dividend payers in the US market (1.33%).
High Dividend: WU's dividend (4.65%) is in the top 25% of dividend payers in the US market (3.6%)
Stability and Growth of Payments
Stable Dividend: WU's dividends per share have been stable in the past 10 years.
Growing Dividend: WU's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (46.7%), WU's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: WU's dividends in 3 years are forecast to be well covered by earnings (39.7% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Hikmet Ersek (60 yo)
Mr. Hikmet Ersek has been the Chief Executive Officer and President at The Western Union Company since September 1, 2010. Mr. Ersek served as the Chief Operating Officer of The Western Union Company from J...
CEO Compensation Analysis
Compensation vs Market: Hikmet's total compensation ($USD10.34M) is above average for companies of similar size in the US market ($USD6.40M).
Compensation vs Earnings: Hikmet's compensation has been consistent with company performance over the past year.
Experienced Management: WU's management team is considered experienced (3.2 years average tenure).
Experienced Board: WU's board of directors are considered experienced (6.2 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
The Western Union Company's employee growth, exchange listings and data sources
- Name: The Western Union Company
- Ticker: WU
- Exchange: NYSE
- Founded: 1851
- Industry: Data Processing and Outsourced Services
- Sector: Software
- Market Cap: US$8.220b
- Shares outstanding: 406.35m
- Website: https://www.westernunion.com
Number of Employees
- The Western Union Company
- 7001 East Belleview Avenue
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/26 22:22|
|End of Day Share Price||2021/09/24 00:00|
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.