Western Union (WU) AI Stock Analysis

• Market Cap: $2.68B
• Dividend Yield: 11.16%
• Average Volume (3M): 10.74M
• Price to Earnings (P/E): 3.7
• Beta (1Y): 0.38
• Revenue Growth: -2.51%
• EPS Growth: 17.47%
• Country: US
• Employees: 9,100
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.47
• Shares Outstanding: 317,844,900
• 10 Day Avg. Volume: 8,163,679
• 30 Day Avg. Volume: 10,736,149
• PEG Ratio: 0.06
• Price to Book (P/B): 3.72
• Price to Sales (P/S): 0.86
• P/FCF Ratio: 9.77
• Enterprise Value/Market Cap: 1.58
• Enterprise Value/Revenue: 1.03
• Enterprise Value/Gross Profit: 2.75
• Enterprise Value/Ebitda: 4.57
• 1Y Price Target: $8.71
• Price Target Upside: 3.44% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9
• EPS Forecast (FY): 1.73
• Revenue Forecast (FY): $4.09B

• Rating: 65 Neutral
• Price Target: $9.50 ▲(12.83% Upside)

Western Union's overall stock score reflects strong valuation metrics and solid earnings call highlights, particularly in digital growth and cost management. However, financial performance is impacted by high leverage and declining revenue, while technical indicators suggest potential overbought conditions.

Positive Factors

Digital and Consumer Services Growth

The growth in digital and consumer services indicates Western Union's successful adaptation to digital trends, enhancing its competitive position and long-term revenue potential in a rapidly evolving market.

Operational Efficiency

Improved operational efficiency and cost management enhance profitability, providing a buffer against revenue volatility and supporting sustainable financial performance.

Successful Integration and Expansion

Successful integration of acquisitions like Euro Change strengthens Western Union's market presence and diversifies its revenue streams, contributing to long-term growth.

Negative Factors

Revenue Decline

Ongoing revenue decline poses a risk to Western Union's financial stability, potentially impacting its ability to invest in growth and maintain market share.

High Leverage

High leverage can limit financial flexibility, increase risk during economic downturns, and strain cash flow, challenging long-term sustainability.

Challenges in North America

Weakness in key North American corridors, exacerbated by regulatory changes, could hinder growth and reduce Western Union's competitive edge in a crucial market.

Western Union Business Overview & Revenue Model

Company Description

Western Union (WU) is a global leader in cross-border, cross-currency money movement and payments. Founded in 1851, the company operates in the financial services sector, focusing on money transfer services, payment processing, and digital banking solutions. Western Union offers various products, including money transfers, bill payments, and money orders, catering to individuals, businesses, and governments worldwide. With a vast network of agents and locations, WU facilitates international remittances and domestic transactions, serving millions of customers across diverse markets.

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

Western Union demonstrates strong profitability and operational efficiency, but faces challenges with declining revenue and high leverage. The company maintains solid cash generation capabilities, yet the declining free cash flow growth and high debt levels could impact financial flexibility. Overall, while profitability remains a strength, the financial structure and revenue trends warrant careful monitoring.

Income Statement

Western Union's income statement shows a declining revenue trend with a negative growth rate of -8.3% TTM. Despite this, the company maintains a solid net profit margin of 18.8% TTM, indicating efficient cost management. However, the gross profit margin has decreased over time, reflecting potential challenges in maintaining profitability. The EBIT and EBITDA margins are stable, suggesting consistent operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.80 TTM, indicating significant leverage which could pose financial risks. Return on equity is strong at 82.95% TTM, showcasing effective use of shareholder funds. However, the equity ratio is low, suggesting limited equity financing and potential vulnerability to financial instability.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth at -3.4% TTM, indicating potential challenges in generating cash. The operating cash flow to net income ratio is robust at 9.88 TTM, reflecting strong cash generation relative to earnings. However, the free cash flow to net income ratio is moderate at 0.74 TTM, suggesting room for improvement in cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.10B	4.21B	4.36B	4.48B	5.07B	4.83B
Gross Profit	1.53B	1.59B	1.69B	1.85B	2.17B	2.01B
EBITDA	923.10M	917.50M	1.03B	1.29B	1.25B	1.20B
Net Income	770.90M	934.20M	626.00M	910.60M	805.80M	744.30M
Balance Sheet
Total Assets	7.78B	8.37B	8.20B	8.50B	8.82B	9.50B
Cash, Cash Equivalents and Short-Term Investments	2.82B	1.47B	1.27B	1.29B	1.21B	4.11B
Total Debt	2.59B	3.13B	2.67B	2.78B	3.01B	3.30B
Total Liabilities	6.86B	7.40B	7.72B	8.02B	8.47B	9.31B
Stockholders Equity	925.40M	968.90M	479.00M	477.80M	355.60M	186.60M
Cash Flow
Free Cash Flow	381.80M	368.90M	635.30M	373.40M	830.70M	720.70M
Operating Cash Flow	542.30M	406.30M	783.10M	581.60M	1.05B	877.50M
Investing Cash Flow	-85.20M	-16.30M	-140.80M	525.50M	192.00M	-113.40M
Financing Cash Flow	-509.30M	-69.30M	-896.80M	-1.18B	-1.27B	-773.50M

Western Union Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.42
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WU, the sentiment is Negative. The current price of 8.42 is below the 20-day moving average (MA) of 8.96, below the 50-day MA of 8.47, and below the 200-day MA of 8.83, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 43.71 is Neutral, neither overbought nor oversold. The STOCH value of 12.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WU.

Western Union Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
V	75 Outperform	$627.78B	32.48	51.54%	0.74%	11.34%	2.76%
PYPL	73 Outperform	$56.67B	12.15	24.36%	―	4.50%	19.71%
MA	69 Neutral	$485.28B	34.56	185.74%	0.56%	15.67%	18.22%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SOFI	66 Neutral	$30.38B	45.68	8.59%	―	22.40%	215.81%
WU	65 Neutral	$2.68B	3.66	97.70%	11.16%	-2.51%	17.47%

Western Union Corporate Events

Western Union Unveils ‘Beyond’ Strategy at Investor Day

On November 6, 2025, Western Union hosted an Investor Day in New York City, where it unveiled its ‘Beyond’ strategy, focusing on a digital-first approach to expand its financial services network globally. The company anticipates a 20% revenue increase to $5 billion and a 30% growth in adjusted earnings per share over the next three years, driven by double-digit growth in Consumer Services and the expansion of its Digital Asset Network and USDPT stablecoin strategy.

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’s Earnings Call: Growth Amid Challenges

The recent earnings call for Western Union Company revealed a mixed sentiment, highlighting both positive developments and ongoing challenges. The company demonstrated robust growth in its digital and consumer services segments and successfully integrated recent acquisitions. However, it faced revenue declines and challenges in North America, primarily due to macroeconomic factors and U.S. immigration policies. Notably, Western Union’s cost management and operational efficiency were significant positives.

Western Union’s Q3 2025 Earnings: Stable Revenue, Digital Growth

The Western Union Company is a global leader in cross-border, cross-currency money movement and payments, offering digital financial services to consumers, businesses, and governments across more than 200 countries and territories. In its third quarter of 2025, Western Union reported a GAAP revenue of $1.03 billion, which remained flat compared to the same period last year. The company’s branded digital revenue showed a notable increase, growing by 7% on a reported basis, while consumer services revenue surged by 49%. However, the company’s GAAP earnings per share (EPS) decreased to $0.43 from $0.78 in the previous year, although the adjusted EPS rose slightly to $0.47 from $0.46.

Western Union Advances with Intermex Merger Approval

On August 10, 2025, Western Union announced a merger agreement with International Money Express, Inc. (Intermex), with the merger expected to close in mid-2026. The expiration of the Hart-Scott-Rodino Act waiting period on October 6, 2025, marks a significant regulatory step forward. The acquisition is subject to further regulatory approvals and Intermex stockholder approval, potentially impacting Western Union’s market positioning by expanding its digital money movement capabilities.

The most recent analyst rating on (WU) stock is a Hold with a $9.00 price target. To see the full list of analyst forecasts on Western Union stock, see the WU Stock Forecast page.