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Western Union
(NYSE:WU)
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Rating:57Neutral
Price Target:
$7.50
▼(-8.76% Downside)
Action:Reiterated
Date:08/05/26
The score is held back primarily by weakening financial performance (sharp revenue decline and high leverage) and bearish technical trend signals. These are partially offset by attractive valuation (low P/E and high dividend yield) and a moderately positive earnings outlook with reaffirmed guidance and strategic catalysts, though near-term margin/cash-flow pressure and elevated leverage remain key risks.
Positive Factors
Cash generation / Free cash flow
Consistent trailing‑twelve‑month operating cash flow and a material free cash flow base provide durable internal funding. Strong FCF supports ongoing capex, dividends, and debt servicing, improving optionality for M&A or buybacks even if revenue growth is uneven.
Negative Factors
High leverage / capital structure risk
A historically high debt load relative to equity constrains financial flexibility and raises solvency risk if operating performance deteriorates. Elevated leverage increases interest vulnerability, limits strategic options, and extends recovery sensitivity to sustained cash‑flow generation.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation / Free cash flow
Consistent trailing‑twelve‑month operating cash flow and a material free cash flow base provide durable internal funding. Strong FCF supports ongoing capex, dividends, and debt servicing, improving optionality for M&A or buybacks even if revenue growth is uneven.
Read all positive factors
Western Union (WU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.32B
Dividend Yield12.62%
Average Volume (3M)7.97M
Price to Earnings (P/E)6.0
Beta (1Y)0.42
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. Volume8,946,559
30 Day Avg. Volume7,974,332
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$7.25Price Target Upside-11.80% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering13
EPS Forecast (FY)1.3
Revenue Forecast (FY)$4.17B
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 primarily makes money by charging fees and earning foreign-exchange-related revenue on money transfers. (1) Transaction fees: When a customer sends money, WU charges a transfer fee that varies based on factors such as corridor (origi...
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
8.22
Price Trends
7.59
Negative
8.06
Negative
8.40
Negative
Market Momentum
-0.18
Positive
48.43
Neutral
88.76
Negative
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 8.22 is above the 20-day moving average (MA) of 7.61, above the 50-day MA of 7.59, and below the 200-day MA of 8.40, indicating a bearish trend. The MACD of -0.18 indicates Positive momentum. The RSI at 48.43 is Neutral, neither overbought nor oversold. The STOCH value of 88.76 is Negative, 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $41.72B | 11.35 | 13.63% | 2.45% | 13.24% | 65.45% | |
74 Outperform | $52.75B | 11.57 | 24.42% | 0.75% | 6.32% | 12.89% | |
73 Outperform | $26.36B | 8.22 | 20.94% | 1.65% | -2.40% | 18.50% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $7.56B | 9.86 | 23.07% | 7.01% | 6.93% | 19.96% | |
65 Neutral | $23.62B | 35.86 | 6.18% | ― | 34.08% | -0.29% | |
57 Neutral | $2.32B | 5.96 | 42.65% | 11.44% | -1.65% | -53.21% |
* Financial Sector Average
WU
Western Union
7.45
-0.13
-1.66%
IX
Orix
40.16
14.13
54.28%
SYF
Synchrony Financial
81.00
10.39
14.71%
PYPL
PayPal Holdings
61.66
-7.27
-10.55%
OMF
OneMain Holdings
65.68
11.52
21.27%
SOFI
SoFi
18.29
-5.94
-24.52%
Western Union Corporate Events
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...
Business Operations and StrategyPrivate Placements and Financing
Western Union Extends Term Loan Drawdown Commitment Period
Positive
Jun 24, 2026
The Western Union Company has amended its existing Delayed Draw Term Loan Credit Agreement, originally dated January 9, 2026, with a First Amendment executed on June 17, 2026. The amendment, arranged with a syndicate of banks and Bank of America, ...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Western Union Shareholders Back Board, Pay and Stock Plan
Positive
May 18, 2026
At its May 14, 2026 annual meeting, Western Union shareholders elected all nominated directors to one-year terms and gave advisory approval to the compensation of the company’s named executive officers. Investors also ratified Ernst Young L...
Private Placements and Financing
Western Union Expands 2029 Debt Through New Note Offering
Positive
May 5, 2026
On May 5, 2026, Western Union completed an offering and sale of $165 million aggregate principal amount of 4.750% notes due 2029 as an additional issuance to its existing 2029 notes series. The new notes, issued under its shelf registration and ex...
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.