WEX INC (WEX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WEX - US96208T1043 - Common Stock
146.48 USD
-1.88 (-1.27%)
146.48 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to WEX. WEX was compared to 98 industry peers in the Financial Services industry. While WEX is still in line with the averages on profitability rating, there are concerns on its financial health. WEX has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year WEX was profitable.
In the past year WEX had a positive cash flow from operations.
WEX had positive earnings in 4 of the past 5 years.
In the past 5 years WEX always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 1.97%, WEX perfoms like the industry average, outperforming 59.18% of the companies in the same industry.
Looking at the Return On Equity, with a value of 25.38%, WEX belongs to the top of the industry, outperforming 90.82% of the companies in the same industry.
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
WEX's Profit Margin of 10.81% is in line compared 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.
WEX has a Operating Margin of 29.09%. This is in the better half of the industry: WEX outperforms 75.51% of its industry peers.
In the last couple of years the Operating Margin of WEX has grown nicely.
WEX's Gross Margin of 63.19% is fine compared to the rest of the industry. WEX outperforms 76.53% of its industry peers.
WEX's Gross Margin has been stable in the last couple of years.
| 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.
WEX has less shares outstanding than it did 1 year ago.
WEX has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, WEX has a worse debt to assets ratio.
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.
Looking at the Altman-Z score, with a value of 0.50, WEX is in line with its industry, outperforming 51.02% 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.
With a Debt to FCF ratio value of 7.82, WEX perfoms like the industry average, outperforming 48.98% of the companies in the same industry.
WEX has a Debt/Equity ratio of 4.44. This is a high value indicating a heavy dependency on external 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
WACC7.39%
2.3 Liquidity
A Current Ratio of 0.57 indicates that WEX may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.57, WEX is doing worse than 60.20% of the companies in the same industry.
A Quick Ratio of 0.57 indicates that WEX may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.57, WEX is doing worse than 60.20% of the companies in the same industry.
| 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%.
The Earnings Per Share has been growing by 10.68% on average over the past years. This is quite good.
The Revenue has decreased by -1.15% in the past 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
The Earnings Per Share is expected to grow by 8.79% on average over the next years. This is quite good.
WEX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.21% yearly.
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.
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
A Price/Earnings ratio of 9.38 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 65.31% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.11, WEX is valued rather cheaply.
A Price/Forward Earnings ratio of 8.19 indicates a reasonable valuation of WEX.
WEX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WEX is cheaper than 66.33% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of WEX to the average of the S&P500 Index (36.21), we can say WEX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.38 | ||
| Fwd PE | 8.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WEX is valued a bit cheaper than 79.59% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, WEX is valued cheaply inside the industry as 80.61% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.82 | ||
| EV/EBITDA | 7.35 |
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.
The decent profitability rating of WEX may justify a higher PE ratio.
PEG (NY)2.07
PEG (5Y)0.88
EPS Next 2Y8.18%
EPS Next 3Y8.06%
5. Dividend
5.1 Amount
No dividends for WEX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
146.48
-1.88 (-1.27%)
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 Change-0.12%
Market Cap5.02B
Revenue(TTM)2.62B
Net Income(TTM)283.80M
Analysts71.11
Price Target180.48 (23.21%)
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)-1.72%
PT rev (3m)-2.42%
EPS NQ rev (1m)2%
EPS NQ rev (3m)2.66%
EPS NY rev (1m)0.82%
EPS NY rev (3m)1.05%
Revenue NQ rev (1m)0.53%
Revenue NQ rev (3m)0.95%
Revenue NY rev (1m)0.45%
Revenue NY rev (3m)0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.38 | ||
| Fwd PE | 8.19 | ||
| P/S | 1.91 | ||
| P/FCF | 7.82 | ||
| P/OCF | 6.29 | ||
| P/B | 4.49 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.35 |
EPS(TTM)15.62
EY10.66%
EPS(NY)17.88
Fwd EY12.21%
FCF(TTM)18.74
FCFY12.79%
OCF(TTM)23.27
OCFY15.89%
SpS76.54
BVpS32.62
TBVpS-88.32
PEG (NY)2.07
PEG (5Y)0.88
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 | 0.5 |
F-Score4
WACC7.39%
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 9.38 and the Price/Book (PB) ratio is 4.49.