Western Union (WU) AI Stock Analysis

• Market Cap: $3.01B
• Dividend Yield: 9.58%
• Average Volume (3M): 8.15M
• Price to Earnings (P/E): 4.1
• Beta (1Y): 0.41
• 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: 7,200,441
• 30 Day Avg. Volume: 8,146,711
• 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: 1.40
• Enterprise Value/Revenue: 1.03
• Enterprise Value/Gross Profit: 2.75
• Enterprise Value/Ebitda: 4.57
• 1Y Price Target: $8.71
• Price Target Upside: -11.21% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 10
• EPS Forecast (FY): 1.73
• Revenue Forecast (FY): $4.09B

• Rating: 69 Neutral
• Price Target: $10.00 ▲(1.94% Upside)

Western Union's overall stock score reflects a mix of strong valuation and positive technical indicators, offset by financial challenges such as high leverage and declining revenue. The company's strategic initiatives and growth in digital services provide a positive outlook, but macroeconomic challenges in North America remain a concern.

Positive Factors

Digital Expansion

The launch of USDPT and a Digital Asset Network signifies Western Union's strategic shift towards digital assets, enhancing its competitive edge and broadening its service offerings. This positions the company to capture new market segments and drive long-term growth.

Strategic Growth Initiatives

The 'Beyond' strategy aims to expand Western Union's financial services network globally, leveraging digital assets. This initiative is expected to drive significant revenue and EPS growth, reinforcing the company's market position and future profitability.

Successful Integration and Expansion

Successful integration of acquisitions like Intermex and Euro Change enhances Western Union's service capabilities and market reach, supporting sustained growth in Consumer Services and strengthening its competitive position in the financial services industry.

Negative Factors

Revenue Decline

The decline in revenue highlights ongoing challenges in maintaining growth, which could impact Western Union's financial stability and ability to invest in strategic initiatives, potentially weakening its market position over time.

High Leverage

High leverage poses financial risks, limiting Western Union's financial flexibility and increasing vulnerability to economic downturns. This could constrain the company's ability to fund growth initiatives and manage operational challenges effectively.

Challenges in North America

Persistent challenges in North America, a key market, could hinder Western Union's revenue growth and market share. Addressing these issues is crucial for sustaining long-term performance and competitiveness in the region.

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

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: Positive
• Last Price: 9.81
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WU, the sentiment is Positive. The current price of 9.81 is above the 20-day moving average (MA) of 8.87, above the 50-day MA of 8.72, and above the 200-day MA of 8.78, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 71.12 is Negative, neither overbought nor oversold. The STOCH value of 94.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WU.

Western Union Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OMF	81 Outperform	$7.92B	11.42	21.41%	6.06%	9.51%	29.38%
PYPL	76 Outperform	$57.22B	12.27	24.36%	―	4.50%	19.71%
IX	72 Outperform	$30.13B	10.94	10.32%	2.80%	7.10%	12.75%
SYF	72 Outperform	$30.85B	9.36	21.64%	1.37%	-6.38%	19.65%
WU	69 Neutral	$3.01B	4.11	97.70%	9.58%	-2.51%	17.47%
SOFI	68 Neutral	$34.12B	49.47	8.59%	―	22.40%	215.81%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

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.

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.