WEX INC (WEX) Stock Fundamental Analysis
USA - NYSE:WEX - US96208T1043 - Common Stock
169.73 USD
-6.43 (-3.65%)
169.73 USD
0 (0%)
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. While WEX belongs to the best of the industry regarding profitability, there are concerns on its financial health. WEX has a decent growth rate and is not valued too expensively.
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.
In the past 5 years WEX always reported a positive cash flow from operatings.
1.2 Ratios
WEX has a Return On Assets of 2.09%. This is comparable to the rest of the industry: WEX outperforms 57.43% of its industry peers.
WEX has a Return On Equity of 31.31%. This is amongst the best in the industry. WEX outperforms 92.08% of its industry peers.
WEX has a Return On Invested Capital of 9.58%. This is amongst the best in the industry. WEX outperforms 83.17% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WEX is in line with the industry average of 7.64%.
The last Return On Invested Capital (9.58%) for WEX is above the 3 year average (8.63%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.09% | ||
| ROE | 31.31% | ||
| ROIC | 9.58% |
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
WEX has a Profit Margin (11.79%) which is in line with its industry peers.
In the last couple of years the Profit Margin of WEX has grown nicely.
The Operating Margin of WEX (29.86%) is better than 73.27% of its industry peers.
In the last couple of years the Operating Margin of WEX has grown nicely.
The Gross Margin of WEX (63.74%) is better than 76.24% of its industry peers.
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 | 29.86% | ||
| PM (TTM) | 11.79% | ||
| GM | 63.74% |
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.
WEX has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, WEX has less shares outstanding
The debt/assets ratio for WEX is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.52, we must say that WEX is in the distress zone and has some risk of bankruptcy.
WEX has a Altman-Z score of 0.52. This is comparable to the rest of the industry: WEX outperforms 51.49% of its industry peers.
The Debt to FCF ratio of WEX is 20.21, which is on the high side as it means it would take WEX, 20.21 years of fcf income to pay off all of its debts.
WEX has a Debt to FCF ratio (20.21) which is in line with its industry peers.
WEX has a Debt/Equity ratio of 3.99. This is a high value indicating a heavy dependency on external financing.
WEX's Debt to Equity ratio of 3.99 is on the low side compared to the rest of the industry. WEX is outperformed by 78.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.99 | ||
| Debt/FCF | 20.21 | ||
| Altman-Z | 0.52 |
ROIC/WACC1.15
WACC8.33%
2.3 Liquidity
A Current Ratio of 0.57 indicates that WEX may have some problems paying its short term obligations.
The Current ratio of WEX (0.57) is worse than 62.38% 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.
With a Quick ratio value of 0.57, WEX is not doing good in the industry: 62.38% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
WEX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.98%.
WEX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.68% yearly.
The Revenue has decreased by -1.62% 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)0.98%
EPS 3Y18.73%
EPS 5Y10.68%
EPS Q2Q%1.28%
Revenue 1Y (TTM)-1.62%
Revenue growth 3Y12.4%
Revenue growth 5Y8.8%
Sales Q2Q%-2.06%
3.2 Future
WEX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.79% yearly.
WEX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.21% yearly.
EPS Next Y3.45%
EPS Next 2Y7.68%
EPS Next 3Y7.66%
EPS Next 5Y8.79%
Revenue Next Year0.11%
Revenue Next 2Y2.66%
Revenue Next 3Y3.81%
Revenue Next 5Y4.21%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.04, which indicates a very decent valuation of WEX.
WEX's Price/Earnings ratio is a bit cheaper when compared to the industry. WEX is cheaper than 67.33% of the companies in the same industry.
WEX is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 9.58 indicates a reasonable valuation of WEX.
Based on the Price/Forward Earnings ratio, WEX is valued a bit cheaper than the industry average as 61.39% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.73, WEX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.04 | ||
| Fwd PE | 9.58 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WEX indicates a somewhat cheap valuation: WEX is cheaper than 75.25% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WEX is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.59 | ||
| EV/EBITDA | 9.69 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of WEX may justify a higher PE ratio.
PEG (NY)3.2
PEG (5Y)1.03
EPS Next 2Y7.68%
EPS Next 3Y7.66%
5. Dividend
5.1 Amount
No dividends for WEX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
169.73
-6.43 (-3.65%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners117.75%
Inst Owner Change-3.89%
Ins Owners0.62%
Ins Owner Change14.09%
Market Cap5.81B
Analysts68.89
Price Target184.95 (8.97%)
Short Float %3.96%
Short Ratio2.98
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)3.12%
Min EPS beat(2)0.38%
Max EPS beat(2)5.86%
EPS beat(4)2
Avg EPS beat(4)0.82%
Min EPS beat(4)-2.49%
Max EPS beat(4)5.86%
EPS beat(8)6
Avg EPS beat(8)2.09%
EPS beat(12)10
Avg EPS beat(12)2.42%
EPS beat(16)14
Avg EPS beat(16)3.43%
Revenue beat(2)0
Avg Revenue beat(2)-0.28%
Min Revenue beat(2)-0.37%
Max Revenue beat(2)-0.18%
Revenue beat(4)0
Avg Revenue beat(4)-1.34%
Min Revenue beat(4)-4.17%
Max Revenue beat(4)-0.18%
Revenue beat(8)2
Avg Revenue beat(8)-0.98%
Revenue beat(12)5
Avg Revenue beat(12)0.14%
Revenue beat(16)9
Avg Revenue beat(16)0.56%
PT rev (1m)9.73%
PT rev (3m)11.13%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)3.99%
EPS NY rev (1m)3.91%
EPS NY rev (3m)4.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.14%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)1.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.04 | ||
| Fwd PE | 9.58 | ||
| P/S | 2.24 | ||
| P/FCF | 21.59 | ||
| P/OCF | 13.69 | ||
| P/B | 5.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.69 |
EPS(TTM)15.38
EY9.06%
EPS(NY)17.72
Fwd EY10.44%
FCF(TTM)7.86
FCFY4.63%
OCF(TTM)12.4
OCFY7.3%
SpS75.84
BVpS28.57
TBVpS-93.87
PEG (NY)3.2
PEG (5Y)1.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.09% | ||
| ROE | 31.31% | ||
| ROCE | 13.09% | ||
| ROIC | 9.58% | ||
| ROICexc | 11.02% | ||
| ROICexgc | 73.25% | ||
| OM | 29.86% | ||
| PM (TTM) | 11.79% | ||
| GM | 63.74% | ||
| FCFM | 10.36% |
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%
ROICexcg growth 3Y50.84%
ROICexcg 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-Score5
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.99 | ||
| Debt/FCF | 20.21 | ||
| Debt/EBITDA | 3.54 | ||
| Cap/Depr | 47.26% | ||
| Cap/Sales | 5.98% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 38.45% | ||
| Profit Quality | 87.89% | ||
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 0.52 |
F-Score5
WACC8.33%
ROIC/WACC1.15
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)0.98%
EPS 3Y18.73%
EPS 5Y10.68%
EPS Q2Q%1.28%
EPS Next Y3.45%
EPS Next 2Y7.68%
EPS Next 3Y7.66%
EPS Next 5Y8.79%
Revenue 1Y (TTM)-1.62%
Revenue growth 3Y12.4%
Revenue growth 5Y8.8%
Sales Q2Q%-2.06%
Revenue Next Year0.11%
Revenue Next 2Y2.66%
Revenue Next 3Y3.81%
Revenue Next 5Y4.21%
EBIT growth 1Y0.47%
EBIT growth 3Y30.01%
EBIT growth 5Y12.97%
EBIT Next Year5.93%
EBIT Next 3Y6.63%
EBIT Next 5YN/A
FCF growth 1Y-65.53%
FCF growth 3Y72.27%
FCF growth 5Y-10.1%
OCF growth 1Y-53.69%
OCF growth 3Y47.37%
OCF growth 5Y-6.21%