NYSE
WU
Last Price
US $7.85
KEY FIGURES
MKT CAP
$2.4B
EPS
TTM
$1.40
PEG
TTM
N/M
P/E
TTM
5.50x
P/S
TTM
0.58x
YIELD
12.48%
GROWTH
Revenue Y/Y
Cash Flow (DCF)
Fair Value
Market $7.85
62.80%
Default assumptions
EBITDA Multiple
Fair Value
Market $7.85
216.05%
Default assumptions
Valuation
Financial
Performance
Financial risk - Cash flow debt coverage.
The Western Union Company cash flow to debt ratio of 17.52% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.
Financial stability - Healthy cash flow growth.
The Western Union Company's free cash flow has increased 6.51% from $368.90M last year to $392.90M, signaling increasing performance
Financial risk - Healthy debt to equity ratio.
The Western Union Company's debt to equity ratio is 2.88, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial stability - Healthy debt to equity ratio development.
The Western Union Company's debt has decreased relative to shareholder equity from 3.23 last year to 2.88 today, signaling strengthened financials
Financial stability - Net debt/EBITDA.
The Western Union Company has a net debt to EBITDA ratio of 1.57x, which is below the 3.00x threshold, indicating healthy leverage and financial stability
Financial stability - ICR.
The Western Union Company's interest coverage ratio of 2.04 indicates that earnings with margin can cover interest payments on company debt
Financial risk - Profit margin growth.
The Western Union Company's profit margin has decreased (-50.92%) in the last year from 22.19% to 10.89%, signaling decreasing performance
Financial stability - Short term assets vs short term liabilities.
The Western Union Company's short-term assets of $5.00G exceed its short-term liabilities of $4.43G
Increasing performance - ROA.
The Western Union Company's return on assets of 5.44% is higher than the 5.00% threshold, indicating efficient asset utilization
Increasing performance - Absolute return on equity.
The Western Union Company's return on equity of 47.95%, is higher than 15.00%, indicating good performance
Increasing performance - Earnings quality.
The Western Union Company's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
The Western Union Company had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
The Western Union Company has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
The Western Union Company has a free cash flow yield of 16.70%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Decreasing performance - Healthy earnings growth.
The Western Union Company's yearly earnings has decreased -46.52% since last year from $934.20M to $499.60M, signaling decreasing performance
Decreasing performance - Healthy revenue growth.
The Western Union Company's yearly revenue has decreased -4.01% since last year from $4.21G to $4.04G, signaling decreasing performance
Increasing performance - ROIC.
ROIC 13.56% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.
Decreasing performance - 3-year revenue CAGR.
The Western Union Company's 3-year revenue CAGR of -3.35% is negative, indicating declining revenue over the past 3 years
Decreasing performance - Revenue consistency.
The Western Union Company had revenue growth in only 1.00 out of 5 years, indicating inconsistent revenue performance
Increasing performance - ROE consistency.
The Western Union Company had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Undervalued - DCF valuation.
The Western Union Company is undervalued relative to its fair value price of 12.78 based on Discounted Cash Flow model
Undervalued - Earnings yield.
The Western Union Company has an earnings yield of 18.57%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings
Undervalued - EBITDA valuation.
The Western Union Company is undervalued relative to its fair value price of 24.81 based on EBITDA multiple model
Undervalued - EV/EBITDA.
The Western Union Company has an EV/EBITDA ratio of 3.95x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Overvalued - PEG ratio value.
The Western Union Company has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails
Undervalued - P/B ratio.
The Western Union Company has a price-to-book ratio of 2.60x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
The Western Union Company has a price-to-sales ratio of 0.58x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue
Profit margin
Current Ratio
Capital Returns
47.95%
Return on equity
ROIC: 13.56%
Valuation History
5.5X
Price to Earnings
EV/EBITDA: 4.0X
Cash flow
Profit margin
-3.52%
(FY vs FY)
EBITDA Y/Y
-4.87%
(FY vs FY)
Cash flow Y/Y
-11.43%
(FY vs FY)
Base valuations use default assumptions. Customize in the Valuator.