WEX INC (WEX) Stock Fundamental Analysis
NYSE:WEX - New York Stock Exchange, Inc. - US96208T1043 - Common Stock - Currency: USD
Overall WEX gets a fundamental rating of 4 out of 10. We evaluated WEX against 100 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 has a decent growth rate and is not valued too expensively.
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.
In the past 5 years WEX always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.26%, WEX is in line with its industry, outperforming 56.00% of the companies in the same industry.
WEX's Return On Equity of 38.91% is amongst the best of the industry. WEX outperforms 92.00% of its industry peers.
With an excellent Return On Invested Capital value of 9.85%, WEX belongs to the best of the industry, outperforming 82.00% of the companies in the same industry.
WEX had an Average Return On Invested Capital over the past 3 years of 8.63%. This is below the industry average of 11.84%.
The last Return On Invested Capital (9.85%) for WEX is above the 3 year average (8.63%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.26% | ||
| ROE | 38.91% | ||
| ROIC | 9.85% |
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 12.07% is in line compared to the rest of the industry. WEX outperforms 58.00% of its industry peers.
In the last couple of years the Profit Margin of WEX has grown nicely.
WEX's Operating Margin of 30.21% is fine compared to the rest of the industry. WEX outperforms 73.00% of its industry peers.
In the last couple of years the Operating Margin of WEX has grown nicely.
WEX's Gross Margin of 64.17% is fine compared to the rest of the industry. WEX outperforms 78.00% 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 | 30.21% | ||
| PM (TTM) | 12.07% | ||
| GM | 64.17% |
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.
The debt/assets ratio for WEX is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.53, we must say that WEX is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of WEX (0.53) is comparable to the rest of the industry.
A Debt/Equity ratio of 5.06 is on the high side and indicates that WEX has dependencies on debt financing.
With a Debt to Equity ratio value of 5.06, WEX is not doing good in the industry: 78.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.06 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.53 |
ROIC/WACC1.16
WACC8.51%
2.3 Liquidity
WEX has a Current Ratio of 0.58. 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 (0.58) than 64.00% of its industry peers.
WEX has a Quick Ratio of 0.58. 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 Quick ratio (0.58) than 63.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
WEX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.47%.
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 small growth in Revenue. In the last year, the Revenue has grown by 0.90%.
The Revenue has been growing by 8.80% on average over the past years. This is quite good.
EPS 1Y (TTM)2.47%
EPS 3Y18.73%
EPS 5Y10.68%
EPS Q2Q%1.45%
Revenue 1Y (TTM)0.9%
Revenue growth 3Y12.4%
Revenue growth 5Y8.8%
Sales Q2Q%-2.47%
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.
The Revenue is expected to grow by 4.21% on average over the next years.
EPS Next Y-0.62%
EPS Next 2Y5.39%
EPS Next 3Y7.55%
EPS Next 5Y8.79%
Revenue Next Year-0.64%
Revenue Next 2Y2.27%
Revenue Next 3Y3.01%
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
The Price/Earnings ratio is 9.83, which indicates a very decent valuation of WEX.
WEX's Price/Earnings ratio is a bit cheaper when compared to the industry. WEX is cheaper than 69.00% of the companies in the same industry.
WEX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
Based on the Price/Forward Earnings ratio of 8.88, the valuation of WEX can be described as reasonable.
Based on the Price/Forward Earnings ratio, WEX is valued a bit cheaper than 64.00% of the companies in the same industry.
WEX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.83 | ||
| Fwd PE | 8.88 |
4.2 Price Multiples
WEX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WEX is cheaper than 71.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.21 |
4.3 Compensation for Growth
WEX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.92
EPS Next 2Y5.39%
EPS Next 3Y7.55%
5. Dividend
5.1 Amount
WEX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
150.64
-3.55 (-2.3%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners117.98%
Inst Owner Change-0.01%
Ins Owners0.61%
Ins Owner Change13.95%
Market Cap5.16B
Analysts68
Price Target166.42 (10.48%)
Short Float %5.23%
Short Ratio3.26
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)1
Avg EPS beat(2)-0.03%
Min EPS beat(2)-0.45%
Max EPS beat(2)0.38%
EPS beat(4)2
Avg EPS beat(4)0.35%
Min EPS beat(4)-2.49%
Max EPS beat(4)3.94%
EPS beat(8)6
Avg EPS beat(8)1.67%
EPS beat(12)10
Avg EPS beat(12)2.66%
EPS beat(16)14
Avg EPS beat(16)4.13%
Revenue beat(2)0
Avg Revenue beat(2)-0.5%
Min Revenue beat(2)-0.62%
Max Revenue beat(2)-0.37%
Revenue beat(4)0
Avg Revenue beat(4)-1.77%
Min Revenue beat(4)-4.17%
Max Revenue beat(4)-0.37%
Revenue beat(8)2
Avg Revenue beat(8)-1.08%
Revenue beat(12)6
Avg Revenue beat(12)0.49%
Revenue beat(16)10
Avg Revenue beat(16)0.84%
PT rev (1m)0.29%
PT rev (3m)-7.58%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.31%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)0.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.64%
Revenue NY rev (1m)0.65%
Revenue NY rev (3m)-0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.83 | ||
| Fwd PE | 8.88 | ||
| P/S | 1.97 | ||
| P/FCF | N/A | ||
| P/OCF | 33.69 | ||
| P/B | 6.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.21 |
EPS(TTM)15.33
EY10.18%
EPS(NY)16.97
Fwd EY11.27%
FCF(TTM)-0.36
FCFYN/A
OCF(TTM)4.47
OCFY2.97%
SpS76.29
BVpS23.67
TBVpS-99.53
PEG (NY)N/A
PEG (5Y)0.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.26% | ||
| ROE | 38.91% | ||
| ROCE | 13.46% | ||
| ROIC | 9.85% | ||
| ROICexc | 10.99% | ||
| ROICexgc | 67.53% | ||
| OM | 30.21% | ||
| PM (TTM) | 12.07% | ||
| GM | 64.17% | ||
| FCFM | N/A |
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%
ROICexcg growth 3Y50.84%
ROICexcg 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-Score5
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.06 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.68 | ||
| Cap/Depr | 51.02% | ||
| Cap/Sales | 6.34% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 13.75% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | 0.53 |
F-Score5
WACC8.51%
ROIC/WACC1.16
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)2.47%
EPS 3Y18.73%
EPS 5Y10.68%
EPS Q2Q%1.45%
EPS Next Y-0.62%
EPS Next 2Y5.39%
EPS Next 3Y7.55%
EPS Next 5Y8.79%
Revenue 1Y (TTM)0.9%
Revenue growth 3Y12.4%
Revenue growth 5Y8.8%
Sales Q2Q%-2.47%
Revenue Next Year-0.64%
Revenue Next 2Y2.27%
Revenue Next 3Y3.01%
Revenue Next 5Y4.21%
EBIT growth 1Y4.89%
EBIT growth 3Y30.01%
EBIT growth 5Y12.97%
EBIT Next Year5.26%
EBIT Next 3Y4.39%
EBIT Next 5YN/A
FCF growth 1Y-101.66%
FCF growth 3Y72.27%
FCF growth 5Y-10.1%
OCF growth 1Y-82.35%
OCF growth 3Y47.37%
OCF growth 5Y-6.21%