The Western Union Co

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WU : NYSE : Financial
$19.38 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 3428700.0
08/16/17 - 4:02 PM ET

Financial Analysis


WESTERN UNION CO's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased.

At the same time, stockholders' equity ("net worth") has significantly decreased by 49.69% from the same quarter last year.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)1378.91375.7
EBITDA ($mil)364.0343.3
EBIT ($mil)298.8277.4
Net Income ($mil)166.5205.6


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)1059.21162.6
Total Assets ($mil)9408.29394.9
Total Debt ($mil)3627.43228.5
Equity ($mil)661.21314.4


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin45.0145.05
EBITDA Margin26.3924.95
Operating Margin21.6720.16
Sales Turnover0.580.58
Return on Assets2.028.89
Return on Equity28.7563.59
Debt Q2 FY17 Q2 FY16
Current Ratio0.00.0
Debt/Capital0.850.71
Interest Expense35.741.0
Interest Coverage8.376.77


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)464.3488.0
Div / share0.180.16
EPS0.350.42
Book value / share1.422.69
Institutional Own % n/a n/a
Avg Daily Volume3427379.05005412.0

Valuation


BUY. WESTERN UNION CO's P/E ratio indicates a significant premium compared to an average of 32.21 for the IT Services industry and a significant premium compared to the S&P 500 average of 24.31. For additional comparison, its price-to-book ratio of 13.28 indicates a significant premium versus the S&P 500 average of 3.03 and a significant premium versus the industry average of 8.71. The price-to-sales ratio is below the S&P 500 average and is well below the industry average, indicating a discount. After reviewing these and other key valuation criteria, WESTERN UNION CO proves to trade at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
WU 48.49 Peers 32.21   WU 16.93 Peers 20.06

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

WU is trading at a significant premium to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

WU is trading at a discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
WU 10.51 Peers 23.25   WU 0.20 Peers 1.61

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

WU is trading at a significant discount to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

WU trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
WU 13.28 Peers 8.71   WU -76.51 Peers 10.04

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

WU is trading at a significant premium to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, WU is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
WU 1.62 Peers 5.80   WU -0.40 Peers 13.13

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

WU is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

WU significantly trails its peers on the basis of sales growth

 

 

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