WEX (WEX) AI Stock Analysis

• Market Cap: $4.87B
• Dividend Yield: N/A
• Average Volume (3M): 491.09K
• Price to Earnings (P/E): 18.3
• Beta (1Y): 1.12
• Revenue Growth: 0.90%
• EPS Growth: 26.13%
• Country: US
• Employees: 6,500
• Sector: Technology
• Sector Strength: 84
• Industry: Software - Infrastructure
• EPS (TTM): 3.51
• Shares Outstanding: 34,244,545
• 10 Day Avg. Volume: 443,574
• 30 Day Avg. Volume: 491,093
• PEG Ratio: 0.73
• Price to Book (P/B): 4.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.90
• Enterprise Value/Market Cap: 1.86
• Enterprise Value/Revenue: 0.86
• Enterprise Value/Gross Profit: 5.87
• Enterprise Value/Ebitda: 2.37
• 1Y Price Target: $155.63
• Price Target Upside: 10.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 64 Neutral
• Price Target: $146.00 ▲(3.83%Upside)

WEX's score reflects solid financial performance and valuation, somewhat offset by high leverage and liquidity concerns. The technical analysis shows mixed signals, while the earnings call highlighted potential growth tempered by current challenges. The absence of corporate events simplifies the analysis.

Positive Factors

Business fundamentals

WEX struck a confident tone on underlying business fundamentals and despite noise from the Booking.com situation in the travel segment, the other two segments continue to perform well.

Financial performance

WEX delivered a sound 1Q print against lowered expectations with revenues and adjusted EPS beating forecasts.

Revenue and EPS growth

WEX expects to deliver 4% revenue growth and 11% EPS growth on an organic basis, showing confidence in Mobility, Benefits, and pricing changes.

Negative Factors

Business segments

Non-mobility businesses underwhelming, with benefits and corporate payments facing challenges.

Revenue challenges

First-quarter organic revenue contracted 0.8% year-over-year, decelerating by about 1 point from the fourth quarter.

Stock performance

Shares have underperformed year-to-date, down 25%, and WEX’s valuation is clearly undemanding.

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 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 improved profitability, highlighted by a significant jump in net profit margin to 12.1% in TTM 2025. However, high financial leverage with a debt-to-equity ratio of 1.83 and declining free cash flow raise concerns about financial stability and liquidity management.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.61B	2.63B	2.55B	2.35B	1.85B	1.56B
	Gross Profit
1.55B	1.59B	1.49B	1.42B	1.15B	886.69M
	EBIT
680.50M	686.30M	647.10M	469.84M	342.00M	171.06M
	EBITDA
981.20M	975.00M	849.20M	649.87M	630.66M	133.77M
	Net Income Common Stockholders
315.30M	309.60M	266.60M	201.40M	136.14M	-280.48M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.44B	4.36B	4.00B	2.32B	1.54B	852.03M
	Total Assets
13.96B	13.32B	13.88B	11.53B	10.31B	8.18B
	Total Debt
5.58B	4.38B	3.87B	2.72B	2.85B	3.03B
	Net Debt
4.97B	3.78B	2.89B	1.80B	2.26B	2.17B
	Total Liabilities
13.15B	11.83B	12.06B	9.88B	8.21B	6.15B
	Stockholders Equity
810.40M	1.49B	1.82B	1.65B	1.84B	1.90B
Cash Flow		Free Cash Flow
2.10M	334.10M	763.90M	563.21M	64.36M	776.55M
	Operating Cash Flow
153.10M	481.40M	907.90M	679.42M	150.40M	857.02M
	Investing Cash Flow
-666.30M	-960.60M	-2.14B	-716.65M	-1.60B	-329.09M
	Financing Cash Flow
-296.00M	-260.30M	1.57B	681.26M	1.40B	-179.26M

WEX Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 140.61
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 140.61 is above the 20-day moving average (MA) of 136.86, above the 50-day MA of 132.21, and below the 200-day MA of 168.03, indicating a neutral trend. The MACD of 1.77 indicates Negative momentum. The RSI at 57.38 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
CVLT	75 Outperform	$8.26B	110.94	25.23%	―	18.63%	-55.09%
VNT	75 Outperform	$5.47B	15.07	35.88%	0.27%	-3.59%	-11.30%
EEFT	74 Outperform	$4.87B	16.66	25.00%	―	7.73%	19.76%
ACIW	74 Outperform	$4.97B	18.68	19.69%	―	13.11%	91.21%
WEX	64 Neutral	$4.87B	18.30	24.37%	―	0.90%	26.13%
Sector *	62 Neutral	$11.93B	10.60	-7.51%	3.00%	7.40%	-8.09%
QTWO	62 Neutral	$5.63B	―	-3.95%	―	13.12%	75.24%

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.