WEX INC (WEX) Stock Fundamental Analysis
USA - NYSE:WEX - US96208T1043 - Common Stock
146.05 USD
+6.19 (+4.43%)
146.05 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to WEX. WEX was compared to 99 industry peers in the Financial Services industry. While WEX belongs to the best of the industry regarding profitability, there are concerns on its financial health. WEX is valued quite cheap, while showing a decent growth score. This is a good 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.
WEX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 1.97%, WEX is doing good in the industry, outperforming 60.61% 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 89.90% of the companies in the same industry.
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
With a Profit Margin value of 10.81%, WEX perfoms like the industry average, outperforming 53.54% of the companies in the same industry.
In the last couple of years the Profit Margin of WEX has grown nicely.
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.
In the last couple of years the Operating Margin of WEX has grown nicely.
WEX has a better Gross Margin (63.19%) 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), WEX is creating some value.
Compared to 1 year ago, WEX has less shares outstanding
WEX has less shares outstanding than it did 5 years ago.
WEX has a worse debt/assets ratio than last year.
2.2 Solvency
WEX has an Altman-Z score of 0.49. This is a bad value and indicates that WEX is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of WEX (0.49) 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.
A Debt/Equity ratio of 4.44 is on the high side and indicates that WEX has dependencies on debt financing.
WEX's Debt to Equity ratio of 4.44 is on the low side compared to the rest of the industry. WEX is outperformed by 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
WACC7.43%
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 40.40% 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.
The Revenue has decreased by -1.15% in the past year.
WEX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.80% yearly.
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
Based on estimates for the next years, WEX will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.79% on average per year.
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
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 9.35.
WEX's Price/Earnings ratio is a bit cheaper when compared to the industry. WEX is cheaper than 67.68% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.45. WEX is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 8.17, 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 67.68% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.46, WEX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.35 | ||
| Fwd PE | 8.17 |
4.2 Price Multiples
80.81% of the companies in the same industry are more expensive than WEX, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WEX indicates a rather cheap valuation: WEX is cheaper than 83.84% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.79 | ||
| EV/EBITDA | 7.08 |
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)2.06
PEG (5Y)0.88
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 |
146.05
+6.19 (+4.43%)
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 Cap5.00B
Revenue(TTM)2.62B
Net Income(TTM)283.80M
Analysts71.11
Price Target183.65 (25.74%)
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 | 9.35 | ||
| Fwd PE | 8.17 | ||
| P/S | 1.91 | ||
| P/FCF | 7.79 | ||
| P/OCF | 6.27 | ||
| P/B | 4.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.08 |
EPS(TTM)15.62
EY10.69%
EPS(NY)17.88
Fwd EY12.24%
FCF(TTM)18.76
FCFY12.84%
OCF(TTM)23.29
OCFY15.95%
SpS76.61
BVpS32.64
TBVpS-88.39
PEG (NY)2.06
PEG (5Y)0.88
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
WACC7.43%
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 9.35 and the Price/Book (PB) ratio is 4.47.