WEX (WEX) AI Stock Analysis

• Market Cap: $5.53B
• Dividend Yield: N/A
• Average Volume (3M): 301.68K
• Price to Earnings (P/E): 20.9
• Beta (1Y): 1.11
• Revenue Growth: -1.15%
• EPS Growth: -2.52%
• Country: US
• Employees: 6,500
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 4.59
• Shares Outstanding: 34,288,525
• 10 Day Avg. Volume: 335,740
• 30 Day Avg. Volume: 301,684
• PEG Ratio: 1.06
• Price to Book (P/B): 4.80
• Price to Sales (P/S): 2.72
• P/FCF Ratio: 21.41
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 1.87
• Enterprise Value/Gross Profit: 3.16
• Enterprise Value/Ebitda: 5.34
• 1Y Price Target: $171.17
• Price Target Upside: 6.60% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9
• EPS Forecast (FY): 17.6
• Revenue Forecast (FY): $2.76B

• Rating: 73 Outperform
• Price Target: $177.00 ▲(10.23% Upside)

The score is led by solid financial performance (strong margins and free cash flow growth) and supportive technical momentum (price above key moving averages with positive MACD). Offsetting factors are leverage risk on the balance sheet and only moderate valuation support (P/E ~20.6 with no dividend), while the latest earnings call was broadly positive but noted ongoing macro headwinds in Mobility.

Positive Factors

Strong margins and free cash flow

Sustained high EBIT/EBITDA margins and notable free cash flow growth support durable internal funding for product development, debt servicing and strategic initiatives. This cash generation capacity increases resilience to cycles and underpins long-term operational flexibility.

Diversified, recurring revenue model

A mix of transaction fees, subscription SaaS and interest/fee income spreads revenue risk across sectors (fleet, corporate, healthcare). Recurring subscription revenue and partner distribution create more predictable cash flows and cross-sell opportunities, supporting steadier growth over multiple quarters.

AI-driven product and operational improvements

Meaningful AI adoption that accelerates product velocity and slashes claims processing is structurally beneficial: it can lower operating costs, speed time-to-market, improve retention in Benefits, and raise competitive barriers through scalable technology advantages over 2-6 months and beyond.

Negative Factors

High leverage on the balance sheet

Elevated debt-to-equity increases interest expense sensitivity and reduces financial flexibility for acquisitions or downturns. In a higher-rate or cyclical environment, leverage can strain liquidity and constrain strategic choices, making capital structure management a persistent fundamental risk.

Slowing revenue growth trend

A decelerating top-line trajectory limits operating leverage and could hinder achievement of long-term 5–10% revenue targets. If organic growth stalls, the company must rely on higher-margin improvements or inorganic moves, which raises execution risk over the medium term.

Mobility exposure to macro cyclical pressures

Material exposure to Mobility and over-the-road trucking makes revenue and transaction volumes sensitive to fuel prices, freight demand and FX. These structural cyclicals can compress volumes and revenue predictability, pressuring segment performance across multiple quarters.

WEX Business Overview & Revenue Model

Company Description

WEX Inc. provides financial technology services in the United States and internationally. It operates through three segments: Fleet Solutions, Travel and Corporate Solutions, and Health and Employee Benefit Solutions. The Fleet Solutions segment offers fleet vehicle payment processing services. Its services include customer, account activation, and account retention services; authorization and billing inquiries, and account maintenance services; credit and collections services; merchant services; analytics solutions with access to web-based data analytics platform that offers insights to fleet managers; and ancillary services and tools to fleets to manage expenses and capital requirements. This segment markets its products directly and indirectly to commercial and government vehicle fleet customers with small, medium, and large fleets, as well as with over-the-road and long haul fleets; and indirectly through co-branded and private label relationships. The Travel and Corporate Solutions segment provides payment solutions, including embedded payments; and accounts payable automation and spend management solutions. Its products include virtual cards that are used for transactions where no card is presented. This segment markets its products directly and indirectly to commercial and government organizations. The Health and Employee Benefit Solutions segment offers healthcare payment products and software-as-a-service consumer directed platforms for healthcare market, as well as payroll related and employee benefit products in Brazil. This segment markets its products through health plans, third-party administrators, financial institutions, payroll companies benefits consultants, software providers, and individuals. The company was formerly known as Wright Express Corporation and changed its name to WEX Inc. in October 2012. WEX Inc. was founded in 1983 and is based in Portland, Maine.

How the Company Makes Money

WEX generates revenue through several key streams. Primarily, the company earns income from transaction fees associated with its fleet card services, where it charges merchants a percentage of the transaction value every time a fleet card is used. Additionally, WEX offers subscription-based services for its virtual card and expense management solutions, providing businesses with ongoing revenue through annual or monthly fees. The company also benefits from partnerships with major financial institutions and payment networks, which enhance its service offerings and expand its customer base. Furthermore, WEX generates income from interest on outstanding balances and fees related to its healthcare payment solutions, contributing to a diverse and robust revenue model.

WEX Financial Statement Overview

Summary

WEX demonstrates solid financial health with strong profitability and cash flow generation. The company maintains good margins and has shown consistent revenue growth over the years. However, the high debt-to-equity ratio is a concern, indicating potential financial risk if not managed carefully.

Income Statement

WEX shows a solid performance with consistent revenue growth and strong margins. The TTM data indicates a slight dip in gross profit margin compared to the previous year, but net profit margin remains stable. The EBIT and EBITDA margins are robust, reflecting efficient operations. However, the revenue growth rate has slowed down compared to previous years, which could be a concern if it continues.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage, which poses a risk if not managed properly. Return on equity is strong, suggesting effective use of equity to generate profits. The equity ratio is moderate, showing a balanced asset structure. Overall, while profitability is good, the high leverage could be a potential risk.

Cash Flow

Cash flow analysis shows impressive free cash flow growth in the TTM period, indicating strong cash generation capabilities. The operating cash flow to net income ratio is low, suggesting that cash flow is not as strong relative to net income. However, the free cash flow to net income ratio is healthy, showing good cash conversion. Overall, cash flow performance is strong, with some room for improvement in operating cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.62B	2.63B	2.55B	2.35B	1.85B	1.56B
Gross Profit	1.55B	1.59B	1.57B	1.42B	1.15B	886.69M
EBITDA	916.30M	975.00M	849.60M	571.90M	565.70M	117.92M
Net Income	283.80M	309.60M	266.60M	201.40M	100.00K	-243.64M
Balance Sheet
Total Assets	14.43B	13.32B	13.88B	11.53B	10.31B	8.18B
Cash, Cash Equivalents and Short-Term Investments	4.94B	4.36B	4.00B	3.26B	2.21B	1.33B
Total Debt	5.03B	4.45B	3.87B	2.81B	2.95B	3.13B
Total Liabilities	13.31B	11.83B	12.06B	9.88B	8.21B	6.15B
Stockholders Equity	1.12B	1.49B	1.82B	1.65B	1.84B	1.90B
Cash Flow
Free Cash Flow	642.60M	334.10M	763.90M	563.20M	64.36M	776.55M
Operating Cash Flow	798.00M	481.40M	907.90M	679.40M	150.40M	857.02M
Investing Cash Flow	-630.90M	-960.60M	-2.14B	-716.70M	-1.60B	-329.09M
Financing Cash Flow	-2.40M	-260.30M	1.57B	681.30M	1.40B	-179.26M

WEX Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 160.57
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 160.57 is above the 20-day moving average (MA) of 154.25, above the 50-day MA of 149.91, and above the 200-day MA of 150.63, indicating a bullish trend. The MACD of 2.71 indicates Negative momentum. The RSI at 62.76 is Neutral, neither overbought nor oversold. The STOCH value of 78.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WEX.

WEX Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WEX	73 Outperform	$5.53B	20.86	20.30%	―	-1.15%	-2.52%
ACIW	73 Outperform	$4.69B	17.59	18.58%	―	7.01%	17.48%
PAYO	69 Neutral	$1.89B	28.47	9.79%	―	10.58%	-45.52%
EEFT	66 Neutral	$3.14B	10.90	23.10%	―	7.25%	-1.12%
MQ	66 Neutral	$1.95B	-55.19	-4.10%	―	20.11%	-391.61%
AVPT	65 Neutral	$2.81B	-1,434.07	0.58%	―	24.71%	99.52%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

WEX Corporate Events

WEX announces board changes and leadership transition update

On January 10, 2026, WEX Inc. announced that long-serving directors Shikhar Ghosh and Jack VanWoerkom had informed the board they would retire at the 2026 Annual Meeting of Stockholders, and would not stand for re-election, a move the company said was unrelated to any disagreements over operations, policies or practices. As part of a multi‑year board refresh and leadership transition strategy informed by shareholder feedback, the board decided to reduce its size from 12 to 10 members at that meeting and appointed David Foss, former president and CEO of Jack Henry & Associates who joined WEX’s board in November 2025, to become vice chair and lead independent director following VanWoerkom’s retirement, with additional compensation aligned to the firm’s non‑employee director pay program; executives highlighted the contribution of the retiring directors to WEX’s evolution into a global payments and technology company and signaled that the company ended the year with a strong fourth quarter, reinforcing its positioning for continued long‑term value creation and governance stability for investors and other stakeholders.

The most recent analyst rating on (WEX) stock is a Buy with a $167.00 price target. To see the full list of analyst forecasts on WEX stock, see the WEX Stock Forecast page.

WEX Appoints David Foss to Board of Directors

On October 26, 2025, WEX Inc. announced the appointment of David Foss to its Board of Directors, effective November 3, 2025, expanding the board from 11 to 12 members. Foss, who is recognized as an independent director, brings extensive experience from his previous roles at Jack Henry & Associates and CNO Financial Group. In its third-quarter financial results for 2025, WEX reported a 3.9% increase in revenue to $692 million, with adjusted net income rising by 5.5%. The company raised its full-year revenue guidance, reflecting confidence in its strategic pillars of amplifying core business, expanding reach, and accelerating innovation. Despite a challenging macro environment, WEX is focused on disciplined investment and maintaining financial flexibility to capture growth opportunities.

The most recent analyst rating on (WEX) stock is a Hold with a $170.00 price target. To see the full list of analyst forecasts on WEX stock, see the WEX Stock Forecast page.