WEX INC (WEX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WEX - US96208T1043 - Common Stock
152.2 USD
+3.81 (+2.57%)
152.2 USD
0 (0%)
Taking everything into account, WEX scores 4 out of 10 in our fundamental rating. WEX was compared to 98 industry peers in the Financial Services industry. WEX has an excellent profitability rating, but there are concerns on its financial health. WEX scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
WEX had positive earnings in the past year.
In the past year WEX had a positive cash flow from operations.
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's Return On Assets of 1.97% is fine compared to the rest of the industry. WEX outperforms 61.22% of its industry peers.
WEX's Return On Equity of 25.38% is amongst the best of the industry. WEX outperforms 90.82% of its industry peers.
WEX has a better Return On Invested Capital (7.87%) than 75.51% 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 8.44%.
| 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
WEX has a Profit Margin of 10.81%. This is comparable to the rest of the industry: WEX outperforms 53.06% of its industry peers.
WEX's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 29.09%, WEX is in the better half of the industry, outperforming 76.53% of the companies in the same industry.
WEX's Operating Margin has improved in the last couple of years.
WEX has a Gross Margin of 63.19%. This is in the better half of the industry: WEX outperforms 76.53% 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 | 29.09% | ||
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WEX is still creating some value.
The number of shares outstanding for WEX has been reduced compared to 1 year ago.
The number of shares outstanding for WEX has been reduced compared to 5 years ago.
WEX has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.51, we must say that WEX is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of WEX (0.51) is comparable to the rest of the industry.
WEX has a debt to FCF ratio of 7.82. This is a slightly negative value and a sign of low solvency as WEX would need 7.82 years to pay back of all of its debts.
WEX has a Debt to FCF ratio (7.82) which is comparable to the rest of the industry.
WEX has a Debt/Equity ratio of 4.44. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of WEX (4.44) is worse than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.44 | ||
| Debt/FCF | 7.82 | ||
| Altman-Z | 0.51 |
ROIC/WACC0.92
WACC8.6%
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 has a Current ratio of 0.57. This is in the lower half of the industry: WEX underperforms 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.
With a Quick ratio value of 0.57, WEX is not doing good in the industry: 60.20% 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 0.58%.
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.
WEX shows a decrease in Revenue. In the last year, the revenue decreased by -1.15%.
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
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.
The Revenue is expected to grow by 4.21% on average over the next years.
EPS Next Y5.29%
EPS Next 2Y8.01%
EPS Next 3Y8.09%
EPS Next 5Y8.79%
Revenue Next Year0.83%
Revenue Next 2Y2.57%
Revenue Next 3Y3.59%
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
A Price/Earnings ratio of 9.74 indicates a reasonable valuation of WEX.
Compared to the rest of the industry, the Price/Earnings ratio of WEX indicates a somewhat cheap valuation: WEX is cheaper than 64.29% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of WEX to the average of the S&P500 Index (26.87), we can say WEX is valued rather cheaply.
A Price/Forward Earnings ratio of 8.54 indicates a reasonable valuation of WEX.
Based on the Price/Forward Earnings ratio, WEX is valued a bit cheaper than the industry average as 66.33% of the companies are valued more expensively.
WEX is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.74 | ||
| Fwd PE | 8.54 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WEX is valued cheaper than 80.61% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, WEX is valued cheaper than 83.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.12 | ||
| EV/EBITDA | 7.47 |
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)1.84
PEG (5Y)0.91
EPS Next 2Y8.01%
EPS Next 3Y8.09%
5. Dividend
5.1 Amount
WEX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
152.2
+3.81 (+2.57%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners113.31%
Inst Owner Change0%
Ins Owners0.63%
Ins Owner Change0.16%
Market Cap5.22B
Revenue(TTM)2.62B
Net Income(TTM)283.80M
Analysts71.11
Price Target179.88 (18.19%)
Short Float %4.63%
Short Ratio3.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)3.1%
EPS beat(16)14
Avg EPS beat(16)3.61%
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)-0.34%
PT rev (3m)-2.89%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.67%
EPS NY rev (1m)0%
EPS NY rev (3m)1.78%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.95%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.74 | ||
| Fwd PE | 8.54 | ||
| P/S | 1.99 | ||
| P/FCF | 8.12 | ||
| P/OCF | 6.54 | ||
| P/B | 4.67 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.47 |
EPS(TTM)15.62
EY10.26%
EPS(NY)17.82
Fwd EY11.71%
FCF(TTM)18.74
FCFY12.31%
OCF(TTM)23.27
OCFY15.29%
SpS76.54
BVpS32.62
TBVpS-88.32
PEG (NY)1.84
PEG (5Y)0.91
Graham Number107.07
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 | 0.51 |
F-Score4
WACC8.6%
ROIC/WACC0.92
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 Y5.29%
EPS Next 2Y8.01%
EPS Next 3Y8.09%
EPS Next 5Y8.79%
Revenue 1Y (TTM)-1.15%
Revenue growth 3Y12.4%
Revenue growth 5Y8.8%
Sales Q2Q%3.95%
Revenue Next Year0.83%
Revenue Next 2Y2.57%
Revenue Next 3Y3.59%
Revenue Next 5Y4.21%
EBIT growth 1Y-4.19%
EBIT growth 3Y30.01%
EBIT growth 5Y12.97%
EBIT Next Year7.55%
EBIT Next 3Y7.18%
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 for 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 7 / 10.
What are the PE and PB ratios of WEX INC (WEX) stock?
The Price/Earnings (PE) ratio for WEX INC (WEX) is 9.74 and the Price/Book (PB) ratio is 4.67.
Can you provide the expected EPS growth for WEX stock?
The Earnings per Share (EPS) of WEX INC (WEX) is expected to grow by 5.29% in the next year.