Western Union Co Stock Research

Market Summary

USD10.98+0.17

Market Closed

1.57%

WU Alerts

Big fall in Revenue (Y/Y)
Big jump in Earnings (Y/Y)

WU Stock Price

WU RSI Chart

WU Valuation

Market Cap

4.1B

Price/Earnings (Trailing)

4.5

Price/Sales (Trailing)

0.92

EV/EBITDA

4.57

Price/Free Cashflow

7.46

WU Price/Sales (Trailing)

WU Profitability

EBT Margin

22.54%

Return on Equity

190.58%

Return on Assets

10.72%

Free Cashflow Yield

13.4%

WU Fundamentals

WU Revenue

Revenue (TTM)

4.5B

Revenue Y/Y

-15.01%

Revenue Q/Q

0.21%

WU Earnings

Earnings (TTM)

910.6M

Earnings Y/Y

47.75%

Earnings Q/Q

43.42%

Price Action

52 Week Range

9.8519.68

(Low)(High)

Last 7 days

2.4%

Last 30 days

-18.5%

Last 90 days

-20.6%

Trailing 12 Months

-39.3%

WU Financial Health

Debt/Equity

5.13

Debt/Cashflow

0.24

WU Investor Care

Dividend Yield

8.56%

Dividend/Share (TTM)

0.94

Buy Backs (1Y)

5.15%

Diluted EPS (TTM)

2.34

Peers (Alternatives to Western Union)

View All Peers In Detail

Name	Mkt Capsorted ascending	Revenue	Price %, 1M	Returns, 1Y	P/E	P/S	Rev 1-Yr	Inc 1-Yr
LARGE-CAP
MA	341.9B	22.2B	-0.46%	3.85%	34.43	15.38	17.76%	14.31%
ACN	170.5B	62.4B	0.55%	-14.63%	24.19	2.73	16.08%	13.77%
FIS	30.7B	14.5B	-24.44%	-46.62%	-1.83	2.11	4.69%	-4109.59%
GPN	25.9B	9.0B	-12.81%	-26.38%	232.73	2.89	5.30%	-88.45%
AKAM	11.8B	3.6B	-1.49%	-35.35%	22.49	3.26	4.49%	-19.64%
MID-CAP
WEX	7.3B	2.4B	-10.01%	-6.68%	43.92	3.12	27.02%	23.58%
EXLS	5.1B	1.4B	-9.23%	11.66%	35.77	3.62	25.82%	24.58%
MMS	4.5B	4.7B	-10.83%	2.98%	23.69	0.95	6.04%	-32.08%
WU	4.1B	4.5B	-18.49%	-39.30%	4.5	0.92	-11.74%	13.01%
SMALL-CAP
MGI	1.0B	1.3B	-3.60%	-1.60%	29.47	0.77	2.06%	190.24%
CNDT	716.2M	3.9B	-21.15%	-32.37%	-3.94	0.19	-6.81%	-550.00%
CASS	612.9M	182.5M	-9.61%	24.18%	17.56	3.36	18.38%	22.02%
IIIV	534.0M	330.0M	-3.21%	-11.17%	-29.87	1.62	30.19%	-260.46%

Financials for Western Union

* denotes actual numbers (not divided by Millions)
Income Statement (Last 12 Months)					(In Millions)
Description	(%) Q/Q	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4
Revenue	-4.1%	4,476	4,668	4,865	5,017	5,071
S&GA Expenses	0.7%	964	958	985	1,043	1,051
Costs and Expenses	-0.8%	3,591	3,618	3,728	3,889	3,948
EBITDA	3.2%	1,152	1,117	1,218	1,245	-
EBITDA Margin	7.6%	0.26*	0.24*	0.25*	-	-
Earnings Before Taxes	3.7%	1,009	973	1,071	1,095	935
EBT Margin	8.1%	0.23*	0.21*	0.22*	-	-
Interest Expenses	0.4%	101	101	101	102	106
Net Income	9.7%	911	830	889	917	806
Net Income Margin	14.4%	0.20*	0.18*	0.18*	-	-
Free Cahsflow	-35.3%	550	849	968	1,030	-

* denotes actual numbers (not divided by Millions)
Balance Sheet					(In Millions)
Description	(%) Q/Q	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4
Assets	-4.5%	8,496	8,901	8,787	8,489	8,824
Cash Equivalents	9.3%	1,286	1,176	1,202	1,296	1,208
Net PPE	-2.1%	110	112	116	123	129
Goodwill	0%	2,035	2,035	2,035	2,035	2,035
Liabilities	-4.2%	8,019	8,373	8,339	8,136	8,468
Long Term Debt	0%	2,450	2,450	2,450	2,750	-
Shareholder's Equity	-9.6%	478	528	448	353	356
Retained Earnings	-4.9%	-353	-337	-412	-495	-537
Additional Paid-In Capital	1.3%	996	983	973	961	941
Accumulated Depreciation	-19.3%	513	635	649	645	650
Shares Outstanding	-3.2%	374	386	386	387	394

Cashflow (Last 12 Months)					(In Millions)
Description	(%) Q/Q	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4
Cashflow From Operations	-34.0%	582	882	1,003	1,070	1,045
Cashflow From Investing	43.5%	526	366	382	464	192
Cashflow From Financing	7.7%	-1,177	-1,276	-1,538	-1,754	-1,269
Dividend Payments	-1.1%	364	368	373	377	382
Buy Backs	2.2%	370	362	430	484	410

Risks for WU

What is the probability of a big loss on WU?

49.6%

Probability that Western Union stock will be more than 20% underwater in next one year

39.2%

Probability that Western Union stock will be more than 30% underwater in next one year.

1.1%

Probability that Western Union stock will be more than 40% underwater in next one year.

*Calculated based on probability distribution of losses observed in actual data in the last 5 years.

How does WU drawdown profile look like?

Y-axis is the maximum loss one would have experienced if Western Union was unfortunately bought at previous high price.

Drawdowns

Returns for WU

Cumulative Returns on WU

0.5%

10-Year Cumulative Returns

-4.1%

7-Year Cumulative Returns

-7.2%

5-Year Cumulative Returns

-13.2%

3-Year Cumulative Returns

What are the long-term rolling returns for WU?

FIve years rolling returns for Western Union.

Annualized Returns

Which funds bought or sold WU recently?

View All Details

Datesorted ascending	Fund Name	Type	% Chg	$ Change	$ Held	% Portfolio
2023-03-15	B. Riley Wealth Advisors, Inc.	reduced	-56.76	-320,976	253,024	0.01%
2023-03-10	VICTORY CAPITAL MANAGEMENT INC	added	10.5	999,973	8,869,970	0.01%
2023-03-06	Rockefeller Capital Management L.P.	added	9.54	92,000	880,000	-%
2023-02-28	Voya Investment Management LLC	added	6.64	191,975	2,394,980	-%
2023-02-27	Parallax Volatility Advisers, L.P.	reduced	-49.76	-426,960	449,040	-%
2023-02-24	NATIXIS	added	50.71	2,575,360	7,367,360	0.04%
2023-02-24	National Pension Service	unchanged	-	1.00	69.00	-%
2023-02-22	TEACHERS RETIREMENT SYSTEM OF THE STATE OF KENTUCKY	unchanged	-	17,000	825,000	0.01%
2023-02-21	NORTHWESTERN MUTUAL INVESTMENT MANAGEMENT COMPANY, LLC	reduced	-35.85	-259,874	492,126	0.01%
2023-02-21	MACQUARIE GROUP LTD	reduced	-0.01	157,180	8,051,180	0.01%

Latest Funds Activity

Are funds buying WU calls or puts?

Calls

Puts

Are funds bullish or bearish(Calls - Puts)?

Net Call Options

No. of funds that own WU

No. of Funds

Western Union News

Schedule 13G FIlings of Western Union

Date Filed	Name of Filer	Percent of Class	No. of Shares	Form Type
Feb 13, 2023	capital research global investors	4.9%	19,108,481	SC 13G/A
Feb 09, 2023	vanguard group inc	12.26%	47,330,106	SC 13G/A
Jan 24, 2023	blackrock inc.	16.7%	64,651,878	SC 13G/A
Feb 11, 2022	capital research global investors	5.5%	22,206,325	SC 13G/A
Feb 10, 2022	state street corp	3.80%	15,281,508	SC 13G/A
Jan 27, 2022	blackrock inc.	15.1%	60,702,355	SC 13G/A
Jan 26, 2022	blackrock inc.	15.1%	60,702,355	SC 13G/A
Feb 16, 2021	capital research global investors	8.0%	32,979,147	SC 13G/A
Feb 12, 2021	independent franchise partners llp	4.83%	19,851,476	SC 13G/A
Feb 11, 2021	state street corp	5.45%	22,394,787	SC 13G

WU Fair Value

Western Union fair value in different scenarios

The table shows the Fair Value estimates for Western Union for various scenarios. Disclaimer: These are just estimations from a model. None of the models are good at predicting the future. Please dont buy or sell stocks based on these outputs.

Fair Value	Very Pessimistic	Pessimistic	Base Case	Optimistic	Very Optimistic
Very Low Inflation	13.27 20.86%	16.49 50.18%	21.76 98.18%	26.72 143.35%	32.58 196.72%
Current Inflation	12.50 13.84%	15.45 40.71%	20.25 84.43%	24.73 125.23%	29.94 172.68%
Very High Inflation	11.50 4.74%	14.12 28.60%	18.33 66.94%	22.22 102.37%	26.65 142.71%

Historical Western Union Fair Value Estimates

Very Pessimistic Case

Pessimistic Case

Fair Value

Optimistic Case

Very Optimistic Case

Closing Stock Price

Recent SEC filings of Western Union

View All Filings

Date Filed	Form Type	Document
Mar 16, 2023	PRE 14A	PRE 14A
Mar 03, 2023	8-K	Current Report
Mar 01, 2023	8-K	Current Report
Feb 27, 2023	4	Insider Trading
Feb 27, 2023	4	Insider Trading
Feb 27, 2023	4	Insider Trading
Feb 27, 2023	4	Insider Trading
Feb 27, 2023	4	Insider Trading
Feb 27, 2023	4	Insider Trading
Feb 27, 2023	4	Insider Trading

Latest Insider Trading transactions for WU

Filter Transactions

Datesorted ascending	Name	Buy/Sell	$ Value	Avg. Price	# Shares	Title
2023-02-24	McGranahan Devin	sold (taxes)	-165,732	13.09	-12,661	ceo & president
2023-02-23	Hinsey Mark	sold (taxes)	-8,214	13.27	-619	chief accounting officer
2023-02-23	Phillips Joyce Ann	acquired	-	-	12,058	-
2023-02-23	JOERRES JEFFREY A	acquired	-	-	36,549	-
2023-02-23	HOLDEN BETSY D	acquired	-	-	12,058	-
2023-02-23	McGranahan Devin	acquired	-	-	143,181	ceo & president
2023-02-23	TRUJILLO SOLOMON D	acquired	-	-	6,029	-
2023-02-23	Fitzgerald Gabriella	sold (taxes)	-53,929	13.27	-4,064	president, north america
2023-02-23	Sun Angela	acquired	-	-	12,058	-
2023-02-23	Angelini Giovanni	sold (taxes)	-8,240	13.27	-621	president, europe and africa

About Western Union

Devin B. McGranahan

www.westernunion.com

10500

The Western Union Company provides money movement and payment services worldwide. The company operates in two segments, Consumer-to-Consumer and Business Solutions. The Consumer-to-Consumer segment facilitates money transfers between two consumers, primarily through a network of third-party agents and sub-agents; and offers international cross-border transfers and intra-country transfers, as well as money transfer transactions through websites and mobile devices. The Business Solutions segment provides payment and foreign exchange solutions, primarily cross-border and cross-currency transactions for small and medium size enterprises, other organizations, and individuals; and foreign currency forward and option contracts. It also offers bill payment services that facilitates payments from consumers to businesses and other organizations, as well as offers money order and other services. The company was founded in 1851 and is headquartered in Denver, Colorado.

WU Income Statement

2022-12-31

CONSOLIDATED STATEMENTS OF INCOME - USD ($)
shares in Millions, $ in Millions

12 Months Ended

Dec. 31, 2022

Dec. 31, 2021

Dec. 31, 2020

Income Statement [Abstract]

Revenues

$ 4,475.5

$ 5,070.8

$ 4,835.0

Type of Revenue

us-gaap:ServiceMember

Expenses:

Cost of services

$ 2,626.4

$ 2,896.4

$ 2,826.5

Type of Cost of Service

us-gaap:ServiceMember

Selling, general, and administrative

$ 964.2

$ 1,051.3

$ 1,041.2

Total expenses

^[1]

3,590.6

3,947.7

3,867.7

Operating income

884.9

1,123.1

967.3

Other income/(expense):

Gain on divestitures of businesses (Note 5)

248.3

Gain on sale of noncontrolling interest in a private company (Note 5)

47.9

Pension settlement charges (Note 12)

(109.8)

Interest income

13.9

1.4

3.2

Interest expense

(101.0)

(105.5)

(118.5)

Other income/(expense), net

(37.5)

(21.7)

3.1

Total other income/(expense), net

123.7

(187.7)

(112.2)

Income before income taxes

1,008.6

935.4

855.1

Provision for income taxes

98.0

129.6

110.8

Net income

$ 910.6

$ 805.8

$ 744.3

Earnings per share:

Basic (USD per share)

$ 2.35

$ 1.98

$ 1.81

Diluted (USD per share)

$ 2.34

$ 1.97

$ 1.79

Weighted-average shares outstanding:

Basic (shares)

387.2

406.8

412.3

Diluted (shares)

388.4

408.9

415.2

[1]	As further described in Note 7, total expenses include amounts incurred with related parties of $48.8 million, $54.7 million, and $54.6 million for the years ended December 31, 2022, 2021, and 2020, respectively.

WU Balance Sheet

2022-12-31

CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions

Dec. 31, 2022

Dec. 31, 2021

Assets

Cash and cash equivalents

$ 1,285.9

$ 1,208.3

Settlement assets

3,486.8

2,843.5

Property and equipment, net of accumulated depreciation of $512.8 and $650.4, respectively

109.6

129.4

Goodwill

2,034.6

Other intangible assets, net of accumulated amortization of $616.3 and $731.8, respectively

457.9

417.1

Other assets

859.9

737.7

Assets held for sale (Note 5)

261.6

1,452.9

Total assets

8,496.3

8,823.5

Liabilities:

Accounts payable and accrued liabilities

464.0

450.2

Settlement obligations

3,486.8

2,843.5

Income taxes payable

725.3

870.7

Deferred tax liability, net

158.5

203.8

Borrowings

^[1]

2,616.8

3,008.4

Other liabilities

384.6

269.4

Liabilities associated with assets held for sale (Note 5)

182.5

821.9

Total liabilities

8,018.5

8,467.9

Commitments and contingencies (Note 6)

Stockholders' equity

Preferred stock, $1.00 par value; 10 shares authorized; no shares issued

Common stock, $0.01 par value; 2,000 shares authorized; 373.5 shares and 393.8 shares issued and outstanding as of December 31, 2022 and 2021, respectively

3.7

3.9

Capital surplus

995.9

941.0

Accumulated deficit

(353.9)

(537.2)

Accumulated other comprehensive loss

(167.9)

(52.1)

Total stockholders' equity

477.8

355.6

Total liabilities and stockholders' equity

$ 8,496.3

$ 8,823.5

[1]	As of December 31, 2022, the Company’s weighted-average effective rate on total borrowings was approximately 3.9%.