Western Union (WU) AI Stock Analysis

• Market Cap: $2.99B
• Dividend Yield: 10.18%
• Average Volume (3M): 9.44M
• Price to Earnings (P/E): 6.1
• Beta (1Y): 0.40
• Revenue Growth: -2.51%
• EPS Growth: 17.47%
• Country: US
• Employees: 9,100
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.45
• Shares Outstanding: 313,454,800
• 10 Day Avg. Volume: 7,472,571
• 30 Day Avg. Volume: 9,441,895
• PEG Ratio: -0.14
• Price to Book (P/B): 3.17
• Price to Sales (P/S): 0.75
• P/FCF Ratio: 7.74
• Enterprise Value/Market Cap: 0.60
• Enterprise Value/Revenue: 0.44
• Enterprise Value/Gross Profit: 1.27
• Enterprise Value/Ebitda: 1.93
• 1Y Price Target: $9.00
• Price Target Upside: -5.56% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 9
• EPS Forecast (FY): 1.8
• Revenue Forecast (FY): $4.28B

• Rating: 69 Neutral
• Price Target: $10.50 ▲(10.18% Upside)
• Action: Reiterated Date: 03/10/26
• Date: Action: Reiterated 03/10/26

The score is driven by attractive valuation (low P/E and high dividend yield) and solid cash generation, supported by constructive 2026 guidance and margin/cash-flow execution. Offsetting factors are the multi-year revenue decline, recent earnings pressure, and ongoing headwinds in core consumer money transfer (plus policy and integration risks), while technical signals are mildly positive but not decisive.

Positive Factors

Strong cash generation

Consistent, high-quality cash generation and improved free cash flow give Western Union durable financial flexibility. Positive FCF funds dividends, buybacks, capex and selective M&A, reducing reliance on external financing and supporting capital returns even amid top-line pressure over the next several quarters.

Digital adoption and scale

A structural shift to digital (now >40% of principal sent) improves unit economics and scalability versus retail agent channels. Steady digital transaction growth supports margin sustainability, lowers per-transaction agent commissions, and creates a platform for product cross-sell and customer retention over a multi-quarter horizon.

Distribution and product diversification

New exclusive retail relationships and expanding consumer-services (consumer services revenue +30%; travel money scaling) diversify revenue and expand physical reach. These durable partnerships, once fully ramped, should provide recurring retail revenue upside and reduce dependence on singular corridors over coming quarters.

Negative Factors

Multi-year top-line decline

A sustained revenue decline over multiple years signals structural demand challenges in core businesses. Falling top line erodes operating leverage, limits reinvestment capacity, and increases reliance on cost cuts, digital migration or acquisitions to restore growth—risks that persist over the next several quarters.

Core retail remittance weakness

Ongoing weakness in consumer-money-transfer volumes and retail remittances, including key corridors, undermines the company's high-margin franchise. Persistent retail declines reduce organic growth potential and make recovery dependent on structural shifts to digital, new corridors, or inorganic additions over months.

Integration, regulatory & financing risks

The Intermex deal faces regulatory and state-level approvals that can delay synergies and expected accretion. Coupled with policy uncertainty (remittance tax) and refinancing of maturing notes, execution and financing risk can pressure EPS, cash deployment choices and margin improvement timing over the medium term.

Western Union Business Overview & Revenue Model

Company Description

The Western Union Company provides money movement and payment services worldwide. The company operates in two segments, Consumer-to-Consumer and Business Solutions. The Consumer-to-Consumer segment facilitates money transfers between two consumers, primarily through a network of third-party agents and sub-agents; and offers international cross-border transfers and intra-country transfers, as well as money transfer transactions through websites and mobile devices. The Business Solutions segment provides payment and foreign exchange solutions, primarily cross-border and cross-currency transactions for small and medium size enterprises, other organizations, and individuals; and foreign currency forward and option contracts. It also offers bill payment services that facilitates payments from consumers to businesses and other organizations, as well as offers money order and other services. The company was founded in 1851 and is headquartered in Denver, Colorado.

How the Company Makes Money

Western Union generates revenue primarily through transaction fees and foreign exchange commissions. When customers send money, they pay a fee based on the amount transferred, the destination, and the chosen delivery method. Additionally, WU earns money from the spread between the exchange rates it offers customers and the rates it receives from financial markets. Key revenue streams include money transfers, digital payments, and business solutions. Partnerships with various financial institutions, retailers, and agents enhance WU's distribution network, allowing it to reach a broader customer base and increase transaction volume, which in turn boosts revenue.

Western Union Financial Statement Overview

Summary

Cash generation is a clear strength (consistently positive operating cash flow and higher 2025 free cash flow), supporting flexibility and capital returns. However, multi-year revenue decline and a sharp 2025 earnings step-down versus 2024 weigh on fundamentals, and leverage signals are mixed across the provided financial-statement data.

Income Statement

Revenue has been in a multi-year decline (down from ~$5.07B in 2021 to ~$4.05B in 2025), signaling ongoing top-line pressure. Profitability remains solid for the industry, with gross margin holding in the high-30% range and 2025 net margin still healthy (~12%), but earnings were meaningfully lower in 2025 versus 2024 (net income down from ~$934M to ~$500M). Overall: durable margins, but weakening growth and profit trajectory weigh on the score.

Balance Sheet

Leverage was a key risk historically, with very high debt relative to equity in 2020–2023 and still elevated in 2024 (debt-to-equity ~3.2x). 2025 shows total debt at zero with a debt-to-equity of 0.0x, which—if sustainable—materially strengthens the balance sheet and lowers financial risk. The main offset is that equity remains relatively modest (~$958M) versus the asset base (~$8.3B), so balance-sheet resilience is improved but not yet overwhelmingly strong based on equity depth.

Cash Flow

Cash generation is a clear strength: operating cash flow and free cash flow are consistently positive across the period, and 2025 free cash flow rose to ~$393M (positive growth) while remaining well-supported by operations. Free cash flow covered a large portion of 2025 earnings (~72%), indicating decent earnings quality. The main weakness is volatility over time (free cash flow growth swings between strong positives and notable declines in prior years), but overall cash conversion and consistency are favorable.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.04B	4.21B	4.36B	4.48B	5.07B
Gross Profit	1.16B	1.59B	1.69B	1.85B	2.17B
EBITDA	934.30M	917.50M	1.03B	1.29B	1.25B
Net Income	499.60M	934.20M	626.00M	910.60M	805.80M
Balance Sheet
Total Assets	8.31B	8.37B	8.20B	8.50B	8.82B
Cash, Cash Equivalents and Short-Term Investments	1.23B	1.47B	1.27B	1.29B	1.21B
Total Debt	0.00	3.13B	2.67B	2.78B	3.01B
Total Liabilities	7.35B	7.40B	7.72B	8.02B	8.47B
Stockholders Equity	957.80M	968.90M	479.00M	477.80M	355.60M
Cash Flow
Free Cash Flow	392.90M	368.90M	635.30M	373.40M	830.70M
Operating Cash Flow	543.70M	406.30M	783.10M	581.60M	1.05B
Investing Cash Flow	-230.30M	-16.30M	-140.80M	525.50M	192.00M
Financing Cash Flow	-782.60M	-69.30M	-896.80M	-1.18B	-1.27B

Western Union Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 9.53
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WU, the sentiment is Neutral. The current price of 9.53 is below the 20-day moving average (MA) of 9.58, below the 50-day MA of 9.56, and above the 200-day MA of 8.61, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 47.31 is Neutral, neither overbought nor oversold. The STOCH value of 59.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WU.

Western Union Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IX	70 Outperform	$31.23B	10.73	10.88%	2.72%	7.10%	12.75%
WU	69 Neutral	$2.99B	6.09	53.92%	10.18%	-2.51%	17.47%
OMF	68 Neutral	$6.10B	10.25	23.40%	6.07%	9.51%	29.38%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SYF	67 Neutral	$22.17B	8.41	21.09%	1.34%	-6.38%	19.65%
PYPL	63 Neutral	$41.34B	10.70	25.87%	―	4.50%	19.71%
SOFI	63 Neutral	$22.65B	62.56	5.87%	―	22.40%	215.81%

Western Union Corporate Events

Western Union Completes $450 Million Notes Offering

On March 9, 2026, Western Union completed a $450 million offering of 4.750% notes due 2029, issued under its existing shelf registration and long-standing indenture structure. The deal, underwritten by a syndicate led by Citigroup, BofA Securities, U.S. Bancorp Investments and Wells Fargo Securities, adds fixed-rate debt to the company’s capital structure, potentially supporting its funding flexibility and longer-term financing needs.

The most recent analyst rating on (WU) stock is a Sell with a $7.00 price target. To see the full list of analyst forecasts on Western Union stock, see the WU Stock Forecast page.

Western Union Secures New $800 Million Term Loan Facility

On January 9, 2026, Western Union entered into an unsecured delayed draw term loan credit agreement providing access to an $800 million term loan facility with a syndicate of international banks, which allows the company to draw funds from the closing date through July 8, 2026 and potentially increase total commitments up to $1 billion, subject to additional lender commitments. The proceeds may be used for general corporate purposes, including debt refinancing and permitted acquisitions, and the facility includes customary financial and operational covenants—such as limits on asset sales, liens, subsidiary indebtedness and dividend restrictions, plus an interest coverage ratio requirement—with interest and ticking fees set on a ratings-based sliding scale and a final maturity three years after the initial funding date, reinforcing Western Union’s balance-sheet flexibility and funding options.

The most recent analyst rating on (WU) stock is a Sell with a $10.00 price target. To see the full list of analyst forecasts on Western Union stock, see the WU Stock Forecast page.