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Western Union
(NYSE:WU)
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Rating:53Neutral
Price Target:
$6.00
▼(-18.26% Downside)
Action:Reiterated
Date:10/03/26
Overall score reflects weakening financial performance driven by steep revenue declines and high leverage, reinforced by bearish technical momentum. These are partially offset by strong cash generation, low P/E and a high dividend yield, while the earnings outlook is constructive but tempered by near-term margin pressure and ongoing regulatory/deal uncertainty around Intermex.
Positive Factors
Digital channel growth
Strong digital transaction and revenue growth supports a more scalable distribution model and broader customer engagement. Over time, greater digital adoption can reduce dependence on physical channels, improve convenience, and create a platform for additional payment products.
Negative Factors
Revenue and margin erosion
Persistent top-line contraction and margin compression weaken earnings quality and indicate that transaction growth is not fully translating into revenue or profit. If this pattern continues, Western Union may have less capacity to reinvest and absorb competitive pricing pressure.
Read all positive and negative factors
Positive Factors
Negative Factors
Digital channel growth
Strong digital transaction and revenue growth supports a more scalable distribution model and broader customer engagement. Over time, greater digital adoption can reduce dependence on physical channels, improve convenience, and create a platform for additional payment products.
Read all positive factors
Western Union (WU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.87B
Dividend Yield15.67%
Average Volume (3M)8.43M
Price to Earnings (P/E)4.8
Beta (1Y)0.50
Revenue Growth-1.65%
EPS Growth-53.21%
CountryUS
Employees9,600
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)1.25
Shares Outstanding311,878,970
10 Day Avg. Volume11,147,179
30 Day Avg. Volume8,426,465
Financial Highlights & Ratios
PEG Ratio-0.14
Price to Book (P/B)3.17
Price to Sales (P/S)0.75
P/FCF Ratio7.74
Enterprise Value/Market Cap2.24
Enterprise Value/Revenue1.04
Enterprise Value/Gross Profit3.15
Enterprise Value/Ebitda5.03
Forecast
1Y Price Target
$6.85Price Target Upside-6.62% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering13
EPS Forecast (FY)1.29
Revenue Forecast (FY)$4.11B
Western Union Business Overview & Revenue Model
Company Description
Western Union operates as a global financial services provider, specializing in fund transfers and diverse payment solutions. The company's operations are divided into two main segments: Consumer-to-Consumer and Business Solutions. The Consumer-to...
How the Company Makes Money
Western Union makes money primarily by charging fees and earning foreign-exchange (FX) related revenue on money transfer transactions executed through its retail agent locations and digital channels.
1) Transaction fees on money transfers: The co...
Western Union Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Neutral
Balanced: the company showed resilience in revenue (Q2 $1.0B, only -1% adj), transaction growth (+3% CMT; +25% branded digital transactions), improved cash generation (+45% YTD) and launched strategic initiatives (Beyond Efficiency, USDPT/DAN) aimed at long-term improvement. However, near-term profitability is under clear pressure — adjusted EPS fell to $0.31, adjusted operating margin was 15%, Americas retail and low-RPT digital mix (particularly Middle East partnerships and rapid payout-to-account migration) are compressing contribution profit per transaction, and signing bonuses / higher commissions are raising costs. Management has a concrete cost program and updated 2026 guidance but faces execution and regulatory risks (Intermex timing) while mix shifts persist.Positive Updates
Revenue Largely Stable at $1 Billion
GAAP revenue of $1.0 billion in Q2; adjusted revenue declined only 1% year-over-year, a meaningful improvement from down 5% last year, reflecting geographic diversification and resilient underlying demand.
Negative Updates
Significant EPS and Profitability Pressure
Adjusted EPS declined to $0.31 in Q2 from $0.42 a year ago (down ~$0.11, ~26%), reflecting margin deterioration driven by retail weakness, higher agent commissions, and a shift to lower-RPT digital payout transactions.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Largely Stable at $1 Billion
GAAP revenue of $1.0 billion in Q2; adjusted revenue declined only 1% year-over-year, a meaningful improvement from down 5% last year, reflecting geographic diversification and resilient underlying demand.
Read all positive updates
Company Guidance
The company updated 2026 guidance assuming no major macro changes and a modeled Intermex close of September 1: adjusted revenue growth of +4% to +6% (inclusive of Intermex), full‑year adjusted EPS of $1.25–$1.35 (with second‑half EPS expected to be better than first‑half), and capital expenditures of roughly $200 million; it is accelerating its Beyond Efficiency program targeting $50 million of run‑rate operating cost reductions by year‑end and $200 million of run‑rate savings by end‑2027, expects Intermex synergies to exceed the prior $30 million target (about $0.10 benefit in the first full year), is pausing buybacks to maintain target net debt/EBITDA of ~2.5x–3x (quarter‑end gross/net leverage ~3x/2x), and continues to target digital and retail revenue/mix improvements while monitoring tax and cash metrics (Q2 adjusted effective tax rate 14%, Q2 cash ~$920M, YTD operating cash flow $214M).Western Union Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
44
Neutral
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.03B | 4.04B | 4.21B | 4.36B | 4.48B | 5.07B |
| Gross Profit | 1.33B | 1.16B | 1.59B | 1.69B | 1.85B | 2.17B |
| EBITDA | 833.10M | 934.30M | 917.50M | 1.03B | 1.29B | 1.25B |
| Net Income | 395.40M | 499.60M | 934.20M | 626.00M | 910.60M | 805.80M |
Balance Sheet | ||||||
| Total Assets | 7.97B | 8.31B | 8.37B | 8.20B | 8.50B | 8.82B |
| Cash, Cash Equivalents and Short-Term Investments | 2.79B | 3.08B | 3.44B | 1.27B | 1.29B | 1.21B |
| Total Debt | 2.70B | 3.10B | 3.13B | 2.50B | 2.78B | 3.21B |
| Total Liabilities | 7.05B | 7.35B | 7.40B | 7.72B | 8.02B | 8.47B |
| Stockholders Equity | 914.70M | 957.80M | 968.90M | 479.00M | 477.80M | 355.60M |
Cash Flow | ||||||
| Free Cash Flow | 402.60M | 392.90M | 368.90M | 635.30M | 373.40M | 830.70M |
| Operating Cash Flow | 609.70M | 543.70M | 406.30M | 783.10M | 581.60M | 1.05B |
| Investing Cash Flow | -178.00M | -230.30M | -16.30M | -140.80M | 525.50M | 192.00M |
| Financing Cash Flow | -473.80M | -782.60M | -69.30M | -896.80M | -1.18B | -1.27B |
Western Union Technical Analysis
Negative
7.34
Price Trends
6.78
Negative
7.15
Negative
7.88
Negative
Market Momentum
-0.26
Positive
33.33
Neutral
20.52
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WU, the sentiment is Negative. The current price of 7.34 is above the 20-day moving average (MA) of 6.36, above the 50-day MA of 6.78, and below the 200-day MA of 7.88, indicating a bearish trend. The MACD of -0.26 indicates Positive momentum. The RSI at 33.33 is Neutral, neither overbought nor oversold. The STOCH value of 20.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WU.
Western Union Risk Analysis
Western Union disclosed 31 risk factors in its most recent earnings report. Western Union reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Western Union Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $23.35B | 7.28 | 20.94% | 1.73% | -2.40% | 18.50% | |
71 Outperform | $37.94B | 10.22 | 13.63% | 2.66% | 13.24% | 65.45% | |
69 Neutral | $45.17B | 9.91 | 24.42% | 1.06% | 6.32% | 12.89% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $6.44B | 8.41 | 23.07% | 7.50% | 6.93% | 19.96% | |
65 Neutral | $20.37B | 30.92 | 6.18% | ― | 34.08% | -0.29% | |
53 Neutral | $1.87B | 4.80 | 42.65% | 15.67% | -1.65% | -53.21% |
* Financial Sector Average
WU
Western Union
6.00
-1.18
-16.43%
IX
Orix
37.12
11.17
43.04%
SYF
Synchrony Financial
71.77
1.56
2.22%
PYPL
PayPal Holdings
52.80
-17.70
-25.11%
OMF
OneMain Holdings
56.02
4.36
8.45%
SOFI
SoFi
15.77
-10.59
-40.17%
Western Union Corporate Events
M&A TransactionsRegulatory Filings and Compliance
Western Union seeks new antitrust review for IMXI merger
Negative
Oct 2, 2026
On August 10, 2025, Western Union agreed to acquire International Money Express, Inc. by merging a wholly owned subsidiary into IMXI, which would then become a wholly owned subsidiary of Western Union. Most regulatory approvals for the transaction...
Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
Western Union advances Intermex acquisition with New York approval
Neutral
Aug 14, 2026
On August 14, 2026, Western Union and Intermex reported that they had secured approval from the New York State Department of Financial Services for Western Union’s pending acquisition of Intermex. As part of obtaining that approval, Western ...
Business Operations and StrategyExecutive/Board Changes
Western Union Announces Chief Legal Officer Retirement Plans
Neutral
Jul 23, 2026
On July 20, 2026, Western Union announced that Benjamin Adams, Executive Vice President and Chief Legal Officer, intends to participate in the company’s Voluntary Retirement Program and will depart his role effective November 2, 2026. During...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.