Western Union Co (WU) Stock Analysis
Verdict: AVOID
Severe earnings misses and structural revenue contraction outweigh a low 5.6x P/E and 10.3% yield, threatening dividend safety by 2027.
Investment score: 35/100
Analysis as of
Is Western Union Co stock worth reviewing? AI model thesis
The model evaluates Western Union as a high-risk value trap. Structural fee compression and earnings degradation threaten its 10.26% dividend yield, making the stock unappealing despite a low 5.86x P/E ratio.
7-factor investment score
- Valuation: 65/100 (weight 20%)
- Financial Health: 35/100 (weight 15%)
- Technical Momentum: 30/100 (weight 15%)
- Earnings Quality: 20/100 (weight 15%)
- Insider Sentiment: 25/100 (weight 10%)
- Analyst Consensus: 20/100 (weight 10%)
- Risk-Adjusted Return: 30/100 (weight 15%)
Western Union Co opportunities and risks
What speaks for WU
- Deep Value Multiples vs Peers
What speaks against WU
- Accelerating Earnings Degradation & Dividend Cut Danger
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| WU | 5.9x | 0.6x | 4.3x | 33.0% | 9.8% | 17.6% |
| SEZL | 24.7x | 7.5x | 18.8x | 90.8% | 30.4% | 8.2% |
| FOUR | 75.6x | 0.9x | 9.4x | 35.9% | 1.9% | 11.7% |
| NATL | 17.6x | 0.8x | 7.6x | 25.3% | 4.4% | 3.1% |
| EEFT | 9.7x | 0.6x | 3.3x | 33.8% | 6.6% | 3.6% |
| PAYO | 50.4x | 2.2x | 11.6x | 78.0% | 4.6% | 6.8% |
| Peer median | 24.7x | 0.9x | 9.4x | 35.9% | 4.6% | 6.8% |
Frequently asked questions about Western Union Co (WU)
Is WU stock a good investment?
The cached TradeMates AI model rates Western Union Co as AVOID with an investment score of 35/100. The model evaluates Western Union as a high-risk value trap. Structural fee compression and earnings degradation threaten its 10.26% dividend yield, making the stock unappealing despite a low 5.86x P/E ratio. This is algorithmic model output, not personal investment advice.
Is WU stock a buy?
The TradeMates model verdict for WU is AVOID with an investment score of 35/100. Treat this as a model signal to review, not a personal buy recommendation.