WEX (WEX) AI Stock Analysis

• Market Cap: $5.96B
• Dividend Yield: N/A
• Average Volume (3M): 518.38K
• Price to Earnings (P/E): 22.2
• Beta (1Y): 1.16
• Revenue Growth: -1.62%
• EPS Growth: 36.57%
• Country: US
• Employees: 6,500
• Sector: Technology
• Sector Strength: 91
• Industry: Software - Infrastructure
• EPS (TTM): 3.95
• Shares Outstanding: 34,244,545
• 10 Day Avg. Volume: 520,250
• 30 Day Avg. Volume: 518,382
• PEG Ratio: 5.17
• Price to Book (P/B): 7.20
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.45K
• Enterprise Value/Market Cap: 1.69
• Enterprise Value/Revenue: 0.96
• Enterprise Value/Gross Profit: 6.53
• Enterprise Value/Ebitda: 2.64
• 1Y Price Target: $166.55
• Price Target Upside: -5.16% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 13

• Rating: 75 Outperform
• Price Target: $196.00 ▲(11.60%Upside)

WEX's overall score is bolstered by positive technical indicators and optimistic earnings call insights, though financial concerns regarding leverage and cash flow moderate the score. Investors should consider the potential risks associated with high debt levels and cash flow management.

Positive Factors

Earnings

WEX shares rallied almost 7% following a second-quarter beat, higher 2025 guidance, and enthusiasm for several new wins.

Revenue

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

Market Position

WEX shares have underperformed the market and its closest peer Corpay.

Segment Performance

Non-mobility segments have seen slowing organic revenue growth related to a large OTA transition impacting the corporate payments segment and faster-than-anticipated maturation of the HSA market impacting benefits.

WEX Business Overview & Revenue Model

Company Description

WEX Inc. is a leading financial technology service provider, offering a comprehensive suite of payment processing, information management, and corporate payment solutions. The company primarily operates in three sectors: Fleet Solutions, Travel and Corporate Solutions, and Health and Employee Benefit Solutions. By leveraging its proprietary technology platform, WEX delivers innovative payment and data management services to a diverse range of industries globally.

How the Company Makes Money

WEX makes money through a diverse revenue model centered around its core sectors. In Fleet Solutions, the company earns revenue by processing fuel and maintenance payments for fleet operators and providing data analytics services that help manage fleet expenses. In the Travel and Corporate Solutions sector, WEX generates income by facilitating corporate travel payments and offering virtual card services that streamline payment processes. Additionally, the Health and Employee Benefit Solutions sector contributes to WEX’s earnings by offering software-as-a-service (SaaS) platforms for consumer-directed health benefits, such as health savings accounts (HSAs) and flexible spending accounts (FSAs). Key partnerships with financial institutions, corporations, and healthcare providers enhance WEX's market reach and revenue generation capabilities. Furthermore, the company's earnings are supported by transaction fees, subscription fees, and interest income on prepaid card balances.

WEX Financial Statement Overview

Summary

WEX has demonstrated strong revenue growth and profitability improvements, with a significant rise in net profit margin. However, high financial leverage and declining cash flows are concerning, indicating potential risks in adverse economic conditions.

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	4.38B	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: 175.62
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 175.62 is above the 20-day moving average (MA) of 154.58, above the 50-day MA of 145.04, and above the 200-day MA of 160.87, indicating a bullish trend. The MACD of 6.62 indicates Negative momentum. The RSI at 80.36 is Negative, neither overbought nor oversold. The STOCH value of 86.57 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
EEFT	78 Outperform	$4.49B	15.33	25.00%	―	7.73%	19.76%
WEX	75 Outperform	$5.96B	22.19	22.19%	―	-1.62%	36.57%
ACIW	74 Outperform	$4.70B	17.66	19.69%	―	13.11%	91.21%
PAYO	71 Outperform	$2.43B	22.78	15.97%	―	14.86%	-0.94%
MQ	68 Neutral	$2.73B	57.73	5.01%	―	-8.44%	―
AVPT	65 Neutral	$3.92B	―	-8.39%	―	21.70%	-67.95%
Sector *	57 Neutral	HK$14.36B	5.83	-5.77%	4.76%	9.65%	-43.80%

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.