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Western Union

NYSE:WU
Snowflake Description

6 star dividend payer and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
WU
NYSE
$8B
Market Cap
  1. Home
  2. US
  3. Software
Company description

The Western Union Company provides money movement and payment services worldwide. The last earnings update was 25 days ago. More info.


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WU Share Price and Events
7 Day Returns
0.1%
NYSE:WU
3%
US IT
2.4%
US Market
1 Year Returns
-7.4%
NYSE:WU
15.5%
US IT
1.9%
US Market
WU Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Western Union (WU) 0.1% 2.1% 3% -7.4% -4.8% 10.5%
US IT 3% 4.7% 19.4% 15.5% 79.7% 94.9%
US Market 2.4% 1.7% 11.9% 1.9% 38.2% 42.4%
1 Year Return vs Industry and Market
  • WU underperformed the IT industry which returned 15.5% over the past year.
  • WU underperformed the Market in United States of America which returned 1.9% over the past year.
Price Volatility
WU
Industry
5yr Volatility vs Market
Related Companies

WU Value

 Is Western Union 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 Western Union 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    Our intrinsic value calculation method has changed recently, learn more here.

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

NYSE:WU Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 17 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.4%
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:WU
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 1.06
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.063 (1 + (1- 21%) (43.33%))
1.286
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.29
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.286 * 5.96%)
10.4%

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

The calculations below outline how an intrinsic value for Western Union 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:WU DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.4%)
2019 816.15 Analyst x2 739.29
2020 890.67 Analyst x3 730.80
2021 952.29 Est @ 6.92% 707.77
2022 1,006.21 Est @ 5.66% 677.42
2023 1,054.33 Est @ 4.78% 642.96
2024 1,098.26 Est @ 4.17% 606.68
2025 1,139.28 Est @ 3.74% 570.07
2026 1,178.41 Est @ 3.43% 534.11
2027 1,216.38 Est @ 3.22% 499.40
2028 1,253.79 Est @ 3.07% 466.28
Present value of next 10 years cash flows $6,174.79
NYSE:WU DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $1,253.79 × (1 + 2.73%) ÷ (10.4% – 2.73%)
$16,799.25
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $16,799.25 ÷ (1 + 10.4%)10
$6,247.60
NYSE:WU Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $6,174.79 + $6,247.60
$12,422.39
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $12,422.39 / 435.89
$28.5
NYSE:WU Discount to Share Price
Calculation Result
Value per share (USD) From above. $28.50
Current discount Discount to share price of $18.18
= -1 x ($18.18 - $28.50) / $28.50
36.2%

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

Current Discount
Amount off the current price Western Union is available for.
Intrinsic value
36%
Share price is $18.18 vs Future cash flow value of $28.5
Current Discount Checks
For Western Union to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Western Union's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Western Union's share price is below the future cash flow value, but not at a substantial discount (< 40%).
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 Western Union's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Western Union's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:WU PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $1.89
NYSE:WU Share Price ** NYSE (2019-03-18) in USD $18.18
United States of America IT Industry PE Ratio Median Figure of 78 Publicly-Listed IT Companies 30.16x
United States of America Market PE Ratio Median Figure of 3,055 Publicly-Listed Companies 17.61x

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

** Primary Listing of Western Union.

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

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

= 18.18 ÷ 1.89

9.64x

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

  • Western Union is good value based on earnings compared to the US IT industry average.
  • Western Union is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Western Union's expected growth come at a high price?
Raw Data
NYSE:WU PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 9.64x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts
-0.1%per year
United States of America IT Industry PEG Ratio Median Figure of 64 Publicly-Listed IT Companies 2.43x
United States of America Market PEG Ratio Median Figure of 2,109 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

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

= PE Ratio ÷ Net Income Annual Growth Rate

= 9.64x ÷ -0.1%

-66.63x

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

  • Western Union earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Western Union's assets?
Raw Data
NYSE:WU PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $-0.70
NYSE:WU Share Price * NYSE (2019-03-18) in USD $18.18
United States of America IT Industry PB Ratio Median Figure of 122 Publicly-Listed IT Companies 4.33x
United States of America Market PB Ratio Median Figure of 5,152 Publicly-Listed Companies 1.87x
NYSE:WU PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 18.18 ÷ -0.70

-25.89x

* Primary Listing of Western Union.

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

  • Western Union has negative assets, we can't compare the value of its assets to the US IT industry average.
X
Value checks
We assess Western Union'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. Western Union has a total score of 3/6, 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.

WU Future Performance

 How is Western Union expected to perform in the next 1 to 3 years based on estimates from 17 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
-0.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Western Union expected to grow at an attractive rate?
  • Western Union's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Western Union's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
  • Western Union's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:WU Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:WU Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts -0.1%
NYSE:WU Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 17 Analysts 1.5%
United States of America IT Industry Earnings Growth Rate Market Cap Weighted Average 15.7%
United States of America IT Industry Revenue Growth Rate Market Cap Weighted Average 9%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*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:WU Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:WU Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 5,915 879 4
2020-12-31 5,712 1,052 839 16
2019-12-31 5,615 1,052 812 17
NYSE:WU Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 5,590 821 852
2018-09-30 5,627 831 -481
2018-06-30 5,644 1,059 -454
2018-03-31 5,611 782 -505
2017-12-31 5,524 742 -557
2017-09-30 5,458 643 209
2017-06-30 5,431 532 190
2017-03-31 5,428 916 229
2016-12-31 5,423 1,042 253
2016-09-30 5,431 1,089 821
2016-06-30 5,453 1,091 836
2016-03-31 5,461 1,072 820

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Western Union's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Western Union's revenue is expected to grow by 1.5% 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:WU 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 17 Analyst Estimates (S&P Global) See Below

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

NYSE:WU Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 2.10 2.10 2.10 1.00
2020-12-31 2.00 2.09 1.91 11.00
2019-12-31 1.87 1.91 1.83 12.00
NYSE:WU Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 1.89
2018-09-30 -1.05
2018-06-30 -0.99
2018-03-31 -1.09
2017-12-31 -1.19
2017-09-30 0.44
2017-06-30 0.40
2017-03-31 0.47
2016-12-31 0.52
2016-09-30 1.66
2016-06-30 1.67
2016-03-31 1.62

*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.
  • Western Union is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess Western Union'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.
Western Union has a total score of 1/6, 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.

WU Past Performance

  How has Western Union 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 Western Union'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.
  • Western Union's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Western Union has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Western Union has become profitable in the last year making it difficult to compare the US IT industry average.
Earnings and Revenue History
Western Union'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 Western Union Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:WU Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 5,589.90 851.90 1,178.70
2018-09-30 5,626.60 -481.10 1,190.90
2018-06-30 5,643.50 -454.10 1,204.20
2018-03-31 5,611.30 -505.20 1,211.60
2017-12-31 5,524.30 -557.10 1,167.20
2017-09-30 5,457.70 208.80 1,071.80
2017-06-30 5,430.80 190.10 1,057.30
2017-03-31 5,427.60 229.20 1,043.00
2016-12-31 5,422.90 253.20 1,053.70
2016-09-30 5,431.20 820.50 1,099.80
2016-06-30 5,452.60 835.90 1,105.70
2016-03-31 5,460.50 819.60 1,147.70
2015-12-31 5,483.70 837.80 1,164.80
2015-09-30 5,513.60 847.00 1,170.90
2015-06-30 5,555.30 848.80 1,179.70
2015-03-31 5,577.30 853.30 1,145.80
2014-12-31 5,607.20 852.40 1,150.60
2014-09-30 5,619.20 804.30 1,177.20
2014-06-30 5,587.10 784.60 1,180.70
2014-03-31 5,567.40 789.40 1,166.70
2013-12-31 5,542.00 798.40 1,147.70
2013-09-30 5,544.80 862.90 1,122.20
2013-06-30 5,557.60 918.00 1,081.80
2013-03-31 5,596.80 990.60 1,063.50
2012-12-31 5,664.80 1,025.90 1,072.40
2012-09-30 5,671.40 1,240.30 1,063.80
2012-06-30 5,660.60 1,210.50 1,051.50
2012-03-31 5,601.80 1,202.50 1,027.30

*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.
  • It is difficult to establish if Western Union has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.
  • Western Union used its assets more efficiently than the US IT industry average last year based on Return on Assets.
  • Western Union has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Western Union'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.
Western Union has a total score of 2/6, 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.

WU Health

 How is Western Union'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 Western Union's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Western Union's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Western Union's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Western Union'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.
  • Western Union has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
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 Western Union Company Filings, last reported 2 months ago.

NYSE:WU Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 -309.80 3,433.70 973.50
2018-09-30 -415.30 3,295.00 769.10
2018-06-30 -451.30 3,332.40 941.30
2018-03-31 -375.80 3,143.90 936.40
2017-12-31 -491.40 3,033.60 841.50
2017-09-30 709.40 3,534.00 1,193.00
2017-06-30 661.20 3,627.80 1,064.20
2017-03-31 750.30 3,491.80 1,331.60
2016-12-31 902.20 2,786.10 884.20
2016-09-30 1,387.60 3,224.90 1,299.10
2016-06-30 1,314.40 3,228.70 1,182.20
2016-03-31 1,239.00 3,225.90 1,180.40
2015-12-31 1,404.90 3,215.90 1,323.50
2015-09-30 1,347.20 3,483.80 1,533.70
2015-06-30 1,307.40 3,725.80 1,738.30
2015-03-31 1,349.90 3,729.40 1,769.90
2014-12-31 1,300.40 3,722.30 1,786.70
2014-09-30 1,179.70 3,720.10 1,670.20
2014-06-30 1,070.20 3,755.70 1,605.30
2014-03-31 1,067.70 3,850.60 1,696.80
2013-12-31 1,104.70 4,220.80 2,184.70
2013-09-30 1,050.30 3,974.80 1,847.70
2013-06-30 928.60 3,723.30 1,407.70
2013-03-31 917.60 3,726.90 1,421.10
2012-12-31 940.60 4,029.20 1,789.60
2012-09-30 1,146.70 3,433.00 1,437.90
2012-06-30 1,052.80 3,673.10 1,416.10
2012-03-31 967.40 3,633.70 1,399.80
  • Western Union has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.
  • Irrelevant to check if Western Union's debt level has increased considering it has negative shareholder equity.
  • Debt is well covered by operating cash flow (23.9%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 7.7x coverage).
X
Financial health checks
We assess Western Union'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. Western Union 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.

WU Dividends

 What is Western Union'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
4.4%
Current annual income from Western Union dividends. Estimated to be 4.34% next year.
If you bought $2,000 of Western Union shares you are expected to receive $88 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?
  • Western Union's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).
  • Western Union's dividend is above the markets top 25% of dividend payers in United States of America (3.64%).
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:WU 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 17 Analyst Estimates (S&P Global) See Below
United States of America IT Industry Average Dividend Yield Market Cap Weighted Average of 33 Stocks 1.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2004 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 3.6%

Industry and Market average data is calculated daily.

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

NYSE:WU Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.83 4.00
2020-12-31 0.80 8.00
2019-12-31 0.77 9.00
NYSE:WU Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-02-21 0.800 4.443
2019-02-07 0.800 4.470
2018-12-06 0.760 4.279
2018-11-01 0.760 4.087
2018-05-18 0.760 3.921
2018-05-01 0.760 3.834
2018-02-22 0.760 3.901
2018-02-13 0.760 3.775
2017-12-07 0.700 3.513
2017-07-12 0.700 3.613
2017-05-11 0.700 3.674
2017-05-02 0.700 3.583
2017-02-22 0.700 3.515
2017-02-09 0.700 3.538
2016-12-08 0.640 3.020
2016-07-14 0.640 3.111
2016-05-12 0.640 3.328
2016-05-03 0.640 3.336
2016-02-19 0.640 3.321
2016-02-09 0.640 3.617
2015-11-24 0.620 3.484
2015-10-29 0.620 3.234
2015-07-16 0.620 3.264
2015-05-15 0.620 2.962
2015-02-20 0.620 3.058
2015-02-10 0.620 3.279
2014-12-05 0.500 2.831
2014-07-15 0.500 2.918
2014-02-21 0.500 3.061
2013-12-06 0.500 3.053
2013-07-18 0.500 2.792
2013-05-30 0.500 2.964
2013-02-21 0.500 3.330
2012-10-31 0.500 3.746
2012-09-13 0.400 2.185
2012-05-23 0.400 2.345
2012-02-07 0.400 2.257
2011-12-09 0.320 1.723
2011-09-15 0.320 1.923
2011-05-19 0.320 1.741
2011-02-25 0.280 1.326
2010-12-08 0.280 1.427
2010-09-22 0.240 1.341
2010-05-14 0.240 1.497
2010-02-25 0.240 1.407
2009-12-09 0.240 1.320
2009-03-19 0.040 0.233

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

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Western Union's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.5x coverage).
X
Income/ dividend checks
We assess Western Union'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 Western Union afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Western Union has a total score of 6/6, see the detailed checks below.


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

WU Management

 What is the CEO of Western Union'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
Hikmet Ersek
COMPENSATION $9,726,400
AGE 57
TENURE AS CEO 8.5 years
CEO Bio

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 January 1, 2010 to September 1, 2010. Mr. Ersek served as an Executive Vice President and Managing Director of Europe, Middle East, Africa and Asia at The Western Union Company. He is responsible for all areas of Western Union's business in the region, including sales, marketing and finance. He oversees the management of 122 countries with more than 166,000 Agent locations. He joined Western Union in September 1999 as Regional Vice President of Southern Europe. He held various positions at Western Union Co. from July 2001 to October 2002, Regional Vice President, Central and Eastern Europe region, from October 2002 to March 2004 as Senior Vice President of Europe, Middle East, Africa , from March 2004 to September 2006 as Senior Vice President, Europe, Middle East, Africa and South Asia and from September 2006 to December 2008 as Managing Director, Europe/Middle East/Africa/South Asia. Prior to Western Union, Mr. Ersek was employed at GE Money Capital for 4 years specializing in European payment systems and consumer finance. He worked at Europay/MasterCard from 1986 to 1996 after a professional career as a basketball player. He has been a Director of The Western Union Company since April 26, 2010. He served as a Director of FEXCO. Mr. Ersek has a Degree in Economics and Business Administration from the University of Economics, Vienna, Austria.

CEO Compensation
  • Hikmet's compensation has increased in line with Western Union recently becoming profitable.
  • Hikmet's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Western Union management team in years:

6.2
Average Tenure
52.5
Average Age
  • The average tenure for the Western Union management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Hikmet Ersek

TITLE
President
COMPENSATION
$10M
AGE
57
TENURE
8.5 yrs

Raj Agrawal

TITLE
Executive VP
COMPENSATION
$3M
AGE
53
TENURE
4.7 yrs

Jean Farah

TITLE
Executive VP & President of Global Payments
COMPENSATION
$2M
AGE
47
TENURE
10 yrs

Odilon Almeida

TITLE
Executive VP & President of Global Money Transfer
COMPENSATION
$3M
AGE
57
TENURE
12.1 yrs

Amintore T. Schenkel

TITLE
Senior VP

Sheri Rhodes

TITLE
Executive VP & CTO
AGE
49
TENURE
1.5 yrs

Mike Salop

TITLE
Senior Vice President of Investor Relations
AGE
53
TENURE
10.2 yrs

Jacqueline Molnar

TITLE
Chief Compliance Officer
TENURE
3.1 yrs

Caroline Tsai

TITLE
Executive VP
AGE
48
TENURE
1.3 yrs

Richard Williams

TITLE
Executive VP & Chief Human Resources Officer
AGE
52
TENURE
6.2 yrs
Board of Directors Tenure

Average tenure and age of the Western Union board of directors in years:

6.9
Average Tenure
62
Average Age
  • The tenure for the Western Union board of directors is about average.
Board of Directors

Jeffrey Joerres

TITLE
Non-Executive Chairman of the Board
COMPENSATION
$400K
AGE
58
TENURE
1.8 yrs

Hikmet Ersek

TITLE
President
COMPENSATION
$10M
AGE
57
TENURE
8.9 yrs

Betsy Holden

TITLE
Director
COMPENSATION
$280K
AGE
62
TENURE
12.5 yrs

Richard Goodman

TITLE
Director
COMPENSATION
$285K
AGE
70
TENURE
7.2 yrs

Frances Fragos Townsend

TITLE
Director
COMPENSATION
$335K
AGE
56
TENURE
5.6 yrs

Bob Selander

TITLE
Director
COMPENSATION
$260K
AGE
68
TENURE
4.7 yrs

Roberto Mendoza

TITLE
Director
COMPENSATION
$245K
AGE
72
TENURE
12.5 yrs

Mike Miles

TITLE
Director
COMPENSATION
$245K
AGE
56
TENURE
12.5 yrs

Sol Trujillo

TITLE
Director
COMPENSATION
$245K
AGE
66
TENURE
6.7 yrs

Martin Cole

TITLE
Director
COMPENSATION
$245K
AGE
62
TENURE
3.7 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Western Union'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. Western Union 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.

WU News

Simply Wall St News

At US$18.14, Is It Time To Put The Western Union Company (NYSE:WU) On Your Watch List?

saw significant share price movement during recent months on the NYSE, rising to highs of $18.85 and falling to the lows of $16.55. … A question to answer is whether Western Union's current trading price of $18.14 reflective of the actual value of the? … Let’s take a look at Western Union’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 -

Why The Western Union Company (NYSE:WU) Is A Dividend Rockstar

Over the past 10 years The Western Union Company (NYSE:WU) has been paying dividends to shareholders. … Let's dig deeper into whether Western Union should have a place in your portfolio. … View our latest analysis for Western Union

Simply Wall St -

The Western Union Company (NYSE:WU) Earns A Nice Return On Capital Employed

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … What is Return On Capital Employed (ROCE)? … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

Is The Western Union Company's (NYSE:WU) CEO Overpaid Relative To Its Peers?

Hikmet Ersek became the CEO of The Western Union Company (NYSE:WU) in 2010. … How Does Hikmet Ersek's Compensation Compare With Similar Sized Companies. … Our data indicates that The Western Union Company is worth US$7.6b, and total annual CEO compensation is US$9.7m.

Simply Wall St -

Estimating The Intrinsic Value Of The Western Union Company (NYSE:WU)

by taking the expected future cash flows and discounting them to their present 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 -

At US$17.91, Is The Western Union Company (NYSE:WU) Worth Looking At Closely?

The Western Union Company (NYSE:WU), which is in the it business, and is based in United States,. … A question to answer is whether Western Union's current trading price of $17.91 reflective of the actual value of the? … Let’s take a look at Western Union’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 -

The Western Union Company (NYSE:WU) Is Trading At A 20.71% Discount

I am going to run you through how I calculated the intrinsic value of The Western Union Company (NYSE:WU). … by projecting its future cash flows and then discounting them to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

What Is The Western Union Company's (NYSE:WU) Share Price Doing?

The Western Union Company (NYSE:WU), a it company based in United States,. … saw a decent share price growth in the teens level on the NYSE over the last few months. … With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price?

Simply Wall St -

Should Income Investors Buy The Western Union Company (NYSE:WU) Before Its Ex-Dividend?

Important news for shareholders and potential investors in The Western Union Company (NYSE:WU): The dividend payment of $0.19 per share will be distributed into shareholder on 29 June 2018, and the stock will begin trading ex-dividend at an earlier date, 14 June 2018. … Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine Western Union's latest financial data to analyse its dividend characteristics. … 5 checks you should use to assess a dividend stock?

Simply Wall St -

Calculating The Intrinsic Value Of The Western Union Company (NYSE:WU)

5-year cash flow estimate 2018 2019 2020 2021 2022 Levered FCF ($, Millions) $919.80 $986.67 $982.33 $978.02 $973.72 Source Analyst x4 Analyst x3 Extrapolated @ (-0.44%) Extrapolated @ (-0.44%) Extrapolated @ (-0.44%) Present Value Discounted @ 10.99% $828.71 $800.91 $718.42 $644.43 $578.06 Present Value of 5-year Cash Flow (PVCF)= $3,571 After calculating the present value of future cash flows in the intial 5-year period we need to calculate the Terminal Value, which accounts for all the future cash flows beyond the first stage. … Terminal Value (TV) = FCF2022 × (1 + g) ÷ (r – g) = $974 × (1 + 2.9%) ÷ (11% – 2.9%) = $12,465 Present Value of Terminal Value (PVTV) = TV / (1 + r)5 = $12,465 / ( 1 + 11%)5 = $7,400 The total value is the sum of cash flows for the next five years and the discounted terminal value, which results in the Total Equity Value, which in this case is $10,970. … NYSE:WU Intrinsic Value Jun 5th 18 The assumptions I'd like to point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

Simply Wall St -

WU Company Info

Description

The Western Union Company provides money movement and payment services worldwide. The company 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. This segment offers international cross-border transfers and intra-country transfers, as well as money transfer transactions through Websites and mobile devices. The Business Solutions segment provides payment and foreign exchange solutions, primarily cross-border and cross-currency transactions for small and medium size enterprises, other organizations, and individuals; and foreign currency forward and option contracts. The company also facilitates bill payments from consumers to businesses and other organizations, as well as offers money order and other services. It serves primarily through a network of agents. The Western Union Company was incorporated in 2006 and is headquartered in Denver, Colorado.

Details
Name: The Western Union Company
WU
Exchange: NYSE
Founded: 2006
$7,924,495,089
435,890,819
Website: http://www.westernunion.com
Address: The Western Union Company
7001 East Belleview Avenue,
Denver,
Colorado, 80237,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE WU Common Stock New York Stock Exchange US USD 20. Sep 2006
DB W3U Common Stock Deutsche Boerse AG DE EUR 20. Sep 2006
LSE 0LVJ Common Stock London Stock Exchange GB USD 20. Sep 2006
BMV WU * Common Stock Bolsa Mexicana de Valores MX MXN 20. Sep 2006
BOVESPA WUNI34 BDR REPR 1 COM SHARE USD0.01 Bolsa de Valores de Sao Paulo BR BRL 27. Jul 2015
Number of employees
Current staff
Staff numbers
12,000
Western Union employees.
Industry
Data Processing and Outsourced Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/18 23:58
End of day share price update: 2019/03/18 00:00
Last estimates confirmation: 2019/03/15
Last earnings filing: 2019/02/21
Last earnings reported: 2018/12/31
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.