WEX (WEX) AI Stock Analysis

• Market Cap: $5.00B
• Dividend Yield: N/A
• Average Volume (3M): 331.41K
• Price to Earnings (P/E): 18.9
• Beta (1Y): 1.16
• Revenue Growth: -1.15%
• EPS Growth: -2.52%
• Country: US
• Employees: 6,500
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 4.59
• Shares Outstanding: 34,288,525
• 10 Day Avg. Volume: 397,075
• 30 Day Avg. Volume: 331,410
• PEG Ratio: 1.06
• Price to Book (P/B): 4.80
• Price to Sales (P/S): 2.72
• P/FCF Ratio: 21.41
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 1.87
• Enterprise Value/Gross Profit: 3.16
• Enterprise Value/Ebitda: 5.34
• 1Y Price Target: $181.17
• Price Target Upside: 22.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 69 Neutral
• Price Target: $166.00 ▲(12.14% Upside)

WEX's overall stock score is driven by solid financial performance and positive earnings call insights, indicating strong profitability and strategic growth initiatives. However, technical analysis shows bearish momentum, and the high debt-to-equity ratio poses a financial risk. The valuation is moderate, with no dividend yield to attract income investors.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.

AI Integration

AI integration enhances operational efficiency and innovation, providing a competitive edge and supporting sustainable growth.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, enabling strategic investments and debt management.

Negative Factors

High Debt-to-Equity Ratio

High leverage poses financial risks, potentially limiting the company's ability to invest in growth opportunities.

Challenges in Mobility Segment

Declining transaction levels in the Mobility segment may indicate market saturation or competitive pressures, affecting future growth.

Macroeconomic Pressures

Macroeconomic challenges, particularly in the trucking market, could hinder revenue growth and profitability in affected segments.

WEX Business Overview & Revenue Model

Company Description

WEX Inc. provides financial technology services in the United States and internationally. It operates through three segments: Fleet Solutions, Travel and Corporate Solutions, and Health and Employee Benefit Solutions. The Fleet Solutions segment offers fleet vehicle payment processing services. Its services include customer, account activation, and account retention services; authorization and billing inquiries, and account maintenance services; credit and collections services; merchant services; analytics solutions with access to web-based data analytics platform that offers insights to fleet managers; and ancillary services and tools to fleets to manage expenses and capital requirements. This segment markets its products directly and indirectly to commercial and government vehicle fleet customers with small, medium, and large fleets, as well as with over-the-road and long haul fleets; and indirectly through co-branded and private label relationships. The Travel and Corporate Solutions segment provides payment solutions, including embedded payments; and accounts payable automation and spend management solutions. Its products include virtual cards that are used for transactions where no card is presented. This segment markets its products directly and indirectly to commercial and government organizations. The Health and Employee Benefit Solutions segment offers healthcare payment products and software-as-a-service consumer directed platforms for healthcare market, as well as payroll related and employee benefit products in Brazil. This segment markets its products through health plans, third-party administrators, financial institutions, payroll companies benefits consultants, software providers, and individuals. The company was formerly known as Wright Express Corporation and changed its name to WEX Inc. in October 2012. WEX Inc. was founded in 1983 and is based in Portland, Maine.

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 solid financial health with strong profitability and cash flow generation. The company maintains good margins and has shown consistent revenue growth over the years. However, the high debt-to-equity ratio is a concern, indicating potential financial risk if not managed carefully.

Income Statement

WEX shows a solid performance with consistent revenue growth and strong margins. The TTM data indicates a slight dip in gross profit margin compared to the previous year, but net profit margin remains stable. The EBIT and EBITDA margins are robust, reflecting efficient operations. However, the revenue growth rate has slowed down compared to previous years, which could be a concern if it continues.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage, which poses a risk if not managed properly. Return on equity is strong, suggesting effective use of equity to generate profits. The equity ratio is moderate, showing a balanced asset structure. Overall, while profitability is good, the high leverage could be a potential risk.

Cash Flow

Cash flow analysis shows impressive free cash flow growth in the TTM period, indicating strong cash generation capabilities. The operating cash flow to net income ratio is low, suggesting that cash flow is not as strong relative to net income. However, the free cash flow to net income ratio is healthy, showing good cash conversion. Overall, cash flow performance is strong, with some room for improvement in operating cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.62B	2.63B	2.55B	2.35B	1.85B	1.56B
Gross Profit	1.55B	1.59B	1.57B	1.42B	1.15B	886.69M
EBITDA	916.30M	975.00M	849.60M	571.90M	565.70M	117.92M
Net Income	283.80M	309.60M	266.60M	201.40M	100.00K	-243.64M
Balance Sheet
Total Assets	14.43B	13.32B	13.88B	11.53B	10.31B	8.18B
Cash, Cash Equivalents and Short-Term Investments	4.94B	4.36B	4.00B	2.32B	1.54B	852.03M
Total Debt	1.31B	4.45B	3.87B	2.72B	2.85B	3.03B
Total Liabilities	13.31B	11.83B	12.06B	9.88B	8.21B	6.15B
Stockholders Equity	1.12B	1.49B	1.82B	1.65B	1.84B	1.90B
Cash Flow
Free Cash Flow	657.10M	334.10M	763.90M	563.21M	64.36M	776.55M
Operating Cash Flow	798.00M	481.40M	907.90M	679.42M	150.40M	857.02M
Investing Cash Flow	-630.90M	-960.60M	-2.14B	-716.65M	-1.60B	-329.09M
Financing Cash Flow	-2.40M	-260.30M	1.57B	681.26M	1.40B	-179.26M

WEX Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 148.03
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WEX, the sentiment is Negative. The current price of 148.03 is below the 20-day moving average (MA) of 154.00, below the 50-day MA of 161.57, and below the 200-day MA of 153.70, indicating a bearish trend. The MACD of -2.33 indicates Positive momentum. The RSI at 42.28 is Neutral, neither overbought nor oversold. The STOCH value of 21.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WEX.

WEX Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAYO	―	$2.09B	21.99	13.86%	―	13.02%	-2.57%
ACIW	―	$4.92B	20.18	19.09%	―	11.22%	40.85%
WEX	―	$5.00B	18.95	20.30%	―	-1.15%	-2.52%
EEFT	―	$3.13B	10.83	22.97%	―	7.25%	―
AVPT	―	$2.98B	―	-2.60%	―	24.41%	40.20%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
MQ	―	$2.03B	―	-6.51%	―	17.47%	-544.72%

WEX Corporate Events

WEX Inc. Reports Strong Q3 2025 Results

WEX Inc., a global commerce platform, specializes in simplifying business operations across various sectors, including fleet payment solutions, employee benefits administration, and corporate payments. In its third-quarter 2025 earnings report, WEX Inc. announced a revenue increase of 3.9% to $692 million compared to the previous year, with both revenue and earnings surpassing the company’s guidance. The company also raised its full-year revenue and adjusted net income guidance, reflecting confidence in its growth strategy. Key financial highlights include a GAAP net income of $2.30 per diluted share and an adjusted net income of $4.59 per diluted share, with a total volume increase across all segments by 6.3%. The Benefits segment led with a 9.2% revenue increase, while the Corporate Payments segment saw a 4.7% rise. Despite a decrease in net income by 8.7%, adjusted net income rose by 5.5%, showcasing resilience amid challenging macroeconomic conditions. Looking ahead, WEX Inc. remains focused on executing its strategic pillars to drive sustainable growth and maintain attractive margins, as highlighted by the management’s optimistic outlook for the remainder of 2025.

WEX Appoints David Foss to Board of Directors

On October 26, 2025, WEX Inc. announced the appointment of David Foss to its Board of Directors, effective November 3, 2025, expanding the board from 11 to 12 members. Foss, who is recognized as an independent director, brings extensive experience from his previous roles at Jack Henry & Associates and CNO Financial Group. In its third-quarter financial results for 2025, WEX reported a 3.9% increase in revenue to $692 million, with adjusted net income rising by 5.5%. The company raised its full-year revenue guidance, reflecting confidence in its strategic pillars of amplifying core business, expanding reach, and accelerating innovation. Despite a challenging macro environment, WEX is focused on disciplined investment and maintaining financial flexibility to capture growth opportunities.

The most recent analyst rating on (WEX) stock is a Hold with a $170.00 price target. To see the full list of analyst forecasts on WEX stock, see the WEX Stock Forecast page.