WEX Inc (WEX)
NYSE:WEX
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WEX
(NYSE:WEX)
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Rating:65Neutral
Price Target:
$146.00
▼(-15.85% Downside)
Action:Reiterated
Date:05/15/26
The score is primarily supported by solid profitability and improving cash generation, plus a constructive outlook from raised full-year guidance and cost-savings plans. These positives are tempered by elevated leverage and clear bearish technical momentum (price well below key moving averages), while valuation appears reasonable based on the ~17 P/E.
Positive Factors
Cash generation
Sustained, improving free cash flow (TTM $671M) provides durable funding for debt reduction, strategic reinvestment, buybacks, and M&A optionality. Strong FCF relative to net income supports capital allocation flexibility even if revenue growth remains cyclical or modest.
Negative Factors
Elevated leverage
Materially higher leverage versus prior years reduces financial flexibility and raises refinancing and interest-rate sensitivity. With cash‑flow coverage described as low/volatile, elevated debt limits capacity for opportunistic M&A, sustained buybacks, or cushioning during macro stress.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Sustained, improving free cash flow (TTM $671M) provides durable funding for debt reduction, strategic reinvestment, buybacks, and M&A optionality. Strong FCF relative to net income supports capital allocation flexibility even if revenue growth remains cyclical or modest.
Read all positive factors
WEX (WEX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.00B
Dividend YieldN/A
Average Volume (3M)623.51K
Price to Earnings (P/E)17.0
Beta (1Y)1.17
Revenue Growth3.29%
EPS Growth14.76%
CountryUS
Employees6,500
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)9.02
Shares Outstanding34,668,144
10 Day Avg. Volume603,283
30 Day Avg. Volume623,507
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 Cap1.92
Enterprise Value/Revenue3.56
Enterprise Value/Gross Profit6.20
Enterprise Value/Ebitda10.08
Forecast
1Y Price Target
$187.00Price Target Upside7.78% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)19.22
Revenue Forecast (FY)$2.84B
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 o...
How the Company Makes Money
WEX primarily makes money by facilitating and processing payments through closed-loop and hybrid payment networks, earning revenue from fees tied to transaction volumes, account programs, and value-added services.
Key revenue streams typically in...
WEX Earnings Call Summary
Earnings Call Date:Apr 22, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call conveyed a largely positive operational and financial trajectory: the company beat revenue and adjusted EPS guidance, reported double‑digit adjusted EPS growth, delivered strong segment performances (notably Benefits and Corporate Payments), raised full‑year guidance, and highlighted tangible productivity gains, AI‑driven innovation and $50M of cost savings. Offsetting these positives were meaningful but described as manageable headwinds: higher credit losses that pressured reported margins, fuel spread volatility and a modest travel softness tied to the Middle East, plus leverage slightly above the company’s near‑term threshold. Management framed the negatives as mostly transitory or already mitigated and emphasized underlying margin expansion and cash generation, leading to a constructive but cautious outlook.Positive Updates
Quarterly Revenue Beat
Total revenue of $673.8M in Q1, up 5.8% year over year (5.4% ex. fuel and FX) and above the high end of prior guidance.
Negative Updates
Credit Losses Increased
Credit losses increased from 12 basis points to 19 basis points year over year, creating a material drag on operating margin (company cited roughly a 200 bps unfavorable impact when combined with fuel price differences).
Read all updates
Q1-2026 Updates
Positive
Negative
Quarterly Revenue Beat
Total revenue of $673.8M in Q1, up 5.8% year over year (5.4% ex. fuel and FX) and above the high end of prior guidance.
Read all positive updates
Company Guidance
WEX updated guidance calling for Q2 revenue of $727M–$747M and Q2 adjusted net income per diluted share of $4.93–$5.13, and raised full‑year revenue to $2.82B–$2.88B with full‑year adjusted EPS of $18.95–$19.55 (midpoint increases vs prior guide of +$120M revenue and +$1.70 EPS), driven by a Q1 beat and revised fuel assumptions of $4.30/gal in Q2 and $3.70/gal for the year; the company expects adjusted operating margin expansion of ~75 basis points on a macro‑neutral basis (≈130 bps including fuel effects), has $50M of 2026 cost‑savings planned (partly reinvested), generated $671M of trailing‑12‑month adjusted free cash flow (up 14% YoY), ended Q1 with 3.1x leverage (target range 2.5–3.5x, aim to be below 3.0x), assumes no interest‑rate cuts for the rest of the year, and will use excess cash from higher fuel prices to reduce leverage.WEX Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
52
Neutral
Cash Flow
61
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.70B | 2.66B | 2.63B | 2.55B | 2.35B | 1.85B |
| Gross Profit | 1.55B | 1.46B | 1.59B | 1.57B | 1.42B | 1.15B |
| EBITDA | 952.60M | 994.90M | 975.00M | 849.60M | 571.90M | 565.70M |
| Net Income | 310.40M | 304.10M | 309.60M | 266.60M | 201.40M | 100.00K |
Balance Sheet | ||||||
| Total Assets | 15.43B | 14.40B | 13.32B | 13.88B | 11.53B | 10.31B |
| Cash, Cash Equivalents and Short-Term Investments | 726.30M | 5.24B | 4.36B | 4.00B | 3.26B | 2.21B |
| Total Debt | 5.24B | 4.86B | 4.45B | 3.87B | 2.81B | 2.95B |
| Total Liabilities | 14.15B | 13.16B | 11.83B | 12.06B | 9.88B | 8.21B |
| Stockholders Equity | 1.27B | 1.23B | 1.49B | 1.82B | 1.65B | 1.84B |
Cash Flow | ||||||
| Free Cash Flow | 459.60M | 313.70M | 334.10M | 763.90M | 563.20M | 64.36M |
| Operating Cash Flow | 605.10M | 454.30M | 481.40M | 907.90M | 679.40M | 150.40M |
| Investing Cash Flow | -1.20B | -696.90M | -960.60M | -2.14B | -716.70M | -1.60B |
| Financing Cash Flow | 523.60M | 418.90M | -260.30M | 1.57B | 681.30M | 1.40B |
WEX Technical Analysis
Negative
173.50
Price Trends
154.40
Negative
155.42
Negative
156.70
Negative
Market Momentum
-5.00
Negative
45.25
Neutral
73.45
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 173.5 is above the 20-day moving average (MA) of 145.48, above the 50-day MA of 154.40, and above the 200-day MA of 156.70, indicating a bearish trend. The MACD of -5.00 indicates Negative momentum. The RSI at 45.25 is Neutral, neither overbought nor oversold. The STOCH value of 73.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $1.66B | 21.31 | 10.01% | ― | 7.19% | -36.03% | |
74 Outperform | $2.19B | 33.25 | 10.20% | ― | 27.12% | ― | |
71 Outperform | $4.40B | 27.28 | 13.99% | ― | 7.06% | -22.01% | |
68 Neutral | $1.70B | 55.80 | 0.27% | ― | 23.39% | -94.62% | |
65 Neutral | $5.00B | 16.99 | 26.96% | ― | 3.29% | 14.76% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $2.58B | 20.79 | 24.04% | ― | 7.22% | 6.31% |
* Technology Sector Average
WEX
WEX
144.24
11.24
8.45%
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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.