WEX INC (WEX) Stock Fundamental Analysis
USA - NYSE:WEX - US96208T1043 - Common Stock
150.6 USD
+0.35 (+0.23%)
150.6 USD
0 (0%)
Overall WEX gets a fundamental rating of 4 out of 10. We evaluated WEX against 99 industry peers in the Financial Services industry. WEX has an excellent profitability rating, but there are concerns on its financial health. WEX has a correct valuation and a medium growth rate.
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.
WEX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.09%, WEX is in line with its industry, outperforming 57.58% of the companies in the same industry.
WEX's Return On Equity of 31.31% is amongst the best of the industry. WEX outperforms 91.92% of its industry peers.
WEX has a Return On Invested Capital of 9.58%. This is amongst the best in the industry. WEX outperforms 82.83% of its industry peers.
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 7.72%.
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's Profit Margin of 11.79% is in line compared to the rest of the industry. WEX outperforms 55.56% of its industry peers.
In the last couple of years the Profit Margin of WEX has grown nicely.
WEX's Operating Margin of 29.86% is fine compared to the rest of the industry. WEX outperforms 73.74% of its industry peers.
In the last couple of years the Operating Margin of WEX has grown nicely.
WEX has a Gross Margin of 63.74%. This is in the better half of the industry: WEX outperforms 75.76% of its industry peers.
WEX's Gross Margin has been stable in the last couple of years.
| 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
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.
WEX has less shares outstanding than it did 5 years ago.
The debt/assets ratio for WEX is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.48, we must say that WEX is in the distress zone and has some risk of bankruptcy.
WEX has a Altman-Z score (0.48) which is comparable to the rest of the industry.
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.
A Debt/Equity ratio of 3.99 is on the high side and indicates that WEX has dependencies on debt financing.
WEX has a worse Debt to Equity ratio (3.99) than 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.99 | ||
| Debt/FCF | 20.21 | ||
| Altman-Z | 0.48 |
ROIC/WACC1.29
WACC7.42%
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.
The Current ratio of WEX (0.57) is worse than 62.63% 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.
Looking at the Quick ratio, with a value of 0.57, WEX is doing worse than 62.63% of the companies in the same industry.
| 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 0.98% 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 -1.62% in the last year.
The Revenue has been growing by 8.80% on average over the past years. This is quite good.
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.
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 Y3.45%
EPS Next 2Y7.68%
EPS Next 3Y7.66%
EPS Next 5Y8.79%
Revenue Next Year0.11%
Revenue Next 2Y2.66%
Revenue Next 3Y3.79%
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.
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
The Price/Earnings ratio is 9.79, which indicates a very decent valuation of WEX.
Based on the Price/Earnings ratio, WEX is valued a bit cheaper than 69.70% of the companies in the same industry.
WEX is valuated cheaply when we compare the Price/Earnings ratio to 27.35, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 8.50, the valuation of WEX can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WEX indicates a somewhat cheap valuation: WEX is cheaper than 62.63% of the companies listed in the same industry.
WEX is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.79 | ||
| Fwd PE | 8.5 |
4.2 Price Multiples
75.76% of the companies in the same industry are more expensive than WEX, based on the Enterprise Value to EBITDA ratio.
WEX's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.16 | ||
| EV/EBITDA | 8.89 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
WEX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.84
PEG (5Y)0.92
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 |
150.6
+0.35 (+0.23%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners113.29%
Inst Owner Change-0.01%
Ins Owners0.61%
Ins Owner Change1.99%
Market Cap5.16B
Analysts68.89
Price Target185.24 (23%)
Short Float %4.44%
Short Ratio3.63
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)0.16%
PT rev (3m)11.31%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.27%
EPS NY rev (1m)0%
EPS NY rev (3m)3.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.85%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.79 | ||
| Fwd PE | 8.5 | ||
| P/S | 1.99 | ||
| P/FCF | 19.16 | ||
| P/OCF | 12.15 | ||
| P/B | 5.27 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.89 |
EPS(TTM)15.38
EY10.21%
EPS(NY)17.72
Fwd EY11.76%
FCF(TTM)7.86
FCFY5.22%
OCF(TTM)12.4
OCFY8.23%
SpS75.84
BVpS28.57
TBVpS-93.87
PEG (NY)2.84
PEG (5Y)0.92
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 | 0.48 |
F-Score5
WACC7.42%
ROIC/WACC1.29
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 3Y3.79%
Revenue Next 5Y4.21%
EBIT growth 1Y0.47%
EBIT growth 3Y30.01%
EBIT growth 5Y12.97%
EBIT Next Year6.88%
EBIT Next 3Y7.02%
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%