Western Union (WU) AI Stock Analysis

• Market Cap: $2.99B
• Dividend Yield: 10.18%
• Average Volume (3M): 7.09M
• 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: 6,113,100
• 30 Day Avg. Volume: 7,086,821
• 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: 1.41
• Enterprise Value/Revenue: 1.03
• Enterprise Value/Gross Profit: 2.75
• Enterprise Value/Ebitda: 4.57
• 1Y Price Target: $9.00
• Price Target Upside: -2.17% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $10.50 ▲(14.13% Upside)

The score is driven by attractive valuation (low P/E and high dividend yield) and constructive technical momentum (price above key moving averages with positive MACD). These are partially offset by weaker financial fundamentals—declining revenue, softening free cash flow growth, and high leverage—and a mixed earnings outlook with revenue expectations leaning to the low end despite margin and digital-growth strengths.

Positive Factors

Global Network & Market Position

A vast, long-established agent network and global brand provide durable distribution and customer reach in remittances. Scale across corridors creates pricing power, trust and high switching costs for many users, supporting steady transaction volume and structural revenue resilience.

Digital Growth and Strategic Acquisitions

Consistent digital growth and integration of acquisitions (Intermex, Euro Change) shift revenue mix toward faster, scalable channels. A multi-quarter digital lift and wallet rollout create structural diversification, improving long-term growth prospects and lowering reliance on retail cash flows.

Margin Improvement and Cost Programs

Sustained margin expansion from completed cost programs indicates durable operational leverage and disciplined expense management. Higher operating margins enhance earnings resilience, enabling reinvestment in digital initiatives and cushioning profitability against slower top-line trends.

Negative Factors

Persistent Revenue Decline

Material multi-period revenue decline signals shrinking core transaction volumes or pricing pressure in key corridors. That structural top-line weakness limits scalability, forces dependence on non-core growth levers (M&A, digital) and reduces runway for organic margin-driven EPS growth over the medium term.

High Leverage

Elevated leverage constrains financial flexibility, raising refinancing and covenant risk. High debt limits capacity for aggressive reinvestment, M&A or sustained dividends during downturns and makes the company more sensitive to interest-rate or cash-flow shocks over the next several quarters.

Weakened Free Cash Flow Conversion

Declining FCF growth and suboptimal conversion reduce available internal funding for deleveraging and strategic investment. Even with robust operating cash flow relative to net income, weaker FCF restricts capital allocation flexibility and increases reliance on external financing for long-term initiatives.

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: 9.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 9.2 is below the 20-day moving average (MA) of 9.41, above the 50-day MA of 8.99, and above the 200-day MA of 8.52, indicating a neutral trend. The MACD of 0.14 indicates Positive momentum. The RSI at 53.38 is Neutral, neither overbought nor oversold. The STOCH value of 32.07 is Neutral, 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	79 Outperform	$7.78B	11.22	21.41%	6.07%	9.51%	29.38%
PYPL	76 Outperform	$53.95B	11.57	24.36%	―	4.50%	19.71%
IX	72 Outperform	$32.73B	11.63	10.32%	2.72%	7.10%	12.75%
SYF	72 Outperform	$28.03B	8.50	21.64%	1.34%	-6.38%	19.65%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
WU	67 Neutral	$2.99B	4.08	97.70%	10.18%	-2.51%	17.47%
SOFI	67 Neutral	$33.62B	48.36	8.59%	―	22.40%	215.81%

Western Union Corporate Events

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.

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.