WEX INC (WEX) Stock Fundamental Analysis
USA - NYSE:WEX - US96208T1043 - Common Stock
136.91 USD
-3.98 (-2.82%)
136.91 USD
0 (0%)
Taking everything into account, WEX scores 4 out of 10 in our fundamental rating. WEX was compared to 97 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 may be a bit undervalued, certainly considering the very reasonable score on growth
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.
Each year in the past 5 years WEX had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.97%, WEX is in line with its industry, outperforming 57.73% of the companies in the same industry.
The Return On Equity of WEX (25.38%) is better than 89.69% of its industry peers.
The Return On Invested Capital of WEX (7.87%) is better than 76.29% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WEX is in line with the industry average of 8.15%.
| 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
With a Profit Margin value of 10.81%, WEX perfoms like the industry average, outperforming 52.58% of the companies in the same industry.
In the last couple of years the Profit Margin of WEX has grown nicely.
With a decent Operating Margin value of 29.09%, WEX is doing good in the industry, outperforming 75.26% of the companies in the same industry.
In the last couple of years the Operating Margin of WEX has grown nicely.
With a decent Gross Margin value of 63.19%, WEX is doing good in the industry, outperforming 76.29% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), WEX is 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.
Compared to 1 year ago, WEX has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.49, we must say that WEX is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.49, WEX is in line with its industry, outperforming 50.52% 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 54.64% 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.
WEX has a Debt to Equity ratio of 4.44. This is in the lower half of the industry: WEX underperforms 78.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.44 | ||
| Debt/FCF | 7.82 | ||
| Altman-Z | 0.49 |
ROIC/WACC1.06
WACC7.4%
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 comparable to the rest of the industry: WEX outperforms 40.21% of its industry peers.
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 in line with its industry, outperforming 40.21% 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 0.58% over the past year.
The Earnings Per Share has been growing by 10.68% on average over the past years. This is quite good.
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 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
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
WEX is valuated reasonably with a Price/Earnings ratio of 8.77.
Compared to the rest of the industry, the Price/Earnings ratio of WEX indicates a somewhat cheap valuation: WEX is cheaper than 65.98% of the companies listed in the same industry.
WEX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.89.
The Price/Forward Earnings ratio is 7.66, which indicates a rather cheap valuation of WEX.
69.07% of the companies in the same industry are more expensive than WEX, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 34.59. WEX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.77 | ||
| Fwd PE | 7.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WEX is valued cheaply inside the industry as 81.44% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, WEX is valued cheaper than 81.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.3 | ||
| EV/EBITDA | 7.12 |
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)1.93
PEG (5Y)0.82
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 |
136.91
-3.98 (-2.82%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners113.29%
Inst Owner Change-3.16%
Ins Owners0.61%
Ins Owner Change0.33%
Market Cap4.69B
Revenue(TTM)2.62B
Net Income(TTM)283.80M
Analysts71.11
Price Target183.65 (34.14%)
Short Float %5.3%
Short Ratio5.48
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)-0.86%
PT rev (3m)-0.08%
EPS NQ rev (1m)2.36%
EPS NQ rev (3m)2.43%
EPS NY rev (1m)1.05%
EPS NY rev (3m)5%
Revenue NQ rev (1m)0.83%
Revenue NQ rev (3m)0.83%
Revenue NY rev (1m)0.56%
Revenue NY rev (3m)0.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.77 | ||
| Fwd PE | 7.66 | ||
| P/S | 1.79 | ||
| P/FCF | 7.3 | ||
| P/OCF | 5.88 | ||
| P/B | 4.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.12 |
EPS(TTM)15.62
EY11.41%
EPS(NY)17.88
Fwd EY13.06%
FCF(TTM)18.76
FCFY13.7%
OCF(TTM)23.29
OCFY17.01%
SpS76.61
BVpS32.64
TBVpS-88.39
PEG (NY)1.93
PEG (5Y)0.82
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 | 0.49 |
F-Score4
WACC7.4%
ROIC/WACC1.06
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 7 / 10 to WEX INC (WEX). This can be considered as Undervalued.
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 8.77 and the Price/Book (PB) ratio is 4.19.