Want to see WEX full AI Analyst Report?
Top Page
WEX
(NYSE:WEX)
Select Model
Select Model
Rating:63Neutral
Price Target:
$183.00
▲(3.89% Upside)
Action:Reiterated
Date:07/24/26
The score is held back primarily by financial statement risk—high/rising leverage and weakening cash flow trends—despite strong underlying profitability. Offsetting this, technical momentum is clearly positive, and the latest earnings call was constructive with raised guidance, improving leverage, strong adjusted free cash flow, and active buybacks. Valuation appears reasonable on P/E, but the lack of dividend yield limits support from shareholder return via income.
Positive Factors
Sustained Profitability
WEX’s high TTM EBIT (~25%) and net (~11.5%) margins reflect durable operating leverage in payment processing and program services. Sustained margins provide resilience to revenue volatility, support reinvestment and buybacks, and underpin long‑term return generation even if top‑line growth moderates.
Negative Factors
High and Rising Leverage
Leverage elevated to ~4.1x D/E increases financial sensitivity to earnings or cash flow shocks. High debt limits strategic flexibility, raises refinancing and interest risk, and amplifies downside in cyclicality; sustained leverage constrains investment and heightens capital allocation tradeoffs.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Profitability
WEX’s high TTM EBIT (~25%) and net (~11.5%) margins reflect durable operating leverage in payment processing and program services. Sustained margins provide resilience to revenue volatility, support reinvestment and buybacks, and underpin long‑term return generation even if top‑line growth moderates.
Read all positive factors
WEX (WEX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.35B
Dividend YieldN/A
Average Volume (3M)713.17K
Price to Earnings (P/E)18.4
Beta (1Y)1.10
Revenue Growth7.46%
EPS Growth27.03%
CountryUS
Employees6,600
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)10.17
Shares Outstanding34,081,610
10 Day Avg. Volume868,010
30 Day Avg. Volume713,172
Financial Highlights & Ratios
PEG Ratio1.35
Price to Book (P/B)4.28
Price to Sales (P/S)1.99
P/FCF Ratio16.86
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$179.00Price Target Upside1.62% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)20.03
Revenue Forecast (FY)$2.88B
WEX Business Overview & Revenue Model
Company Description
WEX Inc., a financial technology enterprise established in 1983 and headquartered in Portland, Maine, delivers diverse services across the United States and globally. The company, which operated as Wright Express Corporation until its name change ...
How the Company Makes Money
WEX generates revenue primarily by enabling and processing business-to-business payments across its main platforms (fleet, corporate payments, and travel). Key revenue streams generally include: (1) Payment processing and transaction-based fees: W...
WEX Earnings Call Summary
Earnings Call Date:Jul 22, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call conveyed strong execution: revenue and adjusted EPS materially beat guidance, free cash flow and leverage improved, buybacks resumed, and AI-driven product initiatives and segment momentum (mobility, corporate payments, benefits) were highlighted. However, a meaningful portion of near-term outperformance was driven by elevated fuel prices and FX, mobility volumes remain constrained by demand-side weakness, and credit/provision dynamics require monitoring. On balance, management presented confidence in sustainable organic initiatives and capital allocation while acknowledging macro-driven effects.Positive Updates
Revenue Beat and Growth
Q2 revenue of $753.5 million, up 14.2% year-over-year and above the top end of guidance; revenue ex fuel prices and FX grew 4.2% (midpoint of guidance).
Negative Updates
Significant Fuel Price and FX Tailwinds
Management noted fuel prices and FX added ~10% to reported revenue growth and accounted for ~25.4% of EPS growth in Q2, indicating a material portion of near-term outperformance is macro-driven and may not be sustainable.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Beat and Growth
Q2 revenue of $753.5 million, up 14.2% year-over-year and above the top end of guidance; revenue ex fuel prices and FX grew 4.2% (midpoint of guidance).
Read all positive updates
Company Guidance
WEX guided Q3 revenue of $733–753 million and adjusted (non‑GAAP) EPS of $5.45–5.65, and raised full‑year guidance to $2.86–2.90 billion revenue and $19.68–20.08 adjusted EPS (vs. prior midpoints +$32 million revenue and +$0.63 EPS, driven by Q2 share repurchases and higher fuel assumptions); revenue guidance is on a GAAP basis while earnings are non‑GAAP, and the company said it does not assume interest rate changes for the rest of the year. Management expects to exit 2026 within its long‑term organic revenue growth range of 5%–10% ex‑macro, to deliver >100 bps of macro‑neutral margin expansion in the back half (part of a 75 bps full‑year target), and to continue prioritizing buybacks (vast majority of adjusted free cash flow), noting TTM adjusted free cash flow of $696 million (typical annual FCF ~$600–650M), leverage at 2.9x (target 2.5x–3x), repurchases of ~$93M May–Jul 20 including ~$60M in Q2 and ~$33M thereafter (adding ~$0.01 to Q2 EPS and not baked into guidance beyond Q2), plus segment specifics such as direct AP reaccelerating to 20% (expected mid‑teens growth remainder of year; ~20% of segment revenue) and mobility pricing actions expected to add ~$15 million of revenue in the second half.WEX Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
38
Negative
Cash Flow
33
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.79B | 2.66B | 2.63B | 2.55B | 2.35B | 1.85B |
| Gross Profit | 1.58B | 1.46B | 1.59B | 1.57B | 1.42B | 1.15B |
| EBITDA | 956.80M | 994.90M | 975.00M | 849.60M | 571.90M | 565.70M |
| Net Income | 350.80M | 304.10M | 309.60M | 266.60M | 201.40M | 100.00K |
Balance Sheet | ||||||
| Total Assets | 16.50B | 14.40B | 13.32B | 13.88B | 11.53B | 10.31B |
| Cash, Cash Equivalents and Short-Term Investments | 6.10B | 5.24B | 4.36B | 4.00B | 3.26B | 2.21B |
| Total Debt | 5.36B | 4.86B | 4.45B | 3.87B | 2.81B | 2.95B |
| Total Liabilities | 15.15B | 13.16B | 11.83B | 12.06B | 9.88B | 8.21B |
| Stockholders Equity | 1.34B | 1.23B | 1.49B | 1.82B | 1.65B | 1.84B |
Cash Flow | ||||||
| Free Cash Flow | 108.50M | 313.70M | 334.10M | 763.90M | 563.20M | 64.36M |
| Operating Cash Flow | 262.90M | 454.30M | 481.40M | 907.90M | 679.40M | 150.40M |
| Investing Cash Flow | -1.06B | -696.90M | -960.60M | -2.14B | -716.70M | -1.60B |
| Financing Cash Flow | 990.80M | 418.90M | -260.30M | 1.57B | 681.30M | 1.40B |
WEX Technical Analysis
Positive
176.15
Price Trends
150.66
Positive
152.67
Positive
152.78
Positive
Market Momentum
7.05
Negative
70.64
Negative
66.46
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WEX, the sentiment is Positive. The current price of 176.15 is above the 20-day moving average (MA) of 165.74, above the 50-day MA of 150.66, and above the 200-day MA of 152.78, indicating a bullish trend. The MACD of 7.05 indicates Negative momentum. The RSI at 70.64 is Negative, neither overbought nor oversold. The STOCH value of 66.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WEX.
WEX Risk Analysis
WEX disclosed 57 risk factors in its most recent earnings report. WEX reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
WEX Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $2.42B | 35.64 | 10.01% | ― | 7.19% | -36.03% | |
77 Outperform | $4.42B | 22.85 | 37.04% | 1.36% | 46.60% | 66.04% | |
69 Neutral | $5.86B | 28.52 | 13.99% | ― | 7.06% | -22.01% | |
69 Neutral | $1.87B | 775.00 | 0.27% | ― | 23.39% | -94.59% | |
65 Neutral | $2.92B | 10.31 | 30.39% | ― | 5.76% | ― | |
63 Neutral | $6.35B | 18.38 | 28.22% | ― | 7.46% | 27.03% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
WEX
WEX
186.96
20.59
12.38%
ACIW
ACI Worldwide
57.33
16.59
40.72%
EEFT
Euronet Worldwide
71.33
-22.57
-24.04%
PAYO
Payoneer
7.17
0.89
14.17%
MQ
Marqeta
17.36
-4.76
-21.52%
DLO
DLocal
15.08
5.24
53.19%
WEX Corporate Events
Executive/Board ChangesStock BuybackShareholder Meetings
WEX Announces Major Share Repurchase After Annual Meeting
Positive
May 14, 2026
At its May 14, 2026 annual meeting, WEX Inc. stockholders elected 11 directors to one-year terms expiring at the 2027 annual meeting, with all nominees receiving strong majority support. Shareholders also approved on an advisory basis the compensa...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
WEX Reaches Governance Agreement With Activist Impactive Capital
Positive
May 4, 2026
On May 3–4, 2026, WEX Inc. entered into a cooperation agreement with activist investor Impactive Capital that will expand its board to 11 members and add three new independent directors, Kurt Adams, Ellen Alemany and Impactive co-founder Lau...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.