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The Western Union Co WU

Morningstar Rating
$13.87 +0.38 (2.82%)
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Company Report

Western Union Earnings: Underlying Results Hold Steady

Ignoring some transitory impacts, Western Union largely maintained its recent path in the fourth quarter. Excluding the divestiture of the business solutions segment, overall revenue declined 1% year over year. Overall, though, we think the business is showing signs that it is stabilizing and potentially setting the stage for a longer-term return to modest growth. We will maintain our $17 fair value estimate for the narrow-moat business and see shares as materially undervalued.

Price vs Fair Value

WU is trading within a range we consider fairly valued.
Price
$13.87
Fair Value
$55.00
Uncertainty
Medium
1-Star Price
$42.81
5-Star Price
$47.70
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

The demographic factor that has historically driven money transfer growth—namely, the differential between population growth in developing and developed countries—remains in place for the foreseeable future.

Bears

A stricter stance on immigration in developed countries could limit immigrant populations and reduce their employment opportunities and money transfer volume.

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News

Trading Information

Previous Close Price
$13.49
Day Range
$13.5013.90
52-Week Range
$10.0713.90
Bid/Ask
$13.30 / $14.23
Market Cap
$4.75 Bil
Volume/Avg
21 / 5.0 Mil

Key Statistics

Price/Earnings (Normalized)
7.97
Price/Sales
1.18
Dividend Yield (Trailing)
6.78%
Dividend Yield (Forward)
6.78%
Total Yield
13.27%

Company Profile

Western Union provides domestic and international money transfers through its global network of about 600,000 outside agents. The company handled over 270 million transactions in 2022 and is the largest money transfer company in the world.
Sector
Financial Services
Industry
Credit Services
Stock Style Box
Small Value
Total Number of Employees
9,000

Competitors

Valuation

Metric
WU
PYPL
V
Price/Earnings (Normalized)
7.9711.7431.20
Price/Book Value
10.153.0514.51
Price/Sales
1.182.2317.42
Price/Cash Flow
5.7710.7818.04
Price/Earnings
WU
PYPL
V

Financial Strength

Metric
WU
PYPL
V
Quick Ratio
0.951.241.04
Current Ratio
1.011.291.45
Interest Coverage
7.9315.2132.85
Quick Ratio
WU
PYPL
V

Profitability

Metric
WU
PYPL
V
Return on Assets (Normalized)
7.81%6.30%21.02%
Return on Equity (Normalized)
117.32%24.36%48.30%
Return on Invested Capital (Normalized)
23.06%15.74%32.46%
Return on Assets
WU
PYPL
V
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