The Western Union Co

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WU : NYSE : Financial
$20.41 up 0.20 | 0.99%
Today's Range: 20.06 - 20.41
Avg. Daily Volume: 3,364,200
07/26/16 - 4:00 PM ET

Financial Analysis


WESTERN UNION CO's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, however the growth has outpaced the average competitor within the industry.

During the same period, stockholders' equity ("net worth") has decreased by 8.21% from the same quarter last year.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)1297.71320.9
EBITDA ($mil)324.2336.2
EBIT ($mil)258.6272.3
Net Income ($mil)185.7203.9


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)1160.01755.3
Total Assets ($mil)9418.310353.0
Total Debt ($mil)3225.73728.6
Equity ($mil)1239.01349.9


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin44.9946.41
EBITDA Margin24.9825.45
Operating Margin19.9320.61
Sales Turnover0.580.54
Return on Assets8.78.24
Return on Equity66.1563.21
Debt Q1 FY16 Q1 FY15
Current Ratio0.00.0
Debt/Capital0.720.73
Interest Expense40.541.8
Interest Coverage6.396.51


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)491.7517.0
Div / share0.160.16
EPS0.370.39
Book value / share2.522.61
Institutional Own % n/a n/a
Avg Daily Volume3429026.05136486.0

Valuation


BUY. WESTERN UNION CO's P/E ratio indicates a significant discount compared to an average of 27.40 for the IT Services industry and a significant discount compared to the S&P 500 average of 25.05. For additional comparison, its price-to-book ratio of 8.00 indicates a significant premium versus the S&P 500 average of 2.81 and a discount versus the industry average of 8.25. The price-to-sales ratio is similar to the S&P 500 average, but it is significantly below the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, WESTERN UNION CO proves to trade at a discount 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 12.61 Peers 27.40   WU 9.36 Peers 20.12

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

WU is trading at a significant discount 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 11.56 Peers 21.67   WU 20.67 Peers 2.70

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.

 

Premium. 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 premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
WU 8.00 Peers 8.25   WU -0.63 Peers 23.94

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 1.82 Peers 5.30   WU -2.10 Peers 22.71

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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