Western Union (WU) AI Stock Analysis

• Market Cap: $2.59B
• Dividend Yield: 11.75%
• Average Volume (3M): 9.38M
• Price to Earnings (P/E): 3.0
• Beta (1Y): 0.38
• Revenue Growth: -3.83%
• EPS Growth: 62.05%
• Country: US
• Employees: 9,100
• Sector: Financial
• Sector Strength: 67
• Industry: Financial - Credit Services
• EPS (TTM): 0.42
• Shares Outstanding: 322,967,300
• 10 Day Avg. Volume: 12,088,371
• 30 Day Avg. Volume: 9,383,862
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.74
• Enterprise Value/Revenue: 1.10
• Enterprise Value/Gross Profit: 2.95
• Enterprise Value/Ebitda: 5.63
• 1Y Price Target: $8.65
• Price Target Upside: 8.13% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 14

• Rating: 65 Neutral
• Price Target: $8.50 ▲(6.25% Upside)

Western Union's overall score is driven by its solid financial management and attractive valuation. The elimination of debt and effective cost control are significant strengths. However, technical indicators show bearish momentum, and challenges highlighted in the earnings call, such as revenue decline and macroeconomic headwinds, need to be monitored.

Positive Factors

Dividend Support

The 11% dividend yield and the low P/E multiple will likely support shares.

Free Cash Flow Improvement

Western Union's free cash flow should improve and support the dividend after finalizing $800 million of payments related to the 2017 Tax Act.

Geographic Diversification

Western Union's geographic diversification limits total risk from the proposed tax.

Negative Factors

Competitive Pressures

Worsening North America outbound trends impacted by increasingly negative macro/political environment, intensifying competitive pressures.

Macroeconomic Headwinds

Macroeconomic headwinds and geopolitical uncertainty are pressuring results, especially in the U.S. to Latin America corridor.

Revenue Weakness

Revenue came in below consensus with weakness in North America CMT, more acutely in retail than digital.

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 makes money primarily through transaction fees and foreign exchange margins on money transfers. When a customer sends money through Western Union, the company charges a fee based on the amount sent and the destination country. Additionally, Western Union earns revenue from the difference between the exchange rate offered to customers and the actual rate at which it converts currencies, known as the foreign exchange margin. The company also generates income from its business solutions segment, which provides payment and foreign exchange services to businesses, and from partnerships with financial institutions and retailers that expand its distribution and accessibility. Significant factors contributing to its earnings include its extensive global network, brand recognition, and the growing demand for remittance services in emerging markets.

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.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.21B	4.36B	4.48B	5.07B	4.83B
Gross Profit	1.59B	1.69B	1.85B	2.17B	2.01B
EBITDA	905.10M	1.03B	1.11B	1.32B	1.22B
Net Income	934.20M	626.00M	910.60M	805.80M	744.30M
Balance Sheet
Total Assets	8.37B	8.20B	8.50B	8.82B	9.50B
Cash, Cash Equivalents and Short-Term Investments	1.47B	1.27B	1.29B	1.21B	1.43B
Total Debt	3.13B	2.67B	2.80B	3.01B	3.07B
Total Liabilities	7.40B	7.72B	8.02B	8.47B	9.31B
Stockholders Equity	968.90M	479.00M	477.80M	355.60M	186.60M
Cash Flow
Free Cash Flow	368.90M	635.30M	373.40M	830.70M	720.70M
Operating Cash Flow	406.30M	783.10M	581.60M	1.05B	877.50M
Investing Cash Flow	-16.30M	-140.80M	525.50M	192.00M	-113.40M
Financing Cash Flow	-69.30M	-896.80M	-1.18B	-1.27B	-773.50M

Western Union Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.00
• 50DMA: Negative
• 100DMA: Negative
• 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 is below the 20-day moving average (MA) of 8.23, below the 50-day MA of 8.54, and below the 200-day MA of 9.63, indicating a bearish trend. The MACD of -0.16 indicates Positive momentum. The RSI at 38.99 is Neutral, neither overbought nor oversold. The STOCH value of 16.26 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
MA	80 Outperform	$511.71B	38.18	177.90%	0.52%	14.55%	13.25%
DFS	78 Outperform	$50.34B	10.69	28.29%	1.40%	9.42%	128.55%
PYPL	78 Outperform	$66.32B	14.61	22.92%	―	4.05%	13.85%
V	77 Outperform	$650.09B	33.31	51.18%	0.69%	11.38%	7.43%
SOFI	68 Neutral	$25.53B	43.50	8.80%	―	22.60%	―
Sector *	67 Neutral	$17.02B	11.60	9.79%	3.95%	10.61%	2.06%
WU	65 Neutral	$2.59B	3.03	135.32%	11.75%	-3.83%	62.05%

Western Union Corporate Events

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.

Western Union Appoints New Chief Accounting Officer

On June 27, 2025, Western Union appointed Barry Cooper as Chief Accounting Officer, effective July 1, 2025. Cooper brings extensive experience from previous roles at Envestnet, Echostar Corporation, and First Data Corporation, and his compensation includes a base salary, incentive awards, and a sign-on grant. His appointment is expected to enhance the company’s financial leadership without any conflicts of interest or related-party transactions.

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 COO Andrew Walker Resigns

Andrew Walker, the Chief Operations Officer of Western Union, announced his resignation effective June 13, 2025, citing personal reasons. His departure is amicable and unrelated to any operational or policy issues within the company.

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 Stockholders Meeting Highlights Key Decisions

On May 15, 2025, Western Union held its Annual Meeting of Stockholders, where stockholders elected directors for a one-year term and ratified Ernst & Young LLP as the independent registered public accounting firm for 2025. However, the stockholders did not approve the compensation of the company’s named executive officers, as outlined in the proxy statement.

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.