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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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 hold?

Overall Portfolio exposure to The Western Union Co. should be less than 10%
Overall Portfolio exposure to Finance should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is The Western Union Co. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

The Western Union Co.

-11.5%

-0.76

32.69%

S&P 500

22.36%

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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 609.7 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 96.08%

-14What is not working for the Company

ROCE(HY)

Lowest at 43.97%

RAW MATERIAL COST(Y)

Grown by 15.56% (YoY

CASH AND EQV(HY)

Lowest at USD 1,831 MM

INTEREST(Q)

Highest at USD 39.5 MM

PRE-TAX PROFIT(Q)

At USD 109.1 MM has Fallen at -25.85%

NET PROFIT(Q)

At USD 87.71 MM has Fallen at -22.99%

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

Operating Cash Flow

Highest at USD 609.7 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Dividend Payout Ratio

Highest at 96.08% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at USD 49.3 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.

Interest

Highest at USD 39.5 MM

in the last five periods and Increased by 9.12% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Pre-Tax Profit

At USD 109.1 MM has Fallen at -25.85%

over average net sales of the previous four periods of USD 147.12 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 87.71 MM has Fallen at -22.99%

over average net sales of the previous four periods of USD 113.91 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Cash and Eqv

Lowest at USD 1,831 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 15.56% (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