Western Union Stock Analysis, Valuation (NYSE:WU)

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$20.26 $0.06 (0.3%) WU stock closing price Feb 16, 2018 (Closing)
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Western Union
Updated on : Feb 16, 2018
previous close
WU 20.3 (0%)
S&P 500 2732.2 (0%)
Closing Price On: Feb 16, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Financial Transaction Services
Sector :
Business Services
5 Quarter Revenue
Revenue Growth
2017-Q3
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-0.8%
Operating Profit
Operating Margin:
7.6%
Sector Average:
8.4%
5 Quarter Net Profit
Net Margins
2017-Q3
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
3.53B
Debt/Equity Ratio:
 4.98
Compared to the industry
Cash Flow
Operating cash flow:
$447.1M
Net Income:
$235.6M
Dividend Yield
WU dividend yield:
3.46%
PROS      CONS
Net Margins
Cash Flow
ROE
FCF Margin
PE Valuation
Recent Growth
Long Term Growth
High Debt Burden
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
WU PS :
1.7
Industry PS :
1.7
Sector:   Business Services.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
8.3%
Return on Equity:
23.7%
Free Cash Flow Margin:
30.3%
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Western Union Stock Analysis

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View the Western Union stock analysis video on Amigobulls. This video puts forward our latest analysis highlighting the pros and cons for WU stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

The Western Union Company Stock Rating 3/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for WU stock analysis. Western Union valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Western Union stock rating is our opinion about the business fundamentals of the company.

Should you buy WU stock?

  • Net margins stood at a healthy 3.8% (average) for Western Union in the Trailing Twelve Months.
  • The operating cash flow looks good at 1.9 times the net income.
  • WU stock is trading at an earnings multiple of 11 which is better than the industry average of 21.8.
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for Western Union at 23.7%.
  • Western Union has a healthy FCF (Free Cash Flow) margin of 30.3%.

Should you sell WU stock?

  • Western Union salesgrew by a marginal 2% year over year in 2017 Q3.
  • Revenue declined at a CAGR of -0.8% over the last 5 years.
  • Western Union is debt laden and has a high debt/equity ratio of  4.98.

Comments on this video and Western Union stock

Amigobulls Western Union stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of WU stock. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

While doing a study of the company financials, Western Union revenue growth and profit or net income are two main metrics which help in identifying whether WU stock is overvalued or undervalued. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of Western Union stock.