← Back to All US Stocks

WEX Inc. (WEX) Fundamental Analysis & AI Grade 2026

WEX NYSE Services-Business Services, NEC DE CIK: 0001309108
Update Pending • Analysis: Apr 29, 2026 • SEC Data: 2026-03-31
Combined AI Grade
C
78% Confidence
N/A
C
78% Conf
Pending
Analysis scheduled

📊 WEX Key Takeaways

Revenue: $673.8M
Net Margin: 11.5%
Free Cash Flow: $-368.3M
Current Ratio: 1.05x
Debt/Equity: 2.83x
EPS: $2.22
AI Grade: C with 78% confidence
WEX Inc. (WEX) receives a C fundamental grade with 78% confidence from our AI analysis based on SEC 10-K filings. With revenue of $673.8M, net profit margin of 11.5%, and return on equity (ROE) of 6.1%, WEX Inc. demonstrates mixed fundamentals in the Services sector. Below is our complete WEX stock analysis for 2026.

Is WEX Inc. (WEX) a Good Investment?

Claude

WEX exhibits strong 44% revenue growth and positive operating margins, but critical operational challenges undermine financial health: operating cash flow is deeply negative at -$330.8M despite $77.7M net income, creating unsustainable cash burn. High leverage (2.83x D/E) combined with 1.2x interest coverage leaves minimal margin for error in servicing $3.6B debt.

WEX Inc. Key Strengths (WEX)

Claude
  • + Strong revenue growth of 44.2% YoY demonstrates market demand
  • + Healthy operating margin of 23.5% shows operational efficiency at scale
  • + Adequate liquidity position with $633.5M in cash and 1.05x current ratio

WEX Stock Risks: WEX Inc. Investment Risks

Claude
  • ! Negative operating cash flow of -$330.8M despite positive net income signals quality of earnings concerns and underlying operational stress
  • ! Critically weak interest coverage of 1.2x leaves almost no buffer to absorb operational disruptions or economic downturns
  • ! High financial leverage (2.83x D/E) combined with negative FCF creates unsustainable debt structure; company burning $368M in free cash annually

Key Metrics to Watch

Claude
  • * Operating cash flow trend - must return to positive to validate earnings quality
  • * Interest coverage ratio - needs to improve above 2.5x to reduce financial risk
  • * Debt/Equity ratio - monitor deleveraging progress and debt paydown capacity

WEX Inc. (WEX) Financial Metrics & Key Ratios

Revenue
$673.8M
Net Income
$77.7M
EPS (Diluted)
$2.22
Free Cash Flow
$-368.3M
Total Assets
$15.4B
Cash Position
$633.5M

💡 AI Analyst Insight

WEX Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.

WEX Profit Margin, ROE & Profitability Analysis

Gross Margin N/A
Operating Margin 23.5%
Net Margin 11.5%
ROE 6.1%
ROA 0.5%
FCF Margin -54.7%

WEX vs Services Sector: How WEX Inc. Compares

How WEX Inc. compares to Services sector averages

Net Margin
WEX 11.5%
vs
Sector Avg 10.0%
WEX Sector
ROE
WEX 6.1%
vs
Sector Avg 16.0%
WEX Sector
Current Ratio
WEX 1.0x
vs
Sector Avg 1.5x
WEX Sector
Debt/Equity
WEX 2.8x
vs
Sector Avg 0.7x
WEX Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is WEX Inc. Stock Overvalued? WEX Valuation Analysis 2026

Based on fundamental analysis, WEX Inc. shows some fundamental concerns relative to the Services sector in 2026.

Return on Equity
6.1%
Sector avg: 16%
Net Profit Margin
11.5%
Sector avg: 10%
Revenue Growth
N/A
Year-over-year
Debt/Equity
2.83x
Sector avg: 0.7x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

WEX Inc. Balance Sheet: WEX Debt, Cash & Liquidity

Current Ratio
1.05x
Quick Ratio
1.05x
Debt/Equity
2.83x
Debt/Assets
91.7%
Interest Coverage
1.21x
Long-term Debt
$3.6B

WEX Revenue & Earnings Growth: 5-Year Financial Trend

WEX 5-year financial data: Year 2021: Revenue $1.3B, Net Income $156.3M, EPS $2.26. Year 2022: Revenue $1.7B, Net Income -$284.0M, EPS $-5.56. Year 2023: Revenue $1.8B, Net Income $135.3M, EPS $0.00. Year 2024: Revenue $1.9B, Net Income $167.2M, EPS $4.50. Year 2025: Revenue $1.9B, Net Income $266.6M, EPS $6.16.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: WEX Inc.'s revenue has grown significantly by 39% over the 5-year period, indicating strong business expansion. The most recent EPS of $6.16 reflects profitable operations.

WEX Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-54.7%
Free cash flow / Revenue

WEX Quarterly Earnings & Performance

Quarterly financial performance data for WEX Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q1 2026 $444.3M $71.5M $1.81
Q3 2025 $479.0M $65.8M $2.30
Q2 2025 $454.4M $65.8M $1.83
Q1 2025 $444.3M $65.8M $1.55
Q3 2024 $469.3M $18.4M $0.42
Q2 2024 $444.5M $65.8M $1.83
Q1 2024 $444.0M $65.8M $1.55
Q3 2023 $439.4M $18.4M $0.42

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

WEX Inc. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
-$330.8M
Cash generated from operations
Capital Expenditures
$37.5M
Investment in assets
Dividends
None
No dividend program

WEX SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for WEX Inc. (CIK: 0001309108)

📋 Recent SEC Filings

Date Form Document Action
Jun 1, 2026 4 xslF345X06/wk-form4_1780354643.xml View →
May 20, 2026 4 xslF345X06/wk-form4_1779314055.xml View →
May 18, 2026 4 xslF345X06/form412236009_05182026.xml View →
May 18, 2026 4 xslF345X06/wk-form4_1779141974.xml View →
May 18, 2026 4 xslF345X06/wk-form4_1779141815.xml View →

Frequently Asked Questions about WEX

What is the AI rating for WEX?

WEX Inc. (WEX) has an AI grade of C with 78% confidence, based on fundamental analysis of SEC EDGAR filings.

What are WEX's key strengths?

Claude: Strong revenue growth of 44.2% YoY demonstrates market demand. Healthy operating margin of 23.5% shows operational efficiency at scale.

What are the risks of investing in WEX?

Claude: Negative operating cash flow of -$330.8M despite positive net income signals quality of earnings concerns and underlying operational stress. Critically weak interest coverage of 1.2x leaves almost no buffer to absorb operational disruptions or economic downturns.

What is WEX's revenue and growth?

WEX Inc. reported revenue of $673.8M.

Does WEX pay dividends?

WEX Inc. does not currently pay dividends.

Where can I find WEX SEC filings?

Official SEC filings for WEX Inc. (CIK: 0001309108) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is WEX's EPS?

WEX Inc. has a diluted EPS of $2.22.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.

What is WEX's fundamental grade?

Based on our AI fundamental analysis in June 2026, WEX Inc. has a C grade with 78% confidence. Review the strengths and risks sections above for full context. This is not investment advice.

Is WEX stock overvalued or undervalued?

Valuation metrics for WEX: ROE of 6.1% (sector avg: 16%), net margin of 11.5% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.

What is WEX's AI grade for 2026?

Our dual AI analysis gives WEX Inc. a combined C grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.

What is WEX's free cash flow?

WEX Inc.'s operating cash flow is $-330.8M, with capital expenditures of $37.5M. FCF margin is -54.7%.

How does WEX compare to other Services stocks?

Vs Services sector averages: Net margin 11.5% (avg: 10%), ROE 6.1% (avg: 16%), current ratio 1.05 (avg: 1.5).

Is WEX Inc. carrying too much debt?

WEX has a debt-to-equity ratio of 2.83x, which is above the Services sector average of 0.7x. However, the current ratio of 1.05 suggests adequate short-term liquidity.

Top Rated Stocks
AAPL 92% MSFT 92% FAST 92% ANET 88% RDDT 88% KNSL 88% MGRE 88% FIZZ 88% DECK 87% NVDA 87%
Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Apr 29, 2026 | Data as of: 2026-03-31 | Powered by Claude AI