The Western Union Co.

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WU : NYSE : Commercial Services
$20.1 up 0.01 | 0.05%
Today's Range: 20.06 - 20.38
Avg. Daily Volume: 5494400.0
02/22/18 - 3:59 PM ET

Financial Analysis


WESTERN UNION CO's gross profit margin for the fourth 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, representing a decrease to the bottom line.

At the same time, stockholders' equity ("net worth") has significantly decreased by 154.46% from the same quarter last year.

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Income Statement Q4 FY17 Q4 FY16
Net Sales ($mil)1438.31371.7
EBITDA ($mil)323.5336.0
EBIT ($mil)257.7270.7
Net Income ($mil)-1120.9-355.0


Balance Sheet Q4 FY17 Q4 FY16
Cash & Equiv. ($mil)838.2877.5
Total Assets ($mil)9231.49419.6
Total Debt ($mil)3033.62786.1
Equity ($mil)-491.4902.2


Profitability Q4 FY17 Q4 FY16
Gross Profit Margin44.5843.28
EBITDA Margin22.4924.49
Operating Margin17.9219.73
Sales Turnover0.60.58
Return on Assets-6.032.68
Return on Equity0.028.06
Debt Q4 FY17 Q4 FY16
Current Ratio0.00.0
Debt/Capital1.190.76
Interest Expense37.929.6
Interest Coverage6.89.15


Share Data Q4 FY17 Q4 FY16
Shares outstanding (mil)459.0481.5
Div / share0.180.16
EPS-2.44-0.73
Book value / share-1.071.87
Institutional Own % n/a n/a
Avg Daily Volume5618036.03306970.0

Valuation


HOLD. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. Along with this, the price-to-book ratio is also meaningless due to a negative book value for the company, making any comparisons useless. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
WU NM Peers 68.05   WU 12.60 Peers 24.45

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

WU's P/E is negative making this valuation measure meaningless.

 

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 10.41 Peers 24.89   WU NA Peers 1.81

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.

 

Neutral. 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.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
WU NM Peers 11.34   WU -350.00 Peers 21.78

Neutral. 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's P/B is negative making this valuation measure meaningless.

 

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 1.68 Peers 6.97   WU 1.86 Peers 15.77

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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