Best Dividend Stocks. Analyze the stocks with the best dividend, while also showing decent profitability and health.


WESTERN UNION CO

New York Stock Exchange, Inc. / Financials / Financial Services

Fundamental Rating

6

Overall WU gets a fundamental rating of 6 out of 10. We evaluated WU against 101 industry peers in the Financial Services industry. While WU has a great profitability rating, there are some minor concerns on its financial health. WU is valued quite cheap, but it does not seem to be growing. Finally WU also has an excellent dividend rating. These ratings would make WU suitable for value and dividend investing!


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

WU had positive earnings in the past year.
In the past year WU had a positive cash flow from operations.
In the past 5 years WU has always been profitable.
WU had a positive operating cash flow in each of the past 5 years.
WU Yearly Net Income VS EBIT VS OCF VS FCFWU Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M -500M 1B

1.2 Ratios

WU's Return On Assets of 11.16% is amongst the best of the industry. WU outperforms 92.08% of its industry peers.
Looking at the Return On Equity, with a value of 96.42%, WU belongs to the top of the industry, outperforming 99.01% of the companies in the same industry.
WU has a Return On Invested Capital of 8.37%. This is amongst the best in the industry. WU outperforms 81.19% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WU is in line with the industry average of 7.75%.
Industry RankSector Rank
ROA 11.16%
ROE 96.42%
ROIC 8.37%
ROA(3y)9.84%
ROA(5y)9.3%
ROE(3y)139.23%
ROE(5y)208.46%
ROIC(3y)9.58%
ROIC(5y)10.5%
WU Yearly ROA, ROE, ROICWU Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -1K -2K

1.3 Margins

WU has a Profit Margin of 22.19%. This is in the better half of the industry: WU outperforms 77.23% of its industry peers.
WU's Profit Margin has improved in the last couple of years.
WU has a better Operating Margin (18.22%) than 64.36% of its industry peers.
In the last couple of years the Operating Margin of WU has grown nicely.
The Gross Margin of WU (38.23%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of WU has declined.
Industry RankSector Rank
OM 18.22%
PM (TTM) 22.19%
GM 38.23%
OM growth 3Y-8.01%
OM growth 5Y2.8%
PM growth 3Y11.78%
PM growth 5Y2.1%
GM growth 3Y-4.16%
GM growth 5Y-1.6%
WU Yearly Profit, Operating, Gross MarginsWU Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20 30 40

5

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WU is destroying value.
The number of shares outstanding for WU has been reduced compared to 1 year ago.
WU has less shares outstanding than it did 5 years ago.
WU has a worse debt/assets ratio than last year.
WU Yearly Shares OutstandingWU Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M
WU Yearly Total Debt VS Total AssetsWU Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

2.2 Solvency

WU has an Altman-Z score of 1.22. This is a bad value and indicates that WU is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.22, WU is doing good in the industry, outperforming 62.38% of the companies in the same industry.
WU has a debt to FCF ratio of 10.67. This is a negative value and a sign of low solvency as WU would need 10.67 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 10.67, WU is in line with its industry, outperforming 50.49% of the companies in the same industry.
A Debt/Equity ratio of 3.04 is on the high side and indicates that WU has dependencies on debt financing.
WU has a worse Debt to Equity ratio (3.04) than 77.23% of its industry peers.
Industry RankSector Rank
Debt/Equity 3.04
Debt/FCF 10.67
Altman-Z 1.22
ROIC/WACC0.77
WACC10.93%
WU Yearly LT Debt VS Equity VS FCFWU Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B 3B

2.3 Liquidity

WU has a Current Ratio of 2.17. This indicates that WU is financially healthy and has no problem in meeting its short term obligations.
WU's Current ratio of 2.17 is fine compared to the rest of the industry. WU outperforms 76.24% of its industry peers.
A Quick Ratio of 2.17 indicates that WU has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.17, WU is doing good in the industry, outperforming 77.23% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.17
Quick Ratio 2.17
WU Yearly Current Assets VS Current LiabilitesWU Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

3

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 0.57% over the past year.
The Earnings Per Share has been growing slightly by 0.23% on average over the past years.
Looking at the last year, WU shows a decrease in Revenue. The Revenue has decreased by -3.38% in the last year.
The Revenue has been decreasing by -4.47% on average over the past years.
EPS 1Y (TTM)0.57%
EPS 3Y-7.2%
EPS 5Y0.23%
EPS Q2Q%8.11%
Revenue 1Y (TTM)-3.38%
Revenue growth 3Y-6.02%
Revenue growth 5Y-4.47%
Sales Q2Q%0.56%

3.2 Future

Based on estimates for the next years, WU will show a small growth in Earnings Per Share. The EPS will grow by 3.24% on average per year.
WU is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.73% yearly.
EPS Next Y5.15%
EPS Next 2Y5.13%
EPS Next 3Y5.05%
EPS Next 5Y3.24%
Revenue Next Year0.53%
Revenue Next 2Y1.21%
Revenue Next 3Y1.78%
Revenue Next 5Y1.73%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
WU Yearly Revenue VS EstimatesWU Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1B 2B 3B 4B 5B
WU Yearly EPS VS EstimatesWU Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0.5 1 1.5 2

8

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 6.09 indicates a rather cheap valuation of WU.
Based on the Price/Earnings ratio, WU is valued cheaply inside the industry as 92.08% of the companies are valued more expensively.
WU's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.63.
WU is valuated cheaply with a Price/Forward Earnings ratio of 5.79.
Based on the Price/Forward Earnings ratio, WU is valued cheaply inside the industry as 93.07% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of WU to the average of the S&P500 Index (22.68), we can say WU is valued rather cheaply.
Industry RankSector Rank
PE 6.09
Fwd PE 5.79
WU Price Earnings VS Forward Price EarningsWU Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, WU is valued cheaper than 93.07% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WU indicates a somewhat cheap valuation: WU is cheaper than 74.26% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 13.06
EV/EBITDA 5.39
WU Per share dataWU EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10

4.3 Compensation for Growth

WU's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of WU may justify a higher PE ratio.
PEG (NY)1.18
PEG (5Y)26.47
EPS Next 2Y5.13%
EPS Next 3Y5.05%

8

5. Dividend

5.1 Amount

WU has a Yearly Dividend Yield of 9.07%, which is a nice return.
WU's Dividend Yield is rather good when compared to the industry average which is at 3.86. WU pays more dividend than 97.03% of the companies in the same industry.
WU's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
Industry RankSector Rank
Dividend Yield 9.07%

5.2 History

The dividend of WU has a limited annual growth rate of 3.31%.
WU has been paying a dividend for at least 10 years, so it has a reliable track record.
WU has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.31%
Div Incr Years0
Div Non Decr Years17
WU Yearly Dividends per shareWU Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8

5.3 Sustainability

WU pays out 34.41% of its income as dividend. This is a sustainable payout ratio.
WU's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP34.41%
EPS Next 2Y5.13%
EPS Next 3Y5.05%
WU Yearly Income VS Free CF VS DividendWU Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M -500M 1B
WU Dividend Payout.WU Dividend Payout, showing the Payout Ratio.WU Dividend Payout.PayoutRetained Earnings