WEX (WEX) AI Stock Analysis

• Market Cap: $5.48B
• Dividend Yield: N/A
• Average Volume (3M): 326.52K
• Price to Earnings (P/E): 20.2
• Beta (1Y): 1.23
• Revenue Growth: -1.62%
• EPS Growth: 36.57%
• Country: US
• Employees: 6,500
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 3.95
• Shares Outstanding: 34,264,313
• 10 Day Avg. Volume: 306,531
• 30 Day Avg. Volume: 326,517
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 1.86
• Enterprise Value/Gross Profit: 3.12
• Enterprise Value/Ebitda: 4.94
• 1Y Price Target: $185.75
• Price Target Upside: 15.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 72 Outperform
• Price Target: $178.00 ▲(10.61% Upside)

WEX's overall stock score reflects strong financial performance and a balanced outlook from the earnings call. While technical analysis and valuation present some challenges, the company's strategic investments and growth prospects in key segments provide a positive outlook. The high leverage and declining free cash flow growth are areas to monitor closely.

Positive Factors

Strategic Partnerships

The collaboration with NCR Voyix enhances WEX's market reach and service capabilities, potentially increasing transaction volumes and strengthening its position in the fleet sector.

Benefits Segment Growth

The growth in the Benefits segment, driven by increased SaaS accounts, indicates strong demand and potential for sustained revenue expansion in this area.

Positive Legislative Changes

Legislative changes expanding HSA eligibility can significantly increase WEX's addressable market, driving long-term growth in the Benefits segment.

Negative Factors

High Leverage

High leverage can pose financial risks, limiting WEX's flexibility to invest in growth opportunities or weather economic downturns, potentially impacting long-term stability.

Revenue Decline in Key Segments

Declining revenues in key segments like Mobility and Corporate Payments could signal challenges in maintaining market share and profitability, affecting future growth.

Decreasing Free Cash Flow

A decrease in free cash flow growth suggests potential challenges in managing capital expenditures, which could impact WEX's ability to invest in strategic initiatives.

WEX Business Overview & Revenue Model

Company Description

WEX Inc. is a leading provider of payment processing and technology solutions, primarily serving the fleet, travel, and healthcare sectors. The company offers a range of products including fleet card services, virtual payment solutions, and travel and corporate payment solutions, enabling businesses to efficiently manage their expenses and streamline operations. WEX operates globally, catering to a diverse clientele that includes businesses of all sizes, from small enterprises to large corporations.

How the Company Makes Money

WEX generates revenue through multiple key streams, primarily from transaction fees associated with its payment processing services. The company earns a significant portion of its income from the issuance and management of fleet cards, which allow companies to control fuel and maintenance expenses for their vehicles. Additionally, WEX offers virtual payment solutions, which facilitate secure transactions for travel and corporate expenses, generating revenue from service fees and transaction processing. The company also benefits from partnerships with major financial institutions and networks, enhancing its service offerings and expanding its market reach. Furthermore, WEX's revenue is bolstered by value-added services, such as data analytics and reporting tools, which provide clients with insights to optimize their spending and operational efficiencies.

WEX Financial Statement Overview

Summary

WEX demonstrates strong revenue growth and improved profitability, but high financial leverage and declining cash flows raise concerns. Effective cost management and strategic focus on cash conversion are essential for financial stability.

Income Statement

WEX has shown robust revenue growth over the years with a strong progression from $1.56 billion in 2020 to $2.61 billion in TTM (Trailing-Twelve-Months) 2025. Gross profit margins have been consistently high, hovering around 70%. The net profit margin has improved significantly from a negative in 2020 to 12.1% in TTM 2025, indicating better cost management and operational efficiency. The EBITDA margin has also shown strength, indicating healthy core earnings. However, there is a slight decline in EBIT margin from 2024 to TTM 2025, which might suggest increasing operating expenses.

Balance Sheet

WEX's balance sheet shows a decrease in stockholders' equity from 2024 to TTM 2025, leading to a higher debt-to-equity ratio of 1.83, which is a concern for financial stability. The equity ratio has also decreased to 5.8% in TTM 2025, indicating a lower proportion of equity financing. However, the company has maintained a solid asset base, and return on equity has improved to 38.9% in TTM 2025, which is a positive sign of profitability relative to shareholder equity.

Cash Flow

WEX's cash flow from operations has seen fluctuations, with a significant drop in TTM 2025. The free cash flow has also decreased notably from $334.1 million in 2024 to $2.1 million in TTM 2025, raising concerns about liquidity and cash management. The operating cash flow to net income ratio is 0.49 in TTM 2025, suggesting some challenges in converting income into cash flow. The free cash flow to net income ratio is very low, indicating potential strain on cash reserves for future investments and obligations.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.63B	2.55B	2.35B	1.85B	1.56B
Gross Profit	1.59B	1.49B	1.42B	1.15B	886.69M
EBITDA	975.00M	849.20M	649.87M	630.66M	133.77M
Net Income	309.60M	266.60M	201.40M	136.14M	-280.48M
Balance Sheet
Total Assets	13.32B	13.88B	11.53B	10.31B	8.18B
Cash, Cash Equivalents and Short-Term Investments	4.36B	4.00B	2.32B	1.54B	852.03M
Total Debt	4.45B	3.87B	2.72B	2.85B	3.03B
Total Liabilities	11.83B	12.06B	9.88B	8.21B	6.15B
Stockholders Equity	1.49B	1.82B	1.65B	1.84B	1.90B
Cash Flow
Free Cash Flow	334.10M	763.90M	563.21M	64.36M	776.55M
Operating Cash Flow	481.40M	907.90M	679.42M	150.40M	857.02M
Investing Cash Flow	-960.60M	-2.14B	-716.65M	-1.60B	-329.09M
Financing Cash Flow	-260.30M	1.57B	681.26M	1.40B	-179.26M

WEX Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 160.92
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WEX, the sentiment is Positive. The current price of 160.92 is above the 20-day moving average (MA) of 155.66, below the 50-day MA of 163.46, and above the 200-day MA of 154.33, indicating a neutral trend. The MACD of -1.39 indicates Negative momentum. The RSI at 55.29 is Neutral, neither overbought nor oversold. The STOCH value of 88.26 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WEX.

WEX Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAYO	―	$2.19B	23.51	13.86%	―	13.02%	-2.57%
ACIW	―	$5.20B	21.26	19.09%	―	11.22%	40.85%
WEX	―	$5.48B	20.20	22.19%	―	-1.62%	36.57%
EEFT	―	$3.26B	11.76	22.97%	―	7.25%	―
AVPT	―	$3.16B	―	-2.60%	―	24.41%	40.20%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
MQ	―	$2.12B	―	-6.51%	―	17.47%	-544.72%

WEX Corporate Events

WEX Inc. Reports Mixed Q2 2025 Financial Results

WEX Inc., a global commerce platform, specializes in simplifying business operations through embedded, personalized solutions across various sectors including benefits, mobility, and corporate payments. In its second quarter of 2025, WEX reported a slight decline in total revenue to $659.6 million, a 2% decrease from the previous year, primarily due to unfavorable fuel prices. Despite this, the company exceeded expectations with an adjusted net income of $136.2 million, translating to $3.95 per diluted share. Key performance metrics showed mixed results, with a 1% decrease in total volume across all segments and a notable 20% drop in corporate payments purchase volume. However, the benefits segment saw a 6% growth in SaaS accounts and an 11% increase in average HSA custodial cash assets. Looking ahead, WEX remains optimistic about its growth trajectory, projecting third-quarter revenue between $669 million and $689 million, and adjusted net income per diluted share in the range of $4.30 to $4.50, driven by strategic investments and a strong business pipeline.

WEX Inc. Earnings Call Highlights Resilience Amid Challenges

WEX Inc. recently held its earnings call, revealing a strong financial performance despite a slight decline in overall revenue. The company emphasized significant customer wins and growth in the Benefits segment as major positives. However, challenges in the Mobility and Corporate Payments segments impacted revenue. Overall, optimism remains due to a robust customer pipeline and strategic investments.