📊 WU Key Takeaways
Is Western Union CO (WU) a Good Investment?
Western Union demonstrates stable cash flow generation and modest revenue growth, but faces concerning earnings stagnation and deteriorating per-share metrics despite 4.4% top-line expansion. High leverage (2.56x Debt/Equity) combined with weak returns on capital (ROE: 7.1%, ROA: 0.8%) characterize a mature, commoditized business with limited growth catalysts and suboptimal shareholder returns.
Western Union CO Key Strengths (WU)
- Strong free cash flow of $102.6M (10.4% FCF margin) provides operational sustainability and debt service coverage without requiring earnings growth
- Asset-light business model with minimal capital intensity ($6.4M CapEx) enables high cash conversion efficiency relative to revenue
- Adequate operating margin of 12.5% demonstrates pricing discipline and cost control in a competitive remittance services market
WU Stock Risks: Western Union CO Investment Risks
- Net income flat (+0.0% YoY) despite 4.4% revenue growth signals operational deleverage and margin compression at the bottom line
- Diluted EPS collapsed 44.5% YoY while net income was flat, indicating significant shareholder dilution or unfavorable accounting adjustments
- Elevated financial leverage (2.56x Debt/Equity) with modest interest coverage (3.4x) provides insufficient cushion for economic downturns or competitive threats
Key Metrics to Watch
- Net income growth trajectory - must exceed revenue growth rate to justify current capital structure and leverage
- Debt reduction progress - deleveraging critical to improve financial flexibility and reduce refinancing risk
- Return on Equity and ROIC trends - currently insufficient at 7.1% ROE, needs sustained improvement above 10% threshold
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 shows some fundamental concerns 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 |
|---|---|---|---|
| Q1 2026 | $938.7M | $64.7M | $0.20 |
| 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 |
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 grade of B with 68% confidence, based on fundamental analysis of SEC EDGAR filings.
What are WU's key strengths?
Claude: Strong free cash flow of $102.6M (10.4% FCF margin) provides operational sustainability and debt service coverage without requiring earnings growth. Asset-light business model with minimal capital intensity ($6.4M CapEx) enables high cash conversion efficiency relative to revenue.
What are the risks of investing in WU?
Claude: Net income flat (+0.0% YoY) despite 4.4% revenue growth signals operational deleverage and margin compression at the bottom line. Diluted EPS collapsed 44.5% YoY while net income was flat, indicating significant shareholder dilution or unfavorable accounting adjustments.
What is WU's revenue and growth?
Western Union CO reported revenue of $982.7M.
Does WU pay dividends?
Western Union CO pays dividends, with $79.4M 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 $0.20.
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 WU's fundamental grade?
Based on our AI fundamental analysis in June 2026, Western Union CO has a B grade with 68% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is WU stock overvalued or undervalued?
Valuation metrics for WU: ROE of 7.1% (sector avg: 16%), net margin of 6.6% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is WU's AI grade for 2026?
Our dual AI analysis gives Western Union CO a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is WU's free cash flow?
Western Union CO's operating cash flow is $109.0M, with capital expenditures of $6.4M. FCF margin is 10.4%.
How does WU compare to other Services stocks?
Vs Services sector averages: Net margin 6.6% (avg: 10%), ROE 7.1% (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 2.56x, 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.