WEX INC (WEX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WEX - US96208T1043 - Common Stock
150.9 USD
+0.43 (+0.29%)
150.9 USD
0 (0%)
WEX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 99 industry peers in the Financial Services industry. There are concerns on the financial health of WEX while its profitability can be described as average. 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.
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
With a Return On Assets value of 1.97%, WEX perfoms like the industry average, outperforming 59.79% of the companies in the same industry.
The Return On Equity of WEX (25.38%) is better than 90.72% 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 75.26% 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 8.44%.
| 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 (10.81%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of WEX has grown nicely.
The Operating Margin of WEX (29.09%) is better than 76.29% of its industry peers.
WEX's Operating Margin has improved in the last couple of years.
The Gross Margin of WEX (63.19%) is better than 76.29% 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
WEX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for WEX has been reduced compared to 1 year ago.
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
WEX has an Altman-Z score of 0.51. 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 (0.51) is comparable to the rest of the 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 45.36% 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.
WEX has a worse Debt to Equity ratio (4.44) than 79.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.44 | ||
| Debt/FCF | 7.82 | ||
| Altman-Z | 0.51 |
ROIC/WACC1.05
WACC7.48%
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 worse Current ratio (0.57) than 60.82% of its industry peers.
A Quick Ratio of 0.57 indicates that WEX may have some problems paying its short term obligations.
WEX's Quick ratio of 0.57 is on the low side compared to the rest of the industry. WEX is outperformed by 60.82% of its industry peers.
| 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
The Earnings Per Share is expected to grow by 8.79% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.21% on average over the next years.
EPS Next Y5.29%
EPS Next 2Y8.07%
EPS Next 3Y8.09%
EPS Next 5Y8.79%
Revenue Next Year0.83%
Revenue Next 2Y2.57%
Revenue Next 3Y3.59%
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
A Price/Earnings ratio of 9.66 indicates a reasonable valuation of WEX.
WEX's Price/Earnings ratio is a bit cheaper when compared to the industry. WEX is cheaper than 64.95% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.38, WEX is valued rather cheaply.
WEX is valuated reasonably with a Price/Forward Earnings ratio of 8.46.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WEX indicates a somewhat cheap valuation: WEX is cheaper than 64.95% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.83. WEX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.66 | ||
| Fwd PE | 8.46 |
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 82.47% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, WEX is valued cheaply inside the industry as 83.51% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.05 | ||
| EV/EBITDA | 7.43 |
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)1.83
PEG (5Y)0.9
EPS Next 2Y8.07%
EPS Next 3Y8.09%
5. Dividend
5.1 Amount
WEX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
150.9
+0.43 (+0.29%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners113.18%
Inst Owner Change-0.46%
Ins Owners0.62%
Ins Owner Change-0.14%
Market Cap5.17B
Revenue(TTM)2.62B
Net Income(TTM)283.80M
Analysts71.11
Price Target179.88 (19.2%)
Short Float %4.42%
Short Ratio3.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)-2.05%
PT rev (3m)-2.74%
EPS NQ rev (1m)0.31%
EPS NQ rev (3m)2.67%
EPS NY rev (1m)0.72%
EPS NY rev (3m)1.78%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)0.95%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.66 | ||
| Fwd PE | 8.46 | ||
| P/S | 1.97 | ||
| P/FCF | 8.05 | ||
| P/OCF | 6.48 | ||
| P/B | 4.63 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.43 |
EPS(TTM)15.62
EY10.35%
EPS(NY)17.85
Fwd EY11.83%
FCF(TTM)18.74
FCFY12.42%
OCF(TTM)23.27
OCFY15.42%
SpS76.54
BVpS32.62
TBVpS-88.32
PEG (NY)1.83
PEG (5Y)0.9
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 | 0.51 |
F-Score4
WACC7.48%
ROIC/WACC1.05
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 Y5.29%
EPS Next 2Y8.07%
EPS Next 3Y8.09%
EPS Next 5Y8.79%
Revenue 1Y (TTM)-1.15%
Revenue growth 3Y12.4%
Revenue growth 5Y8.8%
Sales Q2Q%3.95%
Revenue Next Year0.83%
Revenue Next 2Y2.57%
Revenue Next 3Y3.59%
Revenue Next 5Y4.21%
EBIT growth 1Y-4.19%
EBIT growth 3Y30.01%
EBIT growth 5Y12.97%
EBIT Next Year7.55%
EBIT Next 3Y7.18%
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 9.66 and the Price/Book (PB) ratio is 4.63.