Western Union
Market Cap
US$11.0b
Last Updated
2020/02/16 23:58 UTC
Data Sources
Company Financials +
Executive Summary
The Western Union Company provides money movement and payment services worldwide.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -5.8% per year for the next 3 years
Snowflake Analysis
Established dividend payer and good value.
Similar Companies
Share Price & News
How has Western Union's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: WU has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-5.1%
WU
2.1%
US IT
1.5%
US Market
1 Year Return
47.4%
WU
37.2%
US IT
20.1%
US Market
Return vs Industry: WU exceeded the US IT industry which returned 37.2% over the past year.
Return vs Market: WU exceeded the US Market which returned 20.1% over the past year.
Shareholder returns
| WU | Industry | Market | |
|---|---|---|---|
| 7 Day | -5.1% | 2.1% | 1.5% |
| 30 Day | -5.5% | 4.4% | 1.4% |
| 90 Day | -3.1% | 13.9% | 8.7% |
| 1 Year | 52.9%47.4% | 38.6%37.2% | 22.7%20.1% |
| 3 Year | 48.0%32.4% | 112.3%103.1% | 50.1%40.5% |
| 5 Year | 60.8%34.9% | 148.0%125.8% | 73.1%54.1% |
Price Volatility Vs. Market
How volatile is Western Union's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 days ago | Simply Wall St
The Western Union Company Just Released Its Full-Year Results And Analysts Are Updating Their Estimates2 weeks ago | Simply Wall St
Why The Western Union Company's (NYSE:WU) CEO Pay Matters To You1 month ago | Simply Wall St
Why The Western Union Company (NYSE:WU) Could Be Worth WatchingValuation
Is Western Union undervalued compared to its fair value and its price relative to the market?
41.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: WU ($26.24) is trading below our estimate of fair value ($44.73)
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 (10.6x) compared to the IT industry average (33.1x).
PE vs Market: WU is good value based on its PE Ratio (10.6x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: WU's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: WU has negative assets, so we can't compare its PB Ratio to the US IT industry average.
Next Steps
Future Growth
How is Western Union forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
-5.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WU's earnings are forecast to decline over the next 3 years (-5.8% per year).
Earnings vs Market: WU's earnings are forecast to decline over the next 3 years (-5.8% per year).
High Growth Earnings: WU's earnings are forecast to decline over the next 3 years.
Revenue vs Market: WU's revenue (0.9% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: WU's revenue (0.9% 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 (65.5%).
Next Steps
Past Performance
How has Western Union performed over the past 5 years?
-7.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WU has a large one-off gain of $409.1M impacting its December 31 2019 financial results.
Growing Profit Margin: WU's current net profit margins (20%) are higher than last year (15.2%).
Past Earnings Growth Analysis
Earnings Trend: WU's earnings have declined by -7.4% per year over the past 5 years.
Accelerating Growth: WU's earnings growth over the past year (24.2%) exceeds its 5-year average (-7.4% per year).
Earnings vs Industry: WU earnings growth over the past year (24.2%) exceeded the IT industry 12%.
Return on Equity
High ROE: WU's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Western Union's financial position?
Financial Position Analysis
Short Term Liabilities: WU has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.
Long Term Liabilities: WU has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.
Debt to Equity History and Analysis
Debt Level: WU has negative shareholder equity, which is a more serious situation than a high debt level.
Reducing Debt: WU's has negative shareholder equity, so we do not need to check if its debt has reduced over time.
Debt Coverage: WU's debt is well covered by operating cash flow (30.7%).
Interest Coverage: WU's interest payments on its debt are well covered by EBIT (7.2x coverage).
Balance Sheet
Inventory Level: WU has a low level of unsold assets or inventory.
Debt Coverage by Assets: WU has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
Next Steps
Dividend
What is Western Union's current dividend yield, its reliability and sustainability?
3.43%
Current Dividend Yield
Upcoming Dividend Payment
Purchase Western Union before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: WU's dividend (3.43%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: WU's dividend (3.43%) is low compared to the top 25% of dividend payers in the US market (3.69%).
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 (32.3%), 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 (32.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.6yrs
Average management tenure
CEO
Hikmet Ersek (58yo)
9.4yrs
Tenure
US$9,175,300
Compensation
Mr. Hikmet Ersek has been the Chief Executive Officer and President at The Western Union Company since September 1, 2010. Mr. Ersek served as the Chief Operating Officer of The Western Union Company from J ...
CEO Compensation Analysis
Compensation vs Market: Hikmet's total compensation ($USD9.18M) is about average for companies of similar size in the US market ($USD10.81M).
Compensation vs Earnings: Hikmet's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 9.4yrs | US$9.18m | 0.19% $20.9m | |
| Executive VP & CFO | 5.6yrs | US$3.43m | 0.050% $5.5m | |
| Chief Legal Officer & Corporate Secretary | 2.2yrs | US$1.95m | 0.0018% $191.9k | |
| Executive VP & President of Global Network | 10.9yrs | US$1.99m | 0.037% $4.0m | |
| Senior VP | 0yrs | no data | 0.015% $1.7m | |
| Senior VP | 0yrs | no data | no data | |
| Chief Compliance Officer | 1.1yrs | no data | no data | |
| Chief Corporate Affairs & Communications Officer | 1.1yrs | no data | no data | |
| Chief People Officer | 7.1yrs | no data | 0.017% $1.9m | |
| Senior VP & GM of US | 0yrs | no data | no data |
5.6yrs
Average Tenure
53yo
Average Age
Experienced Management: WU's management team is seasoned and experienced (5.6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 9.4yrs | US$9.18m | 0.19% $20.9m | |
| Non-Executive Chairman of the Board | 2.8yrs | US$485.00k | 0.0011% $119.6k | |
| Independent Director | 8.1yrs | US$278.80k | 0.013% $1.4m | |
| Independent Director | 7.6yrs | US$245.00k | 0.0028% $309.3k | |
| Independent Director | 13.4yrs | US$245.00k | 0.016% $1.8m | |
| Independent Director | 13.4yrs | US$285.00k | 0.0012% $131.6k | |
| Independent Director | 13.4yrs | US$245.00k | 0.030% $3.3m | |
| Independent Director | 4.6yrs | US$270.00k | 0.0054% $593.4k | |
| Independent Director | 6.5yrs | US$335.00k | no data | |
| Independent Director | 1.6yrs | US$106.90k | no data |
7.8yrs
Average Tenure
61yo
Average Age
Experienced Board: WU's board of directors are considered experienced (7.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: WU 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 company bio, 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$10.968b
- Shares outstanding: 418.00m
- Website: https://www.westernunion.com
Number of Employees
Location
- The Western Union Company
- 7001 East Belleview Avenue
- Denver
- Colorado
- 80237
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| WU | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Sep 2006 |
| W3U | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Sep 2006 |
| WU * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Sep 2006 |
| 0LVJ | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Sep 2006 |
| WUNI34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR REPR 1 COM SHARE USD0.01 | BR | BRL | Jul 2015 |
Biography
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 founded in 1851 and is headquartered in Denver, Colorado.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/16 23:58 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.