Western Union (WU) AI Stock Analysis

• Market Cap: $2.81B
• Dividend Yield: 10.98%
• Average Volume (3M): 7.01M
• Price to Earnings (P/E): 3.2
• Beta (1Y): 0.37
• Revenue Growth: -5.16%
• EPS Growth: 59.60%
• Country: US
• Employees: 9,100
• Sector: Financial
• Sector Strength: 80
• Industry: Financial - Credit Services
• EPS (TTM): 0.41
• Shares Outstanding: 330,525,330
• 10 Day Avg. Volume: 9,669,964
• 30 Day Avg. Volume: 7,012,086
• PEG Ratio: 0.31
• Price to Book (P/B): 11.16
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.28
• Enterprise Value/Market Cap: 2.43
• Enterprise Value/Revenue: 0.41
• Enterprise Value/Gross Profit: 4.57
• Enterprise Value/Ebitda: 1.91
• 1Y Price Target: $10.89
• Price Target Upside: 27.97% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 13

• Rating: 66 Neutral
• Price Target: $9.50 ▲(11.63%Upside)

Western Union's overall stock score reflects its solid financial performance and attractive valuation. However, technical indicators suggest bearish momentum, and there are notable risks from regional revenue declines and geopolitical challenges. The company benefits from strategic growth in Europe and digital transactions, providing potential for future improvement.

Positive Factors

Dividend Support

Western Union's roughly 10% dividend yield is likely to support the stock, and a dividend cut is unlikely in the near term.

Geographic Diversification

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

Revenue Performance

Western Union revenue came in ahead of consensus while EBIT/EPS were light.

Negative Factors

Excise Tax Impact

The proposal of a 5% excise tax on remittances could negatively impact Western Union if passed.

Growth Challenges

Western Union is seen as a long-term relative underperformer in Payments due to slower growth and more volatile end market exposures.

North American Market Weakness

Weakness in North America, particularly in retail, dragged revenue below consensus.

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 shows robust profitability and cost control, with strong profit margins and effective cash flow management. The elimination of debt bolsters the balance sheet, though a 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.14B	4.21B	4.36B	4.48B	5.07B	4.83B
Gross Profit	1.50B	1.59B	1.69B	1.85B	2.17B	2.01B
EBITDA	843.60M	905.10M	1.03B	1.11B	1.32B	1.22B
Net Income	915.00M	934.20M	626.00M	910.60M	805.80M	744.30M
Balance Sheet
Total Assets	8.34B	8.37B	8.20B	8.50B	8.82B	9.50B
Cash, Cash Equivalents and Short-Term Investments	2.89B	3.44B	1.27B	1.29B	1.21B	1.43B
Total Debt	2.79B	3.13B	2.67B	2.80B	3.01B	3.07B
Total Liabilities	7.40B	7.40B	7.72B	8.02B	8.47B	9.31B
Stockholders Equity	939.40M	968.90M	479.00M	477.80M	355.60M	186.60M
Cash Flow
Free Cash Flow	361.60M	368.90M	635.30M	373.40M	830.70M	720.70M
Operating Cash Flow	460.50M	406.30M	783.10M	581.60M	1.05B	877.50M
Investing Cash Flow	-121.10M	-16.30M	-140.80M	525.50M	192.00M	-113.40M
Financing Cash Flow	-432.80M	-69.30M	-896.80M	-1.18B	-1.27B	-773.50M

Western Union Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.51
• 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 8.51 is below the 20-day moving average (MA) of 8.83, below the 50-day MA of 9.26, and below the 200-day MA of 10.03, indicating a bearish trend. The MACD of -0.24 indicates Positive momentum. The RSI at 36.52 is Neutral, neither overbought nor oversold. The STOCH value of 15.27 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
V	82 Outperform	$681.87B	34.96	50.03%	0.67%	10.19%	12.45%
DFS	78 Outperform	$50.34B	10.69	28.29%	1.40%	9.42%	128.55%
PYPL	76 Outperform	$71.56B	16.51	22.20%	―	4.50%	12.82%
SOFI	73 Outperform	$17.77B	38.21	7.51%	―	21.24%	―
MA	70 Outperform	$499.15B	39.11	188.92%	0.55%	12.94%	13.22%
WU	66 Neutral	$2.81B	3.18	136.84%	10.98%	-5.16%	59.60%
Sector *	62 Neutral	AU$9.61B	7.94	10.79%	5.16%	31.14%	38.26%

Western Union Corporate Events

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.