Western Union (WU)
NYSE:WU
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Western Union
(NYSE:WU)
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Rating:68Neutral
Price Target:
$10.00
▲(5.49% Upside)
Action:DowngradedDate:04/24/26
The score is supported primarily by strong valuation (low P/E and high dividend yield) and a stable-to-improving setup from guidance reaffirmation and operational catalysts. It is held back by the financial trend of declining revenue and weakening free cash flow, plus mixed near-term execution signals from the latest quarter despite modestly constructive technical momentum.
Positive Factors
Retail footprint expansion (Intermex)
Acquiring Intermex materially enlarges Western Union's U.S. retail network and customer base, creating durable distribution scale and cross‑sell opportunities. A larger agent footprint improves access in core corridors, supports retail transaction volume growth and amortizes fixed retail costs over higher throughput, strengthening long‑term revenue potential and synergy capture.
Negative Factors
Multi-year revenue decline
A sustained revenue contraction erodes operating leverage and limits reinvestment capacity. Shrinking top line makes it harder to cover fixed costs, risks margin pressure as growth investments are needed to stabilize volumes, and reduces scale advantages that underpin FX and agent economics, challenging durable profitability improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Retail footprint expansion (Intermex)
Acquiring Intermex materially enlarges Western Union's U.S. retail network and customer base, creating durable distribution scale and cross‑sell opportunities. A larger agent footprint improves access in core corridors, supports retail transaction volume growth and amortizes fixed retail costs over higher throughput, strengthening long‑term revenue potential and synergy capture.
Read all positive factors
Western Union (WU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.81B
Dividend Yield10.18%
Average Volume (3M)7.54M
Price to Earnings (P/E)10.6
Beta (1Y)0.44
Revenue Growth-2.34%
EPS Growth-49.33%
CountryUS
Employees9,100
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)0.25
Shares Outstanding312,435,100
10 Day Avg. Volume6,363,666
30 Day Avg. Volume7,538,612
Financial Highlights & Ratios
PEG Ratio-0.14
Price to Book (P/B)3.17
Price to Sales (P/S)0.75
P/FCF Ratio7.74
Enterprise Value/Market Cap0.68
Enterprise Value/Revenue0.47
Enterprise Value/Gross Profit1.38
Enterprise Value/Ebitda2.16
Forecast
1Y Price Target
$8.83Price Target Upside-6.82% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering7
EPS Forecast (FY)1.76
Revenue Forecast (FY)$4.28B
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...
How the Company Makes Money
Western Union primarily makes money by charging fees associated with moving money for consumers and businesses, with revenue largely tied to transaction activity and payment/settlement economics. Key revenue streams include: (1) Transaction fees o...
Western Union Earnings Call Summary
Earnings Call Date:Apr 24, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call balanced near‑term challenges (notably a sharp EPS decline, margin and cash flow headwinds, FX and Americas retail softness) against clear signs of operational stabilization, strong digital and Consumer Services momentum, active strategic M&A, and a detailed digital asset rollout. Management reaffirmed 2026 guidance and accelerated an efficiency program to offset quarter‑specific pressures, signaling confidence in a recovery across the remainder of the year.Positive Updates
Revenue stabilization and improving transaction trends
GAAP revenue of $983M (CEO cited ~$1.0B); adjusted revenue down 1% YoY but a 400 bps improvement versus Q4. Consumer money transfer (CMT) transactions were slightly positive for the first time since Q1 2025 (≈+300 bps vs Q4). Cross-border principal grew mid-single digits, signaling resilience in core flows.
Negative Updates
Material EPS decline and margin pressures in Q1
Adjusted EPS was $0.25 versus $0.41 a year ago. Adjusted operating margin was 13%, with management calling the quarter below expectations due to quarter‑specific items and seasonality tied to Travel Money fixed cost coverage.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue stabilization and improving transaction trends
GAAP revenue of $983M (CEO cited ~$1.0B); adjusted revenue down 1% YoY but a 400 bps improvement versus Q4. Consumer money transfer (CMT) transactions were slightly positive for the first time since Q1 2025 (≈+300 bps vs Q4). Cross-border principal grew mid-single digits, signaling resilience in core flows.
Read all positive updates
Company Guidance
Western Union reaffirmed 2026 guidance of adjusted revenue growth of 6%–9% (inclusive of the expected Intermex close in Q2) and adjusted EPS of $1.75–$1.85, assuming no material macro changes or significant Middle East impact, with Q2 EPS expected to be roughly in line with last year and acceleration into the back half of the year; catalysts cited include Intermex (expected to add ~10,000 U.S. agent locations and ~6 million customers and targeted synergies of $30 million, potentially front‑loaded), new agent wins that should add roughly $100 million of revenue when fully rolled out, and digital/digital‑asset initiatives. Management expects to deliver a $150 million operating efficiency program by year‑end 2028 with large contributions in 2026–2027, and noted near‑term metrics from Q1 (GAAP revenue ~$983M, adjusted revenue down 1%, adjusted operating margin 13%, adjusted EPS $0.25, operating cash flow $109M, CapEx $47M, cash & equivalents ~$900M, debt $2.6B, leverage 2.8x gross / 1.8x net) while continuing capital returns (>$120M returned in Q1).Western Union Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
73
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.05B | 4.04B | 4.21B | 4.36B | 4.48B | 5.07B |
| Gross Profit | 1.38B | 1.16B | 1.59B | 1.69B | 1.85B | 2.17B |
| EBITDA | 882.80M | 934.30M | 917.50M | 1.03B | 1.29B | 1.25B |
| Net Income | 440.80M | 499.60M | 934.20M | 626.00M | 910.60M | 805.80M |
Balance Sheet | ||||||
| Total Assets | 8.10B | 8.31B | 8.37B | 8.20B | 8.50B | 8.82B |
| Cash, Cash Equivalents and Short-Term Investments | 909.20M | 1.23B | 1.47B | 1.27B | 1.29B | 1.21B |
| Total Debt | 0.00 | 0.00 | 3.13B | 2.67B | 2.78B | 3.01B |
| Total Liabilities | 7.19B | 7.35B | 7.40B | 7.72B | 8.02B | 8.47B |
| Stockholders Equity | 910.50M | 957.80M | 968.90M | 479.00M | 477.80M | 355.60M |
Cash Flow | ||||||
| Free Cash Flow | 331.30M | 392.90M | 368.90M | 635.30M | 373.40M | 830.70M |
| Operating Cash Flow | 504.50M | 543.70M | 406.30M | 783.10M | 581.60M | 1.05B |
| Investing Cash Flow | -174.70M | -230.30M | -16.30M | -140.80M | 525.50M | 192.00M |
| Financing Cash Flow | -294.20M | -782.60M | -69.30M | -896.80M | -1.18B | -1.27B |
Western Union Technical Analysis
Positive
9.48
Price Trends
9.23
Positive
9.10
Positive
8.51
Positive
Market Momentum
0.02
Negative
62.99
Neutral
89.02
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 9.48 is above the 20-day moving average (MA) of 8.97, above the 50-day MA of 9.23, and above the 200-day MA of 8.51, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 62.99 is Neutral, neither overbought nor oversold. The STOCH value of 89.02 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WU.
Western Union Risk Analysis
Western Union disclosed 31 risk factors in its most recent earnings report. Western Union reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Western Union Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $25.31B | 7.23 | 21.41% | 1.34% | -3.18% | 32.55% | |
70 Outperform | $34.80B | 10.73 | 10.88% | 2.72% | 7.91% | 21.73% | |
68 Neutral | $2.81B | 10.62 | 47.95% | 10.18% | -2.34% | -49.33% | |
68 Neutral | $6.78B | 10.25 | 23.40% | 6.07% | 9.09% | 55.11% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $45.83B | 10.70 | 25.87% | ― | 4.88% | 35.36% | |
65 Neutral | $19.80B | 62.56 | 5.87% | ― | 26.64% | -7.93% |
* Financial Sector Average
WU
Western Union
8.98
0.07
0.75%
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OMF
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SOFI
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24.10%
Western Union Corporate Events
Business Operations and StrategyExecutive/Board Changes
Western Union Adds Milind Pant to Board of Directors
Positive
Mar 16, 2026
On March 13, 2026, Western Union expanded its Board of Directors from 11 to 12 members and appointed global business leader Milind Pant, 55, as an independent director. He also joined the Audit and Compliance Committees, with compensation aligned ...
Private Placements and Financing
Western Union Completes $450 Million Notes Offering
Positive
Mar 9, 2026
On March 9, 2026, Western Union completed a $450 million offering of 4.750% notes due 2029, issued under its existing shelf registration and long-standing indenture structure. The deal, underwritten by a syndicate led by Citigroup, BofA Securities...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.