WEX INC (WEX) Stock Fundamental Analysis
USA - NYSE:WEX - US96208T1043 - Common Stock
145.68 USD
+0.86 (+0.59%)
145.68 USD
0 (0%)
Overall WEX gets a fundamental rating of 4 out of 10. We evaluated WEX against 98 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 has a correct valuation and a medium growth rate.
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.
Each year in the past 5 years WEX had a positive operating cash flow.
1.2 Ratios
WEX has a Return On Assets (1.97%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 25.38%, WEX belongs to the top of the industry, outperforming 89.80% of the companies in the same industry.
WEX has a better Return On Invested Capital (7.87%) than 75.51% of its industry peers.
WEX had an Average Return On Invested Capital over the past 3 years of 8.63%. This is in line with the industry average of 7.85%.
| 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
Looking at the Profit Margin, with a value of 10.81%, WEX is in line with its industry, outperforming 53.06% of the companies in the same industry.
In the last couple of years the Profit Margin of WEX has grown nicely.
WEX has a better Operating Margin (29.09%) than 75.51% of its industry peers.
In the last couple of years the Operating Margin of WEX has grown nicely.
Looking at the Gross Margin, with a value of 63.19%, WEX is in the better half of the industry, outperforming 76.53% 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.
Compared to 1 year ago, WEX has less shares outstanding
WEX has less shares outstanding than it did 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 0.50, we must say that WEX is in the distress zone and has some risk of bankruptcy.
WEX's Altman-Z score of 0.50 is in line compared to the rest of the industry. WEX outperforms 50.00% of 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's Debt to FCF ratio of 7.82 is in line compared to the rest of the industry. WEX outperforms 54.08% of its industry peers.
A Debt/Equity ratio of 4.44 is on the high side and indicates that WEX has dependencies on debt financing.
The Debt to Equity ratio of WEX (4.44) is worse than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.44 | ||
| Debt/FCF | 7.82 | ||
| Altman-Z | 0.5 |
ROIC/WACC1.06
WACC7.43%
2.3 Liquidity
A Current Ratio of 0.57 indicates that WEX may have some problems paying its short term obligations.
WEX's Current ratio of 0.57 is on the low side compared to the rest of the industry. WEX is outperformed by 61.22% 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.
The Quick ratio of WEX (0.57) is worse than 61.22% 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.
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.
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 9.33, the valuation of WEX can be described as reasonable.
65.31% of the companies in the same industry are more expensive than WEX, based on the Price/Earnings ratio.
WEX is valuated cheaply when we compare the Price/Earnings ratio to 25.83, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 8.15 indicates a reasonable valuation of WEX.
Based on the Price/Forward Earnings ratio, WEX is valued a bit cheaper than the industry average as 65.31% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 32.68, WEX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.33 | ||
| Fwd PE | 8.15 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WEX is valued cheaper than 81.63% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WEX indicates a somewhat cheap valuation: WEX is cheaper than 78.57% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.77 | ||
| EV/EBITDA | 7.24 |
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)2.06
PEG (5Y)0.87
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 |
145.68
+0.86 (+0.59%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners113.29%
Inst Owner Change-1.32%
Ins Owners0.61%
Ins Owner Change1.99%
Market Cap4.99B
Revenue(TTM)2.62B
Net Income(TTM)283.80M
Analysts71.11
Price Target183.65 (26.06%)
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)-0.7%
PT rev (3m)8.96%
EPS NQ rev (1m)0.49%
EPS NQ rev (3m)0.98%
EPS NY rev (1m)0.22%
EPS NY rev (3m)4.14%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)0.42%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.33 | ||
| Fwd PE | 8.15 | ||
| P/S | 1.9 | ||
| P/FCF | 7.77 | ||
| P/OCF | 6.25 | ||
| P/B | 4.46 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.24 |
EPS(TTM)15.62
EY10.72%
EPS(NY)17.88
Fwd EY12.27%
FCF(TTM)18.76
FCFY12.88%
OCF(TTM)23.29
OCFY15.99%
SpS76.61
BVpS32.64
TBVpS-88.39
PEG (NY)2.06
PEG (5Y)0.87
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 | 0.5 |
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 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 9.33 and the Price/Book (PB) ratio is 4.46.