Western Union (WU) AI Stock Analysis

• Market Cap: $2.77B
• Dividend Yield: 10.99%
• Average Volume (3M): 10.37M
• Price to Earnings (P/E): 3.2
• Beta (1Y): 0.39
• Revenue Growth: -3.83%
• EPS Growth: 62.05%
• Country: US
• Employees: 9,100
• Sector: Financial
• Sector Strength: 72
• Industry: Financial - Credit Services
• EPS (TTM): 0.42
• Shares Outstanding: 322,967,300
• 10 Day Avg. Volume: 9,898,865
• 30 Day Avg. Volume: 10,369,616
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.62
• Enterprise Value/Revenue: 1.10
• Enterprise Value/Gross Profit: 2.95
• Enterprise Value/Ebitda: 5.05
• 1Y Price Target: $8.65
• Price Target Upside: 1.17% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 14

• Rating: 72 Outperform
• Price Target: $9.50 ▲(11.11% Upside)

Western Union's overall stock score reflects a combination of strong valuation metrics and strategic corporate actions, such as the acquisition of Intermex. While financial performance and technical analysis present some challenges, the company's attractive P/E ratio and high dividend yield provide a solid foundation. The earnings call and corporate events highlight both opportunities and risks, with growth in digital and travel money segments being significant positives.

Positive Factors

Dividend and Valuation

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

Retail Growth

Intermex's retail operation has shown healthy growth in a highly competitive market, doubling both principal and revenue over the past five years, while driving 40%+ growth in its newer digital channel.

Synergies and Operations

Anticipated synergies to come from cross-selling, combining capabilities at agent networks, and streamlining operations.

Negative Factors

Political and Macroeconomic Environment

An increasingly negative political and macro environment for Western Union as immigrant deportations pressure US remittances sent abroad, which could persist as a headwind and add to existing competitive pressures.

Revenue and Earnings

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

Tax Impact

Consumer habituation in the US around retail and a 20% revenue exposure to excise tax on cash-funded remittances are operational headwinds.

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	890.80M	917.50M	1.03B	1.29B	1.25B	1.20B
Net Income	896.10M	934.20M	626.00M	910.60M	805.80M	744.30M
Balance Sheet
Total Assets	7.98B	8.37B	8.20B	8.50B	8.82B	9.50B
Cash, Cash Equivalents and Short-Term Investments	1.02B	1.47B	1.27B	1.29B	1.21B	1.43B
Total Debt	0.00	3.13B	2.67B	2.80B	3.01B	3.07B
Total Liabilities	7.10B	7.40B	7.72B	8.02B	8.47B	9.31B
Stockholders Equity	883.60M	968.90M	479.00M	477.80M	355.60M	186.60M
Cash Flow
Free Cash Flow	417.00M	368.90M	635.30M	373.40M	830.70M	720.70M
Operating Cash Flow	494.00M	406.30M	783.10M	581.60M	1.05B	877.50M
Investing Cash Flow	-125.30M	-16.30M	-140.80M	525.50M	192.00M	-113.40M
Financing Cash Flow	-449.60M	-69.30M	-896.80M	-1.18B	-1.27B	-773.50M

Western Union Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.55
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 8.55 is above the 20-day moving average (MA) of 8.29, above the 50-day MA of 8.38, and below the 200-day MA of 9.50, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 54.82 is Neutral, neither overbought nor oversold. The STOCH value of 53.50 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
MA	81 Outperform	$534.82B	40.02	177.90%	0.50%	14.55%	13.25%
V	80 Outperform	$676.58B	34.43	51.18%	0.67%	11.38%	7.43%
DFS	78 Outperform		―		―	9.42%	128.55%
PYPL	78 Outperform	$67.05B	15.03	22.92%	―	4.05%	13.85%
WU	72 Outperform	$2.77B	3.19	135.32%	10.99%	-3.83%	62.05%
SOFI	72 Outperform	$30.37B	51.67	8.80%	―	22.60%	―
Sector *	68 Neutral	$17.84B	12.03	10.32%	3.73%	9.70%	0.76%

Western Union Corporate Events

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.

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.

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%.

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.

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.