WEX INC (WEX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WEX - US96208T1043 - Common Stock
153.81 USD
+2.91 (+1.93%)
153.81 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to WEX. WEX was compared to 99 industry peers in the Financial Services industry. WEX scores excellent on profitability, but there are concerns on its financial health. WEX may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year WEX was profitable.
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
With a decent Return On Assets value of 1.97%, WEX is doing good in the industry, outperforming 60.61% of the companies in the same industry.
WEX's Return On Equity of 25.38% is amongst the best of the industry. WEX outperforms 90.91% of its industry peers.
WEX's Return On Invested Capital of 7.87% is fine compared to the rest of the industry. WEX outperforms 75.76% 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
Looking at the Profit Margin, with a value of 10.81%, WEX is in line with its industry, outperforming 53.54% of the companies in the same industry.
WEX's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 29.09%, WEX is doing good in the industry, outperforming 76.77% of the companies in the same industry.
WEX's Operating Margin has improved in the last couple of years.
The Gross Margin of WEX (63.19%) is better than 76.77% 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.
WEX has less shares outstanding than it did 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.
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.
With a Debt to FCF ratio value of 7.82, WEX perfoms like the industry average, outperforming 46.46% 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.
The Debt to Equity ratio of WEX (4.44) is worse than 78.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.44 | ||
| Debt/FCF | 7.82 | ||
| Altman-Z | 0.51 |
ROIC/WACC1.05
WACC7.5%
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.
Looking at the Current ratio, with a value of 0.57, WEX is doing worse than 60.61% of the companies in the same industry.
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.
WEX has a worse Quick ratio (0.57) than 60.61% 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.
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.
The Revenue has decreased by -1.15% in the past year.
Measured over the past years, WEX shows a quite strong growth in Revenue. The Revenue has been growing by 8.80% on average per year.
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.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.85, which indicates a very decent valuation of WEX.
Based on the Price/Earnings ratio, WEX is valued a bit cheaper than 64.65% of the companies in the same industry.
WEX is valuated cheaply when we compare the Price/Earnings ratio to 26.61, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 8.62 indicates a reasonable valuation of WEX.
Based on the Price/Forward Earnings ratio, WEX is valued a bit cheaper than 65.66% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of WEX to the average of the S&P500 Index (24.01), we can say WEX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.85 | ||
| Fwd PE | 8.62 |
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 80.81% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, WEX is valued cheaper than 83.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.21 | ||
| EV/EBITDA | 7.52 |
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)1.86
PEG (5Y)0.92
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% |
153.81
+2.91 (+1.93%)
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 Change0.29%
Market Cap5.27B
Revenue(TTM)2.62B
Net Income(TTM)283.80M
Analysts71.11
Price Target179.88 (16.95%)
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 | 9.85 | ||
| Fwd PE | 8.62 | ||
| P/S | 2.01 | ||
| P/FCF | 8.21 | ||
| P/OCF | 6.61 | ||
| P/B | 4.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.52 |
EPS(TTM)15.62
EY10.16%
EPS(NY)17.85
Fwd EY11.6%
FCF(TTM)18.74
FCFY12.18%
OCF(TTM)23.27
OCFY15.13%
SpS76.54
BVpS32.62
TBVpS-88.32
PEG (NY)1.86
PEG (5Y)0.92
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
WACC7.5%
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 7 / 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 9.85 and the Price/Book (PB) ratio is 4.72.