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WEX INC (WEX) Stock Fundamental Analysis

NYSE:WEX - New York Stock Exchange, Inc. - US96208T1043 - Common Stock

183.79  +0.07 (+0.04%)

After market: 183.79 0 (0%)

Fundamental Rating

5

WEX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 101 industry peers in the Financial Services industry. WEX has an excellent profitability rating, but there are concerns on its financial health. WEX is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

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7

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.
WEX Yearly Net Income VS EBIT VS OCF VS FCFWEX Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M 400M 600M 800M

1.2 Ratios

WEX has a Return On Assets (2.37%) which is in line with its industry peers.
With an excellent Return On Equity value of 19.71%, WEX belongs to the best of the industry, outperforming 84.16% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 7.48%, WEX belongs to the top of the industry, outperforming 80.20% 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 7.84%.
The last Return On Invested Capital (7.48%) for WEX is above the 3 year average (6.18%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 2.37%
ROE 19.71%
ROIC 7.48%
ROA(3y)1.22%
ROA(5y)0.38%
ROE(3y)8.95%
ROE(5y)3.84%
ROIC(3y)6.18%
ROIC(5y)5.26%
WEX Yearly ROA, ROE, ROICWEX Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 -5 10 -10

1.3 Margins

WEX has a Profit Margin of 12.45%. This is comparable to the rest of the industry: WEX outperforms 56.44% of its industry peers.
WEX's Profit Margin has been stable in the last couple of years.
The Operating Margin of WEX (30.54%) is better than 78.22% of its industry peers.
WEX's Operating Margin has been stable in the last couple of years.
The Gross Margin of WEX (64.90%) is better than 77.23% of its industry peers.
WEX's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 30.54%
PM (TTM) 12.45%
GM 64.9%
OM growth 3Y32.08%
OM growth 5Y0.06%
PM growth 3YN/A
PM growth 5Y-1.48%
GM growth 3Y3.71%
GM growth 5Y-0.23%
WEX Yearly Profit, Operating, Gross MarginsWEX Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 40 60

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2

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WEX is destroying value.
WEX has less shares outstanding than it did 1 year ago.
The number of shares outstanding for WEX has been reduced compared to 5 years ago.
Compared to 1 year ago, WEX has a worse debt to assets ratio.
WEX Yearly Shares OutstandingWEX Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 10M 20M 30M 40M
WEX Yearly Total Debt VS Total AssetsWEX Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B 10B

2.2 Solvency

Based on the Altman-Z score of 0.65, we must say that WEX is in the distress zone and has some risk of bankruptcy.
WEX has a Altman-Z score (0.65) which is comparable to the rest of the industry.
The Debt to FCF ratio of WEX is 10.19, which is on the high side as it means it would take WEX, 10.19 years of fcf income to pay off all of its debts.
WEX has a Debt to FCF ratio of 10.19. This is comparable to the rest of the industry: WEX outperforms 49.51% of its industry peers.
WEX has a Debt/Equity ratio of 2.70. This is a high value indicating a heavy dependency on external financing.
WEX has a worse Debt to Equity ratio (2.70) than 72.28% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.7
Debt/FCF 10.19
Altman-Z 0.65
ROIC/WACC0.94
WACC7.97%
WEX Yearly LT Debt VS Equity VS FCFWEX Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B 2B

2.3 Liquidity

A Current Ratio of 0.58 indicates that WEX may have some problems paying its short term obligations.
WEX has a worse Current ratio (0.58) than 63.37% 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 63.37% of its industry peers.
Industry RankSector Rank
Current Ratio 0.58
Quick Ratio 0.58
WEX Yearly Current Assets VS Current LiabilitesWEX Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B

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5

3. Growth

3.1 Past

WEX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.62%.
WEX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.55% yearly.
The Revenue has been growing slightly by 6.06% in the past year.
Measured over the past years, WEX shows a quite strong growth in Revenue. The Revenue has been growing by 11.29% on average per year.
EPS 1Y (TTM)7.62%
EPS 3Y34.7%
EPS 5Y12.55%
EPS Q2Q%7.41%
Revenue 1Y (TTM)6.06%
Revenue growth 3Y17.77%
Revenue growth 5Y11.29%
Sales Q2Q%2.16%

3.2 Future

The Earnings Per Share is expected to grow by 11.20% on average over the next years. This is quite good.
Based on estimates for the next years, WEX will show a small growth in Revenue. The Revenue will grow by 6.91% on average per year.
EPS Next Y4.44%
EPS Next 2Y7.94%
EPS Next 3Y9.94%
EPS Next 5Y11.2%
Revenue Next Year3.59%
Revenue Next 2Y3.75%
Revenue Next 3Y4.89%
Revenue Next 5Y6.91%

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.
WEX Yearly Revenue VS EstimatesWEX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1B 2B 3B
WEX Yearly EPS VS EstimatesWEX Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 5 10 15 20

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6

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 11.83, 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 61.39% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.94. WEX is valued rather cheaply when compared to this.
WEX is valuated reasonably with a Price/Forward Earnings ratio of 10.65.
The rest of the industry has a similar Price/Forward Earnings ratio as WEX.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.11, WEX is valued rather cheaply.
Industry RankSector Rank
PE 11.83
Fwd PE 10.65
WEX Price Earnings VS Forward Price EarningsWEX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

78.22% of the companies in the same industry are more expensive than WEX, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, WEX is valued a bit cheaper than the industry average as 68.32% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 16.27
EV/EBITDA 8.86
WEX Per share dataWEX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 -20 40 -40 60 -60

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)2.67
PEG (5Y)0.94
EPS Next 2Y7.94%
EPS Next 3Y9.94%

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0

5. Dividend

5.1 Amount

No dividends for WEX!.
Industry RankSector Rank
Dividend Yield N/A

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WEX INC

NYSE:WEX (1/17/2025, 8:04:00 PM)

After market: 183.79 0 (0%)

183.79

+0.07 (+0.04%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)10-24 2024-10-24/bmo
Earnings (Next)02-06 2025-02-06/amc
Inst Owners101.19%
Inst Owner Change-0.11%
Ins Owners0.39%
Ins Owner Change-0.16%
Market Cap7.31B
Analysts74.29
Price Target216.41 (17.75%)
Short Float %1.89%
Short Ratio1.95
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0
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)0.72%
Min EPS beat(2)-2.49%
Max EPS beat(2)3.94%
EPS beat(4)3
Avg EPS beat(4)1.15%
Min EPS beat(4)-2.49%
Max EPS beat(4)3.94%
EPS beat(8)7
Avg EPS beat(8)2.72%
EPS beat(12)11
Avg EPS beat(12)3.52%
EPS beat(16)14
Avg EPS beat(16)4.45%
Revenue beat(2)0
Avg Revenue beat(2)-3.04%
Min Revenue beat(2)-4.17%
Max Revenue beat(2)-1.91%
Revenue beat(4)1
Avg Revenue beat(4)-1.71%
Min Revenue beat(4)-4.17%
Max Revenue beat(4)0.55%
Revenue beat(8)4
Avg Revenue beat(8)-0.15%
Revenue beat(12)8
Avg Revenue beat(12)0.8%
Revenue beat(16)11
Avg Revenue beat(16)0.98%
PT rev (1m)-0.25%
PT rev (3m)-6.12%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-20.63%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-9.72%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.57%
Valuation
Industry RankSector Rank
PE 11.83
Fwd PE 10.65
P/S 2.75
P/FCF 16.27
P/OCF 12.09
P/B 4.36
P/tB N/A
EV/EBITDA 8.86
EPS(TTM)15.53
EY8.45%
EPS(NY)17.26
Fwd EY9.39%
FCF(TTM)11.29
FCFY6.15%
OCF(TTM)15.21
OCFY8.27%
SpS66.74
BVpS42.17
TBVpS-66.9
PEG (NY)2.67
PEG (5Y)0.94
Profitability
Industry RankSector Rank
ROA 2.37%
ROE 19.71%
ROCE 13.47%
ROIC 7.48%
ROICexc 8.06%
ROICexgc 23.12%
OM 30.54%
PM (TTM) 12.45%
GM 64.9%
FCFM 16.92%
ROA(3y)1.22%
ROA(5y)0.38%
ROE(3y)8.95%
ROE(5y)3.84%
ROIC(3y)6.18%
ROIC(5y)5.26%
ROICexc(3y)7.17%
ROICexc(5y)6.13%
ROICexgc(3y)39.72%
ROICexgc(5y)40.97%
ROCE(3y)9.05%
ROCE(5y)7.7%
ROICexcg growth 3Y35.16%
ROICexcg growth 5Y5.69%
ROICexc growth 3Y50.2%
ROICexc growth 5Y3.87%
OM growth 3Y32.08%
OM growth 5Y0.06%
PM growth 3YN/A
PM growth 5Y-1.48%
GM growth 3Y3.71%
GM growth 5Y-0.23%
F-Score7
Asset Turnover0.19
Health
Industry RankSector Rank
Debt/Equity 2.7
Debt/FCF 10.19
Debt/EBITDA 4.02
Cap/Depr 49.49%
Cap/Sales 5.86%
Interest Coverage 250
Cash Conversion 53.75%
Profit Quality 135.9%
Current Ratio 0.58
Quick Ratio 0.58
Altman-Z 0.65
F-Score7
WACC7.97%
ROIC/WACC0.94
Cap/Depr(3y)43.07%
Cap/Depr(5y)40.67%
Cap/Sales(3y)5.14%
Cap/Sales(5y)5.31%
Profit Quality(3y)15846.8%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)7.62%
EPS 3Y34.7%
EPS 5Y12.55%
EPS Q2Q%7.41%
EPS Next Y4.44%
EPS Next 2Y7.94%
EPS Next 3Y9.94%
EPS Next 5Y11.2%
Revenue 1Y (TTM)6.06%
Revenue growth 3Y17.77%
Revenue growth 5Y11.29%
Sales Q2Q%2.16%
Revenue Next Year3.59%
Revenue Next 2Y3.75%
Revenue Next 3Y4.89%
Revenue Next 5Y6.91%
EBIT growth 1Y12.98%
EBIT growth 3Y55.55%
EBIT growth 5Y11.36%
EBIT Next Year19.29%
EBIT Next 3Y12.02%
EBIT Next 5YN/A
FCF growth 1Y-11.56%
FCF growth 3Y-0.72%
FCF growth 5Y19.41%
OCF growth 1Y-2.02%
OCF growth 3Y1.94%
OCF growth 5Y17.8%