Western Union Stock Analysis, Valuation (NYSE:WU)

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$18.99 $0.08 (0.42%) WU stock closing price Sep 22, 2017 (Closing)
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Western Union
Updated on : Sep 22, 2017
previous close
WU 19 (0%)
S&P 500 2502.2 (0%)
Closing Price On: Sep 22, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Financial Transaction Services
Sector :
Business Services
5 Quarter Revenue
Revenue Growth
2017-Q2
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-0.8%
Operating Profit
Operating Margin:
7.7%
Sector Average:
8.3%
5 Quarter Net Profit
Net Margins
2017-Q2
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
3.63B
Debt/Equity Ratio:
 5.49
Compared to the industry
Cash Flow
Operating cash flow:
-$110.3M
Net Income:
$166.5M
Dividend Yield
WU dividend yield:
3.58%
PROS      CONS
Net Margins
ROE
PE Valuation
Recent Growth
Long Term Growth
High Debt Burden
Cash Flow
FCF Margin
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
WU PS :
1.6
Industry PS :
1.7
Sector:   Business Services.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
7.5%
Return on Equity:
19%
Free Cash Flow Margin:
-10.6%
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Western Union Stock Analysis

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View Western Union stock analysis video. This is our analyst opinion covering the buy and sell arguments for WU stock.

The Western Union Company Stock Rating 2.6/5

Our Western Union stock opinion is based on fundamentals of the company. This Western Union stock analysis is based on latest 2017 Q2 earnings. The stock price analysis takes into account the company's valuation metrics.

Should you buy WU stock?

  • Net margins stood at a healthy 3.5% (average) for Western Union in the Trailing Twelve Months.
  • WU stock is trading at an earnings multiple of 10.8 which is better than the industry average of 23.1.
  • Western Union has a good Return On Equity (ROE) of 19%.

Should you sell WU stock?

  • 2017 Q2 revenue growth of 0.2% YoY was meagre.
  • The company saw an average annual sales decline of -0.8% in sales over the last 5 years.
  • Western Union has a debt/equity ratio of  5.49, which is worse than the average in the Business Services sector.
  • The company has negative Free Cash Flows (FCF), with a negative FCF margin of -10.6%.

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