Income Statement Flow (TTM) | Source: Yahoo Finance
No upcoming earnings date found.
Source: Cash Flow Statement | LFCF = Operating Cash Flow - CapEx - Interest Expense
Fair Value: $57.62
+475.3% Upside
Stock appears undervalued with 475.3% upside to fair value. High confidence based on valuation spread and data quality.
The Western Union Company (WU) currently trades at $10.02, representing a 475.3% discount to our calculated fair value of $57.62.
Key Strengths: Strong balance sheet (Net Debt/EBITDA: 1.6x); High profit margins (22.2%); Active share buyback program.
Key Risks: Declining revenue (-0.3%); Elevated short interest (18.5% of float).
The company generates $0.29B in levered free cash flow annually, providing real cash returns to shareholders. Wall Street consensus is underperform with a mean price target of $9.69.
| Criterion | Status | Notes |
|---|---|---|
| ≤4 operating segments | PASS | Segment count estimated from sector classification. Verify in 10-K for accuracy. |
| Top 2 segments ≥70% of revenue | PASS | Revenue concentration estimated. Verify segment breakdown in 10-K. |
| ≤3 material geographic regions | PASS | Most US-listed companies report US vs International (2 regions). |
| No exotic debt instruments or off-balance-sheet complexity | REVIEW | Review 10-K for convertibles, derivatives, and off-balance-sheet items. |
Recommendation: REVIEW COMPLEXITY - Some filters require manual verification
The Western Union Company provides money movement and payment services worldwide. It operates through Consumer Money Transfer and Consumer Services segments. The Consumer Money Transfer segment facilitates money transfers for international cross-border and intra-country transfers, primarily through a network of retail agent and owned locations, as well as through websites and mobile devices. The Consumer Services segments offers bill payment services, money order and media network services, retail foreign exchange services, prepaid cards, lending partnerships, and digital wallets. The company was founded in 1851 and is headquartered in Denver, Colorado.
| Market Capitalization | $3.23B |
| (+) Total Debt | $2.95B |
| (-) Cash & Equivalents | $1.47B |
| Net Debt | $1.48B |
| Enterprise Value | $4.71B |
| Metric | Value | What It Means |
|---|---|---|
| Net Debt / EBITDA | 1.55x | Strong |
| Interest Coverage | 5.5x | Strong |
| Debt / Equity | 280.1% | High Leverage |
| Current Ratio | 0.30 | Review - may struggle with short-term obligations |
Overall: Balance sheet is adequate with some areas to monitor.
Industry: Credit Services | Data: TTM (Trailing 12 Months) as of 2026-02-06 | Source: Yahoo Finance
| Company | Market Cap | P/E | Forward P/E | EV/EBITDA | Profit Margin |
|---|---|---|---|---|---|
| V | $632.6B | 30.8x | 22.6x | 21.8x | 50.2% |
| MA | $483.0B | 32.8x | 24.0x | 24.4x | 45.6% |
| AXP | $248.2B | 23.4x | 18.0x | 0.0x | 16.2% |
| PYPL | $37.4B | 7.4x | 6.8x | 4.9x | 15.8% |
| WU (Target) | $3.2B | 4.4x | 5.6x | 5.0x | 18.8% |
| DFS | N/A | 0.0x | 0.0x | 0.0x | 0.0% |
| Peer Average (excl. target) | - | 27.1x | 22.6x | 23.1x | 30.9% |
| Method | Inputs | Fair Value |
|---|---|---|
| Equity (TTM EPS) | EPS: $2.74 x 24.4x P/E | $66.86 |
| Equity (Forward EPS) | EPS: $1.79 x 24.4x P/E | $43.63 |
| EV-Based (EBITDA) | EBITDA: $0.95B x 20.8x | $57.62 |
| Headline Fair Value | Median value used (spread 41.5% exceeds 15% threshold) | $57.62 |
Assessment: Moderately positive profile. Green factors outweigh concerns.
WU trades at 3.7x TTM P/E and 5.6x Forward P/E. This compares to peer averages of 27.1x TTM and 22.6x Forward P/E.
The company generates positive levered free cash flow of $0.29B, demonstrating its ability to generate real cash after all obligations. The 8.8% LFCF yield is attractive.
13 analysts cover this stock with a consensus underperform rating. Price targets range from $7 to $17, with a mean of $10.
18.05 - Neutral/Low Fear
Score: 43/100
137.16
SPY YTD: 14.8% | RSP YTD: 13.1%
No customer/supplier data available for this company. Data is curated from SEC 10-K filings for major tech companies.
All financial data sourced from:
Click any colored number or source label throughout the report to view its source.
This analysis is generated automatically using publicly available data and should not be considered as financial advice. All figures are sourced from Yahoo Finance and SEC EDGAR and may contain inaccuracies. Always verify data with primary sources (SEC filings, company IR) before making investment decisions.
Past performance does not guarantee future results. Investing involves risk, including the possible loss of principal.
Current: Full Fiscal Year 2024 | Data Source: SEC EDGAR
Levered FCF is cash that can't be faked. Unlike earnings which can be manipulated through accounting (depreciation schedules, revenue recognition, etc.), cash flow is simple: the money is either in the bank or it's not.
This metric shows how much actual cash the company generates after paying for:
A company with strong Levered FCF can pay dividends, buy back shares, pay down debt, or invest in growth - all from real cash, not accounting profits.
Customers and suppliers report earnings BEFORE the company you're analyzing. Their results give you early signals about demand and supply chain health.
Customer Example: If Microsoft (AMD customer) beats revenue estimates by 20%, it likely means they bought more chips than analysts expected. This is bullish for AMD's upcoming earnings.
Supplier Example: If TSMC (AMD supplier) reports strong demand from AMD, that confirms AMD's production is ramping up.
By the time AMD reports, you already have data points from 5+ related companies. Smart analysts piece these together to predict earnings before they're announced.
Not all revenue is equal. Different business segments have different growth rates and profit margins.
For example, AMD's Data Center segment has ~40% margins while Gaming might be ~15%. A shift toward Data Center means higher overall profitability even if total revenue stays flat.
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