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WU

Western UnionNYSE:WU Stock Report

Market Cap

US$8.2b

7D

-2.7%

1Y

-6.2%

Updated

26 Sep, 2021

Data

Company Financials +
WU fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance5/6
Financial Health2/6
Dividends6/6

WU Overview

The Western Union Company provides money movement and payment services worldwide.

Western Union Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Western Union
Historical stock prices
Current Share PriceUS$20.23
52 Week HighUS$19.07
52 Week LowUS$26.61
Beta1.01
1 Month Change-6.56%
3 Month Change-11.70%
1 Year Change-6.21%
3 Year Change6.14%
5 Year Change-2.83%
Change since IPO10.55%

Recent News & Updates

Shareholder Returns

WUUS ITUS Market
7D-2.7%1.4%0.1%
1Y-6.2%27.9%35.3%

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.

Price Volatility

Is WU's price volatile compared to industry and market?
WU volatility
WU Beta1.01
Industry Beta1.18
Market Beta1

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

FoundedEmployeesCEOWebsite
185111,000Hikmet Ersekhttps://www.westernunion.com

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

How do Western Union's earnings and revenue compare to its market cap?
WU fundamental statistics
Market CapUS$8.22b
Earnings (TTM)US$810.00m
Revenue (TTM)US$5.03b

10.1x

P/E Ratio

1.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WU income statement (TTM)
RevenueUS$5.03b
Cost of RevenueUS$2.94b
Gross ProfitUS$2.09b
ExpensesUS$1.28b
EarningsUS$810.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.99
Gross Margin41.57%
Net Profit Margin16.10%
Debt/Equity Ratio1,046.7%

How did WU perform over the long term?

See historical performance and comparison

Dividends

4.6%

Current Dividend Yield

47%

Payout Ratio

Valuation

Is Western Union undervalued compared to its fair value and its price relative to the market?

32.8%

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).


Future Growth

How is Western Union forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

3.4%

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%).


Past Performance

How has Western Union performed over the past 5 years?

22.3%

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.


Financial Health

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).


Balance Sheet


Dividend

What is Western Union current dividend yield, its reliability and sustainability?

4.65%

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).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.2yrs

Average management tenure


CEO

Hikmet Ersek (60 yo)

11yrs

Tenure

US$10,336,400

Compensation

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.


Leadership Team

Experienced Management: WU's management team is considered experienced (3.2 years average tenure).


Board Members

Experienced Board: WU's board of directors are considered experienced (6.2 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

The Western Union Company's employee growth, exchange listings and data sources


Key Information

  • 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


Location

  • The Western Union Company
  • 7001 East Belleview Avenue
  • Denver
  • Colorado
  • 80237
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/26 22:22
End of Day Share Price2021/09/24 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.