WEX (WEX)
NYSE:WEX
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WEX
(NYSE:WEX)
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Rating:66Neutral
Price Target:
$172.00
▲(9.01% Upside)
Action:ReiteratedDate:02/07/26
The score is driven primarily by solid profitability but tempered by leverage and cash-flow volatility, while the latest earnings call supports the outlook with positive EPS/FCF guidance and a deleveraging plan. Technicals are mildly constructive but not strongly bullish, and valuation appears reasonable based on the provided P/E.
Positive Factors
Strong margins and profitability
Sustained high gross and operating margins reflect a scalable payments and SaaS-heavy model that converts volume into durable profits. Elevated margins provide long-term capacity to fund product development, absorb cyclicality in segments like Mobility, and support shareholder returns without relying solely on growth.
Negative Factors
Elevated leverage
High leverage constrains strategic flexibility: it limits M&A, buybacks, and reinvestment during downturns, and increases sensitivity to interest-rate shifts. Even with a plan to reduce below 3x, ongoing elevated debt raises refinancing and covenant risk and pressures credit fundamentals over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong margins and profitability
Sustained high gross and operating margins reflect a scalable payments and SaaS-heavy model that converts volume into durable profits. Elevated margins provide long-term capacity to fund product development, absorb cyclicality in segments like Mobility, and support shareholder returns without relying solely on growth.
Read all positive factors
WEX (WEX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.39B
Dividend YieldN/A
Average Volume (3M)448.41K
Price to Earnings (P/E)17.4
Beta (1Y)1.08
Revenue Growth-1.15%
EPS Growth-2.52%
CountryUS
Employees6,500
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)4.11
Shares Outstanding34,310,620
10 Day Avg. Volume362,249
30 Day Avg. Volume448,407
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 Cap1.74
Enterprise Value/Revenue3.52
Enterprise Value/Gross Profit6.09
Enterprise Value/Ebitda9.88
Forecast
1Y Price Target
$164.83Price Target Upside4.47% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)17.93
Revenue Forecast (FY)$2.75B
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 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....
WEX Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call presents a broadly positive operational and financial picture: revenue and adjusted EPS accelerated in Q4, the company delivered record annual revenue, free cash flow improved, and Corporate Payments and Benefits showed strong growth and margin improvement. Management highlighted material product and AI-driven innovation gains and provided 2026 guidance that implies continued growth. Key lowlights are cyclical softness in Mobility (OTR trucking), short-term credit loss pressure in Q1, and macro headwinds from lower fuel prices, FX and interest rates that mute near-term margin expansion. Overall, the progress on execution, improved cash generation, and confident guidance outweigh the headwinds and cyclical pressures.Positive Updates
Q4 Revenue Growth
Total Q4 revenue of $672.9M, up 5.7% year-over-year (up 4.5% excluding fuel price and FX fluctuations); revenue beat prior-quarter guidance and came in at the high end of the guidance range when excluding fuel benefit.
Negative Updates
Mobility Volume Softness and Flat Revenue
Mobility revenue was flat year-over-year at $345.1M in Q4; transaction volumes declined modestly amid a cyclical down cycle in the over-the-road trucking market and muted freight demand.
Read all updates
Q4-2025 Updates
Positive
Negative
Q4 Revenue Growth
Total Q4 revenue of $672.9M, up 5.7% year-over-year (up 4.5% excluding fuel price and FX fluctuations); revenue beat prior-quarter guidance and came in at the high end of the guidance range when excluding fuel benefit.
Read all positive updates
Company Guidance
WEX guided Q1 2026 revenue of $650–670M (about 4% growth at the midpoint, including a ~2% net drag from fuel, FX and interest) and adjusted EPS of $3.80–4.00 (≈11% growth at the midpoint); full‑year 2026 guidance is revenue $2.70–2.76B and adjusted EPS $17.25–17.85 (midpoint ex fuel/FX/interest: ~5% revenue growth and ~13% EPS growth). The guide assumes average fuel of $3.10/gal and two interest‑rate cuts, embeds $50M of cost‑savings actions (partly reinvested), and expects adjusted operating margin to be flat with 2025 (lower fuel prices are a ~75 bps headwind). Segment assumptions include Mobility ex fuel/FX growth of 1–3% with credit losses of 12–17 bps for the year (17–22 bps in Q1), Benefits revenue +5–7% (≈2‑point headwind from lower floating rates), and Corporate Payments +5–7% with continued margin improvement; direct AP and embedded payments are expected to keep scaling. Sensitivities: each $0.10/gal ≈ +$20M revenue and +$0.35 EPS; ±100 bps in rates ≈ ±$30M revenue and ~‑$0.35 / +$0.45 EPS. Guidance assumes no future M&A or buybacks, levered at 3.1x now with a plan to get below 3x in Q2/Q3, and expects adjusted free cash flow north of $600M in 2026.WEX Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
58
Neutral
Cash Flow
46
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.66B | 2.63B | 2.55B | 2.35B | 1.85B |
| Gross Profit | 1.46B | 1.59B | 1.57B | 1.42B | 1.15B |
| EBITDA | 994.90M | 975.00M | 849.60M | 571.90M | 565.70M |
| Net Income | 304.10M | 309.60M | 266.60M | 201.40M | 100.00K |
Balance Sheet | |||||
| Total Assets | 14.40B | 13.32B | 13.88B | 11.53B | 10.31B |
| Cash, Cash Equivalents and Short-Term Investments | 5.24B | 4.36B | 4.00B | 3.26B | 2.21B |
| Total Debt | 4.86B | 4.45B | 3.87B | 2.81B | 2.95B |
| Total Liabilities | 13.16B | 11.83B | 12.06B | 9.88B | 8.21B |
| Stockholders Equity | 1.23B | 1.49B | 1.82B | 1.65B | 1.84B |
Cash Flow | |||||
| Free Cash Flow | 313.70M | 334.10M | 763.90M | 563.20M | 64.36M |
| Operating Cash Flow | 454.30M | 481.40M | 907.90M | 679.40M | 150.40M |
| Investing Cash Flow | -696.90M | -960.60M | -2.14B | -716.70M | -1.60B |
| Financing Cash Flow | 418.90M | -260.30M | 1.57B | 681.30M | 1.40B |
WEX Technical Analysis
Positive
157.78
Price Trends
155.98
Positive
153.37
Positive
156.90
Positive
Market Momentum
-0.91
Negative
52.45
Neutral
57.57
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 157.78 is above the 20-day moving average (MA) of 155.11, above the 50-day MA of 155.98, and above the 200-day MA of 156.90, indicating a bullish trend. The MACD of -0.91 indicates Negative momentum. The RSI at 52.45 is Neutral, neither overbought nor oversold. The STOCH value of 57.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $4.15B | 21.93 | 15.43% | ― | 7.01% | 17.48% | |
71 Outperform | $1.66B | 27.73 | 9.84% | ― | 10.58% | -45.52% | |
68 Neutral | $2.61B | 11.26 | 23.78% | ― | 7.25% | -1.12% | |
66 Neutral | $5.39B | 17.39 | 29.38% | ― | -1.15% | -2.52% | |
66 Neutral | $2.16B | 82.10 | 7.96% | ― | 24.71% | 99.52% | |
62 Neutral | $1.70B | -393.70 | -1.62% | ― | 20.11% | -391.61% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
WEX
WEX
157.78
44.31
39.05%
ACIW
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40.78
-7.22
-15.04%
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66.25
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PAYO
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MQ
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3.99
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6.40%
WEX Corporate Events
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
WEX announces board changes and leadership transition update
Positive
Jan 12, 2026
On January 10, 2026, WEX Inc. announced that long-serving directors Shikhar Ghosh and Jack VanWoerkom had informed the board they would retire at the 2026 Annual Meeting of Stockholders, and would not stand for re-election, a move the company said...
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.