WEX INC (WEX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WEX - US96208T1043 - Common Stock
148.36 USD
-0.3 (-0.2%)
148.36 USD
0 (0%)
Overall WEX gets a fundamental rating of 4 out of 10. We evaluated WEX against 98 industry peers in the Financial Services industry. There are concerns on the financial health of WEX while its profitability can be described as average. WEX has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year WEX was profitable.
WEX had a positive operating cash flow in the past year.
Of the past 5 years WEX 4 years were profitable.
WEX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WEX has a Return On Assets (1.97%) which is in line with its industry peers.
The Return On Equity of WEX (25.38%) is better than 90.82% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.87%, WEX is in the better half of the industry, outperforming 75.51% of the companies in the same industry.
WEX had an Average Return On Invested Capital over the past 3 years of 8.63%. This is in line with the industry average of 8.20%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.97% | ||
| ROE | 25.38% | ||
| ROIC | 7.87% |
ROA(3y)2%
ROA(5y)0.6%
ROE(3y)15.88%
ROE(5y)6.97%
ROIC(3y)8.63%
ROIC(5y)6.48%
1.3 Margins
The Profit Margin of WEX (10.81%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of WEX has grown nicely.
WEX's Operating Margin of 29.09% is fine compared to the rest of the industry. WEX outperforms 75.51% of its industry peers.
WEX's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 63.19%, WEX is doing good in the industry, outperforming 76.53% of the companies in the same industry.
In the last couple of years the Gross Margin of WEX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.09% | ||
| PM (TTM) | 10.81% | ||
| GM | 63.19% |
OM growth 3Y15.67%
OM growth 5Y3.83%
PM growth 3Y1067.47%
PM growth 5Y15.45%
GM growth 3Y1.01%
GM growth 5Y0.1%
2. Health
2.1 Basic Checks
WEX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, WEX has less shares outstanding
Compared to 5 years ago, WEX has less shares outstanding
WEX has a worse debt/assets ratio than last year.
2.2 Solvency
WEX has an Altman-Z score of 0.50. This is a bad value and indicates that WEX is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.50, WEX perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
The Debt to FCF ratio of WEX is 7.82, which is on the high side as it means it would take WEX, 7.82 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.82, WEX is in line with its industry, outperforming 48.98% of the companies in the same industry.
A Debt/Equity ratio of 4.44 is on the high side and indicates that WEX has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 4.44, WEX is doing worse than 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.44 | ||
| Debt/FCF | 7.82 | ||
| Altman-Z | 0.5 |
ROIC/WACC1.07
WACC7.38%
2.3 Liquidity
WEX has a Current Ratio of 0.57. This is a bad value and indicates that WEX is not financially healthy enough and could expect problems in meeting its short term obligations.
WEX's Current ratio of 0.57 is on the low side compared to the rest of the industry. WEX is outperformed by 60.20% of its industry peers.
WEX has a Quick Ratio of 0.57. 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 (0.57) is worse than 60.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.58% 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.
Looking at the last year, WEX shows a decrease in Revenue. The Revenue has decreased by -1.15% in the last year.
Measured over the past years, WEX shows a quite strong growth in Revenue. The Revenue has been growing by 8.80% on average per year.
EPS 1Y (TTM)0.58%
EPS 3Y18.73%
EPS 5Y10.68%
EPS Q2Q%5.52%
Revenue 1Y (TTM)-1.15%
Revenue growth 3Y12.4%
Revenue growth 5Y8.8%
Sales Q2Q%3.95%
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 8.79% on average per year.
Based on estimates for the next years, WEX will show a small growth in Revenue. The Revenue will grow by 4.21% on average per year.
EPS Next Y4.53%
EPS Next 2Y8.18%
EPS Next 3Y8.06%
EPS Next 5Y8.79%
Revenue Next Year0.68%
Revenue Next 2Y2.77%
Revenue Next 3Y3.66%
Revenue Next 5Y4.21%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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 9.50, the valuation of WEX can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of WEX indicates a somewhat cheap valuation: WEX is cheaper than 65.31% of the companies listed in the same industry.
WEX is valuated cheaply when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
WEX is valuated reasonably with a Price/Forward Earnings ratio of 8.30.
Based on the Price/Forward Earnings ratio, WEX is valued a bit cheaper than 66.33% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.59, WEX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.5 | ||
| Fwd PE | 8.3 |
4.2 Price Multiples
79.59% of the companies in the same industry are more expensive than WEX, based on the Enterprise Value to EBITDA ratio.
81.63% of the companies in the same industry are more expensive than WEX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.91 | ||
| EV/EBITDA | 7.36 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WEX does not grow enough to justify the current Price/Earnings ratio.
WEX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.1
PEG (5Y)0.89
EPS Next 2Y8.18%
EPS Next 3Y8.06%
5. Dividend
5.1 Amount
WEX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
148.36
-0.3 (-0.2%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners113.29%
Inst Owner Change-0.47%
Ins Owners0.61%
Ins Owner Change0.49%
Market Cap5.08B
Revenue(TTM)2.62B
Net Income(TTM)283.80M
Analysts71.11
Price Target180.48 (21.65%)
Short Float %4.96%
Short Ratio4.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.19%
Min EPS beat(2)2.52%
Max EPS beat(2)5.86%
EPS beat(4)3
Avg EPS beat(4)2.08%
Min EPS beat(4)-0.45%
Max EPS beat(4)5.86%
EPS beat(8)6
Avg EPS beat(8)1.61%
EPS beat(12)10
Avg EPS beat(12)2.51%
EPS beat(16)14
Avg EPS beat(16)3.16%
Revenue beat(2)1
Avg Revenue beat(2)0.32%
Min Revenue beat(2)-0.18%
Max Revenue beat(2)0.81%
Revenue beat(4)1
Avg Revenue beat(4)-0.09%
Min Revenue beat(4)-0.62%
Max Revenue beat(4)0.81%
Revenue beat(8)2
Avg Revenue beat(8)-0.9%
Revenue beat(12)5
Avg Revenue beat(12)-0.13%
Revenue beat(16)9
Avg Revenue beat(16)0.58%
PT rev (1m)-2.57%
PT rev (3m)-2.42%
EPS NQ rev (1m)1.75%
EPS NQ rev (3m)2.35%
EPS NY rev (1m)0.82%
EPS NY rev (3m)1.05%
Revenue NQ rev (1m)0.43%
Revenue NQ rev (3m)0.83%
Revenue NY rev (1m)0.45%
Revenue NY rev (3m)0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.5 | ||
| Fwd PE | 8.3 | ||
| P/S | 1.94 | ||
| P/FCF | 7.91 | ||
| P/OCF | 6.37 | ||
| P/B | 4.54 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.36 |
EPS(TTM)15.62
EY10.53%
EPS(NY)17.88
Fwd EY12.05%
FCF(TTM)18.76
FCFY12.64%
OCF(TTM)23.29
OCFY15.7%
SpS76.61
BVpS32.64
TBVpS-88.39
PEG (NY)2.1
PEG (5Y)0.89
Graham Number107.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.97% | ||
| ROE | 25.38% | ||
| ROCE | 13.06% | ||
| ROIC | 7.87% | ||
| ROICexc | 8.89% | ||
| ROICexgc | 28.5% | ||
| OM | 29.09% | ||
| PM (TTM) | 10.81% | ||
| GM | 63.19% | ||
| FCFM | 24.48% |
ROA(3y)2%
ROA(5y)0.6%
ROE(3y)15.88%
ROE(5y)6.97%
ROIC(3y)8.63%
ROIC(5y)6.48%
ROICexc(3y)9.95%
ROICexc(5y)7.43%
ROICexgc(3y)59.51%
ROICexgc(5y)44.03%
ROCE(3y)11.79%
ROCE(5y)8.85%
ROICexgc growth 3Y50.84%
ROICexgc growth 5Y0.15%
ROICexc growth 3Y36.06%
ROICexc growth 5Y10.13%
OM growth 3Y15.67%
OM growth 5Y3.83%
PM growth 3Y1067.47%
PM growth 5Y15.45%
GM growth 3Y1.01%
GM growth 5Y0.1%
F-Score4
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.44 | ||
| Debt/FCF | 7.82 | ||
| Debt/EBITDA | 4.54 | ||
| Cap/Depr | 46.95% | ||
| Cap/Sales | 5.92% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.91% | ||
| Profit Quality | 226.43% | ||
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 0.5 |
F-Score4
WACC7.38%
ROIC/WACC1.07
Cap/Depr(3y)48.37%
Cap/Depr(5y)41.48%
Cap/Sales(3y)5.52%
Cap/Sales(5y)5.27%
Profit Quality(3y)223.62%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)0.58%
EPS 3Y18.73%
EPS 5Y10.68%
EPS Q2Q%5.52%
EPS Next Y4.53%
EPS Next 2Y8.18%
EPS Next 3Y8.06%
EPS Next 5Y8.79%
Revenue 1Y (TTM)-1.15%
Revenue growth 3Y12.4%
Revenue growth 5Y8.8%
Sales Q2Q%3.95%
Revenue Next Year0.68%
Revenue Next 2Y2.77%
Revenue Next 3Y3.66%
Revenue Next 5Y4.21%
EBIT growth 1Y-4.19%
EBIT growth 3Y30.01%
EBIT growth 5Y12.97%
EBIT Next Year6.88%
EBIT Next 3Y7.02%
EBIT Next 5YN/A
FCF growth 1Y185.37%
FCF growth 3Y72.27%
FCF growth 5Y-10.1%
OCF growth 1Y116.39%
OCF growth 3Y47.37%
OCF growth 5Y-6.21%
WEX INC / WEX FAQ
What is the fundamental rating for WEX stock?
ChartMill assigns a fundamental rating of 4 / 10 to WEX.
What is the valuation status of WEX INC (WEX) stock?
ChartMill assigns a valuation rating of 6 / 10 to WEX INC (WEX). This can be considered as Fairly Valued.
How profitable is WEX INC (WEX) stock?
WEX INC (WEX) has a profitability rating of 6 / 10.
What is the valuation of WEX INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for WEX INC (WEX) is 9.5 and the Price/Book (PB) ratio is 4.54.