(WU) Western Union - Overview
Sector: Financial Services | Industry: Credit Services | Exchange: NYSE (USA) | Market Cap: 2.606m USD | Total Return: -6.1% in 12m
Industry Rotation: -10.2
Avg Turnover: 68.1M
EPS Trend: -27.9%
Qual. Beats: -1
Rev. Trend: -78.6%
Qual. Beats: 0
Warnings
Choppy Below Avwap Earnings
Tailwinds
No distinct edge detected
The Western Union Company (WU) is a global leader in cross-border money movement and digital financial services. Founded in 1851 and based in Denver, the firm operates through two primary segments: Consumer Money Transfer and Consumer Services. Its infrastructure combines a vast physical network of retail agents with expanding digital platforms, including mobile applications and digital wallets.
As a key player in the Transaction & Payment Processing Services sub-industry, Western Union relies heavily on remittance flows, which are often driven by global migration patterns and macroeconomic stability in developing regions. Unlike pure-play digital processors, the company maintains a capital-intensive physical footprint to facilitate cash-to-cash transactions for unbanked and underbanked populations.
For a more detailed breakdown of these operational segments, consider reviewing the latest data on ValueRay. This legacy provider continues to diversify its revenue streams by offering bill payments, money orders, and prepaid card services to mitigate competition from emerging fintech startups.
- Digital money transfer growth offsets declining legacy retail agent transaction volume
- Currency exchange rate volatility impacts international remittance revenue and margins
- Increasing competition from low-fee fintech startups pressures transaction pricing power
- Global migration trends and macroeconomic stability drive cross-border remittance demand
- Regulatory compliance costs and anti-money laundering litigation risks affect bottom-line profitability
| Net Income: 440.8m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.04 > 0.02 and ΔFCF/TA 0.01 > 1.0 |
| NWC/Revenue: 20.84% < 20% (prev 7.03%; Δ 13.81% < -1%) |
| CFO/TA 0.06 > 3% & CFO 504.5m > Net Income 440.8m |
| Net Debt (1.71b) to EBITDA (882.8m): 1.94 < 3 |
| Current Ratio: 13.86 > 1.5 & < 3 |
| Outstanding Shares: last quarter (316.8m) vs 12m ago -6.60% < -2% |
| Gross Margin: 34.02% > 18% (prev 0.37%; Δ 3.37k% > 0.5%) |
| Asset Turnover: 49.24% > 50% (prev 49.70%; Δ -0.46% > 0%) |
| Interest Coverage Ratio: 2.03 > 6 (EBITDA TTM 882.8m / Interest Expense TTM 350.2m) |
| A: 0.10 (Total Current Assets 909.2m - Total Current Liabilities 65.6m) / Total Assets 8.10b |
| B: -0.01 (Retained Earnings -76.9m / Total Assets 8.10b) |
| C: 0.09 (EBIT TTM 712.6m / Avg Total Assets 8.22b) |
| D: -0.03 (Book Value of Equity -215.8m / Total Liabilities 7.19b) |
| Altman-Z'' Score: 1.20 = BB |
| DSRI: 0.81 (Receivables 1.52b/1.92b, Revenue 4.05b/4.14b) |
| GMI: 1.10 (GM 34.02% / 37.30%) |
| AQI: 2.12 (AQ_t 0.88 / AQ_t-1 0.41) |
| SGI: 0.98 (Revenue 4.05b / 4.14b) |
| TATA: -0.01 (NI 440.8m - CFO 504.5m) / TA 8.10b) |
| Beneish M-Score: -2.46 (Cap -4..+1) = BBB |
Over the past week, the price has changed by -5.56%, over one month by -12.50%, over three months by -9.52% and over the past year by -6.07%.
- StrongBuy: 2
- Buy: 0
- Hold: 11
- Sell: 4
- StrongSell: 3
| Analysts Target Price | 9.5 | 13.6% |
P/E Forward = 4.8497
P/S = 0.6434
P/B = 3.1123
P/EG = 1.9518
Revenue TTM = 4.05b USD
EBIT TTM = 712.6m USD
EBITDA TTM = 882.8m USD
Long Term Debt = 2.29b USD (from longTermDebt, last quarter)
Short Term Debt = 334.0m USD (from shortLongTermDebt, last quarter)
Debt = 2.62b USD (Calculated: Short Term 334.0m + Long Term 2.29b)
Net Debt = 1.71b USD (recalculated: Debt 2.62b - CCE 909.2m)
Enterprise Value = 4.32b USD (2.61b + Debt 2.62b - CCE 909.2m)
Interest Coverage Ratio = 2.03 (Ebit TTM 712.6m / Interest Expense TTM 350.2m)
EV/FCF = 13.04x (Enterprise Value 4.32b / FCF TTM 331.3m)
FCF Yield = 7.67% (FCF TTM 331.3m / Enterprise Value 4.32b)
FCF Margin = 8.19% (FCF TTM 331.3m / Revenue TTM 4.05b)
Net Margin = 10.89% (Net Income TTM 440.8m / Revenue TTM 4.05b)
Gross Margin = 34.02% ((Revenue TTM 4.05b - Cost of Revenue TTM 2.67b) / Revenue TTM)
Gross Margin QoQ = 33.36% (prev 27.50%)
Tobins Q-Ratio = 0.53 (Enterprise Value 4.32b / Total Assets 8.10b)
Interest Expense / Debt = 1.38% (Interest Expense 36.2m / Debt 2.62b)
Taxrate = 28.19% (25.4m / 90.1m)
NOPAT = 511.7m (EBIT 712.6m * (1 - 28.19%))
Current Ratio = 13.86 (Total Current Assets 909.2m / Total Current Liabilities 65.6m)
Debt / Equity = 2.88 (Debt 2.62b / totalStockholderEquity, last quarter 910.5m)
Debt / EBITDA = 1.94 (Net Debt 1.71b / EBITDA 882.8m)
Debt / FCF = 5.17 (Net Debt 1.71b / FCF TTM 331.3m)
Total Stockholder Equity = 919.3m (last 4 quarters mean from totalStockholderEquity)
RoA = 5.36% (Net Income 440.8m / Total Assets 8.10b)
RoE = 47.95% (Net Income TTM 440.8m / Total Stockholder Equity 919.3m)
RoCE = 22.21% (EBIT 712.6m / Capital Employed (Equity 919.3m + L.T.Debt 2.29b))
RoIC = 14.10% (NOPAT 511.7m / Invested Capital 3.63b)
WACC = 4.63% (E(2.61b)/V(5.23b) * Re(8.29%) + D(2.62b)/V(5.23b) * Rd(1.38%) * (1-Tc(0.28)))
Discount Rate = 8.29% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -86.67 | Cagr: -5.65%
[DCF] Terminal Value 85.93% ; FCFF base≈335.0m ; Y1≈321.7m ; Y5≈314.8m
[DCF] Fair Price = 24.60 (EV 9.40b - Net Debt 1.71b = Equity 7.69b / Shares 312.4m; r=6.0% [WACC]; 5y FCF grow -5.30% → 3.0% )
EPS Correlation: -27.86 | EPS CAGR: -17.31% | SUE: -4.0 | # QB: -1
Revenue Correlation: -78.62 | Revenue CAGR: -3.84% | SUE: 0.72 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.44 | Chg30d=-2.31% | Revisions=-33% | Analysts=16
EPS next Quarter (2026-09-30): EPS=0.54 | Chg30d=+9.99% | Revisions=+79% | Analysts=15
EPS current Year (2026-12-31): EPS=1.75 | Chg30d=-2.45% | Revisions=-78% | GrowthEPS=+0.1% | GrowthRev=+5.5%
EPS next Year (2027-12-31): EPS=1.92 | Chg30d=-0.35% | Revisions=+7% | GrowthEPS=+9.5% | GrowthRev=+4.7%
[Analyst] Revisions Ratio: +79%