WEX (WEX) AI Stock Analysis

• Market Cap: $5.46B
• Dividend Yield: N/A
• Average Volume (3M): 459.06K
• Price to Earnings (P/E): 18.2
• Beta (1Y): 1.10
• Revenue Growth: -1.15%
• EPS Growth: -2.52%
• Country: US
• Employees: 6,500
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 4.11
• Shares Outstanding: 34,310,620
• 10 Day Avg. Volume: 454,419
• 30 Day Avg. Volume: 459,063
• PEG Ratio: 1.35
• Price to Book (P/B): 4.28
• Price to Sales (P/S): 1.99
• P/FCF Ratio: 16.86
• Enterprise Value/Market Cap: 1.71
• Enterprise Value/Revenue: 3.51
• Enterprise Value/Gross Profit: 6.08
• Enterprise Value/Ebitda: 9.86
• 1Y Price Target: $160.57
• Price Target Upside: 2.03% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: $172.00 ▲(9.30% Upside)

The score is driven primarily by solid profitability but tempered by leverage and cash-flow volatility, while the latest earnings call supports the outlook with positive EPS/FCF guidance and a deleveraging plan. Technicals are mildly constructive but not strongly bullish, and valuation appears reasonable based on the provided P/E.

Positive Factors

Strong margins and profitability

Sustained high gross and operating margins reflect a scalable payments and SaaS-heavy model that converts volume into durable profits. Elevated margins provide long-term capacity to fund product development, absorb cyclicality in segments like Mobility, and support shareholder returns without relying solely on growth.

Diversifying growth: Benefits & Corporate Payments

Above-market growth and margin improvement in Benefits and Corporate Payments build durable revenue diversification away from cyclical fleet volumes. SaaS account growth, rising custodial yields, and scaling embedded/AP products increase recurring, higher-margin streams and reduce single-segment exposure over the medium term.

Product & AI-driven innovation

Accelerated product velocity and AI-driven automation create stickier customer relationships and lower operating costs. New multi-currency virtual card and fleet offerings expand addressable markets and cross-sell opportunities, supporting sustainable differentiation versus legacy payments competitors over multiple years.

Negative Factors

Elevated leverage

High leverage constrains strategic flexibility: it limits M&A, buybacks, and reinvestment during downturns, and increases sensitivity to interest-rate shifts. Even with a plan to reduce below 3x, ongoing elevated debt raises refinancing and covenant risk and pressures credit fundamentals over the medium term.

Free cash flow volatility

Material FCF swings and a steep year-over-year decline signal working-capital sensitivity and lower cushion to service debt or invest. Volatile cash generation reduces optionality to accelerate deleveraging or fund growth initiatives, leaving the company more exposed if cyclical revenue weakens.

Mobility concentration and credit risk

A sizable Mobility franchise tied to over‑the‑road trucking exposes WEX to persistent cyclical demand and rising credit losses from receivables originated when fuel was higher. This structural exposure can depress segment revenue and increase loss provisioning, limiting margin stability over several 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

Profitability is solid with improved operating performance (gross margin ~55%, operating margin ~25%), but the financial profile is constrained by meaningful leverage and a sharp 2025 free-cash-flow decline (down ~51% year-over-year) with modest operating cash flow coverage versus debt.

Income Statement

Profitability has strengthened materially versus 2020–2021, with 2025 showing solid operating performance (gross margin ~55%, operating margin ~25%, net margin ~11%). Revenue has grown over the period (2021–2025), but the 2025 revenue growth rate appears unusually high versus the prior year’s low growth, suggesting a less consistent top-line trajectory. Net income is solid in 2023–2025, though margins are below the 2022–2024 gross margin level and not clearly expanding year-over-year.

Balance Sheet

The balance sheet is leveraged, with total debt high relative to equity and debt-to-equity elevated across most years (notably very high in 2023–2024). While 2025 shows improved returns to shareholders (return on equity ~25%) and a lower reported debt-to-equity than 2024, overall leverage remains a key risk and reduces financial flexibility versus less levered peers.

Cash Flow

Cash generation is positive, and free cash flow has generally tracked net income reasonably well (free cash flow around ~69% of net income in 2024–2025). However, free cash flow deteriorated sharply in 2025 (down ~51% year-over-year) and operating cash flow remains relatively modest versus the company’s debt load (low operating cash flow coverage). This mix points to higher sensitivity to working-capital swings and less cushion for deleveraging or buybacks in weaker periods.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.66B	2.63B	2.55B	2.35B	1.85B
Gross Profit	1.46B	1.59B	1.57B	1.42B	1.15B
EBITDA	994.90M	975.00M	849.60M	571.90M	565.70M
Net Income	304.10M	309.60M	266.60M	201.40M	100.00K
Balance Sheet
Total Assets	14.40B	13.32B	13.88B	11.53B	10.31B
Cash, Cash Equivalents and Short-Term Investments	5.24B	4.36B	4.00B	3.26B	2.21B
Total Debt	4.86B	4.45B	3.87B	2.81B	2.95B
Total Liabilities	13.16B	11.83B	12.06B	9.88B	8.21B
Stockholders Equity	1.23B	1.49B	1.82B	1.65B	1.84B
Cash Flow
Free Cash Flow	313.70M	334.10M	763.90M	563.20M	64.36M
Operating Cash Flow	454.30M	481.40M	907.90M	679.40M	150.40M
Investing Cash Flow	-696.90M	-960.60M	-2.14B	-716.70M	-1.60B
Financing Cash Flow	418.90M	-260.30M	1.57B	681.30M	1.40B

WEX Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 157.37
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WEX, the sentiment is Negative. The current price of 157.37 is above the 20-day moving average (MA) of 156.48, above the 50-day MA of 155.00, and above the 200-day MA of 153.72, indicating a neutral trend. The MACD of 0.57 indicates Positive momentum. The RSI at 48.63 is Neutral, neither overbought nor oversold. The STOCH value of 49.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WEX.

WEX Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACIW	72 Outperform	$4.18B	16.48	18.58%	―	7.01%	17.48%
PAYO	67 Neutral	$1.97B	28.57	9.79%	―	10.58%	-45.52%
WEX	66 Neutral	$5.46B	18.19	22.33%	―	-1.15%	-2.52%
EEFT	66 Neutral	$2.99B	10.22	24.39%	―	7.25%	-1.12%
MQ	66 Neutral	$1.80B	-51.81	-4.10%	―	20.11%	-391.61%
AVPT	65 Neutral	$2.29B	-1,168.13	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.