WEX (WEX) AI Stock Analysis

• Market Cap: $5.94B
• Dividend Yield: N/A
• Average Volume (3M): 436.63K
• Price to Earnings (P/E): 21.9
• Beta (1Y): 1.18
• Revenue Growth: -1.62%
• EPS Growth: 36.57%
• Country: US
• Employees: 6,500
• Sector: Technology
• Sector Strength: 84
• Industry: Software - Infrastructure
• EPS (TTM): 3.95
• Shares Outstanding: 34,264,313
• 10 Day Avg. Volume: 344,248
• 30 Day Avg. Volume: 436,628
• 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: 0.81
• Enterprise Value/Revenue: 1.86
• Enterprise Value/Gross Profit: 3.12
• Enterprise Value/Ebitda: 4.94
• 1Y Price Target: $182.70
• Price Target Upside: 6.72% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 77 Outperform
• Price Target: $196.00 ▲(14.49% Upside)

WEX's overall stock score is driven by strong financial performance and positive technical indicators. While the company faces challenges in certain segments, its strategic focus on growth and solid financial health position it well for future success. The valuation is reasonable, though the lack of a dividend yield may be a drawback for some investors.

Positive Factors

Business Growth

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.

Earnings

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

Financial Performance

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

Negative Factors

Market Conditions

Volumes remain somewhat muted, indicating a cautious outlook.

Mobility Segment

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

Visibility and Investment

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

WEX Business Overview & Revenue Model

Company Description

WEX Inc. is a leading provider of payment processing and technology solutions, primarily serving the fleet, travel, and healthcare sectors. The company offers a range of products including fleet card services, virtual payment solutions, and travel and corporate payment solutions, enabling businesses to efficiently manage their expenses and streamline operations. WEX operates globally, catering to a diverse clientele that includes businesses of all sizes, from small enterprises to large corporations.

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: 171.19
• 50DMA: Positive
• 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 Positive. The current price of 171.19 is below the 20-day moving average (MA) of 171.25, above the 50-day MA of 164.09, and above the 200-day MA of 157.58, indicating a neutral trend. The MACD of 1.67 indicates Positive momentum. The RSI at 53.67 is Neutral, neither overbought nor oversold. The STOCH value of 52.28 is Neutral, 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	77 Outperform	$5.94B	21.91	22.19%	―	-1.62%	36.57%
EEFT	75 Outperform	$3.73B	12.46	25.94%	―	8.71%	25.75%
PAYO	75 Outperform	$2.41B	25.26	13.86%	―	13.02%	-2.57%
ACIW	74 Outperform	$5.12B	21.27	19.09%	―	11.22%	40.85%
AVPT	62 Neutral	$3.42B	―	-2.60%	―	24.41%	40.20%
Sector *	61 Neutral	$35.52B	8.84	-11.06%	1.87%	8.55%	-8.14%
MQ	61 Neutral	$2.74B	56.63	-6.51%	―	17.47%	-544.72%

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.