Western Union (WU)
NYSE:WU
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Western Union
(NYSE:WU)
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Rating:68Neutral
Price Target:
$10.50
▲(18.38% Upside)
Action:ReiteratedDate:03/17/26
WU scores highest on valuation (low P/E and high dividend yield) and is supported by solid cash-flow durability. The overall score is held back by declining revenue and weaker 2025 earnings, plus ongoing core retail remittance headwinds and policy/interest-expense risks noted on the earnings call; technical signals are neutral-to-mildly supportive.
Positive Factors
Strong cash generation
Consistent positive operating cash flow and a 2025 FCF of ~$393M provide durable internal funding for dividends, buybacks, and strategic investments. Reliable cash conversion strengthens financial flexibility to weather remittance cycles and supports capital allocation without sole reliance on external financing.
Negative Factors
Multi-year revenue decline
A multi-year decline in revenue erodes scale economics and bargaining leverage with partners, pressuring long-term profitability if structural drivers persist. Reversing this trend requires sustained digital growth, successful integrations, or new product adoption to offset legacy remittance erosion.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistent positive operating cash flow and a 2025 FCF of ~$393M provide durable internal funding for dividends, buybacks, and strategic investments. Reliable cash conversion strengthens financial flexibility to weather remittance cycles and supports capital allocation without sole reliance on external financing.
Read all positive factors
Western Union (WU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.78B
Dividend Yield10.18%
Average Volume (3M)8.07M
Price to Earnings (P/E)6.1
Beta (1Y)0.40
Revenue Growth-2.51%
EPS Growth17.47%
CountryUS
Employees9,100
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)0.45
Shares Outstanding313,454,800
10 Day Avg. Volume6,206,417
30 Day Avg. Volume8,074,327
Financial Highlights & Ratios
PEG Ratio-0.14
Price to Book (P/B)3.17
Price to Sales (P/S)0.75
P/FCF Ratio7.74
Enterprise Value/Market Cap0.56
Enterprise Value/Revenue0.38
Enterprise Value/Gross Profit1.09
Enterprise Value/Ebitda1.66
Forecast
1Y Price Target
$9.17Price Target Upside3.38% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering7
EPS Forecast (FY)1.8
Revenue Forecast (FY)$4.26B
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...
How the Company Makes Money
Western Union primarily makes money by charging fees associated with moving money for consumers and businesses, with revenue largely tied to transaction activity and payment/settlement economics. Key revenue streams include: (1) Transaction fees o...
Western Union Earnings Call Summary
Earnings Call Date:Feb 20, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Positive
The call presented a mix of durable positive trends (strong consumer services growth, accelerating branded digital transactions, improved margins and cash generation, major retail agent wins, and progress on digital-wallets and digital-asset initiatives) alongside persistent industry headwinds in core retail remittances—especially in The Americas and U.S. to Mexico corridor—near-term policy uncertainty from the U.S. remittance tax, and some pressure from higher interest expense and elevated CapEx. Management delivered solid operational discipline and a constructive 2026 outlook (6%–9% revenue growth inclusive of Intermex and $1.75–$1.85 adjusted EPS) while acknowledging areas that require continued focus (customer acquisition outside the Middle East, retail stabilization, and integration/regulatory work for Intermex).Positive Updates
Revenue and Guidance
Q4 GAAP revenue of $1,000,000,000; full-year GAAP revenue of $4,100,000,000. 2026 adjusted revenue outlook of 6%–9% growth inclusive of Intermex (expected to close in Q2).
Negative Updates
Top-Line Pressure and Q4 Revenue Decline
Q4 adjusted revenue declined 5% year-over-year. Full-year adjusted revenue (ex-Iraq) down ~2%, and adjusted revenue came in below prior outlook due to ongoing industry disruption and retail headwinds.
Read all updates
Q4-2025 Updates
Positive
Negative
Revenue and Guidance
Q4 GAAP revenue of $1,000,000,000; full-year GAAP revenue of $4,100,000,000. 2026 adjusted revenue outlook of 6%–9% growth inclusive of Intermex (expected to close in Q2).
Read all positive updates
Company Guidance
For 2026 the company guided to adjusted revenue growth of 6%–9% (inclusive of Intermex) and adjusted EPS of $1.75–$1.85, assuming no material change in macro conditions; the outlook assumes an Intermex close in Q2, roughly $100 million of stock repurchases for the year, and higher interest expense as notes maturing in Q1 are refinanced (previous yield ~1.35%), with management expecting EPS to accelerate through the year as travel‑money seasonality, integration synergies and operational efficiency benefits ramp. Management also reiterated consumer‑services should grow double‑digit (travel money expected to approach ~$150 million of revenue), recent agent wins should add at least ~$100 million of incremental annual retail revenue when fully ramped, and capex—$151 million in 2025 (up 15%)—is expected to remain elevated in 2026; balance‑sheet context: cash $1.2 billion, debt $2.9 billion, leverage ~2.9x gross / 1.6x net.Western Union Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
55
Neutral
Cash Flow
72
Positive
| 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
Neutral
8.87
Price Trends
9.24
Negative
9.04
Negative
8.46
Positive
Market Momentum
-0.15
Positive
44.98
Neutral
48.75
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 8.87 is below the 20-day moving average (MA) of 9.02, below the 50-day MA of 9.24, and above the 200-day MA of 8.46, indicating a neutral trend. The MACD of -0.15 indicates Positive momentum. The RSI at 44.98 is Neutral, neither overbought nor oversold. The STOCH value of 48.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WU.
Western Union Risk Analysis
Western Union disclosed 31 risk factors in its most recent earnings report. Western Union reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Western Union Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $32.15B | 10.73 | 10.88% | 2.72% | 7.10% | 12.75% | |
68 Neutral | $2.78B | 6.09 | 53.92% | 10.18% | -2.51% | 17.47% | |
68 Neutral | $6.56B | 10.25 | 23.40% | 6.07% | 9.51% | 29.38% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $25.02B | 8.41 | 21.09% | 1.34% | -6.38% | 19.65% | |
66 Neutral | $42.21B | 10.70 | 25.87% | ― | 4.50% | 19.71% | |
63 Neutral | $21.03B | 62.56 | 5.87% | ― | 22.40% | 215.81% |
* Financial Sector Average
WU
Western Union
8.87
0.33
3.93%
IX
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31.37
12.62
67.31%
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Synchrony Financial
71.97
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PYPL
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45.85
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OMF
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56.01
16.13
40.45%
SOFI
SoFi
16.49
5.97
56.75%
Western Union Corporate Events
Business Operations and StrategyExecutive/Board Changes
Western Union Adds Milind Pant to Board of Directors
Positive
Mar 16, 2026
On March 13, 2026, Western Union expanded its Board of Directors from 11 to 12 members and appointed global business leader Milind Pant, 55, as an independent director. He also joined the Audit and Compliance Committees, with compensation aligned ...
Private Placements and Financing
Western Union Completes $450 Million Notes Offering
Positive
Mar 9, 2026
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...
Business Operations and StrategyPrivate Placements and Financing
Western Union Secures New $800 Million Term Loan Facility
Positive
Jan 9, 2026
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 clo...
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.