WEX INC (WEX) Stock Fundamental Analysis
USA - NYSE:WEX - US96208T1043 - Common Stock
139.86 USD
+0.78 (+0.56%)
139.86 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 may be a bit undervalued, certainly considering the very reasonable score on growth
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.
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
WEX's Return On Assets of 1.97% is fine compared to the rest of the industry. WEX outperforms 60.61% of its industry peers.
WEX has a better Return On Equity (25.38%) than 89.90% of its industry peers.
WEX has a Return On Invested Capital of 7.87%. This is in the better half of the industry: WEX outperforms 76.77% 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 8.14%.
| 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 53.54% 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 75.76% of the companies in the same industry.
WEX's Operating Margin has improved in the last couple of years.
The Gross Margin of WEX (63.19%) is better than 76.77% 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.
Compared to 1 year ago, WEX has less shares outstanding
Compared to 5 years ago, WEX has less shares outstanding
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 51.52% of the companies in the same 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's Debt to FCF ratio of 7.82 is in line compared to the rest of the industry. WEX outperforms 52.53% of its industry peers.
WEX has a Debt/Equity ratio of 4.44. This is a high value indicating a heavy dependency on external financing.
WEX has a worse Debt to Equity ratio (4.44) than 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.44 | ||
| Debt/FCF | 7.82 | ||
| Altman-Z | 0.49 |
ROIC/WACC1.06
WACC7.41%
2.3 Liquidity
A Current Ratio of 0.57 indicates that WEX may have some problems paying its short term obligations.
WEX has a Current ratio of 0.57. This is comparable to the rest of the industry: WEX outperforms 40.40% 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.
WEX has a Quick ratio (0.57) which is comparable to the rest of the 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.
WEX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.68% yearly.
WEX shows a decrease in Revenue. In the last year, the revenue decreased by -1.15%.
The Revenue has been growing by 8.80% on average over the past years. This is quite good.
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
WEX is valuated reasonably with a Price/Earnings ratio of 8.95.
WEX's Price/Earnings ratio is a bit cheaper when compared to the industry. WEX is cheaper than 68.69% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.07, WEX is valued rather cheaply.
The Price/Forward Earnings ratio is 7.82, which indicates a rather cheap valuation of WEX.
Based on the Price/Forward Earnings ratio, WEX is valued a bit cheaper than 67.68% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.08, WEX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.95 | ||
| Fwd PE | 7.82 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WEX indicates a rather cheap valuation: WEX is cheaper than 80.81% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, WEX is valued cheaply inside the industry as 82.83% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.46 | ||
| EV/EBITDA | 7.06 |
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.
WEX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.98
PEG (5Y)0.84
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 |
139.86
+0.78 (+0.56%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners113.29%
Inst Owner Change-0.46%
Ins Owners0.61%
Ins Owner Change0.55%
Market Cap4.79B
Revenue(TTM)2.62B
Net Income(TTM)283.80M
Analysts71.11
Price Target183.65 (31.31%)
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)-0.86%
PT rev (3m)-0.08%
EPS NQ rev (1m)1.89%
EPS NQ rev (3m)2.35%
EPS NY rev (1m)1.05%
EPS NY rev (3m)5%
Revenue NQ rev (1m)0.6%
Revenue NQ rev (3m)0.83%
Revenue NY rev (1m)0.56%
Revenue NY rev (3m)0.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.95 | ||
| Fwd PE | 7.82 | ||
| P/S | 1.83 | ||
| P/FCF | 7.46 | ||
| P/OCF | 6 | ||
| P/B | 4.28 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.06 |
EPS(TTM)15.62
EY11.17%
EPS(NY)17.88
Fwd EY12.78%
FCF(TTM)18.76
FCFY13.41%
OCF(TTM)23.29
OCFY16.65%
SpS76.61
BVpS32.64
TBVpS-88.39
PEG (NY)1.98
PEG (5Y)0.84
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
WACC7.41%
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 7 / 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 8.95 and the Price/Book (PB) ratio is 4.28.