WEX INC (WEX) Stock Fundamental Analysis
NYSE:WEX - New York Stock Exchange, Inc. - US96208T1043 - Common Stock - Currency: USD
Taking everything into account, WEX scores 4 out of 10 in our fundamental rating. WEX was compared to 101 industry peers in the Financial Services industry. WEX has a medium profitability rating, but doesn't score so well on its financial health evaluation. WEX is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
WEX had positive earnings in the past year.
WEX had a positive operating cash flow in the past year.
WEX had positive earnings in 4 of the past 5 years.
WEX had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
WEX has a Return On Assets (2.37%) which is in line with its industry peers.
WEX's Return On Equity of 19.71% is amongst the best of the industry. WEX outperforms 84.16% of its industry peers.
WEX has a better Return On Invested Capital (8.02%) than 80.20% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WEX is in line with the industry average of 7.75%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.37% | ||
| ROE | 19.71% | ||
| ROIC | 8.02% |
ROA(3y)2%
ROA(5y)0.6%
ROE(3y)15.88%
ROE(5y)6.97%
ROIC(3y)8.57%
ROIC(5y)6.44%
1.3 Margins
Looking at the Profit Margin, with a value of 12.45%, WEX is in line with its industry, outperforming 54.46% of the companies in the same industry.
In the last couple of years the Profit Margin of WEX has grown nicely.
The Operating Margin of WEX (30.54%) is better than 78.22% of its industry peers.
In the last couple of years the Operating Margin of WEX has grown nicely.
WEX has a Gross Margin of 64.90%. This is in the better half of the industry: WEX outperforms 77.23% of its industry peers.
WEX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.54% | ||
| PM (TTM) | 12.45% | ||
| GM | 64.9% |
OM growth 3Y15.41%
OM growth 5Y3.69%
PM growth 3Y1067.47%
PM growth 5Y15.45%
GM growth 3Y1.01%
GM growth 5Y0.1%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WEX is destroying value.
Compared to 1 year ago, WEX has less shares outstanding
Compared to 5 years ago, WEX has less shares outstanding
Compared to 1 year ago, WEX has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.59, we must say that WEX is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of WEX (0.59) is comparable to the rest of the industry.
The Debt to FCF ratio of WEX is 10.19, which is on the high side as it means it would take WEX, 10.19 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of WEX (10.19) is comparable to the rest of the industry.
A Debt/Equity ratio of 2.70 is on the high side and indicates that WEX has dependencies on debt financing.
With a Debt to Equity ratio value of 2.70, WEX is not doing good in the industry: 72.28% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.7 | ||
| Debt/FCF | 10.19 | ||
| Altman-Z | 0.59 |
ROIC/WACC0.66
WACC12.15%
2.3 Liquidity
A Current Ratio of 0.58 indicates that WEX may have some problems paying its short term obligations.
WEX has a worse Current ratio (0.58) than 62.38% of its industry peers.
WEX has a Quick Ratio of 0.58. This is a bad value and indicates that WEX is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of WEX (0.58) is worse than 62.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.17% over the past year.
Measured over the past years, WEX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.68% on average per year.
The Revenue has been growing slightly by 3.15% in the past year.
WEX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.80% yearly.
EPS 1Y (TTM)3.17%
EPS 3Y18.73%
EPS 5Y10.68%
EPS Q2Q%-6.54%
Revenue 1Y (TTM)3.15%
Revenue growth 3Y12.4%
Revenue growth 5Y8.8%
Sales Q2Q%-4.04%
3.2 Future
Based on estimates for the next years, WEX will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.77% on average per year.
Based on estimates for the next years, WEX will show a small growth in Revenue. The Revenue will grow by 5.87% on average per year.
EPS Next Y-1.16%
EPS Next 2Y5.07%
EPS Next 3Y7.1%
EPS Next 5Y13.77%
Revenue Next Year3.51%
Revenue Next 2Y5.18%
Revenue Next 3Y8.1%
Revenue Next 5Y5.87%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.85, the valuation of WEX can be described as very reasonable.
68.32% of the companies in the same industry are more expensive than WEX, based on the Price/Earnings ratio.
WEX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.63.
The Price/Forward Earnings ratio is 9.97, which indicates a very decent valuation of WEX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WEX indicates a somewhat cheap valuation: WEX is cheaper than 62.38% of the companies listed in the same industry.
WEX is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.85 | ||
| Fwd PE | 9.97 |
4.2 Price Multiples
85.15% of the companies in the same industry are more expensive than WEX, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, WEX is valued a bit cheaper than 73.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.32 | ||
| EV/EBITDA | 7.77 |
4.3 Compensation for Growth
The decent profitability rating of WEX may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.92
EPS Next 2Y5.07%
EPS Next 3Y7.1%
5. Dividend
5.1 Amount
No dividends for WEX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
150.5
-2.38 (-1.56%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners100.89%
Inst Owner Change-4.91%
Ins Owners0.41%
Ins Owner Change-0.25%
Market Cap5.99B
Analysts72.38
Price Target179.69 (19.4%)
Short Float %1.99%
Short Ratio1.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.72%
Min EPS beat(2)-2.49%
Max EPS beat(2)3.94%
EPS beat(4)3
Avg EPS beat(4)1.15%
Min EPS beat(4)-2.49%
Max EPS beat(4)3.94%
EPS beat(8)7
Avg EPS beat(8)2.72%
EPS beat(12)11
Avg EPS beat(12)3.52%
EPS beat(16)14
Avg EPS beat(16)4.45%
Revenue beat(2)0
Avg Revenue beat(2)-3.04%
Min Revenue beat(2)-4.17%
Max Revenue beat(2)-1.91%
Revenue beat(4)1
Avg Revenue beat(4)-1.71%
Min Revenue beat(4)-4.17%
Max Revenue beat(4)0.55%
Revenue beat(8)4
Avg Revenue beat(8)-0.15%
Revenue beat(12)8
Avg Revenue beat(12)0.8%
Revenue beat(16)11
Avg Revenue beat(16)0.98%
PT rev (1m)-3.95%
PT rev (3m)-11.38%
EPS NQ rev (1m)-1.55%
EPS NQ rev (3m)-0.4%
EPS NY rev (1m)-12.48%
EPS NY rev (3m)-12.42%
Revenue NQ rev (1m)-0.52%
Revenue NQ rev (3m)-0.24%
Revenue NY rev (1m)-0.54%
Revenue NY rev (3m)-0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.85 | ||
| Fwd PE | 9.97 | ||
| P/S | 2.25 | ||
| P/FCF | 13.32 | ||
| P/OCF | 9.9 | ||
| P/B | 3.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.77 |
EPS(TTM)15.28
EY10.15%
EPS(NY)15.1
Fwd EY10.03%
FCF(TTM)11.29
FCFY7.5%
OCF(TTM)15.21
OCFY10.1%
SpS66.74
BVpS42.17
TBVpS-66.9
PEG (NY)N/A
PEG (5Y)0.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.37% | ||
| ROE | 19.71% | ||
| ROCE | 13.47% | ||
| ROIC | 8.02% | ||
| ROICexc | 8.64% | ||
| ROICexgc | 24.78% | ||
| OM | 30.54% | ||
| PM (TTM) | 12.45% | ||
| GM | 64.9% | ||
| FCFM | 16.92% |
ROA(3y)2%
ROA(5y)0.6%
ROE(3y)15.88%
ROE(5y)6.97%
ROIC(3y)8.57%
ROIC(5y)6.44%
ROICexc(3y)9.88%
ROICexc(5y)7.39%
ROICexgc(3y)60.05%
ROICexgc(5y)44.35%
ROCE(3y)11.71%
ROCE(5y)8.8%
ROICexcg growth 3Y51.97%
ROICexcg growth 5Y0.6%
ROICexc growth 3Y35.23%
ROICexc growth 5Y9.73%
OM growth 3Y15.41%
OM growth 5Y3.69%
PM growth 3Y1067.47%
PM growth 5Y15.45%
GM growth 3Y1.01%
GM growth 5Y0.1%
F-Score7
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.7 | ||
| Debt/FCF | 10.19 | ||
| Debt/EBITDA | 4.02 | ||
| Cap/Depr | 49.49% | ||
| Cap/Sales | 5.86% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 53.75% | ||
| Profit Quality | 135.9% | ||
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | 0.59 |
F-Score7
WACC12.15%
ROIC/WACC0.66
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)3.17%
EPS 3Y18.73%
EPS 5Y10.68%
EPS Q2Q%-6.54%
EPS Next Y-1.16%
EPS Next 2Y5.07%
EPS Next 3Y7.1%
EPS Next 5Y13.77%
Revenue 1Y (TTM)3.15%
Revenue growth 3Y12.4%
Revenue growth 5Y8.8%
Sales Q2Q%-4.04%
Revenue Next Year3.51%
Revenue Next 2Y5.18%
Revenue Next 3Y8.1%
Revenue Next 5Y5.87%
EBIT growth 1Y12.98%
EBIT growth 3Y29.72%
EBIT growth 5Y12.82%
EBIT Next Year15.3%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y99.53%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y64.03%
OCF growth 3YN/A
OCF growth 5YN/A