WEX INC (WEX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WEX - US96208T1043 - Common Stock
154.69 USD
+0.06 (+0.04%)
154.69 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to WEX. WEX was compared to 97 industry peers in the Financial Services industry. There are concerns on the financial health of WEX while its profitability can be described as average. A decent growth rate in combination with a cheap valuation! Better keep an eye on WEX.
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
The Return On Assets of WEX (1.97%) is comparable to the rest of the industry.
WEX has a Return On Equity of 25.38%. This is amongst the best in the industry. WEX outperforms 90.72% of its industry peers.
With a decent Return On Invested Capital value of 7.87%, WEX is doing good in the industry, outperforming 75.26% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital 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's Profit Margin of 10.81% is in line compared to the rest of the industry. WEX outperforms 52.58% of its industry peers.
In the last couple of years the Profit Margin of WEX has grown nicely.
WEX's Operating Margin of 29.09% is fine compared to the rest of the industry. WEX outperforms 76.29% of its industry peers.
WEX's Operating Margin has improved in the last couple of years.
WEX has a Gross Margin of 63.19%. This is in the better half of the industry: WEX outperforms 76.29% of its industry peers.
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
WEX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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.
The debt/assets ratio for WEX is higher compared to a year ago.
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.
WEX has a Altman-Z score (0.51) which is in line with its industry peers.
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.
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.
Looking at the Debt to Equity ratio, with a value of 4.44, WEX is doing worse than 79.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.44 | ||
| Debt/FCF | 7.82 | ||
| Altman-Z | 0.51 |
ROIC/WACC1.05
WACC7.49%
2.3 Liquidity
A Current Ratio of 0.57 indicates that WEX may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.57, WEX is doing worse than 60.82% of the companies in the same industry.
A Quick Ratio of 0.57 indicates that WEX may have some problems paying its short term obligations.
With a Quick ratio value of 0.57, WEX is not doing good in the industry: 60.82% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
WEX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.58%.
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.
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
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 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
Based on the Price/Earnings ratio of 9.90, the valuation of WEX can be described as reasonable.
Based on the Price/Earnings ratio, WEX is valued a bit cheaper than the industry average as 63.92% of the companies are valued more expensively.
WEX is valuated cheaply when we compare the Price/Earnings ratio to 26.76, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 8.67, which indicates a very decent valuation of WEX.
61.86% of the companies in the same industry are more expensive than WEX, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.96, WEX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.9 | ||
| Fwd PE | 8.67 |
4.2 Price Multiples
80.41% 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 ratio is rather cheap when compared to the industry. WEX is cheaper than 80.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.25 | ||
| EV/EBITDA | 7.55 |
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.
The decent profitability rating of WEX may justify a higher PE ratio.
PEG (NY)1.87
PEG (5Y)0.93
EPS Next 2Y8.07%
EPS Next 3Y8.09%
5. Dividend
5.1 Amount
No dividends for WEX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
154.69
+0.06 (+0.04%)
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 Cap5.30B
Revenue(TTM)2.62B
Net Income(TTM)283.80M
Analysts71.11
Price Target179.88 (16.28%)
Short Float %4.54%
Short Ratio3.98
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)-2.05%
PT rev (3m)-2.74%
EPS NQ rev (1m)0.31%
EPS NQ rev (3m)2.66%
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 | 9.9 | ||
| Fwd PE | 8.67 | ||
| P/S | 2.02 | ||
| P/FCF | 8.25 | ||
| P/OCF | 6.65 | ||
| P/B | 4.74 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.55 |
EPS(TTM)15.62
EY10.1%
EPS(NY)17.85
Fwd EY11.54%
FCF(TTM)18.74
FCFY12.11%
OCF(TTM)23.27
OCFY15.04%
SpS76.54
BVpS32.62
TBVpS-88.32
PEG (NY)1.87
PEG (5Y)0.93
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
WACC7.49%
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 6 / 10 to WEX INC (WEX). This can be considered as Fairly Valued.
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 9.9 and the Price/Book (PB) ratio is 4.74.