The Western Union Co

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WU : NYSE : Financial
$19.86 | %
Today's Range: 19.74 - 19.97
Avg. Daily Volume: 5455300.0
04/28/17 - 4:03 PM ET

Financial Analysis


WESTERN UNION CO's gross profit margin for the fourth quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry.

At the same time, stockholders' equity ("net worth") has significantly decreased by 35.78% from the same quarter last year.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)1371.71380.0
EBITDA ($mil)322.8361.9
EBIT ($mil)257.5292.9
Net Income ($mil)-355.0212.3


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)877.51315.9
Total Assets ($mil)9419.69458.9
Total Debt ($mil)2786.13225.6
Equity ($mil)902.21404.9


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin43.146.3
EBITDA Margin23.5326.22
Operating Margin18.7721.22
Sales Turnover0.580.58
Return on Assets2.688.85
Return on Equity28.0659.63
Debt Q4 FY16 Q4 FY15
Current Ratio0.00.0
Debt/Capital0.760.7
Interest Expense29.640.8
Interest Coverage8.77.18


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)481.5502.4
Div / share0.160.16
EPS-0.730.42
Book value / share1.872.8
Institutional Own % n/a n/a
Avg Daily Volume5987930.04398174.0

Valuation


HOLD. This stock's P/E ratio indicates a premium compared to an average of 31.23 for the IT Services industry and a significant premium compared to the S&P 500 average of 24.92. Conducting a second comparison, its price-to-book ratio of 10.67 indicates a significant premium versus the S&P 500 average of 2.99 and a premium versus the industry average of 10.11. 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 39.98 Peers 31.23   WU 9.24 Peers 21.20

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 significant 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 11.23 Peers 21.41   WU 0.17 Peers 1.27

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 10.67 Peers 10.11   WU -69.14 Peers -4.67

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

WU is trading at a valuation on par with 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 1.77 Peers 5.47   WU -1.11 Peers 13.32

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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