The Western Union Co. (WU) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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The Western Union Co.

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Why is The Western Union Co. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 210.19%

OPERATING CASH FLOW(Y) Lowest at USD 494 MM
INTEREST COVERAGE RATIO(Q) Lowest at 634.6
INTEREST(Q) Highest at USD 36.7 MM

With ROE of 97.40%, it has a very attractive valuation with a 3.33 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -11.59%, its profits have risen by 48.3% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 1126

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -11.59% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Finance)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is The Western Union Co. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

The Western Union Co.

-15.42%

-0.76

32.69%

S&P 500

20.78%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-3.48%

EBIT Growth (5y)

-5.01%

EBIT to Interest (avg)

9.02

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

61.64%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

ROE (avg)

210.19%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.86

EV to EBIT

1.95

EV to EBITDA

1.61

EV to Capital Employed

-5.40

EV to Sales

0.37

PEG Ratio

Dividend Yield

11.26%

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

53.11%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 115.08%

-23What is not working for the Company

ROCE(HY)

Lowest at 47.66%

INTEREST COVERAGE RATIO(Q)

Lowest at 490.88

RAW MATERIAL COST(Y)

Grown by 13.18% (YoY

CASH AND EQV(HY)

Lowest at USD 2,145.8 MM

NET SALES(Q)

Lowest at USD 980.8 MM

PRE-TAX PROFIT(Q)

Lowest at USD 98.1 MM

NET PROFIT(Q)

Lowest at USD 70.44 MM

EPS(Q)

Lowest at USD 0.2

Here's what is working for The Western Union Co.

Dividend Payout Ratio

Highest at 115.08%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at USD 46.7 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for The Western Union Co.

Net Profit

At USD 70.44 MM has Fallen at -44.61%

over average net sales of the previous four periods of USD 127.17 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest Coverage Ratio

Lowest at 490.88

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At USD 98.1 MM has Fallen at -38.47%

over average net sales of the previous four periods of USD 159.43 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Sales

Lowest at USD 980.8 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Pre-Tax Profit

Lowest at USD 98.1 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 70.44 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 0.2

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Cash and Eqv

Lowest at USD 2,145.8 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 13.18% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

Non Operating Income

Highest at USD 0.04 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income