Western Union (WU) AI Stock Analysis

• Market Cap: $2.93B
• Dividend Yield: 10.18%
• Average Volume (3M): 8.74M
• Price to Earnings (P/E): 6.0
• Beta (1Y): 0.41
• Revenue Growth: -2.51%
• EPS Growth: 17.47%
• Country: US
• Employees: 9,100
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.45
• Shares Outstanding: 313,454,800
• 10 Day Avg. Volume: 10,015,592
• 30 Day Avg. Volume: 8,735,390
• PEG Ratio: -0.14
• Price to Book (P/B): 3.17
• Price to Sales (P/S): 0.75
• P/FCF Ratio: 7.74
• Enterprise Value/Market Cap: 0.63
• Enterprise Value/Revenue: 0.46
• Enterprise Value/Gross Profit: 1.31
• Enterprise Value/Ebitda: 1.98
• 1Y Price Target: $9.29
• Price Target Upside: -0.75% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: $10.00 ▲(6.84% Upside)
• Action: Reiterated Date: 02/21/26
• Date: Action: Reiterated 02/21/26

The score is driven primarily by mixed financial performance (strong cash generation but declining revenue and lower 2025 earnings) and a constructive-but-risk-aware earnings outlook. Valuation meaningfully supports the score due to a very low P/E and high dividend yield, while technicals are neutral-to-weak and add limited support.

Positive Factors

Strong cash generation

Consistent positive operating cash flow and multi-year FCF conversion >100% indicate durable internal funding for dividends, buybacks, M&A and capex. Strong cash generation bolsters financial flexibility and reduces reliance on external financing over the next 2–6 months.

Digital & consumer-services momentum

Sustained digital adoption and rapid consumer-services growth diversify revenue away from retail remittances, improving unit economics and customer engagement. A larger digital mix supports lower marginal costs and durable revenue streams as distribution shifts over time.

Scale in distribution & partnerships

Large, exclusive retail relationships expand owned distribution and provide predictable incremental revenue as rollout completes. Strengthened agent network and strategic partnerships support customer reach and reduce customer-acquisition costs sustainably.

Negative Factors

Multi-year revenue decline

A multi-year top-line decline signals structural demand compression in core retail corridors; even with margin discipline, persistent revenue erosion limits operating leverage and long-term EPS growth unless new channels scale quickly.

Policy and tax uncertainty

New remittance taxation and broader policy uncertainty pose structural downside to cross‑border flows and pricing. Changes to tax or immigration policy can reduce volumes or shift corridors, creating durable headwinds for core remittance revenue and product mix.

Integration & regulatory execution risk

Pending regulatory approvals and delayed synergy realization raise execution risk and postpone expected accretion. Combined with elevated capex and refinancing needs, integration uncertainty can pressure near-term margins and cash deployment priorities.

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 commissions. When customers send money, they pay a fee based on the amount transferred, the destination, and the chosen delivery method. Additionally, WU earns money from the spread between the exchange rates it offers customers and the rates it receives from financial markets. Key revenue streams include money transfers, digital payments, and business solutions. Partnerships with various financial institutions, retailers, and agents enhance WU's distribution network, allowing it to reach a broader customer base and increase transaction volume, which in turn boosts revenue.

Western Union Financial Statement Overview

Summary

Cash generation is a key strength (consistently positive operating/free cash flow with solid conversion), but fundamentals are mixed due to a multi-year revenue decline and a meaningful 2025 earnings step-down versus 2024. Balance-sheet signals are also mixed given differing leverage context between statements and the latest call.

Income Statement

Revenue has been in a multi-year decline (down from ~$5.07B in 2021 to ~$4.05B in 2025), signaling ongoing top-line pressure. Profitability remains solid for the industry, with gross margin holding in the high-30% range and 2025 net margin still healthy (~12%), but earnings were meaningfully lower in 2025 versus 2024 (net income down from ~$934M to ~$500M). Overall: durable margins, but weakening growth and profit trajectory weigh on the score.

Balance Sheet

Leverage was a key risk historically, with very high debt relative to equity in 2020–2023 and still elevated in 2024 (debt-to-equity ~3.2x). 2025 shows total debt at zero with a debt-to-equity of 0.0x, which—if sustainable—materially strengthens the balance sheet and lowers financial risk. The main offset is that equity remains relatively modest (~$958M) versus the asset base (~$8.3B), so balance-sheet resilience is improved but not yet overwhelmingly strong based on equity depth.

Cash Flow

Cash generation is a clear strength: operating cash flow and free cash flow are consistently positive across the period, and 2025 free cash flow rose to ~$393M (positive growth) while remaining well-supported by operations. Free cash flow covered a large portion of 2025 earnings (~72%), indicating decent earnings quality. The main weakness is volatility over time (free cash flow growth swings between strong positives and notable declines in prior years), but overall cash conversion and consistency are favorable.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.04B	4.21B	4.36B	4.48B	5.07B
Gross Profit	1.16B	1.59B	1.69B	1.85B	2.17B
EBITDA	934.30M	917.50M	1.03B	1.29B	1.25B
Net Income	499.60M	934.20M	626.00M	910.60M	805.80M
Balance Sheet
Total Assets	8.31B	8.37B	8.20B	8.50B	8.82B
Cash, Cash Equivalents and Short-Term Investments	1.23B	1.47B	1.27B	1.29B	1.21B
Total Debt	0.00	3.13B	2.67B	2.78B	3.01B
Total Liabilities	7.35B	7.40B	7.72B	8.02B	8.47B
Stockholders Equity	957.80M	968.90M	479.00M	477.80M	355.60M
Cash Flow
Free Cash Flow	392.90M	368.90M	635.30M	373.40M	830.70M
Operating Cash Flow	543.70M	406.30M	783.10M	581.60M	1.05B
Investing Cash Flow	-230.30M	-16.30M	-140.80M	525.50M	192.00M
Financing Cash Flow	-782.60M	-69.30M	-896.80M	-1.18B	-1.27B

Western Union Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 9.36
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WU, the sentiment is Neutral. The current price of 9.36 is below the 20-day moving average (MA) of 9.62, below the 50-day MA of 9.49, and above the 200-day MA of 8.57, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 45.87 is Neutral, neither overbought nor oversold. The STOCH value of 31.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WU.

Western Union Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IX	70 Outperform	$37.52B	12.63	11.39%	2.72%	7.10%	12.75%
SYF	68 Neutral	$24.60B	7.42	21.30%	1.34%	-6.38%	19.65%
OMF	68 Neutral	$6.47B	8.25	23.76%	6.07%	9.51%	29.38%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
WU	64 Neutral	$2.93B	6.04	51.86%	10.18%	-2.51%	17.47%
PYPL	63 Neutral	$43.29B	8.15	25.73%	―	4.50%	19.71%
SOFI	63 Neutral	$23.80B	49.11	5.66%	―	22.40%	215.81%

Western Union Corporate Events

Western Union Secures New $800 Million Term Loan Facility

On January 9, 2026, Western Union entered into an unsecured delayed draw term loan credit agreement providing access to an $800 million term loan facility with a syndicate of international banks, which allows the company to draw funds from the closing date through July 8, 2026 and potentially increase total commitments up to $1 billion, subject to additional lender commitments. The proceeds may be used for general corporate purposes, including debt refinancing and permitted acquisitions, and the facility includes customary financial and operational covenants—such as limits on asset sales, liens, subsidiary indebtedness and dividend restrictions, plus an interest coverage ratio requirement—with interest and ticking fees set on a ratings-based sliding scale and a final maturity three years after the initial funding date, reinforcing Western Union’s balance-sheet flexibility and funding options.

The most recent analyst rating on (WU) stock is a Sell with a $10.00 price target. To see the full list of analyst forecasts on Western Union stock, see the WU Stock Forecast page.