📊 WU Key Takeaways
Is Western Union CO (WU) a Good Investment?
Western Union demonstrates strong operational fundamentals with solid margins (18.7% operating margin) and exceptional free cash flow generation ($505.2M). However, the company faces headwinds from flat net income growth despite 4.4% revenue expansion, combined with dangerously high leverage (3.01x debt/equity ratio) that constrains financial flexibility and contributed to a 44.5% EPS decline YoY.
Why Buy Western Union CO Stock? WU Key Strengths
- Exceptional free cash flow generation ($505.2M) with 12.5% FCF margin on asset-light business model
- Solid operating margins (18.7%) and net margins (12.3%) demonstrating pricing power and operational efficiency
- Strong interest coverage (5.3x) and adequate cash reserves ($1.2B) providing near-term liquidity despite leverage
WU Stock Risks: Western Union CO Investment Risks
- Elevated leverage at 3.01x debt/equity ratio with $2.9B long-term debt relative to only $957.8M equity base
- Earnings stagnation with net income flat YoY despite 4.4% revenue growth, indicating margin compression
- Severe dilution reflected in 44.5% EPS decline YoY, suggesting either share buybacks at unfavorable prices or equity-based compensation erosion
Key Metrics to Watch
- Organic revenue growth rate and operating margin trend (are they sustaining pricing power?)
- Debt/equity ratio trajectory and management's deleveraging plans
- Operating cash flow to net income conversion ratio (ensuring quality of earnings)
Western Union CO (WU) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
WU Profit Margin, ROE & Profitability Analysis
WU vs Services Sector: How Western Union CO Compares
How Western Union CO compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Western Union CO Stock Overvalued? WU Valuation Analysis 2026
Based on fundamental analysis, Western Union CO has mixed fundamental signals relative to the Services sector in 2026.
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.
Western Union CO Balance Sheet: WU Debt, Cash & Liquidity
WU Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Western Union CO's revenue has declined by 17% over the 5-year period, indicating business contraction. The most recent EPS of $1.68 reflects profitable operations.
WU Revenue Growth, EPS Growth & YoY Performance
WU Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $985.3M | $139.6M | $0.43 |
| Q2 2025 | $983.6M | $122.1M | $0.37 |
| Q1 2025 | $938.7M | $123.5M | $0.36 |
| Q3 2024 | $993.4M | $171.0M | $0.46 |
| Q2 2024 | $1.0B | $141.0M | $0.41 |
| Q1 2024 | $979.0M | $142.7M | $0.40 |
| Q3 2023 | $1.0B | $171.0M | $0.45 |
| Q2 2023 | $1.1B | $176.2M | $0.47 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Western Union CO Dividends, Buybacks & Capital Allocation
WU SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Western Union CO (CIK: 0001365135)
📋 Recent SEC Filings
❓ Frequently Asked Questions about WU
What is the AI rating for WU?
Western Union CO (WU) has an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.
What are WU's key strengths?
Claude: Exceptional free cash flow generation ($505.2M) with 12.5% FCF margin on asset-light business model. Solid operating margins (18.7%) and net margins (12.3%) demonstrating pricing power and operational efficiency.
What are the risks of investing in WU?
Claude: Elevated leverage at 3.01x debt/equity ratio with $2.9B long-term debt relative to only $957.8M equity base. Earnings stagnation with net income flat YoY despite 4.4% revenue growth, indicating margin compression.
What is WU's revenue and growth?
Western Union CO reported revenue of $4.1B.
Does WU pay dividends?
Western Union CO pays dividends, with $309.0M distributed to shareholders in the trailing twelve months.
Where can I find WU SEC filings?
Official SEC filings for Western Union CO (CIK: 0001365135) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is WU's EPS?
Western Union CO has a diluted EPS of $1.52.
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 rating reflects both perspectives for balanced insights.
Is WU a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Western Union CO has a HOLD rating with 62% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is WU stock overvalued or undervalued?
Valuation metrics for WU: ROE of 52.2% (sector avg: 16%), net margin of 12.3% (sector avg: 10%). Higher ROE suggests strong returns relative to peers.
Should I buy WU stock in 2026?
Our dual AI analysis gives Western Union CO a combined HOLD rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is WU's free cash flow?
Western Union CO's operating cash flow is $543.7M, with capital expenditures of $38.5M. FCF margin is 12.5%.
How does WU compare to other Services stocks?
Vs Services sector averages: Net margin 12.3% (avg: 10%), ROE 52.2% (avg: 16%), current ratio N/A (avg: 1.5).
Is Western Union CO carrying too much debt?
WU has a debt-to-equity ratio of 3.01x, which is above the Services sector average of 0.7x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.
Why is WU's return on equity (ROE) so high?
Western Union CO has a return on equity of 52.2%, significantly above the Services sector average of 16%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 12.3% net margin.