WEX (WEX) AI Stock Analysis

• Market Cap: $5.17B
• Dividend Yield: N/A
• Average Volume (3M): 393.97K
• Price to Earnings (P/E): 19.6
• Beta (1Y): 1.06
• Revenue Growth: -1.15%
• EPS Growth: -2.52%
• Country: US
• Employees: 6,500
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 4.59
• Shares Outstanding: 34,288,525
• 10 Day Avg. Volume: 333,521
• 30 Day Avg. Volume: 393,966
• PEG Ratio: 1.06
• Price to Book (P/B): 4.80
• Price to Sales (P/S): 2.72
• P/FCF Ratio: 21.41
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 1.87
• Enterprise Value/Gross Profit: 3.16
• Enterprise Value/Ebitda: 5.34
• 1Y Price Target: $176.71
• Price Target Upside: 17.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: $171.00 ▲(13.32% Upside)

WEX's overall stock score reflects its solid financial performance and positive earnings call, indicating strong profitability and strategic growth initiatives. However, technical indicators suggest caution due to potential overbought conditions, and the high debt-to-equity ratio poses a financial risk. The recent board appointment and raised revenue guidance are positive developments, supporting the company's growth outlook.

Positive Factors

Revenue Growth

Consistent revenue growth indicates WEX's ability to expand its market reach and maintain its competitive position, supporting long-term business stability.

AI Integration

AI integration enhances operational efficiency and innovation, positioning WEX to adapt quickly to market changes and improve service offerings.

Leadership Enhancement

The appointment of a new Chief People Officer strengthens leadership, aligning talent and culture with strategic growth objectives, enhancing organizational capabilities.

Negative Factors

High Debt-to-Equity Ratio

High leverage poses financial risk, potentially limiting WEX's ability to invest in growth opportunities and manage economic downturns effectively.

Challenges in Mobility Segment

Declines in the Mobility segment reflect broader market challenges, which could hinder revenue growth and profitability if trends persist.

Macroeconomic Pressures

Macroeconomic pressures, particularly in the trucking industry, may impact WEX's growth prospects and operational performance in the near to medium term.

WEX Business Overview & Revenue Model

Company Description

WEX Inc. is a leading provider of payment processing and technology solutions, primarily serving the transportation, healthcare, and corporate payment sectors. The company specializes in fleet card services, virtual card solutions, and travel and expense management, enabling businesses to streamline their payment processes and improve operational efficiency. WEX's innovative platform facilitates seamless transactions, providing customers with tools for managing expenses, tracking fuel purchases, and optimizing cash flow.

How the Company Makes Money

WEX generates revenue through several key streams. Primarily, the company earns income from transaction fees associated with its fleet card services, where it charges merchants a percentage of the transaction value every time a fleet card is used. Additionally, WEX offers subscription-based services for its virtual card and expense management solutions, providing businesses with ongoing revenue through annual or monthly fees. The company also benefits from partnerships with major financial institutions and payment networks, which enhance its service offerings and expand its customer base. Furthermore, WEX generates income from interest on outstanding balances and fees related to its healthcare payment solutions, contributing to a diverse and robust revenue model.

WEX Financial Statement Overview

Summary

WEX demonstrates solid financial health with strong profitability and cash flow generation. The company maintains good margins and has shown consistent revenue growth over the years. However, the high debt-to-equity ratio is a concern, indicating potential financial risk if not managed carefully.

Income Statement

WEX shows a solid performance with consistent revenue growth and strong margins. The TTM data indicates a slight dip in gross profit margin compared to the previous year, but net profit margin remains stable. The EBIT and EBITDA margins are robust, reflecting efficient operations. However, the revenue growth rate has slowed down compared to previous years, which could be a concern if it continues.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage, which poses a risk if not managed properly. Return on equity is strong, suggesting effective use of equity to generate profits. The equity ratio is moderate, showing a balanced asset structure. Overall, while profitability is good, the high leverage could be a potential risk.

Cash Flow

Cash flow analysis shows impressive free cash flow growth in the TTM period, indicating strong cash generation capabilities. The operating cash flow to net income ratio is low, suggesting that cash flow is not as strong relative to net income. However, the free cash flow to net income ratio is healthy, showing good cash conversion. Overall, cash flow performance is strong, with some room for improvement in operating cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.62B	2.63B	2.55B	2.35B	1.85B	1.56B
Gross Profit	1.55B	1.59B	1.57B	1.42B	1.15B	886.69M
EBITDA	916.30M	975.00M	849.60M	571.90M	565.70M	117.92M
Net Income	283.80M	309.60M	266.60M	201.40M	100.00K	-243.64M
Balance Sheet
Total Assets	14.43B	13.32B	13.88B	11.53B	10.31B	8.18B
Cash, Cash Equivalents and Short-Term Investments	4.94B	4.36B	4.00B	3.26B	2.21B	1.33B
Total Debt	5.03B	4.45B	3.87B	2.81B	2.95B	3.13B
Total Liabilities	13.31B	11.83B	12.06B	9.88B	8.21B	6.15B
Stockholders Equity	1.12B	1.49B	1.82B	1.65B	1.84B	1.90B
Cash Flow
Free Cash Flow	642.60M	334.10M	763.90M	563.20M	64.36M	776.55M
Operating Cash Flow	798.00M	481.40M	907.90M	679.40M	150.40M	857.02M
Investing Cash Flow	-630.90M	-960.60M	-2.14B	-716.70M	-1.60B	-329.09M
Financing Cash Flow	-2.40M	-260.30M	1.57B	681.30M	1.40B	-179.26M

WEX Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 150.90
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WEX, the sentiment is Neutral. The current price of 150.9 is above the 20-day moving average (MA) of 150.32, above the 50-day MA of 149.37, and above the 200-day MA of 150.64, indicating a bullish trend. The MACD of 0.88 indicates Negative momentum. The RSI at 51.75 is Neutral, neither overbought nor oversold. The STOCH value of 10.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WEX.

WEX Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACIW	73 Outperform	$4.96B	19.47	18.58%	―	7.01%	17.48%
WEX	72 Outperform	$5.17B	19.60	20.30%	―	-1.15%	-2.52%
PAYO	69 Neutral	$2.07B	30.57	9.79%	―	10.58%	-45.52%
MQ	67 Neutral	$2.23B	-63.45	-4.10%	―	20.11%	-391.61%
EEFT	66 Neutral	$3.24B	11.24	23.10%	―	7.25%	-1.12%
AVPT	65 Neutral	$3.01B	-1,531.87	0.58%	―	24.71%	99.52%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

WEX Corporate Events

WEX Appoints David Foss to Board of Directors

On October 26, 2025, WEX Inc. announced the appointment of David Foss to its Board of Directors, effective November 3, 2025, expanding the board from 11 to 12 members. Foss, who is recognized as an independent director, brings extensive experience from his previous roles at Jack Henry & Associates and CNO Financial Group. In its third-quarter financial results for 2025, WEX reported a 3.9% increase in revenue to $692 million, with adjusted net income rising by 5.5%. The company raised its full-year revenue guidance, reflecting confidence in its strategic pillars of amplifying core business, expanding reach, and accelerating innovation. Despite a challenging macro environment, WEX is focused on disciplined investment and maintaining financial flexibility to capture growth opportunities.