WEX (WEX) AI Stock Analysis

• Market Cap: $6.00B
• Dividend Yield: N/A
• Average Volume (3M): 445.24K
• Price to Earnings (P/E): 22.0
• Beta (1Y): 1.21
• Revenue Growth: -1.62%
• EPS Growth: 36.57%
• Country: US
• Employees: 6,500
• Sector: Technology
• Sector Strength: 94
• Industry: Software - Infrastructure
• EPS (TTM): 3.95
• Shares Outstanding: 34,264,313
• 10 Day Avg. Volume: 360,062
• 30 Day Avg. Volume: 445,242
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.80
• Enterprise Value/Revenue: 1.86
• Enterprise Value/Gross Profit: 3.12
• Enterprise Value/Ebitda: 4.94
• 1Y Price Target: $178.36
• Price Target Upside: 2.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 78 Outperform
• Price Target: $196.00 ▲(12.40% Upside)

WEX's strong financial performance, particularly in income and cash flow, coupled with positive earnings call sentiment, drive its overall score. Technical indicators show bullish trends, although caution is needed due to overbought signals. Valuation is fair but does not stand out as a significant strength.

Positive Factors

Earnings

Adjusted diluted EPS meaningfully beat expectations due to higher fuel prices and effective cost management efforts.

New Customer Wins

New wins and momentum across segments, such as a large fintech win and 25% year-over-year direct AP volume growth in Corporate Payments, are potential upside drivers.

Revenue Growth

The company's revenue was driven towards the high-end of the range, while adjusted diluted EPS meaningfully beat expectations due to higher fuel prices and cost management efforts.

Negative Factors

Corporate Payments Concerns

There will continue to be debate on the magnitude and quality of Corporate Payments acceleration.

Market Visibility

Near-term mobility visibility remains low due to macro, secular fuel efficiency trends, and a longer runway for investments targeting smaller fleets to materialize.

Mobility Segment Challenges

Mobility segment volumes were down 10% year-over-year and same-store sales remain pressured.

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 multiple key streams, primarily from transaction fees associated with its payment processing services. The company earns a significant portion of its income from the issuance and management of fleet cards, which allow companies to control fuel and maintenance expenses for their vehicles. Additionally, WEX offers virtual payment solutions, which facilitate secure transactions for travel and corporate expenses, generating revenue from service fees and transaction processing. The company also benefits from partnerships with major financial institutions and networks, enhancing its service offerings and expanding its market reach. Furthermore, WEX's revenue is bolstered by value-added services, such as data analytics and reporting tools, which provide clients with insights to optimize their spending and operational efficiencies.

WEX Financial Statement Overview

Summary

WEX demonstrates strong revenue growth and improved profitability, but high financial leverage and declining cash flows raise concerns. Effective cost management and strategic focus on cash conversion are essential for financial stability.

Income Statement

WEX has shown robust revenue growth over the years with a strong progression from $1.56 billion in 2020 to $2.61 billion in TTM (Trailing-Twelve-Months) 2025. Gross profit margins have been consistently high, hovering around 70%. The net profit margin has improved significantly from a negative in 2020 to 12.1% in TTM 2025, indicating better cost management and operational efficiency. The EBITDA margin has also shown strength, indicating healthy core earnings. However, there is a slight decline in EBIT margin from 2024 to TTM 2025, which might suggest increasing operating expenses.

Balance Sheet

WEX's balance sheet shows a decrease in stockholders' equity from 2024 to TTM 2025, leading to a higher debt-to-equity ratio of 1.83, which is a concern for financial stability. The equity ratio has also decreased to 5.8% in TTM 2025, indicating a lower proportion of equity financing. However, the company has maintained a solid asset base, and return on equity has improved to 38.9% in TTM 2025, which is a positive sign of profitability relative to shareholder equity.

Cash Flow

WEX's cash flow from operations has seen fluctuations, with a significant drop in TTM 2025. The free cash flow has also decreased notably from $334.1 million in 2024 to $2.1 million in TTM 2025, raising concerns about liquidity and cash management. The operating cash flow to net income ratio is 0.49 in TTM 2025, suggesting some challenges in converting income into cash flow. The free cash flow to net income ratio is very low, indicating potential strain on cash reserves for future investments and obligations.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.63B	2.55B	2.35B	1.85B	1.56B
Gross Profit	1.59B	1.49B	1.42B	1.15B	886.69M
EBITDA	975.00M	849.20M	649.87M	630.66M	133.77M
Net Income	309.60M	266.60M	201.40M	136.14M	-280.48M
Balance Sheet
Total Assets	13.32B	13.88B	11.53B	10.31B	8.18B
Cash, Cash Equivalents and Short-Term Investments	4.36B	4.00B	2.32B	1.54B	852.03M
Total Debt	4.45B	3.87B	2.72B	2.85B	3.03B
Total Liabilities	11.83B	12.06B	9.88B	8.21B	6.15B
Stockholders Equity	1.49B	1.82B	1.65B	1.84B	1.90B
Cash Flow
Free Cash Flow	334.10M	763.90M	563.21M	64.36M	776.55M
Operating Cash Flow	481.40M	907.90M	679.42M	150.40M	857.02M
Investing Cash Flow	-960.60M	-2.14B	-716.65M	-1.60B	-329.09M
Financing Cash Flow	-260.30M	1.57B	681.26M	1.40B	-179.26M

WEX Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 174.38
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

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 174.38 is above the 20-day moving average (MA) of 169.93, above the 50-day MA of 155.65, and above the 200-day MA of 158.11, indicating a bullish trend. The MACD of 5.16 indicates Positive momentum. The RSI at 64.32 is Neutral, neither overbought nor oversold. The STOCH value of 88.13 is Negative, 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	78 Outperform	$6.00B	22.03	22.19%	―	-1.62%	36.57%
EEFT	75 Outperform	$3.96B	13.20	25.94%	―	8.71%	25.75%
ACIW	74 Outperform	$4.81B	19.73	19.09%	―	11.22%	40.85%
PAYO	74 Outperform	$2.41B	25.41	13.86%	―	13.02%	-2.57%
MQ	70 Outperform	$2.77B	56.63	-6.51%	―	17.47%	-544.72%
AVPT	62 Neutral	$3.11B	―	-2.60%	―	24.41%	40.20%
Sector *	61 Neutral	$36.30B	7.26	-7.27%	1.97%	7.74%	-7.92%

WEX Corporate Events

WEX Stockholders Approve Key Proposals at Annual Meeting

At the annual meeting held on May 15, 2025, WEX Inc.’s stockholders approved several key proposals, including an amendment to the company’s equity and incentive plan, increasing the available shares for issuance to 4.0 million. Additionally, the stockholders elected new board members and approved a non-binding advisory proposal on executive compensation. The amendment to the company’s certificate of incorporation to provide officer exculpation was also approved, and Deloitte & Touche, LLP was ratified as the independent registered public accounting firm for the fiscal year ending December 31, 2025.

The most recent analyst rating on (WEX) stock is a Hold with a $210.00 price target. To see the full list of analyst forecasts on WEX stock, see the WEX Stock Forecast page.