Western Union (WU) AI Stock Analysis

• Market Cap: $3.06B
• Dividend Yield: 9.91%
• Average Volume (3M): 11.49M
• Price to Earnings (P/E): 4.1
• Beta (1Y): 0.46
• Revenue Growth: -2.45%
• EPS Growth: 17.47%
• Country: US
• Employees: 9,100
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.47
• Shares Outstanding: 322,967,300
• 10 Day Avg. Volume: 10,994,092
• 30 Day Avg. Volume: 11,486,853
• 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: 1.38
• Enterprise Value/Revenue: 1.03
• Enterprise Value/Gross Profit: 2.75
• Enterprise Value/Ebitda: 4.57
• 1Y Price Target: $8.42
• Price Target Upside: -11.28% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 8

• Rating: 65 Neutral
• Price Target: $9.50 ▲(0.11% 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

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 margins associated with its money transfer services. When customers send money, they pay a fee that varies based on factors such as the amount sent, the destination, and the payment method used. Additionally, Western Union earns money by converting currencies, where it applies a markup on the exchange rate, allowing it to profit from the difference between the market rate and the rate offered to customers. Key revenue streams include individual consumer transactions, business-to-business transfers, and partnerships with retailers and financial institutions that provide access to Western Union's services. Significant partnerships with banks, mobile network operators, and retail agents enhance its distribution network, broadening its customer base and increasing transaction volumes, contributing to overall earnings.

Western Union Financial Statement Overview

Summary

Western Union demonstrates sound financial management with robust profitability and effective cost control. The elimination of debt significantly enhances balance sheet strength. Despite a declining revenue trend, the company maintains strong margins and cash flow management. However, the low equity ratio and slight profitability margin decline pose potential risks that need to be monitored.

Income Statement

Western Union's income statement shows a declining revenue trend over recent years with a slight revenue decrease in TTM. Gross profit margin is strong at approximately 36.1% TTM, indicating effective cost management. However, net profit margin has slightly decreased to 22.1% TTM from 22.2% last year, reflecting challenges in maximizing profitability. Despite these challenges, EBIT and EBITDA margins remain robust at 17.2% and 20.4% TTM, respectively.

Balance Sheet

The balance sheet indicates a healthy reduction in total debt to zero TTM, significantly improving financial stability. Stockholders' equity has improved, leading to a better debt-to-equity ratio. However, the equity ratio at 11.3% TTM remains relatively low, indicating potential vulnerability to financial fluctuations. Return on equity is strong at 97.4% TTM, showcasing high profitability relative to equity.

Cash Flow

Cash flow statements highlight solid operating cash flow, though it has decreased from the previous year. The free cash flow to net income ratio is favorable, showing efficient conversion of profits to cash. The company has also managed a positive free cash flow growth rate of -1.97% from the previous year, indicating stable cash management practices.

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	947.80M	1.47B	1.27B	1.29B	1.21B	1.43B
Total Debt	2.59B	3.13B	2.67B	2.80B	3.01B	3.07B
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	402.80M	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: 9.49
• 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 9.49 is above the 20-day moving average (MA) of 8.27, above the 50-day MA of 8.25, and above the 200-day MA of 8.90, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 76.51 is Negative, neither overbought nor oversold. The STOCH value of 81.64 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
V	―	$668.34B	34.24	51.18%	0.68%	11.38%	7.43%
MA	―	$511.61B	38.18	177.90%	0.54%	14.55%	13.25%
PYPL	―	$66.66B	15.04	24.36%	―	4.34%	19.71%
SOFI	―	$37.53B	57.22	8.59%	―	22.60%	―
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
WU	―	$3.06B	4.12	97.70%	9.91%	-2.45%	17.47%

Western Union Corporate Events

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.

Western Union Announces Merger with International Money Express

On August 10, 2025, Western Union announced a merger agreement with International Money Express, Inc. (IMXI), where IMXI will become a wholly owned subsidiary of Western Union. The merger is subject to several conditions, including stockholder approval and regulatory clearances. If completed, IMXI’s shares will be delisted from Nasdaq. The agreement includes provisions for termination fees and conditions under which either party can terminate the merger.

The most recent analyst rating on (WU) stock is a Sell with a $12.00 price target. To see the full list of analyst forecasts on Western Union stock, see the WU Stock Forecast page.

Western Union Acquires Intermex for $500 Million

On August 10, 2025, Western Union announced its acquisition of International Money Express, Inc. (Intermex) for approximately $500 million in an all-cash transaction. This strategic move is expected to bolster Western Union’s retail presence in North America, expand its market coverage in high-growth regions, and accelerate digital customer acquisition. The acquisition is anticipated to enhance operational efficiencies and generate $30 million in annual cost synergies within 24 months, with further revenue synergies expected. The transaction has been approved by both companies’ boards and is expected to close in mid-2026, pending regulatory and stockholder approvals.

The most recent analyst rating on (WU) stock is a Sell with a $12.00 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

Western Union’s Latest Earnings Call: A Mixed Outlook with Promising Growth and Challenges

Western Union Reports Mixed Q2 2025 Results

Western Union Company is a global leader in cross-border, cross-currency money movement and digital financial services, operating in over 200 countries and territories. In its second quarter of 2025, Western Union reported a GAAP revenue of $1.03 billion, marking a 4% decline from the previous year. The company’s Branded Digital and Consumer Services segments showed growth, with Branded Digital revenue increasing by 6% and Consumer Services revenue rising by 39%. However, the Consumer Money Transfer segment saw an 8% decrease in revenue. Despite these challenges, the company maintained a GAAP operating margin of 19%, benefiting from cost efficiencies and favorable foreign currency impacts. Looking ahead, Western Union remains focused on executing its Evolve 2025 strategy, aiming for a GAAP revenue range of $4.085 to $4.185 billion for the full year, with an expected operating margin of 18% to 20%.

Western Union Appoints Ben Hawksworth as COO

Western Union announced the appointment of Ben Hawksworth as Chief Operating Officer, effective August 1, 2025. Hawksworth, who previously served as Chief Technology Officer, will receive a base salary of $550,000 with additional incentive opportunities. In its second quarter 2025 financial results, Western Union reported a 4% decrease in GAAP revenue to $1.03 billion, largely due to a slowdown in North America and lower revenue from Iraq. However, the company saw growth in its Branded Digital and Consumer Services segments. Despite challenges, Western Union’s diversified business model and operational efficiencies helped mitigate some impacts, with a slight increase in GAAP operating margin to 19%.

The most recent analyst rating on (WU) stock is a Sell with a $12.00 price target. To see the full list of analyst forecasts on Western Union stock, see the WU Stock Forecast page.